Company Analysis - Afrinvest - Dangote Cement - July 2011 (245).

Company Analysis - Flour Mills of Nigeria - Fy 2011 Earnings Release Report - Vetiva (205).

Company Analysis - FSDH - Dangote Sugar - July 2011 (202).

Company Analysis - FSDH - Cadbury Nigeria PLC - July 2011 (541).

Company Analysis - FSDH - Unilever Nigeria Plc - June 2011 (171).

Company Analysis - Glaxo Smithkline - 2011 - FSDH (186).

Company Analysis - Oceanic Bank - July 2011 - Proshare (214).

Company Analysis - Unilever Nigeria Plc - June 2011 (171).

Company Result - Afrinvest - Berger Paints Plc FY 2010 Result (162).

Company Result - Afrinvest - Cadbury Nigeria PLC - H1 2011 Result (168).

Company Research - Afrinvest - Ashaka Cement Plc FY 2010 Result (299).

Company Research - Afrinvest - Dangote Cement Plc April 2011 (226).

Company Research - Afrinvest - Dangote Sugar Plc FY 2010 (218).

Company Research - Afrinvest - Dangote Sugar Plc FY 2010 (206).

Company Research - Afrinvest - May & Baker Nigeria Plc FY 2010 Result (277).

Company Research - Afrinvest - Mobil (Nigeria) Plc FY 2010 Result (207).

Company Research - Afrinvest - Oando Plc FY 2010 Result (215).

Company Research - Afrinvest - UBA Plc FY 2010 Result (224).

Company Research - BGI - Nigerian Breweries March 2011 (246).

Company Research - BGI - Nigerian Brewries March 2011 (195).

Company Research - UBA FY 2010 Analysis (213).

Company Research - Vetiva - Cadbury Nigeria - FY10 Earnings Release (517).

Company Research - Vetiva - Diamond Bank Plc - April 2011 (217).

Company Research - Vetiva - Lafarge WAPCO FY10 Earnings Release (325).

Company Research - Vetiva Research - CCNN FY2010 Earnings Release Report (221).

Company Research - Zenith Bank FY 2010 Results Analysis (287).

Company Results - Intercontinental Bank - Financials Sept 2010 (262).

Company Results Review - FSDH - Cadbury Nigeria PLC 2010 (203).

Dangote Cement Plc Q1 2011 Result-1 (206).

Update (Mon, may 23rd): Some additional results:

Berger Paints Plc FY 2010 Result (181).

Flashnote -GT Assurance Plc FY 2010 Result (195).

Guaranty Trust Assurance Plc Q1 2011 Result (180).

Guinness (Nigeria) Plc Q3 2011 Result-1 (186).

Vetiva Research Dangote Cement FY10 Earnings Release Report (276).

• 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 (385).
Company Analysis - BGI Research - Oando Q3 March 2011 (326).
Company Analysis - FSDH - Cadbury Nigeria Plc 2010 (1136).
Company Analysis - Lafarge WAPCO Cement - Vetiva Research - March 3 2011 (577).
Company Analysis - Vetiva Research - Sovereign Trust Insurance Plc (418).
Company Report - FSDH - Flour Mills - Q3 2010 (428).
Company Report - FSDH - Flour Mills - Q3 2010 (326).
Company Results Analysis - Afrinvest - Access Bank FY 2010 (318).
Company Results Analysis - Afrinvest - Diamond Bank Plc FY 2010 Result (286).
Company Results Analysis - Afrinvest - Nestle (Nigeria) FY 2010 (467).
Company Results Analysis - Fidson Healthcare Plc H1 2011 Results (314).
Company Results Analysis - First City Monument Bank Plc FY 2010 Result (324).
Company Results Analysis - FSDH - Flour Mills - Q3 Dec 2010 (231).
Company Results Analysis - FSDH - Zenith Bank FY 2010 Result (345).
Vetiva Research - Flour Mills of Nigeria Q3 2011 Earnings Results Analysis (352).
Vetiva Research - Guinness Nigeria Plc Q2 2011 Earnings Release (689).
Vetiva Research - Nestle Nigeria Plc FY10 Earnings Release (632).
Vetiva Research FY 2010 Earnings Season Review (259).
Vetiva Research PZ Cussons Nigeria Q2 2011 Earnings Release (446)

Company Report - Afrinvest - Dangote Flour Mills Q3 2010 Earnings Update (242).

Company Report - Afrinvest - Fidelity Bank 9M 2010 Earnings Update (183).

Company Report - Afrinvest - MRS Q3 2010 Earnings Update (215).

Company Report - Afrinvest - Nigerian Breweries Q3 2010 Earnings Update (245).

Company Report - Afrinvest - Stanbic IBTC Bank 9M 2010 Earnings Update (201).

Company Report - Afrinvest - Starcomms Q3 2010 Earnings Update (229).

Company Report - FSDH - MRS Oil Plc -Q3, 2010 (149).

Company Report - FSDH - Nigerian Breweies Plc -Q3, 2010 (140).

Company Report - FSDH - Dangote Flour -Q3, 2010 (149).

Company Report - Afrinvest - Ashaka Cement PLC Q3 2010 Earnings (313).
Company Report - FSDH - GTBank -Q3, 2010 (83).
Company Report - FSDH - Nigerian Breweries - Q3 2010 Results (93).
Company Report - Vetiva - Total Nigeria Q3 2010 Earnings Release (184).
Company Report - Vetiva Research - Cement Company of Northern Nigeria - Q3 2010 (151).
Company Report - Vetiva Research - Custodian and Allied Insurance Plc Q3 2010 Earnings Release (224).
Company Report - Vetiva Research - Glaxo Consumer Nig Plc Q3 2010 Earnings Release (232).
Company Report - Vetiva Research - Mobil Oil Nigeria - Q3 2010 (377).
FSDH - Result Analysis - Nestle Nigeria Plc Q3 2010 (109).

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.

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 (140)

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 (134)

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.

And for Ashaka Cement:

And others from FSDH:

Company Report - FSDH - GTBank -Q3, 2010 (136).

And from Vetiva:

Afrinvest - Berger Paints Q3 2010 Earnings Update (164).

Afrinvest - Nestle Q3 2010 Earnings Update (171).

Afrinvest - Unilever Q3 2010 Earnings Update (176).

Company Report - Afrinvest - Dangote Sugar Refinery Research Update, November 2010 (555).

Company Report - Afrinvest - GT Assurance - Q3 2010 Earnings Update (194).

Compary Report - Afrinvest - Total - Q3 2010 Earnings Update (117).

Vetiva Research - Custodian and Allied Insurance Update (191).

Happy Reading!

Zenith Bank
Q3 ’10 Results:
- Zenith Bank reported gross earnings of N139.6bn, representing a 13.6% decrease from the N161.6bn reported in the corresponding 2009 period.
- Pre-Tax profits grew by 196.3% to N39.2bn from N13.2bn reported in Q3 ’09.
- Continuous improvement across the bank’s key efficiency and operating ratios has fuelled this impressive performance even as top-line growth continues to come under intense pressure.

FY ’10 Outlook:
- We remain confident in the bank’s ability to sustain this new level of efficiency as we do not envisage any significant risk to the bank’s operating model in the near term.
- We believe improved efficiency ratios will be a key driver in growing profits thus enhancing the bank’s valuation indices and creating additional upside potential.
- With a revised top-line forecast of N193.1bn for FYE 2010 and N54.1bn in pre-tax profits, we remain positive in our outlook on the bank.
- We hereby reiterate our LONG-TERM BUY recommendation on the bank and establish a 12-month price target of N16.85K which, at current valuations, translates to a 22.1% upside potential.
Company Report - Afrinvest - Zenith Bank Q3 2010 Earnings Update (139)

Unity Bank
Q3 ’10 Results:
- Unity Bank reported a 41.9% increase in gross earnings from N29.3bn (US$192.6m) in Q3 ‘09 to N41.6bn (US$273.3m).
- PAT went up to N10.7bn (US$70.0m) from a loss position of N11.9bn (US$78.2m) recorded in the corresponding 2009 period.
- Net Assets also grew from N7.2bn (US$47.3m) in FY ‘09 to N42.1bn (US$276.6m), following the successful conclusion of the bank’s rights issue.

FY ’10 Outlook:
- This result suggests that Unity Bank has turned the corner, after failing to meet the 10.0% Capital Adequacy Ratio (CAR) prescribed for banks during the CBN audit in 2009.
- While we have yet to speak with management regarding its current operations and strategic outlook for 2011, we reclassify the bank along with our mid-tier banks, which thus makes it an attractive value proposition.
- With a trading multiple of 3.7x its 2010E earnings, compared to a peer average of 8.2x 2010E for the mid-tier banks, we establish a 6-month price target of N2.23 and place a BUY recommendation on the stock.
Company Report - Afrinvest - Unity Bank Plc Q3 2010 Earnings Update (200)

GT Bank
Q3 ’10 Results:
- GTBank reported gross earnings of 119.8bn, 11.9% down from the N136.1bn recorded in the corresponding 2009 period.
- The company however reported an 82.1% increase in PBT to N39.0bn.
- Afrinvest Research believes this performance is efficiency-driven as the bank has driven down its interest expense by 43.6% to 24.7bn.

FY ’10 Outlook:
- Although we remain positive in our outlook on GTBank, we have reviewed our forecasts on the back of the bank’s decision to adopt a mono-line commercial banking business model, as against a holding company structure whereby accounts of subsidiaries are consolidated.
- Our updated forecasts show that the bank is currently trading at a discount to its peers (based on trailing and forward 2010 numbers) and still has room for further price appreciation.
- We revise our forecast turnover down by 20.0% to N169.2bn and our pre-tax profits up to N51.4bn. We also re-iterate our ACCUMULATE recommendation and expect GTBank’s price to trade between a 12.5% – 17.5% upside over the next 6 – 12 months.
Company Report - Afrinvest - GTBank Q3 2010 Earnings Update (178)

UBA
Q3 ’10 Results:
- UBA reported gross earnings of N136.4bn, representing a 6.9% decrease from the N146.4bn reported in the corresponding 2009 period.
- PBT also grew by 225.4% to N16.9bn from a loss of N13.5bn reported in Q3 ‘09.
- The bank’s lending activities however declined by 4.2% from N664.2bn in Q2 ’10 to N636.2bn in Q3 ’10.

FY ’10 Outlook:
- Overall, we remain optimistic on the future performance of the bank. We believe that the recently raised additional capital of N20.0bn will further strengthen the bank’s capital base and also enhance its capital adequacy ratio, currently standing at 17.0%.
- We are however cautious based on this recent performance and the probability of further exceptional item charges.
- Our forecasts also suggest that UBA is currently trading at a 2010E P/E of 20.4x, a significant premium to the top-tier bank average of 12.4x and mid-tier bank average of 8.2x.
- We therefore revise our FY 2010 forecast gross earnings downward to N190.4bn, and PBT to N24.7bn. We also downgrade our recommendation on UBA from an ACCUMULATE to a NEUTRAL/HOLD, as we do not envisage any significant upside potential at current valuation levels in the near term.

First Bank of Nigeria Plc
Q3 ’10 Results:
- First Bank reported gross earnings of N198.0bn, representing a 10.6% decrease from the N177.1bn reported in the corresponding 2009 period. This also falls 3.8% short of our projected N183.9bn.
- The bank reported an impressive pre-tax profit of N40.7bn for the period under review as against a loss of N6.7bn reported in the corresponding 2009 period.
- We would expect that the bank will focus more on driving its operating expenses further down. Operating expenses increased by 17.8% from N71.3bn in 2009 to N83.9bn, despite a 5.3% fall in operating income to N130.3bn from N137.6bn.

FY ’10 Outlook:
- First Bank continues to leverage on its strong brand to grow deposits at a remarkable rate. This growth continues to sustain its strong liquidity ratio, currently at 64.7%.
- We believe First Bank is likely to adopt the holding company structure business model and we remain optimistic that the anticipated new model will support the bank’s growth ambitions and further drive profitability.
- We review our initial top-line forecast of N249.8bn (US$1.7bn) down by 5.0% to N237.3bn (US$1.6bn), while maintaining our initial pre-tax projection of N56.3bn (US$374.1m).
- We also maintain our BUY recommendation on First Bank with a 12-month price target within the range of N16.00 – N16.50 (translating to a 27.3% – 31.2% upside potential at current valuations).
- The bank currently trades at a trailing P/E of 12.3x and forward multiple of 10.7x for FYE 2010; this is a discount to its top-tier peers with both trailing and forward multiples of 17.6x and 13.7x respectively.

Sterling Bank Plc
Q3 ’10 Results:
- Sterling Bank reported gross earnings of N23.1bn (US$153.6m), representing a 13.0% decrease from the N26.6bn reported in the corresponding 2009 period.
- The bank however reported pre-tax profits of N5.7bn (US$37.9m) from a loss position of N7.0bn (US$46.5m).
- This performance is very much in line with the industry trend which has seen banks challenged for top line growth.

FY ’10 Outlook:
- We review our gross earnings forecast down by 14.1% to N31.8bn (US$211.4m), as the outlook for credit expansion and yield on interest bearing assets remains subdued.
- We do however expect the impressive cost efficiency gains achieved thus far in 2010 to be maintained and therefore revise our net earnings forecast to N6.7bn (US$44.5m) (+6.0%), implying a 2010E EPS of N0.53.
- Sterling Bank thus trades at 4.2x 2010E earnings, a significant discount to its peers (trading at 9.7x 2010E earnings). We therefore maintain our BUY recommendation on the stock.

Skye Bank Plc
Q3 ’10 Results:
- Skye Bank reported gross earnings of 66.2bn, 17.3% down from the N80.0bn recorded in the corresponding 2009 period.
- The bank however reported a huge boost in pre-tax profits to N10.2bn.
- Afrinvest Research believes that this is very much in tandem with the observed trend in the banking sector where the small universe of high quality borrowers has adversely impacted the capacity of banks for credit expansion, and by extension interest income.

FY ’10 Outlook:
- While we have yet to speak with management regarding these results, we are inclined to believe that the increased focus on cost containment (following the drastic cost cutting of Q4 2009) have had a positive impact on its performance.
- On this basis, we establish a 2010E PAT and EPS forecast of N11.2bn and N0.97 respectively.
- On a valuation basis, the bank is trading at 7.7x its 2010F earnings, which is at a discount to its peer average of 9.7x. We therefore establish a BUY recommendation based on a 6M price target of N9.37 (a 27.0% upside).

Oceanic Bank Plc
Q3 ’10 Results:
- Oceanic Bank reported gross earnings of N89.4bn (US$594.7m), 31.1% down from the N129.7bn (US$862.6m) recorded in the corresponding 2009 period.
- The bank reported a pre-tax profit of N13.1bn (US$87.0m) for Q3, 2010 as against a loss of N88.4bn (US$587.8m) recorded in Q3, 2009.
- Our analysis shows that these profits were fuelled by a write-back of N14.5bn (US$96.7m) as it made a net operating loss of N1.5bn (US$9.7m) during the period under review.

FY ’10 Outlook:
- While the brand impairment (reputation damage) suffered by the bank in the wake of the CBN’s intervention on August 14, 2009 limited its ability to grow deposits in the early part of the year, recent performance suggests that it may have regained market confidence with deposits rising to N644.5bn and comparing favourably with the N633.2bn in deposits, pre-intervention (March 2009).
- The bank has also remained a net taker of funds in the inter-bank market, with net deficit of N143.9bn.
- Overall, we remain cautious in our outlook on the bank while watching to see how the sale of bad loans to AMCON could boost its liquidity and help fuel risk asset creation; we hereby put a HOLD recommendation on Oceanic Bank.

Company Report - Afrinvest - AP FY 2009 Earnings Update (140).

Company Report - Afrinvest - Neimeth International FY 2010 Earnings Update (179).

Veriva - Company Analysis - BCC - Sept 2010 (392).

Vetiva Research - FirstBankof Nigeria (159).

Vetiva Research - UBA (247).

Afrinvest - CONOIL HY 2010 Earnings Update (193).

Afrinvest - Guinness FY 2010 Earnings Update (239).

FSDH - Company Analysis - First Bank Plc - 2010 (841).

Vetiva - Company Analysis - BCC - Sept 2010 (213).

Vetiva Research - Conoil Plc Q2 June 2010 Earnings Release (289).

Vetiva Research - First Bank - Sept 2010 (298).

Vetiva Research - Insurance Update September 2010 (460).

Afrinvest – Flour Mills Q1 2011
Afrinvest – Union Bank 6M 2010 Earnings Update
FSDH – BCC – Q2 2010
FSDH – Nigerian Breweies PLC Q2 2010
FSDH – GlaxoSmithKline June 2010
FSDH – Zenith Bank 2010
FSDH – Nestle PLC- 2010
Vetiva – Ashaka Cem PLC Q1 2010 and H1 2010
Vetiva – Flour Mills of Nigeria Q1 2010
Vetiva – Nigerian Breweries H1
Vetiva – Cadbury Nigeria Plc Q210

Afrinvest 2010 Banking Sector Report

Here are some charts from the report:

Market share by total assets and total deposits:

Bank share by shareholder funds and total loans:

Bank Capitalization:

Market share by gross revenues:

Operating statistics:

Earnings Update Report on First Bank Plc which highlights the latest interim results and an update on our Full Year ’10 earnings outlook on the company.

Q2’10 Results:

1. First Bank reported a 6.7% decline in gross earnings to N122.3bn (US$812.6m) from N131.1bn (US$871.1m).
2. PBT however went up by 637.4% to N31.7bn (US$210.6m).
3. The bank recorded a profit margin of 25.9%, an improvement from the 24.7% recorded in Q1 ‘10.

FY’10 Outlook:

1. This recent performance reveals the challenges faced by many banks in growing top-line numbers as a result of a slowdown in credit expansion, amongst other factors.
2. We reiterate our positive stand on the bank’s earnings potential riding on the back of its strong balance sheet.
3. We however review our forecast of gross earnings down from N277.6bn (US$1.8bn) to N249.8bn (US$1.7bn) while we review PBT up from N51.2bn (US$340.2m) to N56.3bn (US$374.1m). We also establish a 12-month price target of N17.50 and upgrade our recommendation on First Bank to a BUY.

You can download the report below:
Afrinvest – First Bank 6M 2010 Report

Unilever (Nigeria) Plc :
Highlights:
Q1 ’10 Results:
* Unilever reported  marginal growth in earnings.
* Turnover went up by 4.8% to N10.9bn (US$72.5m); PBT, on the contrary, fell by 15.7% to N1.4bn (US$9.3m).
* Pre-tax margins fell from 15.7% in Q1 ’09 to 12.7% in Q1 ’10, indicating an increase in operating expenses.

FY ’10 Outlook:
* The company continues to build on recent innovation and cost-containment strategies.
* We however review FY 2010 PBT and PAT to N7.0bn (US$46.4m) and N4.8bn (US$31.9m) respectively.
* We remain NEUTRAL in the short term (3 – 6 months), but we anticipate an upward trend in the long term and re-iterate our FY ’10 (12 month) price target of N30.79.

Berger Paints Plc:
Highlights:
FY’09 Results:
* Berger Paint’s turnover was down by 6.1% to N2.4bn (US$15.9m).
* PBT and pre-tax margins however went up by 31.9% and 13.6% respectively.
* Despite the effects of the harsh economic conditions in 2009, the company’s liquidity position and conservative management resulted in cost savings and improved production efficiency and effectiveness.

FY’10 Outlook:
* We believe that future earnings potential will continue to be threatened by industry specific constraints and impair profitability.
* Our recommendation is SELL at current valuations, as we believe that Berger Paints trades in a sector that is priced at a premium to the market.

Oando Plc:
Highlights:
Q1’10 Results:
* Oando reported an impressive turnover of N91.3bn, 17.8% up from N77.5bn reported Q1 ‘09.
* PBT went up by 108.8% while pre-tax margin went up to 5.6% respectively.
* This strong performance is in line with our expectation and further reinforces our long term positive outlook on the company.

FY’10 Outlook:
* We anticipate a steady increase in contributions from upstream oil operations to the company’s numbers, as well as new revenue generation from its midstream business (12.15 mw independent power plant for Lagos State Water Corporation), amongst other sources.
* We have therefore reviewed our initial forecast for Oando’s top-line numbers for FY 2010 upward by 5.0%, with a revised estimate turnover of N380.2bn (US$2.5bn) and PBT of N16.1bn (US$107.0m).
* On this basis, we reiterate our BUY recommendation on Oando as we maintain a revised 12 month (ex-div) price target of N118.75 indicating a 29.2% upside potential, if marked down for the 1 for 2 bonus at the current price (N123.90).

Fidson Healthcare Plc:
Highlights:
Q3 ’10 Results:
* Fidson reported  a marginal 1.4% decrease in turnover to N4.0bn (US$26.5m).
* PBT, on the contrary, went up by an albeit marginal 1.3% to N543.1m (US$3.6m).
* Pre-tax margin remained constant at about 13.7%, indicating effective cost control measures.

FY ’10 Outlook:
* We believe that the company is positioned to take advantage of opportunities and developments in the sector, including the sustained efforts of NAFDAC in the production and distribution of counterfeit and sub-standard drugs, amongst others.
* We however have conservative FY 2010 turnover and PBT forecasts of N5.2bn (US$34.5m) and N691.9m (US$4.6m) respectively.
* We establish an ACCUMULATE recommendation based on current valuation, with a N3.80 price target, implying a 19.5% upside potential.

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.

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.

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.

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.

Glaxo Smithkline FY 2009 – Vetiva