Heliopolis Housing announced its financial headline figures for 1Q16/17. Revenue was EGP85.5mn (-10.9% Y-o-Y, +6.9% vs. EFGe), while net income came in at EGP25.8mn (-49.7% Y-o-Y, -35.5% vs. EFGe). The reported numbers indicate no major land or receivable securitisation transactions. We await the release of the full statements to be able to identify the reasons behind the poor earnings figure, which is not of a concern to us.   Heliopolis Housing is one of our top picks in Egypt, standing out as a safe investment opportunity, in a backdrop of a relatively cautious sector view on emerging affordability concerns. Having access to 32.6mn sqm of land in prime locations, we expect the company’s asset base to increase in value in the current inflationary environment. We believe the company is on track for migration into the more common off-plan business model, which would trigger faster monetisation of value. The launch of Heliopolis Housing’s co-development project with SODIC (set for early 2017) will mark a major milestone towards the ongoing shift in business model and would act as a major stock trigger, in our view. We reiterate our Buy rating on the name, with a healthy upside potential of 45%. (Company disclosure, Mai Attia, Sara Boutros)   Heliopolis Housing: EGP54.70 as of 20 October 2016, Rating: Buy, FV: EGP75.30 per share, MCap: USD685mn, HELI EY / HELI.CA