Revenue – EGP1.5bn, +33.8 Y-o-Y, +38.6% Q-o-Q, +48.5% vs. EFGe Gross profit – EGP517mn, +67.8% Y-o-Y, +84.0% Q-o-Q   Net profit – EGP235mn, 58.8% Y-o-Y, +267% Q-o-Q, +66% vs. EFGe Net contracted sales – EGP1.9bn, +1.2% Y-o-Y, +112.2% Q-o-Q, +3.4% vs. EFGe   Palm Hills Developments (PHD) reported its financial results for 3Q16. Net contracted sales were flat Y-o-Y at EGP1.9bn (+112% Q-o-Q), bringing 9M16 total to EGP4.7bn (+10.8% Y-o-Y). Reported numbers were robust, on increased execution/deliveries and increased prices. Also positive was the roughly unchanged leverage position, breaking the trend of four consecutive quarterly rises. Management had indicated that it is the final phase of negotiations to acquire 190 feddans in West Cairo from the Egyptian government and is negotiating the terms and conditions of 6,000 feddan co-development project in West Cairo with NUCA, with an agreement expected prior to year-end. The company is also scheduled to launch its 500-feddan project with NUCA before end of November. We also note that the company is in the process of executing a receivable monetising exercise of up to EGP2.5bn over two-three years, including a securitised bond issuance by up to EGP1bn. The first transaction is expected to close in 4Q16 for a total of EGP350-400mn.   Main positives   Contracted sales meets expectation, totaling EGP1.86bn in 3Q16 (+1.2% Y-o-Y, +112.2% Q-o-Q, +3.4% vs. EFGe) and EGP4.7bn in 9M16 (+10.8% Y-o-Y). c64% of gross sales came from the North Coast, 10% from East Cairo and 26% from West Cairo   Strong reported revenue figure, totaling EGP1.49bn (+33.8% Y-o-Y, +38.6% Q-o-Q, +48.5% vs. EFGe). 9M16 revenue was EGP3.6bn, up 40.0% Y-o-Y Improved gross profit margins to 34.8% (+7pps Y-o-Y, +9pps Q-o-Q), which management attributed to improved execution and increased selling prices Earnings beat 65.5%, mainly on the back of higher revenue. Net income was EGP235mn in 3Q16 (+59% Y-o-Y, +267% Q-o-Q). 9M16 net income was EGP169.3mn (-46.0% Y-o-Y, adjusted: +26.0% Q-o-Q) Rise in leverage muted during the quarter, with total total-debt-to-equity hitting 0.57x in September 2016 (September 2015: 0.42x, June 2016: 0.59x), while net-debt-to-equity reached 0.42x (0.31x and 0.43x, respectively). (Company disclosure, Mai Attia, Sara Boutros)   Palm Hills Developments: EGP2.49 as of 06 November 2016, Rating: Buy, FV: EGP3.06 per share, MCap: USD359mn, PHDC EY / PHDC.CA