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Here are Meristem Securities’ analyses of the recently released results of UPL, Fidson, Nestle, and Nigeria Breweries:
Fidson Healthcare – H1 – NEUTRAL
United Press Ltd (UPL) – Q3 – OVERWEIGHT
Nigerian Breweries – FY 09 – NEUTRAL
Nestle Nigeria – FY 09 – NEUTRAL
Here are the analyses of the Q2 results for PZ Cussons and Guinness Nigeria PLC by FSDH Securities and Afrinvest respectively:
<strong>FSDH – PZ Cussons:</strong>
<blockquote>In arriving at a fair value for PZ, we estimated TO, Earning Before Interest Tax Depreciation and Amortization (EBITDA) and PAT for the FY ending May 31, 2010. We project a TO of N69.76bn, based on our view that the TO will contract by 13.85%, over the previous year. We project EBITDA of N9.50bn based on EBITDA margin of 13.61% and a PAT of N6.37bn based on a PAT margin of 9.13%. We used 3.18bn Ordinary Shares currently in issue. The Forward Earnings Per Share (FEPS) generates N2.01. We estimated the Dividend Per Share (DPS) of N1.04 based on a dividend payout of 51.91%. Applying Enterprise Value (EV)/EBITDA multiple of 9.88x, a P/E multiple of 12.50x, we arrived at N29.54 per share using EV/EBITDA multiple and N25.07 per share using price earnings multiple. Applying a weight of 55% on N29.54 and 45% on N25.07, we arrived at N27.53 per share, which is our fair value. The forward earnings yield and dividend yield based, on our fair value generate 7.29% and 3.78% respectively. <strong>We therefore place a HOLD on PZ stock at the current market price of N26</strong>.</blockquote>
FSDH - PZ Cussons -Q2, 2009 (34)
<strong>Afrinvest – Guinness Nigeria</strong>
<blockquote>* Guinness Q2′10 results saw turnover up by 23.8% while both PBT and PAT were down by 10.0% by 10.8% respectively.
* Operating expenses saw further increases on the back of an extensive marketing drive and on-going capacity additions
* Going forward, we expect to see top and bottom line growth resulting from the marketing initiative as well as capacity expansion
* <strong>Our recommendation is NEUTRAL with a FY’10 (June 30) price target of N139.23</strong></blockquote>
Afrinvest - Guinness Q2 2010 Earnings Update (22)
In: companyanalysis
29 Jan 2010Vetiva Securities has prepared a very comprehensive analysis of Oando PLC describing the operations, SWOT information etc. Read below:
Vetiva - Company Report - Oando PLC (70)In: companyanalysis
29 Jan 2010Here is FSDH Securities’ Analysis of the Cement Company of Northern Nigeria’s Q2 2009 Results:
<blockquote>In arriving at a fair value for CCNN, we estimated TO, Earning Before Interest Tax Depreciation and Amortization (EBITDA) and PAT for December 2009. We estimated a TO of N13.83bn, based on a growth of 40%, over the previous year. We project EBITDA of N2.966bn based on EBITDA margin of 17.45% and a PAT of N2.42bn based on a PAT margin of 17.50%. We used 1.256bn Ordinary Shares in issue. The estimate Earning Per Share (FEPS) generates N1.93k. We estimated a Total Dividend Per Share (DPS) of N1.25k (having paid an interim of 80k we expect a final of 45k) based on a dividend payout of 65%. Applying Enterprise Value EV/EBITDA multiple of 9.25x, a P/E multiple of 10.5x, we arrived at N20.46k per share using EV/EBITDA multiple and N20.22k per share using price earnings multiple. Applying a weight of 50% each to the valuation results we arrived at 20.34k which is our fair value. The estimate earnings yield and dividend yield based on our fair value generate 9.47% and 5.78% respectively while the estimate P/E ratio generates 10.56x. We therefore place a <strong>BUY </strong>on Cement Company of Northern Nigeria (CCNN) stock at the current market price for both capital appreciation and dividend payment.</blockquote>
FSDH - Company Analysis - CCN Q2 2009 (82)Here is Vetiva’s analysis of 7-Up Bottling Company’s Q2 2009 results:
In: companyanalysis
31 Dec 2009Here are the analysis and recommendations based on the most recent results of Glaxo Smithkline and NBC. The summaries are below:
NBC:
<blockquote>In placing a fair value on the Ordinary Shares of NBC, we adjusted our earlier forecast for the FY 2009 and parameters to reflect current market developments and based on its latest results. We estimated TO, Earning Before Interest Tax Depreciation and Amortization (EBITDA) and PAT for December, 2009. We project a TO of N91.28bn, based on a growth rate of 13.99% over the previous year. We project EBITDA of N7.31bn based on EBITDA margin of 8% and a PAT of N2.94bn based on a PAT Margin of 2.12% and writing back the N1bn insurance claim. We used 1.308bn Ordinary Shares that we expect to be in issue as at December 2009. The Forward Earnings Per Share (FEPS) generates N2.24. We estimated Dividend Per Share (DPS) of N0.90 based on a dividend payout of 40% as we believe the company will increase its historical dividend payout ratio to compensate shareholders for its last year lackluster performance. Applying Enterprise Value EV/EBITDA multiple of 4.85x, a P/E multiple of 12x, we arrived at N20.62 per share using EV/EBITDA multiple and N26.91 per share price using earnings multiple. Applying a weight of 55% on N20.62 and 45% on N26.91, we arrived at N23.45 per share, which is our fair value. The forward earnings yield and dividend yield based on our fair value generate 9.56% and 3.83% respectively. We therefore place a <strong>BUY</strong> on the share price of NBC at the current market price.</blockquote>
NBC -Q3, September 2009 (56)
Glaxo Smithkline:
<blockquote>In placing a fair value on the Ordinary Shares of GlaxoSmith, we maintained our earlier top-line forecast, but adjusted our bottom-line forecast to reflect the company’s improved efficiency. Also, we adjusted our earlier parameters to reflect current market developments and its latest results. We estimated Turnover (TO), Earning Before Interest Tax Depreciation and Amortization (EBITDA) and PAT for December, 2009. We maintain our earlier estimate of the TO of N15.04bn as released in our Q1 2009 result. We project EBITDA of N3.06bn based on EBITDA margin of 20% and a PAT of N1.93bn based on a PAT Margin of 12.81%. We used 956.70mn Ordinary Shares that we expect to be in issue as at December 2009. The Forward Earnings Per Share (FEPS) generates N2.02. We estimated Dividend Per Share (DPS) of N0.97 based on a dividend payout of 48.25%. Applying Enterprise Value EV/EBITDA multiple of 7.60x, a P/E multiple of 10.22x, we arrived at N24.29 per share using EV/EBITDA multiple and N20.60 per share price using earnings multiple. Applying a weight of 55% on N24.29 and 45% on N20.60, we arrived at N22.63, which is our fair value. The forward earnings yield and dividend yield based on our fair value generate 8.91% and 4.30% respectively. We therefore place a <strong>HOLD</strong> on the share price of GlaxoSmith at the current market price.</blockquote>
GlaxoSmithKLINE -Q3, September 2009 (57)
Here are the analysis of the Q3 results for both Nestle Foods and UAC by FSDH. You can download the reports below. Here are the excerpts:
Below are the analysis of the recent results of Lafarge WAPCO, Dangote Sugar, UACN Property Dev Co, Nestle and Nigerian Breweries and recommendations of their stocks by FSDH securities.
Dangote Sugar – SELL
Nigerian Breweries – HOLD
UACN Property Dev Co- BUY
Nestle Nigeria – BUY
Lafarge Cement WAPCO Nigeria Plc – BUY
In: companyanalysis
9 Jun 2009FSDH Securities’ Analysis of Nestle 2009
Here are the weekly market reports from the stockbrokers, FSDH and Forte Assets:
Forte Weekly Market Review May 22, 2009 (120) FSDH - Weekly Report - May 22 2009 (236)FSDH’s Analysis of UBA’s Q2 result is here:
UBA-Q2- 2009 (170)In: companyanalysis
12 Mar 2009Here is Zenith Securities’ analysis of Total Nigeria.
Zenith gives the stock a HOLD rating.
In: companyanalysis
27 Feb 2009The chart below compares the January 2009 valuation of the major banks stock to January 2008’s. It is clear that the bank stocks have performed very badly:
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