EPS figures calculated from Net Profit / 100,000,000 shares outstanding.
NCTH share price as of 28 Jul 2008 was 13.55 dhs, so 2008 estimated PE is about 13.55 / 1.48 = 9.2, based on Q2 earnings, which is somewhat lower than the average market PE of about 13. 2008 PE estimate based on H1 earnings is 13.55 / 1.35 = 10.0, which is not much more and shares certainly look like much better value than a year ago when NCTH income levels were only an eighth or so of what they are now.
And for a change, the massive improvement in income is not due to stock market income, or sale of a subsidiary, or any other extraordinary income sources that we often see bumping up company results.
NCTH had solid growth in revenue, seemed to keep cost increases under control, that resulted in massive growth in Operating Income which filtered down to a 7 or 8 fold increase in Net Profit compared to this time last year, continuing on from a good performance in the first quarter this year.
Return on Equity is not that exciting at 18% (market average is about 26-27%) but Price to Book Value (PBV) is below market average. Which you'd expect if NCTH owns large assets like hotels.
NCTH shares only saw one small trade today, with share price unchanged at 13.55. Oddly though, the other hotel company listed on the ADX had a bumper day, with shares surging on heavy trading. Yet there was no sign of their results. Surely punters didn't get the two companies mixed up ?
National Hotels Corporation BOD report had a table of results but the formatting was out of whack and I couldn't read it, so I haven't included it here. Rest of the report isn't particularly useful. What did NCTH change in their operations do improve revenues and keep costs down so much ?
ADX 28 July 2008 (pm):
(NCTH) National Corporation for Tourism & Hotels: Discloses its Board Report for the six months ended 30th June 2008
NCTH July 2008:
National Corporation for Tourism & Hotels Board of Directors Report - 30 June - 2008
We would like to present the un-audited financial results of the National Corporation For Tourism and Hotels for the quarter ended 30 June 2008.
Financial Performance:
[edit] Table not included [/edit]
Comments :
Revenues : The revenues have increased by Aed 137.28 million over the same period last year due to the comparative increased business this year especially from the owned hotels generating better occupancy and revenues.
Net Profit : The combined year to date net profit at AED 67,533,127 is above the same period of last year by AED 59,321,733 which materialized mainly due to the increased business in our hotels.
Capital Commitments : The authorized capital expenditure contracted for at the balance sheet date but not provided for amounts to approximately AED 183.58 million.
Subsequent Event : There have been no events subsequent to period end which require adjustment of or disclosure in the interim condensed financial statements or notes thereto.
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