Heliopolis Housing has reported its headline figures for the three-month period ending March 2016. Revenue was EGP50.0 million, down from EGP113 million in 3Q2014/15 and EGP322.6 million in 2Q2015/16. This brings 9M2015/16 revenue to EGP468 million, up 39% Y-o-Y, owing to a strong 1H2015/16 on the closure on two factoring exercises worth a combined cEGP320 million. Gross profit was EGP29.5 million, down from EGP81.0 million in 3Q2014/15 and EGP287.8 million in 2Q2015/16. This brings 9M2015/16 gross profit to EGP386.0 million, up 70% Y-o-Y. This translates into a gross profit margin of 82.4% in 9M2015/16 versus 67.2% a year ago. Net income after tax reached EGP22.3 million, versus EGP64.4 million in the corresponding quarter of last year. Both, revenue and net income, came shy of our estimates of EGP130 million and EGP70 million, respectively.   The results miss does not raise our concerns, and we highlight FY2015/16 as a transitionary year, for which lower sales under the old model may be even viewed positively. This comes ahead of the launch of the co-developed project with SODIC in 2H16/17, which would mark a concrete step towards the migration of the company’s business model from its original business model to the off-plan sales model, which would allow for a faster monetisation of value, in our view. We reiterate our Buy rating on the name, which offers a wide upside of 36% to our FV of EGP73.10/share, despite the heavy 70% discount applied to our NAV. We note that the value comes from the company’s large well-located land bank, which is undisputed and carries zero land liabilities. We highlight the following as possible triggers for the stock: i) the launch of the company’s 655-feddan land plot in ‘New Heliopolis,’ in cooperation with SODIC; ii) Further similar announcements of more co-development plans with other third-party developers; and iii) Announcements of government land auctions in the East of Cairo, at higher prices. (Company disclosure, Mai Attia, Sara Boutros)   Heliopolis Housing: EGP53.76 as of 19 April 2016, Rating: Buy, FV: EGP73.10 per share, MCap: USD674 million, HELI EY / HELI.CA