Thursday 03 Apr
According to a research from Mubasher for Securities Trading, Talaat Moustafa Holding Group's fair value is estimated at an average of 91.4 EGP per share, suggesting a potential 78.2% growth by 2025. This assessment considers the company's anticipated sales revenue over a five-year period, as well as its hospitality sector income.
According to Mubasher's 2025 forecast report, Talaat Moustafa Holding Group is expected to achieve significant growth. This is attributed to strategic sector expansion, successful foreign currency revenue generation, and the leveraging of growth opportunities within neighbouring, regional markets.
In 2024, TMG Holding reported a substantial 220.5%
year-over-year surge in basic earnings per share, reaching 4.68 EGP. This
growth was primarily attributed to a 223.6% increase in net profit, which
climbed to 10.7 billion EGP. Revenues also saw a significant rise, increasing
by 50.1% to 42.7 billion EGP. Consequently, the net profit margin more than
doubled, from 11.7% in 2023 to 25.1% in 2024. Adjusted earnings per share also
experienced a 223.9% year-over-year increase, reaching 5.2 EGP.
The report pointed to the reasons behind the increase in net
profit during 2024: Firstly, the growth of hotel sector revenues by 224.7%
year-on-year, reaching 11.5 billion EGP, thanks to the addition of 2,500 hotel
rooms, bringing the total to 3,500 hotel rooms, as a result of the acquisition
of the seven historical hotels. Secondly, recording a surplus from the re-evaluation
of real estate investments amounting to 4.9 billion EGP. Thirdly, recording net
profits resulting from the hotel companies consolidation process amounting to
718.8 million EGP.
The report highlighted the reasons for the growth of Talaat
Moustafa Group's revenues during 2024, mainly due to the growth of all company
sectors.
Real estate sector revenues increased by 13.6% year-on-year,
reaching 24.5 billion EGP during 2024, contributing 57.5% of total revenues,
compared to 75.9% during the comparative period. This is attributed to the rise
in prices due to the increased cost of building materials amid a high-inflation
environment.
The group's total contractual sales tripled by 3.5 times,
reaching 504 billion EGP during 2024, including contractual sales of 177.7
billion EGP, other contractual sales of 45.5 billion EGP, and contractual sales
of the SouthMED project of 280.8 billion EGP. Additionally, undelivered sales
surged by 102.8%, reaching 294 billion EGP, indicating strong future revenue
potential.
In 2024, the TMG's hotel sector experienced exceptional
growth. Hotel sector revenues skyrocketed by 224.7% year-over-year, reaching
11.5 billion EGP and contributing 26.9% to the group's total revenues. The expansion of the sector's gross profit
margin by 1542 basis points year-on-year, reaching 58.8% in 2024. Furthermore,
recurring revenues from the hotel sector doubled, increasing by 101% to 6.6
billion EGP, which accounted for 15.6% of total revenues.
Talaat Moustafa Holding Group experienced a remarkable 683.2% growth in liquidity, increasing net cash and cash equivalents, registering 50.9 billion EGP by the end of 2024, compared to 6.5 billion EGP by the end of 2023. The company recorded a net cash/equity ratio of 38.7% by the end of 2024, up from 16.7% in 2023.
