Archive for May, 2010

Here are the NSE Stats for the week ended May 21st:

Below are the research reports by Afrinvest on the recently released reports for Unilever, Fidson Healthcare, Berger and Oando who all recently released their results:

NSE Performance Stats for Week Ended May 14th 2010

NSE Stats for the week ended May 7th 2010

Here are some stats on the April 2010 performance of the Nigerian Stock Exchange:

Proshare Nigeria has prepared an analysis of the nominal value of selected stocks listed on the NSE. You can read below:

Proshare - Nominal Value of Select Stocks In April 2010 (409)

Here is the Monthly Economic News and Views presentation given by B.J. Rewane at the Lagos Business School Executive Breakfast Meeting.

LBS April 2010 (398)

Glaxo Smithkline FY 2009 - Vetiva (213)In the past 2 weeks, Lafarge WAPCO, Total PLC, First Bank, and Nestle and Mobil have released their results. Here are the analyses of their results by ARM, Afrinvest, and FSDH:

First Bank Q1 2010 (311)
<blockquote>
First Bank of Nigeria Plc -  Full Year ’10 earnings outlook on the company.
Highlights:
Q1’10 Results:
* First Bank reported a PBT of N15.4bn, from a loss position of N9.8bn for the group as at end of March 2009 .
* Total loans and advances went up by 67.7% to N1.3tn (US$8.6bn) from N752.0bn (US$5.0bn) reported in March 2009 and 15.8%increase from N1.1tn reported for the period ended December 2009.
* Deposits grew by 18.0% to N1.4tn (US$9.3bn), while the deposit ratio was up to 94.0% from 64.0% and 85.0% reported for March and December 2009 respectively.

FY’10 Outlook:
* We remain concerned about the banks efficiency ratios especially its cost-to-income ratio.
* We however see scope for valuation appreciation, with a Price to Book Value of 1.5x as against peer average of 1.7x.
* We therefore maintain a positive outlook on First Bank as we expect the Bank to leverage its huge risk portfolio to book some healthy earnings.
* On this basis, we hereby upgrade our recommendation on the bank to ACCUMULATE at current valuation as we expect the ex-div price to settle around N18.25 (ex-div) over the next 12 months.</blockquote>

Lafarge Cement WAPCO (538)

Mobil PLC FY2009 (284)
<blockquote>
Mobil Plc – Full Year ’10 earnings outlook on the company.
Highlights:
FY’09 Results:
* Mobil’s turnover was down by 7.1% to N62.0bn from N66.7bn reported in the previous year.
* PBT and pre-tax margins however went up by 27.8% and 6.6% respectively.
* The pre-tax margin of 6.6% is the company’s best in the last four years; this suggests that the recent strategic restructuring embarked on by management is paying off.

FY’10 Outlook:
* Management’s feedback suggests that Mobil will be able to sustain its renewed cost efficient operations while diversifying into other high margin opportunities.
* We expect a modest improvement in performance for FY2010 with an estimated turnover of N68.2bn.
* On this basis, we upgrade our recommendation on Mobil to an ACCUMULATE at current valuation, as we expect the price to settle around the N198.75 mark over the next 12 months.</blockquote>

Nestle Q1 2010 (388)
<blockquote>
Nestle (Nigeria) Plc – Full Year 2010 earnings outlook on the company.
Highlights:
Q1 ’10 Results:
* Nestle reported impressive earnings growth with remarkable profit margins.
* Turnover went up by 24.2% to N17.6bn (US$117.1m); PBT also grew by 52.1% to N4.2bn (US$27.7m).
* The results show a match in turnover and recent investment capacity.

FY ’10 Outlook:
* The company remains committed to place their brand ahead of competitors through innovation and renovation.
* We therefore forecast FY 2010 PBT and PAT of N16.8bn (US$111.6m) and N11.4bn (US$75.7m) respectively.
* Our recommendation is to REDUCE rather than sell at current valuation, as we expect the illiquidity of the stock to support the current valuations, with the intrinsic value indicating a range of N240.19 – N292.02.
</blockquote>

Total Q1 2010 (278)
<blockquote>Total Plc – Full Year ’10 earnings outlook on the company.
Highlights:
Q1’10 Results:
* Total reported a relatively flat turnover of N42.1bn when compared with N43.0bn reported in the previous year.
* PBT and pre-tax margins was up by 168.8% and 7.4% respectively.
* The pre-tax margin of 7.4% is the company’s best since Q1‘02; this suggests improved efficiency amidst an increasingly challenging operating environment.

FY’10 Outlook:
* We have reviewed our initial forecast for Total’s top-line numbers for FY 2010 downward by 7.5% with revised estimate sales of N182.0bn.
* We still remain positive on the company’s ability to maintain a healthy profit margin and forecast a N7.3bn pre-tax profit for FY2010.
* On this basis, we reiterate our ACCUMULATE recommendation on Total with a revised 12 month price target of N217.75 indicating an 11.7% upside potential.</blockquote>


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