KDD Group increases NAV 2% to EUR 157.4 mln in 1H09

KDD Group (KDDG LN) increased its NAV by 2% in 1H09 to EUR 157.4 mln in 1H09, and the value of its properties by 16% to EUR 196.6 mln, according to an announcement yesterday. The developer’s interim consolidated financial statements (unaudited) indicated that as of June 30, 2009, its revenue from operations was EUR 175 ths (down 46% yoy), gross profit was EUR 146 ths (down 41.1% yoy), profit before tax was EUR 3.86 mln (down 93.6% yoy), and net income of EUR 3.43 mln (down from EUR 32.92 mln in 1H08). Andriy Gostik: In our view, the 2% growth in the company’s reported NAV and the 16% increase in property value are hardly significant triggers for the stock’s price. The developer continues to struggle to secure financing for its projects and has no income generating properties so far. Given the weak fundamentals, we think any growth in the stock’s price can be deemed as purely speculative.