In the second half of the year, TRANSCORP is expected to navigate a heightened cost environment while working to protect and strengthen its margins. With natural gas and fuel costs now representing c.81% of cost of sales and clearly the most critical driver of margin performance, effective management of this cost line remains central to sustaining earnings growth. Even so, we retain a positive view on the Group’s FY’25 outlook, supported by stronger generation capacity in the Power segment and the ongoing execution of a growth-focused strategy in the Hospitality business. Against this backdrop, we project PBT at N166.8 billion (+22.0% YoY) and PAT at N125.1 billion (+32.9% YoY), underscoring our confidence in TRANSCORP’s ability to maintain strong earnings momentum despite cost headwinds. Overall, we reiterate our BUY rating on the stock, with our 12-month Target Price (TP) now at N62.47 (vs N61.10 previously).
