MENA-1 TUESDAY MORNING ROUND-UP

 
 
UAE  
Union Properties 1Q2011 results beat estimates on greater DIFC deliveries  
Du to repay AED3 billion of debt due in June; eyeing 20% revenue growth in 2011  
COO leaves Dubai Group; Fadel Al Ali named acting CEO  
 
Kuwait  
First Investment to exit investments worth KWD32 million  
Mabanee 1Q2011 earnings up 10% Y-o-Y  
Al Mazaya’s “7 Zones” sale value not yet finalised  
 
Qatar  
QNB says QAR12.7 billion rights offer fully subscribed  
Zad Holding BoD approves valuation of Meda Projects acquisition  
 
Oman  
National Bank of Oman seeks to participate in funding OMR12 billion worth of local projects  
 
Agenda  
 
Qatar  
Wed 25 May >> Vodafone Qatar FY2010-2011 (March year-end) results  
 
UAE News  
 
Union Properties 1Q2011 results beat estimates on greater DIFC deliveries  
Union Properties (UP) [UPRO.DU] has reported headline 1Q2011 results showing revenues of
AED1,480 million, 79% ahead of our AED827 million forecasts (98% above consensus), and net income
of AED82 million, higher than our AED37 million estimate (consensus forecasted a net loss of AED68
million). UP booked AED65 million in provisions for losses on the valuation of properties during
1Q2011. Total assets stood at AED14.1 billion, with shareholders equity of AED4 billion.  
 
Overall, the better-than-expected results seem to be driven by the top line, and specifically by
greater-than-expected unit deliveries within UP’s DIFC projects (Limestone House & Index Tower).
We note that while we did not include an expectation of provisions within our 1Q2011 forecasts, we
do expect cAED2.1 billion in revaluation losses to be booked by UP in FY2011. However, we do not
include this into our quarterly forecasts due to the subjective nature of provisioning on properties,
which we believe is at management’s discretion. We maintain our Neutral rating on the stock given
that our fair value (FV) of AED0.40/share implies limited upside potential, and will provide more
commentary once full financials are disclosed. (Company Disclosure, Jad Abbas)  
 
UP: AED0.40, Rating: Neutral, FV: AED0.40, MCap: USD363 million, UPP UH / UPRO.DU  
 
Du to repay AED3 billion of debt due in June; eyeing 20% revenue growth in 2011  
Du (DU.DU) has the funds required to repay AED3 billion of debt due next month. The company also
expects 2011 revenue to grow 20%, according to Osman Sultan, the company’s chief executive. (Zawya
Dow Jones)  
 
Du: AED3.27, Rating: Buy, FV: AED3.66, MCap: USD4,073 million, DU UH / DU.DU  
 
COO leaves Dubai Group; Fadel Al Ali named acting CEO  
Dubai Group LLC has named Fadel Al Ali as acting CEO, stating that Chief Operating Officer (COO)
Abdulrazaq Aljassim has left the company. “Abdulrazaq Aljassim has left Dubai Group to pursue other
interests,” the company said in a statement. (Bloomberg)  
 
Kuwait News  
 
First Investment to exit investments worth KWD32 million  
First Investment Company (Al Oula) [OLAK.KW] plans to exit real estate assets in the Gulf region totaling
KWD32 million. The company is also considering exiting its investments in regional banks. Al Oula is
working on a new business model, and cash flows generated from the sale of real estate assets will likely
be utilised to develop some of the company’s other assets as well as tap new opportunities in the region.
(Zawya Dow Jones)  
 
Mabanee 1Q2011 earnings up 10% Y-o-Y  
Mabanee Real Estate Company (Mabanee) [MABK.KW] has reported a profit of KWD5.78 million for
1Q2011, compared to KWD5.25 million in 1Q2010. Operating profit for 1Q2011 stood at KWD6.73 million,
compared to KWD6.16 million in 1Q2010. Rental income remained strong in 1Q2011, increasing 3.4% Y-o-Y
to KWD8.4 million. (Al Watan)  
 
Al Mazaya’s “7 Zones” sale value not yet finalised  
Al Mazaya Real Estate Company (Al Mazaya) [MAZA.KW] has clarified in a statement to Kuwait Stock
Exchange that the value of the planned sale of the “7 Zones” project to Arab Building Materials has not
yet been finalised. Previously the sale was valued at KWD11 million. (Al Watan)  
 
Qatar News  
 
QNB says QAR12.7 billion rights offer fully subscribed  
Qatar National Bank’s (QNB’s) [QNBK.QA] QAR12.7 billion rights offer was fully subscribed, the company
said in a statement to the Qatar bourse on 9 May 2011. (Bloomberg)  
 
QNB: QAR139.10, Rating: Buy, FV: QAR176.4, MCap: USD19,447 million, QNBK QD / QNBK.QA  
 
Zad Holding BoD approves valuation of Meda Projects acquisition  
Zad Holding Company (ZHCD.QA) announced that its board of directors (BoD) has approved the valuation
results regarding the acquisition of Meda Projects Company. Meda’s BoD has also approved the proposal.
Both BoDs have recommended that the proposal should be presented to each company’s EGM. (Qatar
Exchange)  
 
Oman News  
 
National Bank of Oman seeks to participate in funding OMR12 billion worth of local projects  
National Bank of Oman (NBO) [NBO.OM] is seeking to participate in the financing of local development
projects, for which the government has allocated OMR12 billion, Al Watan daily reported on 9 May 2011,
citing a bank executive. (Zawya Dow Jones)  
 
NBO: OMR0.31, Rating: Neutral, FV: OMR0.30, MCap: USD882 million, NBOB OM / NBO.OM  
 
[Note – EFG Hermes is not responsible for the accuracy of news items taken from other media.]  
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