Heliopolis Housing announced that its shareholders had approved the distribution of a cash dividend of EGP2.70/share (board proposed amount: EGP3.00/share, EFGe: EGP2.50/share). This implies a pay-out ratio of c75% (slightly higher than the three-year trailing average of c66%) and a dividend yield of 4.6% on the latest closing price. The payment will be made over two instalments, one (EGP1.50/share) within one month from the ratification of the EGM and the balance (EGP1.20/share) in March 2017. The company’s shareholders have also approved a stock split of 4:1, upon its completion the number of shares would quadruple to 445.0mn. EGX listing regulations require the stock split procedures to be concluded within one month from the EGM date.   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 the 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 30%, despite the recent stock outperformance. (Company disclosure, Mai Attia, Sara Boutros)   Heliopolis Housing: EGP58.75 as of 30 October 2016, Rating: Buy, FV: EGP75.30 per share, MCap: USD736mn, HELI EY / HELI.CA