EARNINGS WATCH- SODIC’s net income after minority interest almost tripled y-o-y in 2Q2021, reaching EGP 122 mn compared to EGP 42 mn in the equivalent period last year when the covid lockdown hit the company’s sales, according to the company’s earnings release (pdf). Revenues rose 39% to EGP 1 bn from EGP 735.6 mn in 2Q2020.

The lockdown quarter was tough on the company: The company’s net income fell 77% during 2Q2020, which coincided with the government’s three-month lockdown during the initial wave of the coronavirus. Gross sales slumped 33% as consumer demand fell and cancellations rose.

It was a different story in 2021: Gross contracted sales rebounded in 2Q2021, nearly doubling to EGP 1.9 bn from last year. More than half of sales were in the company’s The Estates and Karmell developments in west Cairo, while the remaining 48% were in east Cairo. The SODIC East project was the single-biggest contributor to earnings, accounting for 29% of the company’s sales. Cancellation rates were slightly down from 2Q2020, representing 10% of total gross contracted sales, down from 13% last year.

IN OTHER MARKET NEWS-

Pharos Securities has its name changed to Al Ahly Pharos Securities, according to an EGX statement (jpg) out this morning. The brokerage was sold to National Bank of Egypt-owned Al Ahly Capital in late 2019 in a transaction reportedly worth EGP 120 mn.

MARKET ROUND-UP

The EGX30 rose 1.04% at today’s close on turnover of EGP 2.3 bn (38.2% above the 90-day average). Regional investors were net buyers. The index is up 2% YTD.

In the green: Pioneers Holding (+8%), AMOC (+8%) and Egyptian for Tourism Resorts (+6.7%).

In the red: Egypt Kuwait Holding (-1.1%), Cleopatra Hospitals (-0.7%), and Raya Holding (-0.4%).