Earnings Flash

CCNN Plc. 9M’18- Positive Momentum Sustained, PAT Up By 97% Y/Y

Dear Client/Reader,

CCNN continued its superb performance in 9M’2018 as revenue grew by 44% to N19.6bn in contrast to the N13.6bn that was recorded in the same period last year. The substantial rise in revenue resulted from 47% increase in sale of cement by the company. Gross profit also increased significantly by 65% from N5.2bn to N8.6bn undeterred by a 30% rise in cost of sales. The impressive topline led to the growth in bottom-line as PBT and PAT grew by 100% and 97% respectively while EPS also increased from N1.62 in 9M’2017 to N3.19 in 9M’2018. With the merger of CCNN and BUA cement which is expected to continuously provide a compelling opportunity to capture significant synergies and create value for shareholders of the company in terms of stronger competitive advantage and improvement in both topline and bottom-line going forward, we maintain our medium to long term “BUY” recommendation on the stock of CCNN with a fair value of N35.26.

Key Multiples/Ratios

  Book Value Per Share- 13.41

 Gross Profit Margin- 44.10%

  Net Profit Margin-  20.50%

  Return on Equity – 23.80%

  OPEX/Sales ratio- 14.76%

  Return on Asset-    13.13%

  Cost of Sales Margin- 55.91%

  Price to Book Value- 1.28x

  Year-to-Date Change- 80.53%

Please find attached CCNN 9M’18 result analysis.

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Fidelity Bank Plc 9M 2018- Interest Income Propels PBT of N20 billion

Dear Client/Reader,

Fidelity Bank Plc. results for 9M 2018 showed an impressive PBT growth of 24% y/y from N16.2 bn in 9M’17 to N20 bn. The key driver behind the PBT growth was the growth of 9% y/y in interest income and 55% reduction in impairment charges which were strong enough to partly offset the impact of the increase in interest expense by 10% y/y and a decline of 41% y/y in other operating income. Non-interest income (NIR) declined by 8% y/y to N18.3 bn (9M’17; N20 bn) while operating expenses also saw a growth of 6.5% y/y to N50.6 bn (9M’17; N47.5 bn). However, PAT grew by 23.6% y/y to N17.9 bn (9M’16; N14.5 bn). Consequently, Earnings per share grew by 24% y/y from N0.50 in 9M’17 to N0.62 in the current period.

Key Multiples/Ratios

  Book Value Per Share- 6.64

  Net Profit Margin-  12.85%

  Return on Equity – 9.28%

  Return on Asset- 1.06%

  Price to book value- 0.30x

  Year-to-Date Change- 18.70%

  Total Loan to Total Deposit- 163.84%

  Current Shares Outstanding-  28.96 billion

  Recommendation- BUY

Please find attached Fidelity Bank Plc. 9M-2018 result.

Earnings Flash- Fidelity Bank Plc. 9M-2018

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FBNH Plc. 9M’ 18- Higher Interest And Operating Expenses Drags PBT

Dear Client/Reader,

FBNH Plc. for 9M 2018 results showed that Interest income declined by 5% y/y from N356 bn in 9M’2017 to N338 bn due to the 5% and 2% y/y reductions in income from investment securities as well as loans and advances given to customers respectively. Impairment charges reduced by 22% from N97.5 bn in 9M’17 to N76 bn in the current period. The firm also reported a significant growth in trading income which grew remarkably by 75% y/y from N15 bn in 9M’2017 to N26 bn. However, PBT and PAT declined by 7.4% and 2% respectively due to the 7% increase in operating expenses that increased from N172 bn in 9M’17 to N184 bn in 9M’18. Consequently, EPS reduced by 2.4% y/y from N1.25 in 9M’17 to N1.22.

Key Multiples/Ratios

 Book Value Per Share- 19.38

 Net Profit Margin-   10.68%

 Return on Equity –  6.45%

 Return on Asset- 0.84%

 Price to book value- 0.49x

 Year-to-Date Change- 6.82%

 Total Loan to Total Deposit- 67.63%

 Current Shares Outstanding-  35.89 billion

  Price to Book Value- 2.23x

Please find attached FBNH Plc. 9M-2018 result.

Earnings Flash- FBNH Plc. 9M-2018

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Total Nig. Plc- Profit After Tax Increased By 28.70% YoY For 9M-2018

Dear Client/Reader,

The topline result of Total Plc. showed a slight movement of 2.58% in revenue that increased to N226.9bn from N221.2bn that was recorded in 9M’2017. The cost of sales for the period also reduced by 1.34% (YoY) from N198.6bn to N196bn. The marginal increase of 2.58% in Revenue and decline of 1.34% recorded in cost of sales pushed gross profit up by 37% from N22.6bn to N31bn.The firm reported a decline of 69% in other income resulting from foreign exchange loss of about N902 mn as against N2.6bn recorded in 9M’17. However, Profit before tax increased by 18.2% from N9.7bn in 9M’17 to N11.4bn while the Profit after tax for the period also grew by 29% to N7.7bn as against N6bn recorded a year ago. Eps currently stands at N22.58 up by 29% from N17.54 while the company declared a dividend of N3 per share.

Key Multiples/Ratios

  Book Value Per Share- 88.89

 Gross Profit Margin- 13.65%

  Net Profit Margin-  3.38%

  Return on Equity – 25.40%

  Return on Asset-    5.95%

  Cost of Sales Margin- 86.35%

  Price to Book Value- 2.23x

Please find attached Total Nig. Plc. 9M-2018 result.

Earnings Flash-Total Nig Plc. 9M-2018

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FCMB Plc 9M’ 2018- SURGE IN FOREIGN EXCHANGE GAINS PROPELS PAT

Dear Client/ Reader,

FCMB Plc. results for 9M 2018 showed an impressive PBT growth of 121% y/y from N6.7 bn in 9M’17 to N14.8 bn. The key driver behind the PBT growth was the growth of 165% y/y in trading income and 152% improvement in other income on the back of massive gains in foreign exchange transactions that increased from N428 mn in 9M’17 to N9 bn in the current period, which were strong enough to offset the increase recorded in operating expense by 15% y/y. Non-interest income (NIR) also increased by 66% y/y to N37.5 bn (9M’17; N22.5 bn) while also noting a decline of 9% in interest expenses which reduced to N42.2 bn (9M’17; N46.4 bn). Consequently, Earnings per share spiked massively by 104% y/y from N0.28 in 9M’17 to N0.57 in the current period.

Key Multiples/Ratios

  Book Value Per Share- 9.04

  Net Profit Margin-  8.54%

  Return on Equity – 6.34%

  Return on Asset-    0.88%

  Price to book value- 0.14x

  Total Loan to Total Deposit- 76.71%

  Current Shares Outstanding-  19.8 Billion

  Last closing price N1.32

RECOMMENDATION: BUY

Please find attached FCMB 9M’2018 result.

Regards.

Earnings Flash- FCMB Plc. 9M-2018

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