" />
Published On: Mon, Jun 29th, 2015

BEST BARGAIN.

By: Dennis Okonne.

PERFORMANCE FOR THE WEEK.

Based on prior prices, volume data, dividend payout and other fundamentals which include company’s growth, revenues, earnings, management and capital structure, the following stocks are likely to appreciate in price this week:

  1. Nigerian Breweries Plc: Nigerian Breweries Plc recorded an impressive audited 2014 result and this performance has rekindle investors’ confidence in the company growth trajectory and in the ability to sustain its return on investment to its shareholders at the year end. In its audited result, it’s Profit after tax slide to N42.520 billion from N43.080 billion in its preceding year, translating to a decrease of -1.3%. Similarly, its Gross Earnings also dipped by -0.8% from N268.613 billion previously to N266.372 billion. Consequently, the company doles out a final dividend of 3.50 kobo per share making a final dividend of N4.75 kobo, having paid out an interim dividend of N1.25 kobo per share earlier.

 

Nigerian Breweries Plc, the pioneer and largest brewing Company in Nigeria was incorporated in 1946. This first brewery in Lagos has undergone several optimization processes and as at today boasts of the most modern brew house in the country. The Company was listed on the floor of The Nigerian Stock Exchange (NSE) in 1973. The issued and fully paid-up share capital of the Company is 7,562,704,432 ordinary shares of 50 kobo each. Nigerian Breweries Plc has a rich portfolio of high quality brands. Star lager beer, and Gulder lager beer. Maltina and Amstel Malta are the nourishing malt drinks. Legend Extra Stout; Heineken lager beer while Fayrouz, the premium non-alcoholic soft drink, and Climax, energy drink; while Goldberg lager, Malta Gold and Life Continental lager entered in 2011 and “33” Lager beer.

 

In October 2011, it acquired majority equity interests in Sona Systems Associates Business Management Limited, (Sona Systems) and Life Breweries Limited. Sona Systems’ two breweries in Ota and Kaduna, and Life Breweries in Onitsha have now become part of Nigerian Breweries Plc, together with the three brands: Goldberg lager, Malta Gold and Life Continental lager. In 2014, it merged with Consolidated breweries makers of “33” lager brand.

 

In its First Quarter result 2015, its turnover grew from N68.976 billion in the preceding year to N69.921 billion, translating to an increase +1.37%. However, its Profit before tax slumped to N14.438 billion from N14.710 billion previously, a decrease of 1.83%.  Its profit after tax rose marginally from N10.059 billion previously to N10.105 billion, an increase of +0.45%. Current Market Price= N148.01 k.

Nicholas 2. Berger Paints Plc: The Company was incorporated in 1959 as British Paints (W.A.) limited and was converted to a public limited company in 1973. Its shares were quoted on the Nigerian Stock Exchange in 1974. Robbialac Nigeria Limited is the only subsidiary of Berger Paint plc. The company is engaged in the manufacturing of Decorative and Industrial Paint, Marine and Protective Coatings, Automobile /Vehicle Refinishes and allied products. The company is regarded as a trailblazer in the Paint Manufacturing sector. It has acquired technologically advanced production machines which have impacted positively in its operations and efficiency.

 

Flagship Brands: Decorative paints include Texcote, Luxol and Super star and are available in unlimited range of colours; with protective ability. PROCOL is an insect repellant paint formulated primarily to eradicate mosquitoes and cockroaches form the environment. It is however safe for Humans and Domestic Pets. Industrial coatings are protective paint used as coatings for all manufacturing equipments and machines. It protects the items from rust and scratches.

 

Automotive/Vehicle Refinishes Paints are brand as Autolux. Car paints includes Solid and Metallic Paints, Primers and Vanish, Auto base range includes the Base and Cryl Primer, fillers clear and hardener etc. There is also a bergernol wood preservative. Finally, there is Berger Colour world where a dream colour can be produced instantly. The company is committed technologically to produce paints of high and customized quality to their numerous clients.

READ  Dangote Sugar targets 25% sales volumes in 2018

 

Financial Highlights: In its audited result, it’s Profit after tax slides to N148.808 million from N257.580 million in its preceding year, translating to a decrease of -42.2%. However, its Gross Earnings rose by +13.7% from N2.710 billion previously to N3.082 billion. Consequently, the company doles out a final dividend of 75 kobo per share. Closure of register is 15th June, 2015 while the AGM is slated for 21st July 2015 @ NECA House, Alausa, Ikeja, Lagos. It price resurgence is its impressive performance in the first quarter 2015 financial profile where it recorded positive result in all indices. In it, its revenue leaps by +20.1% from N587.851 million in the preceding year to N705.930 million. Similarly, its profit after tax quantum leaps from N8.783 million previously to N70.025 million, translating to an increase of +697.3%. Current Market Price= N11.24 k.

 

  1. 3. FBN Holdings Plc: This is the oldest financial institution in Nigeria as well as the undisputed leader in the banking equities on the Stock Exchange. This enduring financial institution is widely regarded as a “Bell Weather” stock capable of moving other equities with it as it appreciates. In its audited result 2014, its Gross Earnings leaped from N396.2 billion in the preceding year to N480.6 billion, translating to an increase of +21.3%. In the same vein, its profit after tax rose significantly from N70.631 billion to N82.8 billion, an increase of +17.3%. Consequently, a dividend of N0.10 kobo per share was appropriated and one for ten bonus as opposed to N1.10 kobo per share and no bonus last year. This result was regarded as a massive backwardness from last years’ result which will likely not boosts investors’ confidence in this stock.

BisiPGAn impressive first quarter 2015 profile was responsible for its price resurgence as its turnover rose by +16.97% from N81.479 billion previously to N95.308 billion. Similarly, its profit after tax grew by +4.86% from N21.555 billion to N22.603 billion. Another mouth-watering dividend will result at year end that will surpass the 10 kobo per share dividend. Current Market Price= N7.96k.

 

It commenced operations in 1894 as a branch of the Bank of British West Africa Limited (BBWA) and was subsequently incorporated as a private limited liability in 1969. It was converted to a public limited company in 1970 and its shares quoted on the Stock Exchange. It’s issued and fully paid up capital consists of 32,632 billion ordinary shares of 50 kobo each and owned by over 1.3 million shareholders. The principal activity continue to be the provision of commercial banking structured along corporate, public, retail, institutional and private banking segments. Such services include granting of loans and advances, corporate finance and money market activities. Current Market Price= N7.96 K.

 

  1. Oando Plc: (formally Unipetrol Nigeria Plc) commenced business operations as a petroleum marketing company in Nigeria under the name ESSO West Africa Inc., a subsidiary of Exxon Corporation of USA in 1956. In 1976, the Nigerian Government bought Esso’s interest and thus owned the company 100%. In 1991 the company converted to a public limited liability company and was quoted on the Nigeria Stock Exchange (NSE) in 1992. Today the company operates 341 retail outlets throughout Nigeria, 5 depots with a capacity of 40 million litres, 5 LPG plants with a capacity of 750 metric tonnes, 3 aviation fuel depots in Lagos, Abuja and Kano, 2 bitumen plants with a capacity of 12,000 metric tonnes, a lubricant blending plant and numerous retail outlets in Ghana, Togo, Sierra Leone, Benin and Niger.
READ  Emefiele dismisses fears over MPC meeting, insists economy is strong

 

Flagship Products & Services: Exploration & Production: Oando Qua Ibo Ltd; Equator Exploration Ltd (British Virgin Island); Energy Services: Oando Energy Services; Oando Energy Resources; Oando Gas & Power: Oando Oil and Gas; Ebony Oil and Gas Ltd, Ghana; Gas Network Servco Nig. Ltd; Oando Akepo Ltd. Downstream: marketing, supply and trading, Terminaling: Oando Terminals & Logistics; Oando Marketing Plc and Oando Resources.

 

In its audited result, its revenue slumped from N650.565 billion in the preceding year to N449.873 billion, translating to a decrease of -30.8%. Gross Profit equally nose-dived from N69.901 billion previously to N59.289 billion. Profit before tax also dropped from N14.177 billion previously to N713.207 million, a decrease of -95.0%. Similarly, its profit after tax also slides by -87.1% from N10.786 billion to N1.396 billion. In its third quarter 2014 result, its turnover dips from N386.251 billion in the preceding year to N338.105 billion, a decrease of -12.46%. However, its profit after tax rose from N6.091 billion previously to N10.700 billion, an increase of +75.67%. If this trend is sustained in the last quarter, a better dividend will be appropriated. Current Market Price= N15.36 K

waletinubu 5. Ashaka Cement Plc: The Company is a subsidiary of Lafarge SA and is involved in the Manufacturing and Marketing of Cement Products in Nigeria. The Company’s operations are organized into three Divisions: Aggregates and Concrete, Cement and Gypsum. It is active within the construction/building materials sector of the Nigerian Stock Exchange.

 

Ashakacem Plc was incorporated on August 7, 1974 as a private limited liability company with primary activities as manufacturing and marketing of cement products. It was later converted to a public company and its shares were subsequently quoted on the Nigerian Stock Exchange (NSE) in July 1990. Ashaka was fully integrated into the Lafarge Group in July 2002 after the acquisition of Blue Circle Industry Plc of the United Kingdom (BCI, UK) by Lafarge SA, France. Lafarge Group remains the key shareholders in Ashaka with 50% ownership via BCI and 0.16% via Lafarge (Nigeria) limited. This puts the total shareholdings of Lafarge Group in the company at 50.16 per cent while the remaining percentage (49.84%) is held by Nigerians (private individuals and institutions). It issued and fully paid up capital consists of 2,239,453,125 billion ordinary shares of 50 kobo each.

 

In its audited result, its revenue slumped from N21.694 billion in the preceding year to N21.133 billion, translating to a decrease of -2.58%. However, its profit after tax quantum leaps by +92.64% from N2.616 billion to N5.040 billion. Consequently, a dividend of 45 kobo per share was appropriated from 42 kobo per share last year, an increase of +7.14%. The icing on the cake is its first quarter 2015 result, its turnover dips from N6.505 billion in the preceding year to N4.560 billion, a decrease of -29.89%. Similarly, its profit after tax slumped from N1.919 billion previously to N889.014 million, a decrease of -53.68%. Current Market Price= N22.60 K.

 

Summary of stock price movement in 2015.

COMPANY Stock Price@5 Jan, 15 Stock price currently % Change.
Nigerian Breweries Plc N163.00 k N148.01 k -9.20
Berger Paints Plc N9.00 K N11.24k +24.89
FBN Holdings Plc N8.70 K N7.96k -9.20
Oando Plc N17.50 K N15.36k -12.23
Ashaka Cement Plc N20.81 K N22.60k +8.60

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Most Shared

Recent posts

  • FG grants PPAs of 14 solar projects another 6 months extension

    For the second time since 2016, the Federal Government  has extended by another six months, the deadline for the execution of the power purchase agreements (PPAs) it signed with investors for 14 utility solar power projects to be built in some states of the country. According to OGN reports it was reportedly rolled over after […]

  • Dangote Sugar targets 25% sales volumes in 2018

    The acting Managing Director of Dangote Sugar Refinery Plc, Abdullahi Sule, believes the company’s  sales volumes could rise as much as 25 percent in 2018 after last year’s downturn. Nigeria’s economy, which contracted in 2016, is recovering after the government relaxed some currency controls implemented after the price of oil, its main export, crashed in […]

  • Emefiele dismisses fears over MPC meeting, insists economy is strong

    The Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has allayed the fears of Nigerians and the international community over the inability to hold the meeting of the Monetary Policy Committee (MPC) for January. A statement signed by Emefiele in Abuja on Monday, said that the meeting, which was earlier scheduled for the day […]

  • Nigeria, Angola crude overhang could pressurize Asian crude

    Traders have said that unsold barrels of crude from West Africa could put pressure on the premiums of Malaysian crude cargoes for March loading.   Platts reports that weaker demand, particularly from independent refineries in China, for February-loading Angolan and Nigerian grades has resulted in an overhang, traders said. Traders indicated that these grades were […]

  • NBS: 77.5m Nigerians engage in economic activities in Q3

    The National Bureau of Statistics (NBS) says 77.55 million people are engaged in economic activities out of a labour force of 85.08 million in the third quarter of 2017. The NBS disclosed this in a “Labour Force Statistics Volume 2: Employment by Sector report for Third Quarter of 2017’’ released by the bureau on Monday […]

  • Lassa fever: Schools reopen in Ebonyi

    Public and private schools in Ebonyi shut on Jan. 18 to check the spread of Lassa fever outbreak in the state have reopened the News Agency of Nigeria (NAN) reports. Prof. John Eke, the Commissioner for Education, told NAN on Monday in Abakaliki, that the schools were reopened as no new case of the disease […]

  • Four major markets in Nigeria need 36.27MW to grow efficiency – REA

    A baseline survey of the energy needs of four of the major markets in Nigeria, which the Rural Electrification Agency (REA) conducted, has indicated that with 36.27 megawatts (MW) of stable electricity provided to them, economic productivity in the markets could expand and bring more prosperity to about 50,900 shop owners there, OGN reports. The […]

  • ALSCON: Nigeria, Russia sign Share Purchase agreement

    Nigeria has signed the Renewed Share Purchase Agreement with Messrs UC Rusal of Russia in respect of the Aluminium Smelter Company of Nigeria (ALSCON). The agreement was signed in in Abuja on Friday by the relevant government stakeholders, including the Minister of Mines and Steel Development, Dr Kayode Fayemi. Present at the ceremony were the […]

  • Slimming drugs: Expert calls for stiff regulation

    Dr Bamidele Iwalokun, a medical researcher with the Nigerian Institute of Medical Research (NIMR) in Yaba, Lagos, has called for stiffer regulation of slimming drugs to safeguard the health of consumers. Iwalokun made the call in an interview with the News Agency of Nigeria (NAN) in Lagos on Sunday. He said there was the need […]

  • Derivatives trading: US expert speaks on the pluses and pitfalls

    As part of strategic initiatives to enhance the efficiency of capital market operations in Nigeria, The Nigerian Stock Exchange and Coronation Merchant Bank invited the former Chair of the US Commodities Futures Trading Commission (US CFTC), Mr. James Stone to deliver a special lecture on ‘Pluses and Pitfalls of Derivatives Trading’ at the Nigerian Stock […]

  • Ajimobi: Oyo set to increase institutions subventions

    The Oyo State Governor, Abiola Ajimobi, has appealed to the striking state-owned higher institutions that his administration is prepared to increase their subventions. The governor said this would be achieved as soon as government’s renewed efforts to improve its revenue-base begin to bear fruits. Ajimobi, who made the appeal while inaugurating the governing councils of […]

  • SEC’s e-dividend free registration ends Feb 28

    The Securities and Exchange Commission (SEC) has extended period for the free e-dividend registration to Feb. 28, to encourage more shareholders participation in the initiative. The commission in a statement obtained by the News Agency of Nigeria (NAN) in Lagos, indicated that the extension was part of its developmental role. It said that the extension […]

  • Nigerian equities market goes bearish after hitting over nine year high

    FELIX OLOYEDE Profit-taking caused the Nigerian Stock market to go bearish for the first time this week after reaching over nine year high on Wednesday. The All Share Index declined -0.08 per cent to close at 44,848.74 point on Thursday after hitting 44885.24 point the previous day, the highest since September 2008 when it closed […]

  • 2019: Wike gets second term endorsement

    Residents of River state have endorsed the Governor, Nyesom Wike, for another term of four years. They declared their support for the governor when over 15,000 non-indigenes of the state visited the Government House on Wednesday in Port Harcourt, the state capital, Channels TV reports. Wike urged Nigerians irrespective of their linguistic and religious affiliation […]

  • Banks enjoy improved liquidity as overnight rate drops three consecutive days

    FELIX OLOYEDE The redemption of Treasury Bills by Federal Government has helped to improve liquidity in Nigerian banking sector as overnight rate declined three consecutive times this week. Overnight (O/N) rate dropped -0.75 per cent to 5.75 per cent on Thursday, while Open Buy Back (OBB) rate was down -0.92 per cent to 5.25 per […]

  • Lassa fever: Ebonyi Schools proceed on forced break

    Schools in Ebonyi State have been directed to close for a week following the outbreak of Lassa fever in the state. The state government said the directive was given as part of measures to contain the spread of the disease in the state. Commissioner for Health, Umuzuruike Daniel, also confirmed the death of three victims […]