2024E results affected by lower margins. Given current project schedules (the developer will end only 3 projects in 2024E) and anticipated deliveries mix, we predict that 2024E results will decrease in y/y terms. Despite a growth in revenues (to PLN 454m), the gross profitability will the most likely deteriorate to 20.0% (- 10.7p.p. y/y), which in turn will negatively affect EBIT and a net profit (we assume the drop to PLN 54m and PLN 44m, respectively).
Strong rebound in pre-sales ought to support 2025E numbers. Given strong demand and new commencements (we predict 640-653 pre-sold units in 2023E24E, vs. 207 flats in 2022), we expect the company to meaningfully improve its results in 2025E. We forecast revenues of PLN 483m and gross margin of 22.4% (+2.4p.p. y/y). We estimate that EBIT will amount to PLN 71m and a net profit will come in at PLN 58m (vs. respective PLN 69m and PLN 57m previously).
