South Housing Investment's Nine-Month Profit Rose 743 Percent, but Its P/E Stayed at an Eighth of the Sector's (Sunday, October 4, 2026)

South Housing Investment, traded under the ticker MSJZ (Thejonoub), grew net profit 743 percent and operating revenue 718 percent year on year in its nine month interim filing for the period ending June 21, 2026. Even so, Sahmino's board reading on the night of Sunday, October 4, 2026 puts the stock's price to earnings ratio (P/E) at just 3, against a 24.1 average for the real estate and construction sector, roughly an eighth of its own industry.

Background

MSJZ trades on Farabourse's second market and its main business is building, completing and selling residential units and land. Revenue at such companies is rarely smooth; it depends on when projects are handed over, so a heavy delivery quarter can multiply profit without any one-off or non-operating gain behind it. Before judging whether the stock is cheap or expensive, it is worth checking where the growth actually came from, and whether such cheapness repeats across its own sector.

The numbers

According to the unaudited, restated nine month financial statements for the period ending June 21, 2026, filed with Codal on July 29, 2026 (tracing number 1579060):

• Operating revenue: 9,896,665 million rials, versus 1,209,861 million rials in the same period a year earlier, up 718 percent.
• Net profit: 8,347,665 million rials, versus 989,944 million rials, up 743 percent.
• Earnings per share: 5,963 rials, versus 707 rials in the same period a year earlier.

By Sahmino's own calculation, MSJZ's trailing twelve month P/E on its October 3, 2026 closing price of 19,080 rials is about 3; its price to sales ratio is 2.5 and its price to book ratio is 1.8 (computed October 4, 2026). The same board reading puts the real estate and construction sector's average P/E at 24.1. Return on equity stands at 59.9 percent and return on assets at 44.2 percent; debt to equity is just 0.08 and the current ratio is 3.65, meaning the company carries almost no financial debt.

The share price is up 144.1 percent over the past year and 109.2 percent over the past six months through October 3, and now sits only 2.85 percent below its 52 week high of 19,640 rials, set on September 30, 2026. In the October 3 session the price fell 2.85 percent and a sell queue of 392,951 shares formed at 19,060 rials, a sign some holders are taking profit after the run.

For comparison, MPRZ (Separdis), in the same sector, trades at a P/E near 38 even though its profit and revenue fell 32 percent and 43 percent year on year in its latest period. That contrast suggests MSJZ's discount to the sector average reflects genuine profit growth, not a blanket discount across the whole industry.

Drivers

MSJZ's monthly activity report for the month ending September 22, 2026, filed with Codal on September 28, 2026 (tracing number 1604943), shows cumulative revenue for the fiscal year to date reaching 10,615,150 million rials, mostly from "sales of under-construction building units" (6,209,524 million rials) and "land sales" (3,184,020 million rials). That confirms the revenue growth came from real project and land sales, not a one-off non-operating line.

On the trading side, retail flow over the past twenty sessions through October 3 was a net inflow of 739,648 million rials, and retail investors accounted for more than 97 percent of trading value, meaning liquidity in this name depends mostly on individual investors rather than funds or market makers. Rasad's own intermediate momentum signal on MSJZ has stayed upward from the September 26 session through October 3, and its latest version, from the October 3 session, sets an invalidation price of 17,236.65 rials over a 60 session horizon. Market wide, 4,363 of 7,286 settled Rasad signals, about 60 percent, have reached their target; among firm calls, 104 of 197 settled, about 53 percent, have been realized.

Outlook

Rasad's own stance on MSJZ as of the October 3 session is watch, not an outright buy call; the desk has not set a price target and is only keeping the momentum signal active. That is a real risk flag: the stock trades on Farabourse's thinner second market with average monthly volume near 12.7 million shares, today's sell queue suggests some holders are locking in gains, and repeating a 718 percent revenue jump next quarter depends on new project deliveries, not a guaranteed trend. Even so, the P/E gap to the sector, 3 versus 24.1, is wide enough that even discounting part of the growth as non-recurring, the stock would still look cheap against its sector. A similar pattern has shown up in recent weeks at Sepa (FSPA) and Kaperspolis, where profit multiplied but the P/E stayed below the sector average.

Bottom line

Sahmino's Rasad desk rates MSJZ watch, not an outright buy, as of the October 3, 2026 session; but its intermediate momentum signal, with a 17,237 rial invalidation level and a 60 session horizon, is still active. As long as the price holds above that level and the P/E keeps a wide gap to the sector's 24.1 average, the valuation gap between this stock and its industry stays open. A close below 17,237 rials before that horizon ends would invalidate this reading.

What to watch

MSJZ's next monthly activity report, usually filed in late October or early November, will show whether unit and land sales keep up into the new quarter or whether September's jump was a one-off. Alongside that, the P/E gap to the sector and the state of Rasad's momentum signal, with its 17,237 rial invalidation level, are two figures worth tracking in the coming weeks. For more on reading a P/E ratio, see Sahmino's explainer on EPS and P/E; for similar cases of profit growth paired with a low P/E, see our coverage of Sepa and Sahmino's cheap and profitable stock screen.