Palm Hills Developments (PHD) has announced the successful launch of phase I of Palm Valley, for which EGP491 million was reported in pre-sales (reservations) within two days of the project launch, which represents the total launch of the project (108 units).  Palm Valley is an integrated residential community in West Cairo spreading over 236,376 sqm, located directly on 26 July highway. The project will include a total of 237 standalone villas, twin and town houses. This is in addition to a commercial hub to serve its residents and surrounding communities. The project will be developed over four phases with unit deliveries expected in 2020.   We expect the successful launch of Palm Valley, along with the other launches, which took place during the quarter (in Hacienda and Capital Gardens), to lift the contracted sales figure for the quarter for PHD, which may emerge as the strongest among its peers, in terms of contracted sales in 1Q2016. Our numbers incorporate cEGP7.0 billion in pre-sales in 2016-18e for the company. (Company disclosure, Mai Attia, Sara Boutros)   Palm Hills: EGP2.49 as of 15 March 2016, Rating: Buy, FV: EGP3.45 per share, MCap: USD604 million, PHDC EY / PHDC.CA