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AEDAS HOMES: 2Q’20 RESULTS (ANÁLISIS BANCO SABADELL)

2Q'20 vs. 2Q'19 Results:
Sales: € 39.0 M (vs. € 44 M BS(e) and € 36 M consensus);
EBITDA: € -0.7 M (vs. € 2 M BS(e) and € -0.7 M consensus);
Net Profit: € -4.2 M.
1H'20 vs. 1H'19 Results:
Sales: € 66.2 M (+41.5% vs. +51.9% BS(e) and +35.9% consensus);
EBITDA: € -2.3 M (€ -8.4 M in 1H'19 vs. € 0.4 M BS(e) and € -1.4 M consensus);
Net Profit: € -8.3 M (€ -10.0 M in 1H'19 vs. € -4.8 M BS(e) and € -7.2 M consensus).

The results are basically in line with expectations on the commercial level (396 presales in 2Q’20 vs. 397 BS(e)) and below in the P&L statement, although with figures that due to seasonality are low, and should not be representative of what we should expect for the full year. Deliveries totaled 109 units, equivalent to € 35 M (vs. € 44 M BS(e)), to which we must add € 4 M of land sales with a joint gross margin of 24%. Both the deliveries figure and the margin are not representative of what is to be expected for the full year (note that this is Q2 after the calendar modification), which should improve as the year goes on.
95% and 56% of deliveries forecast for the years ending in March’21 and March’22 have already been presold. AEDAS reiterates its guidance of deliveries for the coming years.
NAV ended the half-year with a -3% drop at € 33.70/sh., in line with the company’s suggestion made in October. The company confirms the payment of a € 1.00/sh. dividend (5.3% yield) to be paid after the end of the fiscal year (March’21).
We do not expect a relevant impact from these results that are reasonably good in presales and weak in P&L, although not highly representative of what we can expect for the full year (ending in March’21). BUY. T.P. € 21.23/sh. (potential +12.45%).