Talaat Moustafa Group (TMG) has sent a release to the EGX stating that it was not formally notified of NUCA’s decision to discontinue granting new building licences in Madinaty. We note that the delay in finalising new building permits to the company had been a persistent problem for TMG since 2015, which had weighed down on its contracted sales during the past two years, especially when compared to its peers. It is worth noting that given the agreement between the company and NUCA regarding the in-kind payment (in terms of housing units) in return for the land, the company goes through the process of finalising the built-up area once a new phase is to be launched. The company still has inventory to launch for the rest of the year, giving time for new permits to be finalised. (Company release)   TMG Holding: EGP8.13 as of 5 Feb. 2017, Rating: Buy, TP: EGP12.40/share, MCap: USD911mn, TMGH EY/TMGH.CA