Deyaar (DEYAAR) announced profits of AED 75m for 2009 Q2 this afternoon, after the market closed. A drop of 70% from AED 250m for 2008 Q2, but an increase of 38% on 2009 Q1 profits of AED 54 million. Deyaar shares fell 1.4% to AED 0.70 today, the DFM index fell 0.12%. Press release in next post.
[edit] Updated with SW report summaries, calculations, and comments ... [/edit]
PE (annualised) 11.6 18.2 13.4 15% -26% 12.8 15.7 23%
Price to Book Value (PBV) 1.7 0.5 0.5 -68% 3.4% 1.7 0.5 -68%
Profit Margin (ROS) 30% 11% 19% -37% 66% 35% 15% -58%
Return on Assets (ROA) 10% 1.9% 2.7% -74% 43% 9.2% 2.3% -75%
Return on Equity (ROE) 15% 2.9% 4.1% -73% 40% 14% 3.5% -74%
PE, ROA, and ROE are annualised figures
Limited information supplied in Deyaar press release (no breakdown of income sources, unkonwn if Net Profit includes Minority Interests or not, no information about foreign currency adjustment to Net Profit as in 2009 Q1, no financial statements supplied), Total Assets have fallen from 2009 Q1 figure of AED 11.410 billion to AED 11.3 billion but it's not clear why from the press release. Shareholder's Equity has increased slightly from AED 7.327 billion in 2009Q1 to AED 7.4 billion.
The question is, like with any company these days, is Deyaar going to survive? And how does the Deyaar share price look?
Well, the position didn't look too good at the end of 2009 Q1, and since then, it's not clear if anything has changed much, but until more complete financial information is supplied, there's not much more we can do in terms of analysis.
The share price, if anything, looks expensive at an annualised PE of close to 16 based on 2009 H1 earnings. Shares might look cheap on a PBV basis of 0.5 but half of Deyaar's assets are either investment properties or properties under construction, and might be on the balance sheet at overly optimistic prices. One would imagine that property under construction that was worth AED 5 billion in June 2008 is surely worth much less than that in June 2009, however Deyaar had over AED 6 billion worth of property at the end of March 2009 according to their balance sheet.
Deyaar reports second quarter net profit of AED 75.40 million
• Q2 gross revenues reach AED 402 million
• Results in line with company forecasts and resource allocation
• Reports positive cash flow
• Over AED 100 million committed towards Deyaar Property Opportunity Fund as seed capital
• Company on course to hand over seven projects this year
Dubai: Deyaar Development PJSC (DEYAAR), a regional real estate company dedicated to innovation, customer care and long-term sustainable growth, announced today its financial results for the three months ending June 30, 2009, demonstrating continued profitability and consistently strong operations across all business units despite challenging market conditions.
Deyaar’s net profit for the three months ending June 30, 2009, reached AED 75.40 million, in line with the company’s earlier forecasts and resource allocation strategy for 2009. This represents an increase of 38 per cent over the company’s net profit of AED 54.48 million for Q1 2009. Deyaar’s gross revenues for Q2 2009 stood at AED 402 million. Deyaar’s total shareholders’ equity stood at AED 7.4 billion, while total assets reached AED 11.3 billion.
The company also reported today that it continues to maintain a positive operational cash flow with sufficient liquidity for the future. In a clear indication of Deyaar’s financial strength, the company noted that it has committed AED 100 million towards the Deyaar Property Opportunity Fund as seed capital as of June 30, 2009.
While the global financial crisis continued to impact the company’s financial performance during the period, Deyaar performed strongly to move forward with its 2009 business strategy, which has been favourably received by all customers and investors.
In line with its commitment to deliver seven projects in 2009, the company delivered five projects in the second quarter of this year, including four residential projects in Dubai Silicon Oasis and Deyaar’s first project in Lebanon. By the end of the year, the company expects to have delivered nearly 4 million square feet of units for 2009. In July, Deyaar will hand over The Citadel, its premium commercial tower in Dubai’s Business Bay. The Citadel is one of the first projects to be delivered in Business Bay, where Deyaar is one of the largest developers.
“On behalf of Deyaar, I am very pleased to note that our financial results for the second quarter have been in line with our expectations and are reflective of our sound fundamentals,” said Markus Giebel, Chief Executive Officer of Deyaar. “Deyaar’s strong balance sheet performance in the first half of 2009 is a validation of our business strategy that has positioned us better to navigate through a challenging market. As a result of our unique approach, we remain on course to achieve our target of delivering seven projects in 2009. We look forward to continue delivering high value and best service to our customers and shareholders.”
First post updated with comments and calculations.
Any comments - either about Deyaar results, or my comments? Any criticism of my calculations especially welcome since I can use that to improve them the next time round . _________________ UAE IPO list | posting guidelines
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