Heliopolis Housing announced its financial headline figures for 1H16/17. Revenue came in at EGP294.1mn (-29.7% Y-o-Y), while gross profit was EGP223.2mn (-37.0% Y-o-Y), and net income EGP132.2mn (-48.8% Y-o-Y). This implies EGP208.7mn in revenue (-35.3% Y-o-Y, +144.2% Q-o-Q, +15.9% vs. EFGe), EGP178.8mn in gross profit (-37.8% Y-o-Y, +302% Q-o-Q) and EGP106.4mn (-48.6% Y-o-Y, +312.5% Q-o-Q, +77.4% vs. EFGe) in net income. Comparable figures are strong in 1H15/16 and 2Q15/16, as cEGP200mn worth of factoring proceeds were booked in revenue boosting up the two period’s sets of numbers. The earnings beat may have come on the booking of a land transaction, given the high gross profit margin for the quarter (85.7%). We note that Heliopolis Housing announced that it had signed late in December a receivable factoring contract (with resource) with a local bank, for a total amount of EGP394.5mn and a discounted value of EGP297.3mn. We doubt that these amounts were booked during the quarter and, thus, expect them to be booked in 3Q16/17. We await the release of the full statements to confirm.   We continue to see strong fundamental value in Heliopolis Housing, despite the recent rally, in a backdrop of a more cautious sector view on increasing concerns over costs and affordability. 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 continue to be buyers of the name, with a big room for upgrades.   Heliopolis Housing: EGP28.22 as of 19 January 2017, Rating: Buy, TP: EGP24.75 per share, MCap: USD670mn, HELI EY / HELI.CA