Palm Hills Developments (PHD) reported its financial results for 3Q16. Net contracted sales was EGP1.9bn in 3Q16 (+1.2% Y-o-Y, +112.2% Q-o-Q) and EGP4.7bn in 9M16 (+10.8% Y-o-Y). Gross contracted sales was flat Y-o-Y at EGP2.1bn in 3Q16 (+71.2% Q-o-Q) and up 18.1% Y-o-Y in 9M16 to EGP5.5bn. Revenue was EGP1.5bn in 3Q16 (+34% Y-o-Y, +48.5% vs. EFGe) and EGP3.6bn in 9M16 (+40.3% Y-o-Y). Gross profit was EGP517mn (+68.0% Y-o-Y), translating into a Gross Profit Margin (GPM) of 35% (+7pps Y-o-Y). 9M16 gross profit was EGP1.1bn (+21.0% Y-o-Y), translating into a GPM of 30% (-5pps Y-o-Y). Net income was EGP235.0mn in 3Q16 (+59% Y-o-Y, +65% vs. EFGe) and EGP404.3mn in 9M16 (-46% Y-o-Y, adjusted: +26.0% Y-o-Y). (Company disclosure, Mai Attia, Sara Boutros)   Palm Hills: EGP2.39 as of 03 November 2016, Rating: Buy, FV: EGP3.06 per share, MCap: USD386mn, PHDC EY / PHDC.CA