Naija Lo Wa

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 (23)

Here is Vetiva’s analysis of 7-Up Bottling Company’s Q2 2009 results:

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