Dubai-Mubasher: MubasherTrade Research (MTR) kept the price target (PT) of Emaar Properties at AED 9.48, while maintaining “Buy” recommendation, according to a statement.
The company’s net profits grew 7.7% year-on-year in the second quarter of 2016 to AED 1.27 billion, beating consensus by 17%. The profits rise was mainly backed by higher revenues and profits from associates.
Total revenues increased 6.6% year-on-year to AED 3.73 billion in Q2-16, beating consensus by 7.5%.
MTR attributed the developer’s strong performance to focusing on the timing of construction schedule that contributed to higher revenues recognition, as well as reporting AED 32 million profits from associates in Q2-16.
"Going forward, we believe that EMAAR's recurring revenues growth will be driven by Emaar Malls Group's (EMG) expansion plan to add 845,000 sq ft of retail spaces in addition to the ambitious plan to add 3,374 hotel rooms in UAE," the statement highlighted.
