EPS figures calculated from Net Profit / 5,778,000,000 shares outstanding. DEYAAR share price as of 25 Jan 2009 was 0.48 dhs, so 2008 estimated PE is about 0.48 / 0.24 = 2.0, based on Q4 earnings, and 2008 PE based on FY earnings is 0.48 / 0.19 = 2.5, which makes shares look a little more expensive.
Are Deyaar shares a bargain at these low PEs? That's hard to say, like it will be for most companies, at least until we get more comprehensive data. So far all that was supplied was a press release without even Balance Sheet figures, let alone any sort of Income Statement or Cashflow Statement. We don't know how much cash Deyaar has, or what proportion of revenue is real money and what is from revaluation. The Net Profit figure will probably need some adjustment also as it appears to include Minority Interests which are not attributable to shareholders. It probably won't be a significant difference though. Proposed dividends and AGM date were not supplied.
Deyaar said in the release that "The fourth quarter numbers are inclusive of the portfolio revaluation and adjustments made in line with current market conditions." That may not mean so much since by all accounts, property prices are plummeting in Dubai through January 2009 so any property valuations from October to December 2008 could be significantly overstated compared to current prices (and probably falling prices through 1Q 09).
The Deyaar Chairman, Nasser Bin Hassan Al Shaikh, said "Todays announcement reaffirms Deyaar's extrememely strong fundamentals and sound growth strategy". So that's alright then. Mr Al Shaikh is also Director-General of the Dubai Department of Finance.
Deyaar shares rose 4.35% to AED 0.48 today, while the DFM index was up 1.1%. Deyaar preliminary results press release was released on the DFM website after market closed.
Deyaar announces record 2008 net profit of AED 1.104 billion, up 105 per cent
Full-year revenues reach AED 2.973 billion, up 136 per cent from AED 1.259 billion in 2007
Q4 2008 profits rise to AED 343 million, up 59 per cent compared to Q4 2007
Q4 2008 revenues reach AED 676 million, up 10 per cent compared to Q4 2007
Debt-to-equity ratio reduced to 8 per cent; company well positioned to capitalise on growth opportunities in 2009
Dubai: Further demonstrating its continuing financial strength, Deyaar Development PJSC (DEYAAR), one of the region’s fastest growing real estate companies, announced today its financial results for 2008. For the 12-month period ending December 31, 2008, Deyaar reported net profits of AED 1.104 billion, an increase of 105 per cent compared to AED 540 million achieved in the previous year. During the same period, the company’s revenues reached a record AED 2.973 billion, a substantial increase of 136 per cent compared to revenues of AED 1.259 billion the previous year.
Deyaar also announced today its financial results for the fourth quarter of 2008, including net profits of AED 343 million for the three months ending December 31, 2008, up 59 per cent compared to AED 216 million during the same period in 2007. The company’s revenues for the fourth quarter of 2008 reached AED 676 million, up 10 per cent compared to AED 617 million during the corresponding period in 2007. The fourth quarter numbers are inclusive of the portfolio revaluation and adjustments made in line with current market conditions.
Commenting on these results, H.E. Nasser Bin Hassan Al-Shaikh, Director-General of the Dubai Department of Finance and Chairman of Deyaar, said: “Today’s announcement reaffirms Deyaar’s extremely strong fundamentals and sound growth strategy. Despite challenges facing the global financial markets and the real estate sector worldwide, Deyaar has continued to demonstrate consistent growth by focusing on its core competencies and managing its resources in line with changing market requirements.
“A total of nine projects were launched last year by the company, all of which received an exceptional response from investors and homebuyers. This is testament to the high level of trust and confidence in Deyaar properties, as we continue meet and exceed the expectations of our clients. Deyaar remains well positioned to consolidate its current growth and capitalise on emerging opportunities both in the region and worldwide.”
Markus Giebel, Chief Executive Officer of Deyaar, said: “Our net profit more than doubled in 2008 and grew by 10 per cent in the fourth quarter of 2008 over our net profit in the third quarter of 2008 despite growth challenges to the real estate sector at large. We have witnessed consistent balance sheet performance throughout the year, and our stability is clearly reflected in the company’s stellar financial performance and admirable debt-to-equity ratio. With a view to strengthen the company’s capital position even further, we have decreased our debt-to-equity ratio to eight per cent, enabling Deyaar to have one of the lowest debt ratios in the market. We continue to remain well capitalised and have carefully reviewed the market to align our resources in line with areas where we see optimum potential and maximisation of shareholder value in 2009.
“Deyaar is already working with a strategy of product diversification, focusing on underserved markets, alongside its high-end projects. The move to develop larger, mixed-use communities has clearly succeeded as we continue to see increasing interest from investors and end-users alike. In 2009, we will maintain our focus on building communities in line with current market needs, leasing and asset management, and fund management, while also expanding our reach to enter emerging high-growth markets in the region and beyond. We feel strongly that there is a need for middle-income housing, and we will strive to accommodate this market need as the company moves forward with its 2009 growth strategy.”
Following its extremely successful initial public offering in May 2007, which was oversubscribed 14 times, Deyaar Development PJSC was incorporated on July 10, 2007. All of the figures announced by Deyaar today reflect both the company’s pre- and post-incorporation activities.
i believe that deyaar profits looks great . but the real question is how mush revenue (sales) did deyaar make , in the 3rd quarter sales increased 371 % in comparison to the 3rd qtr of 2007 . but when it came to the 4th quarter its only an increase of 9 % if compared to 4th qtr of 2007 . ofcoarse the revenue of a company is the main driving force of its earnings . its clear how things are going bad , because if you can't sell you can't gain , and i belive that the 1st qtr of 2009 will be mush worse. realestate shares are not a bargin even if the prices of shares are indicating othewise , and i belive they will take time to recover .
search for the new stars , realestate companies are the stars of the past
Hello limitup and welcome to the falling-star UAE stock forums - I like the username choice .
Yes, a press release with headline profits only is not that useful at the best of times, but it is especially important now for companies to make an effort with their disclosures and provide their owners with better information i.e. complete financial statements (and it's not as if they can't - before producing the press release, the Deyaar BOD have already reviewed them). At present we have no idea of the quality of Deyaar earnings, except what the market tells us by way of Deyaar's share price ... which is not encouraging. _________________ UAE IPO list | posting guidelines
(DEYAAR): Announces the resolutions of its AGM held on 22/03/2009 and postponing its EGM for the lack of quorum
No further information supplied. It looks like no dividends for Deyaar shareholders this year (but I'm not sure). _________________ UAE IPO list | posting guidelines
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
Disclaimer: Investing in stocks is risky, you can lose some or all of your money and/or other assets. Anything you read on this site should be regarded as the opinion of the author only and is not to be taken as advice to buy, sell, or hold stocks and/or any other investments. Seek professional advice and do your due diligence before making investment decisions. In particular, do not assume anything you read on this site is correct or accurate. You should accept that only you can be responsible for any investing decisions you make.
2008 FY
FAQ
Search
Print-friendly
Profile
Private messages
Register
Log in
.
