1. Today’s Trading Playbook
Kareem Farid | Equity Analyst
KEY THEMES
Yesterday, we issued our Core Coverage Report on Al-Shams Housing & Development [ELSH] with a 12-month price target (12M PT) of EGP5.9/share, offering an upside of +27% based on Thursday’s close of EGP4.62/share. Our valuation is built on four main pillars deemed crucial to ELSH’s value, namely (1) the launch of ELSH’s Solana, its new capital project, in 2021, (2) ELSH’s gains from a decree to redesign a service area into nine commercial plots, (3) a collection-based agreement (46%) with Mirad from the remaining areas in its Sixth of October City project Gardenia, and finally (4) ELSH’s ownership of a strong inventory in strategic locations with a market to book value of 5.8x, around c. EGP1bn.
positive
ELSH: ELSH’s value is derived from the launch of its newest projects, Solana, in addition to Gardenia collection agreement.
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