Solid real estate sales and strong hotel revenue * ORHD achieved solid 1Q23 sales of EGP2.8 billion, up 35.9% y/y and down 28.2% q/q, the company’s highest ever 1Q sales figure. Out of 1Q23 sales, El Gouna contributed EGP1.2 billion, up 33.5% y/y, O West contributed EGP1.1 billion, up 8.6% y/y, and Makadi Heights contributed EGP490.3 million, up 232.9% y/y. In 1Q23, average selling price grew 68.0% y/y to EGP129,966/sqm in El Gouna, 61.3% y/y to EGP56,069/sqm in O West, and 23.6% y/y to EGP4...
HOSPITALITY SEGMENT BACK TO PEAK LEVELS * Hospitality performance in 2022 was back to peak 2019 levels, if not higher, in line with management’s goal to restore 2022 performance to 2019 levels, with a target to exceed these levels in 2023. * Management is optimistic on the hospitality side, with 4Q22 having been strong and momentum continuing into 2023, backed by hotel renovations that took place over the last couple of years, with plans to continue renovations in 2023. * ORHD as a...
Solid real estate sales and stellar top and bottom lines * ORHD achieved solid 3Q22 sales of EGP2.6 billion, up 17.0% y/y and down 2.2% q/q, bringing 9M22 sales to EGP7.3 billion, up 16.9% y/y. Out of 3Q22 sales, O West contributed EGP1.1 billion, up 15.0% y/y, El Gouna contributed EGP1.2 billion, up 19.9% y/y, and Makadi Heights contributed EGP304.9 million, up 12.6% y/y. In 3Q22, average selling price grew 21.4% y/y to EGP38,251/sqm in O West, 19.3% y/y to EGP71,133/sqm in El Gouna, and 19...
Merits of EGP weakness. The benefit comes in three forms: enhanced value of El Gouna’s pending collections, higher hotel revenue and profitability, and an upward revaluation of FCY assets. ODE’s FCY debt partially offsets the positivity, albeit with a delayed cash flow impact – in the absence of significant debt repayments until at least 2024e. Any EGP weakness, however, would be net income/valuation-neutral, in our view, considering the net negative balance sheet revaluation impact.Growing FCY ...
STRONG REAL ESTATE SALES AND HOTEL REVENUE * ORHD achieved strong 2Q22 sales of EGP2.7 billion, up 39.4% y/y and 31.3% q/q, bringing 1H22 sales to ORHD’s highest ever first-half sales of EGP4.7 billion, up 16.9% y/y. Out of 2Q22 sales, O West contributed EGP1.4 billion, up 127.4% y/y, El Gouna contributed EGP1.1 billion, up 8.6% y/y, and Makadi Heights and Byoum contributed EGP157.2 million, down 42.3% y/y due to ORHD deliberately slowing down sales in the destination until the land issue wi...
STABLE REAL ESTATE SALES AND HIGHER BOTTOM LINE * ORHD reported stable 1Q22 sales of EGP2.0 billion, down 3.6% y/y and down 32.0% q/q. Out of 1Q22 sales, El Gouna contributed EGP861.8 million, O West contributed EGP1.0 billion, and Makadi Heights and Byoum contributed EGP146.9 million. Number of units sold in 1Q22 decreased 25.1% y/y and 44.1% q/q to 266 units. Average selling price in 1Q22 increased 27.1% y/y to EGP77,355/sqm in El Gouna, 17.7% y/y to EGP33,336/sqm in Makadi Heights and Byo...
IMPRESSIVE GROWTH IN REAL ESTATE SALES AND HOTEL REVENUE * ORHD reported stellar 4Q21 sales of EGP3.0 billion, up 61.4% y/y and up 34.0% q/q, bringing FY21 sales to EGP9.2 billion, up 48.8% y/y. Out of FY21 sales of EGP9.2 billion, El Gouna contributed EGP4.0 billion, O West contributed EGP4.0 billion, and Makadi Heights and Byoum contributed EGP1.2 billion. Sales growth was supported by an increase in the number of units sold and an increase in the average selling price in all destinations....
A STRONG YEAR OF SALES * ORHD’s sales in FY21 reached a company record of EGP9.2 billion, up 48.8% y/y. Sales growth was supported by an increase in number of units sold and an increase in average selling price in all destinations. Number of units sold in FY21 reached 1,455 units, up 53.5% y/y. Average selling price in FY21 increased 8.2% y/y to EGP61,193/sqm in El Gouna, 63.7% y/y to EGP30,339/sqm in Makadi Heights and Byoum, and 19.9% y/y to EGP30,651/sqm in O West. * Sales in 4Q21 re...
REAL ESTATE TO CONTINUE TO BE VIEWED AS A STORE OF VALUE We believe real estate will continue to be viewed as a store of value, especially in light of expected higher inflation in 2022. In terms of interest rates, we continue to view the relationship between real estate and interest rates as one based on market sentiment, whereby expected higher interest rates in 2022 would be negative, and reiterate our view that, while certificates of deposit may present competition to real estate as an inv...
REAL ESTATE SALES RISE AND HOTEL REVENUE CONTINUES UPTREND ORHD reported impressive 3Q21 results, with sales reaching EGP2.2 billion, up 50.3% y/y and 16.5% q/q, bringing 9M21 sales to EGP6.2 billion, up 43.4% y/y. The y/y growth in 3Q21 sales was supported by the 24.3% y/y increase in number of units sold to 332 units and the 6.4% y/y increase in average selling price in El Gouna to EGP59,650/sqm, the 84.3% y/y increase in average selling price in Makadi Heights to EGP30,920/sqm, and the 26....
ORASCOM DEVELOP (EG), a company active in the Hotels industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 3 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date November 12, 2021, the closing price was EGP 5.60 and its...
REAL ESTATE SALES RISE AND HOTEL REVENUE SURGES FROM LOW 2Q20 LEVEL * ORHD reported solid 2Q21 results, with sales reaching EGP1.9 billion, up 43.1% y/y and down 9.2% q/q, bringing 1H21 sales to EGP4.0 billion, up 39.8% y/y. The y/y growth in 2Q21 sales was supported by the 90.8% y/y increase in number of units sold to 292 units and the 12.8% y/y increase in average selling price in El Gouna to EGP61,032/sqm, the 69.6% y/y increase in average selling price in Makadi Heights to EGP28,311/sqm,...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Several reasons to favour the stock. We look for robust growth (FY21-23e revenue CAGR: +30.8%, margin expansion: +14.1pp), as the FY18-20 contracted sales CAGR of c65% reflects on the reported numbers, further boosted by expected recovery within hotels. We also like ODE’s: i) solid track record and capable management, ii) diverse offering/revenue sources, iii) limited debt repayment needs through FY24, iv) sufficient land bank, and v) attractive valuation (EV-to-receivables at a c60% discount to...
A FANTASTIC QUARTER SUPPORTED BY REAL ESTATE * ORHD achieved 1Q21 sales of EGP2.1 billion, up 37.1% y/y and 13.8% q/q and higher than our expectation of EGP1.7 billion. The growth in 1Q21 sales was both volume and price-driven, given the 47.9% y/y and 23.3% q/q increase in sold units to 355 units and the 12.5% y/y increase in average selling price in El Gouna to EGP60,856/sqm, the 69.6% y/y increase in average selling price in Makadi Heights to EGP28,311/sqm, and the 24.8% y/y increase in av...
In our 12-page report, we discuss charts that show three components: * Daily stock price over the last five years (January 3, 2016, to March 17, 2021) * Full-year real estate sales over the last five years (FY16 to FY20) * Price-to-sales (P/S) The charts cover seven real estate companies: MNHD, TMGH, PHDC, EMFD, ORHD, OCDI, and HELI. The sales data is depicted by the yellow bars which are placed at the end of each year given that the sales data represents full-year sales....
SOLID PERFORMANCE SUPPORTED BY REAL ESTATE * ORHD’s 4Q20 sales grew 32.4% y/y and 24.8% q/q to EGP1.8 billion, bringing FY20 sales to EGP6.2 billion, down 10.7% y/y. In line with our view that coastal projects would deliver solid sales in 2020 amid Covid-19 circumstances, FY20 sales in El Gouna and Makadi Heights grew 10.6% y/y and 12.6% y/y, respectively, while FY20 sales in O West declined 23.3% y/y. The increase in 4Q20 sales was both volume and price-driven, given the 14.7% y/y and 7.9%...
HOTELS CONTINUE TO FACE CHALLENGING TIMES * Making use of the Central Bank of Egypt’s program to support the tourism sector, ORHD pushed EGP380.0 million in 1H20 interest and principal payment forward, opened a USD50.0 million credit line at the 8.0% preferential interest rate to be used over the next two years to renovate hotels, and is looking into the 5.0% interest rate financing option to fund working capital. * In November 2020, ORHD signed a USD265.0 million seven-year term loan t...
HOTEL REVENUE UP SEQUENTIALLY; SALES UP ANNUALLY AND SEQUENTIALLY Following a challenging 2Q20 that had borne the brunt of the Covid-19 hit in the form of closure of hotels from March 19, 2020, to May 15, 2020, at which point hotels were allowed to reopen at a 25.0% cap that was later raised to 50.0% on June 1, 2020, ORHD‘s hotel revenue increased 683.6% q/q to EGP100.3 million, but was expectedly down 74.2% y/y. TRevPAR in El Gouna hotels declined to EGP477 in 9M20 from EGP1,372 in 9M19, and...
Real estate sector fares better than previously indicated signs. Stocks across the board were impacted by COVID-19, especially in the real estate sector (-25% y-t-d vs. -20% for the EGX). The impact on the ground, however, has not been as negative as early signs indicated. Stronger-than-expected 1H20 performance and improved access to financing (300bps cut), along with earlier-than-expected removal of state banks’ 15% CDs (maturing Mar-21, potential flows into RE sector) are all pillars for the ...
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