Weak core, development and financial income saved bottom line

In short:
Although headline numbers looked decent with profit up by 36% yoy, under the hood there is very
fragile financial numbers from core operation (-40% yoy) - excluding profit from development.
Nevertheless, Management confirmed a FY core profit guidance of HUF 1.8bn (EPS: 51) vs HUF
0.3 bn (EPS:9) - which needs stronger quarters later to meet.
Please note that without financial income (HUF 570 mn) and development profit (of HUF 480 mn)
bottom line would have been in deep red (reported profit: HUF 700m).
 Key positives of the Q3 report:
o Earning’s cushions of the development segment and the financial income worked
well
o Management sees the signs of turnaround in activity though the pace of recovery
is uncertain – HU transaction numbers were indeed strong in May
o Despite the weakness in core operation, DH has a decent strategic option as the
co is awash with cash.
 Key negatives of the Q3 report:
o Without the cushions profit would be in the red