In tandem with our expectation, the local bourse extended its positive performance last week on buying interest in DANGCEM (+14.3%), ZENITH (+2.6%), and FBNH (+7.3%). Accordingly, the All-Share Index rose 3.2% w/w to 40,221.17 points. Meanwhile, YTD loss improved to -0.1% and market capitalisation rose ₦655.9bn w/w to ₦20.9tn.
Last week, the domestic equity market closed well in positive territory amid broad-based gains, supported by large-cap names DANGCEM (+14.3% w/w) and ZENITH (+2.6% w/w). The main index NGXASI, rose sharply by 3.2% w/w to 40,221.2 points, trimming the YTD return to -0.1% and adding N655.9bn in market capitalisation to settle at N20.9tn. Trading activity also improved as the average volume and value traded rose 38.8% and 19.5% w/w to 355.7m units and N3.3bn, respectively.
Following the release of ZENITHBANK’s H1’21 audited result and the subsequent conference call, we engaged further with the bank’s management to ascertain its strategic direction. This report highlights our view on the bank’s retail strategy, key performance drivers, and long-term value proposition. Overall, we reaffirm our positive outlook for the counter with a 12-month target price of N29.83 and a BUY rating. ...
Earlier, major indigenous upstream player, Seplat (‘SEPLAT’ or ‘The Company’) released its H1-2021 financials, which showed a 32.1% y/y and a 404.4% y/y increase in topline and bottomline to close at $303.8m and $36.1m, respectively. The strong performance was mainly bolstered by increased crude and gas sales which were spurred by the global economic recovery (following relaxation of pandemic-related restrictions), low base effect from 2020, and increased vaccination rollout which has enabled sustained demand recovery. Below we take a critical look at the company’s performance and present our outlook.
BUA Cement Plc (“BUACEMENT” or “The Group”) recently reported its financials for H1-2021 which showed a 26.9% y/y and 24.6% y/y growth in PBT and PAT to N49.7bn and N43.4bn, respectively. This was largely supported by strong growth in topline (+22.7% y/y), which outpaced the increase in Cost of sales (+19.1% y/y), on account of lower energy cost-per-tonne (-1.4% y/y). Profitability was also aided by lower financing charges (-49.9% y/y) and subdued tax charges. Below, we assess the cement manufacturer’s H1-2021 numbers and provide our outlook for FY-2021 and beyond.
Recently, Unilever Nigeria Plc (“UNILEVER” or “the company”) published its Unaudited H1-2021 financial result. According to the report, Revenue grew strongly in H1-2021, up by 43.2% y/y to N39.2bn from N27.3bn in H1-2020. Similarly, Q2-2021 Revenue performance grew 40.8% y/y indicating revenue resilience. However, the company continues to face noticeable cost pressures which exerts sustained pressure on profitability. Nevertheless, the company turned a corner on profitability after posting a Net income of N0.7bn in H1-2021, from a loss of N0.5bn in H1-2020 ...
