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.

 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.

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 15^th June, 2015 while the AGM is slated for 21^st 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.

3. 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.

An 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.

4. 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.

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

 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.