The Afrinvest weekly sentiment strengthened to 3.3x from 2.4x the prior week. This week, we anticipate the market performance to swing southward, driven by profit-taking activities amid a shortage of sustainable catalysts.
In September, the All-Share Index staged a rebound, advancing by 2.1% to push the index to 98,558.79 points with a market capitalization of N56.6 trillion. The outing culminated in a 265bps increase in YtD return to 31.81%.
The revenue outlook for the cement sector is biased to the upside in H2’24. This view on sector sales is supported by projected improvements in public sector demand, stemming from the Renewed Hope Infrastructure Development Fund (RHIDF) and other government-led infrastructure projects.
Seplat Energy Plc (SEPLAT) reported a revenue decline of 22.9% YoY in its H1'24 unaudited results due to lower crude lifted (-30.7% YoY to 4.2MMbbls) and lower gas production volumes (-8.5% YoY to 19.8MMscf) during the period, after adjusting for the impact of the timing of liftings, which was exacerbated by the over-lift ($75.0 million) recorded in Q1'23.
AIRTELAFRI's Q1'24/25 revenue declined by 16.1% YoY to $1.16 billion, primarily due to significant currency pressures in its single largest market, Nigeria. The subsidiary saw a 51.5% YoY drop in topline to $256 million.
In this report, we update our 12-month target price (TP) for Transnational Corporation Plc (TRANSCORP) in line with our improved earnings outlook for the power and the hospitality businesses. We consolidate our views on the company’s subsidiaries (TRANSPOWER and TRANSCOHOT), whilst explaining the impact on overall valuation.
