Following the release of Q1’21/22 unaudited results and our call with the management, we adjust our FY’21/22 forecasts for Flour Mills of Nigeria Plc. These adjustments result in a relatively unchanged target price of N33.75. Nevertheless, we revise our recommendation to a BUY (HOLD previously) on impact of recent sell pressures post earnings release.
Following the release of H1'21 unaudited results and our contact with management, we adjust our FY'21 forecasts for Lafarge Africa Plc. Our earnings estimate of N45.8 billion is hinged on expected higher sales, tamer administrative expense and lower finance costs. We retain our BUY rating on the ticker.
Last week, the domestic equities market benefitted from bargain hunting activities on Telecoms, Banking, and Oil & Gas stocks as investors continue to ride the momentum of positive H1-2021 numbers as well as declining fixed income yields. As a result, the local bourse ended the week on a bullish note, posting a weekly gain of 1.9%. The All-Share Index closed at 38,522.3 points while YTD loss moderated to -1.8%, and market capitalisation gained N370.8bn w/w to settle at N20.6tn. Activity level improved last week as average volume and value traded climbed 62.7% w/w and 53.8% w/w to 322.0m units and N2.5tn, respectively.
Dangote Cement Plc (DANGCEM) recently released its H1-2021 financials which showed remarkable double-digit increase of 44.8% y/y in Revenue to N690.5bn, as well as a 72.7% y/y and 51.9% y/y growth in PBT and PAT to N281.3bn and N191.6bn respectively. The performance was largely driven by higher sales volumes, as well as improved cost management during the period which drove margin expansion. We examine the numbers closely and review our expectations accordingly.
Following the earnings release and subsequent conference call, we revise our earnings forecasts for ETI. In our view, FY’21E earnings is likely to reach a 7-year high of $292 million (vs FY’20: $85 million), driven by higher preprovision operating income (PPOI) and lower net impairments.
Following the release of H1’21 unaudited results and disclosures at the Capital Market Day program, we adjust our FY’21E forecasts for SEPLAT. On the whole, we remain positive on the stock and retain a BUY rating after adjustments.
