Following an exceptional 2024, wherein Transnational Corporation Plc (TRANSCORP) recorded a 189.7% YoY surge in earnings to N94.1 billion on the back of robust increases in revenues from power and hospitality subsidiaries, we expect the company to sustain its strong earnings trajectory into the 2025 financial year.
Bua Cement delivered an exceptional Q1’25, which showed a considerable improvement in margins, prompting a revision in estimates and valuation. Our 12-month Target Price (TP) is revised upwards to N73.82, implying an 11.8% downside to our reference price.
As one of the most profitable banking entities of FY'24, with a PAT of N1.02 trillion and an ROAE of 48.6% (vs. ZENITHBANK's PAT of N1.03 trillion and ROAE of 32.5% & UBA's PAT of N766.6 billion and ROAE of 28.1%), GTCO appears poised to deliver strong core earnings in FY'25.
BUA Cement Plc (NGX: BUACEMENT, TP— UR*) reported a 351.4% YoY growth in earnings in its Q1'25 unaudited results, driven by strong revenue growth, efficient cost management, and a significant reduction in exchange losses.
Transcorp Power Plc (NGX: TRANSPOWER—TP: UR), in its unaudited Q1'25 results, delivered a strong financial performance, posting a PAT growth of 62.0% YoY to reach N32.6 billion, with an EPS of N4.35 (vs N2.69 in Q1'24). By our assessment, the company's robust topline performance was sufficient to assuage pressures from cost of sales (+52.4% YoY), impairments (+178.6% YoY), and administrative expenses (+74.1% YoY), amongst other cost lines.
Lafarge Africa Plc (NGX: WAPCO, TP - UR) announced an impressive 836.7% YoY surge in earnings in its Q1’25 results, which reflected robust revenue growth, finance income, and foreign exchange gains. The low earnings base in Q1’24, driven by substantial FX losses, also contributed to the magnitude of earnings growth.
