Heliopolis Housing announced that its Board of Directors had met on 15 June to discuss proposals from a number of local banks to enter a receivable factoring contract for a total amount of EGP247.1mn. The following is of note:   The best offer received by the company carries a discount rate of 13.5%, implying a discounted value of EGP179.4mn for Heliopolis Housing This represents an upside risk to our numbers, in case the agreement is signed before close of quarter. We expect EGP529mn in revenue in FY15/16e, implying EGP61.0mn for 4Q15/16e and net income figures of EGP302.0mn and EGP21.5mn, respectively The closure of the agreement gives more confidence to our assumption of a dividend hike for FY15/16e to EGP2.5/share (implies a dividend yield of 5.3%), given the boost in liquidity. The company had already proposed EGP1.35/share for 1H15/16 profits, which also supports our DPS estimate for the year The company had closed a similar transaction earlier this year, worth cEGP320mn   We believe the purpose of such transactions is to boost liquidity to finalise the ongoing projects, ahead of further engagement in projects under the new business model, which we view positively. We highlight the contract signed with SODIC for the co-development of 655-acre land in El-Sherouk City as a major step towards the adoption of the new model and await the project’s launch, scheduled for early 2017. We reiterate our ‘Buy’ rating on the name, which offers a very wide upside to our FV of EGP74.38/share, despite the heavy 70% discount applied to our calculated NAV. (Company disclosure, Mai Attia, Sara Boutros)   Heliopolis Housing: EGP47.53 as of 16 June 2016, Rating: Buy, FV: EGP74.38 per share, MCap: USD596 million, HELI EY / HELI.CA