Archive for the ‘companyanalysis’ Category

Courtesy of FSDH, Cordros Capital, and Afrinvest, here are some of the reports and analysis of the company results for Q3 2011: . . . . . . . . . . . . . . . . .

Courtesy of FSDH, Afrinvest, and Lead Capital, here are the NSE reports and stats for the week ended July 15th 2011:

  1. The market moved southwards this week, with a cumulative loss of 197 bps.
  2. Incessant selling at the bourse continued with no respite throughout the week, leading to losses across board.
  3. The likes of Stanbic IBTC, Intercontinental Bank and Wema Bank however recorded varied gains in the banking sector this week, as the top-tier banks shed varied points. This trend may reverse in the coming week as buyers are likely to key in at the current low prices.
  4. In the breweries sector, a last day price appreciation in NB led to a 4.6% gain, while Guinness succumbed to bearish pressure, shedding marginal points.
  5. Companies in the food and beverages were not spared from the bearish trend prevalent in the market, as the sector failed to record any gain this week. Thus, Flour Mills, NNFM, Dangote Sugar, Nascon and Cadbury all shed points in excess of 3.0% apiece, while other stocks in the sector remained unchanged.

Here are the company results and reports from the stockbrokers, Afrinvest, FSDH, BGI and Lead Capital.

Courtesy of FSDH, Afrinvest, Lead Capital, and Stanbic IBTC, here are the weekly reports for the Nigerian Stock Exchange for the week ended April 15th 2011:

Summary for the week:
<blockquote>
- The NSE All-Share Index closed at 25,036.75 this week.
- Activities in the banking industry were on the uptick this week in spite of the release of some full year numbers that failed to impress many participants. Diamond Bank rallied towards the end of the week, with an 11.0% gain. This was followed by Zenith Bank, FCMB, Intercontinental Bank and Stanbic IBTC, with gains ranging from 5.0% to 7.0% each. On the flip side, Oceanic Bank, Wema Bank, Bank PHB and Spring Bank shed points in excess of 3.0% apiece. First Bank also shed marginal points at the end of the week; this may be the after-effect of its full year results which fell below participants’ expectations.
- In the breweries sector, all traded stocks, with the exception of Champion Breweries, recorded varied gains at the close of the week. NB and International Breweries gathered gains of 4.3% and 6.3% respectively, while institutional purchases firmed up the price of Guinness with a 7.3% gain.
- Fringe players, C & I Leasing and Japaul Oil moved in the same direction with the market index, recording gains of 1.6% and 7.3% respectively to close the week on a positive note.
</blockquote>

<blockquote>
Afrinvest Weekly Market Summary & Stock Recommendation, Week Ended 15th April 2011 (551).
NSE Weekly Report - Afrinvest - April 15th 2011 (515).
NSE Weekly Report - IBTC - April 15th 2011 (587).
NSE Weekly Report - Lead Capital - April 15th 2011 (514)
</blockquote>

And here are the reports for previous weeks as well.
Reports for the week of April 8th:
<blockquote>
Afrinvest Weekly Market Summary & Stock Recommendation, Week Ended 8th April 2011 (527).
NSE Weekly Report - FSDH - April 8th 2011 (490).
NSE Weekly Report - IBTC - April 8th 2011 (497).
NSE Weekly Report - Lead Capital - April 8th 2011 (539)
</blockquote>

Reports for the week of April 1st:
<blockquote>
Afrinvest Weekly Market Update - April 1 2011 (489).
NSE Forthnightly Report - Afrinvest - April 1 2011 (698).
NSE Weekly Report - Lead Capital - April 1st 2011 (526)
</blockquote>

In the past 3 weeks, the banks have been releasing their results. Below are their statements, results, presentations and analysis of their results:
<blockquote>Access Bank:

Audited 2010 Results For Access Bank (1023).

Diamond Bank:

Company Research - Afrinvest - Diamond Bank Plc Conference Call (735).

Company Research - Afrinvest - Diamond Bank Plc Q1 2011 Result (497).

Company Results - Diamond Bank Plc 2010 Press Release (561).

Company Results - Diamond Bank Plc 2010 Results Financials (467).

Company Results - Diamond Bank Plc FY2010 Result Financials (719).

Company Results - Diamond Bank Plc Q1 2011 Press Release (638).

Diamond Bank - FY 2010 and Q1 2011 Results - Investor Presentation (535).

Fidelity Bank:

Company Research - Afrinvest - Fidelity Bank Plc FY 2010 Result (649).

Fidelity Bank - FY2010 Results Investor Presentation (510).

Fidelity Bank FYE 2010 Press Release (495).

FCMB:

Company Results - FCMB Plc FY2010 Results Press Release (482).

FCMB Q4 2010 Analyst Presentation (817).

First Bank:

Company Research - Afrinvest - First Bank Plc FY 2010 Result (525).

First Bank o fNigeria Plc - Notice of Results and Conference Call Invitation (1076).

First Bank of Nigeria - FY2010 Audited Results (980).

GT Bank:

GT Bank - FY 2010 Results Investor Presentation (609).

GTBank - FY 2010 Results (4348).

GTBank FY 2010 Result - Afrinvest - March 22nd 2011 (568).

Stanbic IBTC:

Stanbic IBTC FY2010 Audited Results (482).

Stanbic IBTC FY2010 Results - Investor Presentation (759).

Stanbic IBTC FY2010 Results Analysis (496).

Stanbic IBTC FY2010 Results Press Release (828).

Skye Bank:

Company Research - Afrinvest - Skye Bank Plc FY 2010 Result (574).

Skye Bank - FY2010 Results Investor Presentation (655).

Sterling Bank:

Company Research - Afrinvest - Sterling Bank Plc FY 2010 Result (484).

Sterling Bank - FY 2010 Results (459).

Zenith Bank:

Company Research - Afrinvest - Zenith Bank FY 2010 Earnings Update (601).

Zenith Bank - FY 2010 Abridged Financial Statements (478).

Zenith Bank FY2010 Group Results Presentation (442)</blockquote>

Here are the analyses of the recently released results of these companies by Afrinvest, Vetiva, BGI and FSDH.

  • Nigerian Breweries
  • Oando
  • Cadbury
  • Lafarge WAPCO
  • Sovereign Trust
  • Flour Mills of Nigeria
  • PZ Cussons
  • Access Bank
  • Diamond Bank
  • Nestle
  • Fidson Healthcare
  • FCMB
  • Zenith Bank
  • Guinness

Company Analysis - BGI Research - Nigerian Breweries - March2011 (625).

Company Analysis - BGI Research - Oando Q3 March 2011 (544).

Company Analysis - FSDH - Cadbury Nigeria Plc 2010 (2579).

Company Analysis - Lafarge WAPCO Cement - Vetiva Research - March 3 2011 (1193).

Company Analysis - Vetiva Research - Sovereign Trust Insurance Plc (863).

Company Report - FSDH - Flour Mills - Q3 2010 (766).

Company Report - FSDH - Flour Mills - Q3 2010 (632).

Company Results Analysis - Afrinvest - Access Bank FY 2010 (565).

Company Results Analysis - Afrinvest - Diamond Bank Plc FY 2010 Result (516).

Company Results Analysis - Afrinvest - Nestle (Nigeria) FY 2010 (846).

Company Results Analysis - Fidson Healthcare Plc H1 2011 Results (599).

Company Results Analysis - First City Monument Bank Plc FY 2010 Result (660).

Company Results Analysis - FSDH - Flour Mills - Q3 Dec 2010 (464).

Company Results Analysis - FSDH - Zenith Bank FY 2010 Result (648).

Vetiva Research - Flour Mills of Nigeria Q3 2011 Earnings Results Analysis (727).

Vetiva Research - Guinness Nigeria Plc Q2 2011 Earnings Release (1411).

Vetiva Research - Nestle Nigeria Plc FY10 Earnings Release (1484).

Vetiva Research FY 2010 Earnings Season Review (468).

Vetiva Research PZ Cussons Nigeria Q2 2011 Earnings Release (940)

Here are the analyses of the recently released quarterly results for Dangote Sugar, Mobil Oil, and Oando from FSDH:

Company Report - FSDH - Dangote Sugar Dec 2010 (1039).
Company Report - FSDH - Mobil Oil Plc -Q2, 2010 (445).
Company Report - FSDH - Oando - Q3 Sept 2010 Result (432)

Here are Dangote’s And Oando’s Investor Presentation and Earnings Release For H1 2010:

Dangote:

Afrinvest\'s Dangote Investor Presentation (462).

Dangote Investor Presentation - October 2010 (435)

Oando:

Oando - H1 2010 Presentation (344).

Oando H1 2010 JSE Press Release (387)

Here are more bank and other companies’ analysis from FSDH and Afrinvest:

Nigerian Bottling Company Plc
Q3 ’10 Results:
- NBC reported an 14.1% increase in turnover from N64.7bn (US$430.2) in Q3 ’09 to N73.8bn (US$490.7m).
- While PBT fell by 38.7% to N1.7bn (US$11.3m), PAT grew by 30.2% to N1.7bn. The growth in PAT could be linked to the minimal tax payment made for the quarter (N5.0m), possibly as a result of capital allowances on new projects granted to the company.
- PBT margins dropped to 2.3% from 4.3% in Q3’09, indicating an increase in operating expenses.

FY ’10 Outlook:
- The company has launched a new juice (Cappy Juice), which is expected to boost the company’s profit and market share amid the fierce competition that currently exists in the juice manufacturing space.
- NBC is currently trading at a trailing P/E ratio of 17.7x, which is a discount to its peer average of 18.3x (Afrinvest Research Consumer Goods).
- We forecast FY 2010 Turnover and PBT of N94.7bn (US$629.7) and N2.4bn (US$16.0) respectively, and remain NEUTRAL on the stock pending the release of its full year numbers. We also establish a 6-month price target of N32.94.

Company Report - Afrinvest - NBC Plc Q3 2010 Earnings Update (405)

Mobil (Oil) Nigeria Plc
Q3 ’10 Results:
- Mobil reported a marginal 3.9% dip in turnover from N47.1bn (US$312.9m) in Q3 ‘09 to N45.2bn (US$300.5m).
- The company however an impressive 74.6% increase in PBT from N2.5bn (US$16.6m) to N4.3bn (US$28.6m).Despite a drop in revenue, Mobil continues to maintain an impressive pre-tax margin of 9.5%, thus making it one of the most efficient downstream operators in Nigeria.

FY ’10 Outlook:
- This performance may not be unconnected to Mobil’s ability to book a significant proportion of its profit from non-core business activities (especially real estate). In addition, the recent restructuring and cost-cutting strategies implemented by the company has led to a reduction of nearly 40.0% in labour costs, thus making its supply and distribution more efficient.
- The recent share price performance has firmed up Mobil’s valuation metrics, with the company currently trading at a 2010 forward P/E of 11.7x, a discount to the sector average of 13.4x.
- We remain positive in our FY 2010 outlook on Mobil, with revenue and PBT forecasts of N60.8bn (US$404.0m) and N5.8bn (US$38.5) respectively. We therefore upgrade our rating on Mobil to ACCUMULATE with a 12-month price target of N178.75K, indicating a 16.9% upside potential.
Company Report - Afrinvest - Mobil Q3 2010 Earnings Update (353)

Diamond Bank Plc
Q3 ’10 Results:
- Diamond Bank reported gross earnings of N67.0bn (US$445.3m), representing a 20.8% decrease from the N84.6bn (US$562.1m) reported in the corresponding 2009 period.
- The bank however returned to profitability, posting pre and post tax profits of N7.0bn (US$46.5m) and N4.9bn (US$32.4m) in Q3 2010 respectively.
- The reduction in the top line is consistent with the trend that has seen banks struggle with lower yields on assets amid a challenging credit environment.

FY ’10 Outlook:
- Further analysis of the bank’s revenue profile by business segments indicates that the strategic drive towards expanding retail banking business has begun to yield benefits.
- Apart from the 5.2% QoQ reduction in operating expenses, the 52.2% drop in cost of risk had the most impact on profitability. Deposits largely held steady, while risk assets declined by 11.9% over the period.
- On this basis, we forecast a 2010E EPS of N0.49 implying a P/E of 15.2x which is at a premium to its peers. We place a SELL recommendation on the stock, based on our 6M price target of N5.22, representing a 29.4% downside.
Company Report - Afrinvest - Diamond Bank Q3 2010 Earnings Update (343)

Access Bank Plc
Q3 ’10 Results:
- Access Bank reported gross earnings of N78.0bn (US$517.6m), representing a 15.2% decrease from the N91.9bn (US$610.4m) reported in the corresponding 2009 period.The bank reported pre-tax profits of N14.1bn for the period under review, as against a loss of N10.6bn reported in the corresponding 2009 period.
- This performance is symptomatic of the overall industry trend that has seen profits soar on the back of significant reduction in costs: loan loss provisions dropped 87.0% YoY from N39.9bn to N5.2bn, while operating costs have consistently dropped by 3.0% and 15.0% between Q1, Q2 and Q3.

FY ’10 Outlook:
- Consequently, there has been a progressive, albeit marginal, drop in its cost-to-income ratio. We have therefore established a 2010 FYE of N97.0bn in gross earnings and N13.6bn in net earnings. This gives an EPS estimate of N0.75 for FY 2010.
- Access Bank currently trades at a trailing P/E of 17.6x, which is at a 16.3% discount to its peers. It however trades at 11.4x 2010E earnings, which represents a slight premium to its peers (trading at an average of 10.8x 2010E earnings).
- Afrinvest Research establishes a 6M price target of N8.04 (a 2.2% downside) and thus remain NEUTRAL on the stock.

Company Report - Afrinvest - Access Bank Q3 2010 Earnings Update (358)

And for Ashaka Cement:

Company Report - Afrinvest - Ashaka Cement PLC Q3 2010 Earnings Update (320)

And others from FSDH:

Company Report - FSDH - GTBank -Q3, 2010 (329).

Company Report - FSDH - Zenith Bank Q3 2010 (342)

And from Vetiva:

Company Report - Vetiva - Total Nigeria Q3 2010 Earnings Release (318)

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