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Reports on Benue Cement Company, Total, Sovereign Insurance, and UACN

Here are the reports analyses from FSDH and Meristem for the recently released results of Benue Cement Company, Total, Sovereign Insurance, and UACN.

FSDH - Company Analysis - Benue Cement - Nov 2008 (19)
FSDH - Company Analysis - Total - Nov 2008 (13)
Meristem - Company Analysis - Sovereign Insurance - Nov 2008 (17)
Meristem - Company Analysis - UACN - Nov 2008 (13)

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Reports for Dangote, RT Briscoe, UACN and Mobil

Here are the reports prepared by FSDH Stock brokers for the recently released results of Dangote Sugar, UACN, Mobil and RT Briscoe:

FSDH - Company Report - Dangote Sugar Q3 2008 (28)
FSDH - Company Report - Mobil Q3 2008 (24)
FSDH Company Report - RT Briscoe Q3 2008 (26)
FSDH Company Report - UACN Q3 2008 (32)

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Analysis of Oando and IAA

Here are the analyses of Oando PLC and Investment & Allied Assurance (IAA) by FSDH and Proshare respectively:

FSDH - Company Report - OANDO - Q3 2008 (27)
Proshare - Company Report - IAA (Oct 2008) (25)

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Analysis of Lafarge WAPCO and Unilever

Courtesy of FSDH and Zenith Securities, here are the analysis of the recent results for Unilever and Lafarge WAPCO:

FSDH - Company Analysis - Unilever - Q3 2008 (16)
ZSL - Company Spotlight- Lafarge WAPCO - Oct 2008 (18)

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Some research reports

You can read the following reports:

1. Afrinvest’s Weekly Report for the week ended October 17th.
   Afrinvest - Weekly Report - Oct 17 2008 (29)
2. FSDH’s analysis of Oceanic Banks recent results.
   FSDH - Oceanic Bank - Q4 2008 (21)
3. Lead Capital’s Quarterly Economic Report.
   Lead Capital- Economic Market Review (Sept 2008) (19)
4. Renaisance Capital’s Research Report on the Nigerian Economy.
   Renaisance Capital Report on the Nigerian Stock Exchange (22)

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FSDH Ratings for Mobil and Total

Here is FSDH’s analysis for Mobil PLC andTotal:

FSDH - Company Report - Mobil Q2 2008 (21)
FSDH - Company Report - Total Q2 2008 (21)

FSDH rates Mobil as a SELL ‘cos it is at a 63% premium while it rates Total as a BUY ‘cos it is at a 40% discount.

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Research Reports for UNIC, Dangote Sugar Refinery, Oando, and Skye Bank

Here are research reports and analysis of recent results of UNIC, Dangote Sugar Refinery, Oando, and Skye Bank by Meristem and FSDH.

Meristem Company Analysis - UNIC (36)
FSDH - Dangote Sugar Q2 2008 Analysis (49)
FSDH - Oando Q2 2008 Analysis (33)
FSDH - Skye Bank Q3 ‘08 Analysis (68)

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JP Morgan’s Analysis of Nigerian Banks

Here is JP Morgan’s Analysis of Nigerian Banks. I will add some comments and notes later.

JPM Nigerian Banks Research Report (193)

Update:
Here are my comments and summary of the article:

1. Believes that stocks in the banking sector are expensive on both an absolute basis and relative to emerging market peers. The believe that they are overvaluated up to about 56%.
2. Recommended an Overweight (BUY) position in GTB, Neutral (HOLD) on Zenith, Union Bank, and Oceanic, and Underweight (SELL) on Intercontinental, UBA, and First Bank.
3. Expect a return in the range of 27% for GTB to negative 40% for First Bank.
4. Believe that the banks are sufficiently capitalised to support strong EPS growth.
5. The continued vulnerability of smaller banks may pose systemic risks to the Nigerian banking system.

Are negative on the Nigerian banks for the following reasons:

1. Valuations appeared stretched.
2. Capital raising has been used to fund growth while internal growth capability is low.
3. Continued intensification of competition.
4. The risk of sharp increase in non-performing loans has increased as private sector credit increased 98% in 2007.
5. Earnings growth visiblity is low.
6. Growth has moved ahead of the risk capabilities of both the banks and regulator.
7. Growth opportunity in the retail market may take longer to realise than the market is presently expecting.
8. The stock market has been driven by a hot-house effect, movinig ahead of fundamentals.
9. Bank prices do not sufficiently reflect the difficulties imposed by a lack of infrastructure, high levels of systemic risk as well as general economic and political risk.

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FSDH’s Analysis of UACN and Oando Results

FSDH’s Analysis of UACN Properties:

1. Impressive result
2. Believes the fair price should be N34.37, a discount of 27%
3. Income was derived from two major areas - Business properties (N0.09bn/15.83) and Residential Properties (N4.78bn/84.17%)
4. Projects a PAT of N3.06bn for 2008
5. Rates the stock a BUY

FSDH Company Analysis - UACN Properties (27)
FSDH’s Analysis of OANDO PLC:

1. Believes the fair price should be N196.82, a discount of 16%
2. Working capital position is not very impressive. Believes that the company might find it difficult to meet its short term obligations as at when due
3. Stock is rated as a BUY

FSDH Company Analysis - Oando Q2 ‘08 (40)

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Analysis of UBA, Diamond Bank, Conoil, Oando, and UAC Properties Results

Here are the analysis of the results of UBA, Diamond Bank, Conoil, Oando, and UAC Properties.

FSDH Analysis of UBA’s Q3′ 2008 Results:

1. Improvements in the quality of the bank’s assets.
2. Non-performing loans decreased slightly to N14.66bn.
3. The non-performing loan to gross loan margin decreased from 12.6% to 4.37%.
4. Projects PAT of N52.66bn, N78.99bn, N114.54bn, and N160.36bn for 2008, 2009, 2010, and 2011 respectively.
5. Estimate a fair value of N56.23 for the stock price. So the stock is a rated a BUY.

ZSL Analysis of Oando’s Q2 ‘08 Results

1. PAT increased 59%.
2. 161.94% growth in earnings per share.
3. Expects that the deregulation of the gas industry will provide an opportunity for the company to purchase part of the unbundled Nigerian Gas Company.
4. The $500m in rigs (started in 2007) to develop a stong offering in the upstream services sector is expected to impact the company’s bottom line in the medium to long term.
5. Oando’s marketing unit, Oando Marketing is expected to be quoted on the NSE.
6. The stock is valued at N176.98 in the near term and N222.99 in the long-term.
7. Recommendation of HOLD.

Meristem has a BUY recommendation for Diamond Bank.
Meristem has a BUY recommendation for Conoil.
Meristem has a HOLD recommednation for UAC Properties.

FSDH - UBA Q3 Analysis (31)
Meristem - Conoil Q2 ‘08 Analysis (31)
Meristem - Diamond Bank ‘08 Results Analysis (29)
Meristem - UAC PDC Equity Report (35)
ZSL - Oando Q2 ‘08 Analysis (34)

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Analysis of Lafarge Q2 Results

Here is FSDH Securities’ Analysis of Lafarge Cement WAPCO Q2 Results:

1. The company experienced shortage of natural gas supply, power disruption, as well as the recent floods.
2. In lieu of this, FSDH reviewed downward the company’s forecasted earnings - 4% decline compared to the last year.
3. Rated the company as a Long-Term BUY

FSDH Analysis - Lafarge - Q2 (20)

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Analysis of RT Briscoe and ASL

FSDH’s Analysis of RT Briscoe’s Q2 Results

1. Company most likely to surpass last year’s performance.
2. Good working capital position. So there is no fear of the company not meeting short term obligations.
3. Projects a PAT of N740m for fiscal year.
4. Rates the stock as a BUY at current price.

FSDH Analysis - R.T BRISCOE -Q2- 2008 (11)

Meristem Securities’ Analysis of Air Services PLC

1. The company provides catering and hospitality services to local and international airlines and airports in Nigeria.
2. Company currently enjoys a monopoly in providing catering services to the various airlines that serve the Nigerian economy.
3. It has recorded impressive growth in PBT and PAT of 75% and 86% in the last 5 years.
4. PAT is projected to rise to N1.67bn in the next 5 years.
5. For FY 08, a 44% rise in PAT is projected.
6. Rates the stock as a PUY with an upside potential of 27%.

Meristem Equity Research Report - ASL (18)

You can also read Meristem’s Analysis of the Petroleum Marketing companies:
Meristem - Report on Petroleum Marketing Companies (16)

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