Cutix Plc hit a 5 year high of N3.99 in yesterday’s trading session on the Nigerian Stock Exchange (NSE). The stock has also consistently gained in the last three trading sessions this week. The stock went up by 10% on Monday, another 10% on Tuesday, and appreciated by 9.9% in Wednesday’s session.
Year to date, the stock is up 98.5% and is one of the best performing on the NSE year.
The rally in the company’s share price may be related to its declaration of a dividend of N0.20 per share and a bonus of one new share for every ordinary share held. The company disclosed this in a notice containing boardroom resolutions sent to the NSE
Cutix last gave a bonus issue of two shares for every three held in 2012.
Results for the 12 months ended April 2017 show that revenue increased from N3.6 billion in 2017, to N5 billion in 2018. Profit before tax increased from N420 million in 2017 to N688 million in 2018. Profit after tax also surged from N273 million in 2017 to N447 million in 2018.
Cutix has maintained a consistent increase in revenue and profitability over the past 5 years. Revenue increased from N1.9 billion in 2013 to N5.0 billion in 2018. Profit after tax has also increased from N151 million in 2013 to N447 million in 2018. Asides the 2017 financial year, the company has paid dividends consistently for 25 years between 1989 and 2016.
Implications of the bonus issue
A positive fall out from the bonus issue is that it would enhance the liquidity of the stock as more shares will be available to trade.
On the flip side, earnings per share could take a momentary dive as the shares outstanding will double from 880 million to 1.6 billion. EPS for the financial year ended April 2018 was N0.51. Except the company is able to sharply increase its earnings, EPS for the next financial year could be in the range of N0.25 to N0.30.
This would leave the stock trading at a PE ratio of 16 times earnings at current prices, more than the twice the average PE ratio on the NSE. Cutix is currently trading at a price to earnings ratio of 7.8 times earnings, slightly higher than the average PE on the exchange.
Price Earnings is a ratio used to measure how expensive a stock is.
About the company
Cutix Plc was incorporated on November 4, 1982 as a private limited liability company. The company was initially quoted in the Alternative Securities Exchange Market (ASEM) of the NSE on August 12, 1987. On February 18, 2008, it migrated to the main tier
Cutix is into the manufacturing and marketing of electrical, automobile and telecommunication wires, cables and related products.
Covid-19: WHO approves China’s Sinopharm vaccine
WHO has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.
The World Health Organization (WHO) has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.
This was disclosed today in a report by Reuters. The vaccine would also be the second Chinese-made vaccine after Sinovac vaccine and would be the first developed outside Europe and North America to receive WHO accreditation.
“This expands the list of COVID-19 vaccines that COVAX can buy, and gives countries confidence to expedite their own regulatory approval, and to import and administer a vaccine,” WHO Director-General, Tedros Adhanom Ghebreyesus said.
The WHO added that the easy storage requirements make it highly suitable for low-resource settings.
“Its easy storage requirements make it highly suitable for low-resource settings,” a WHO statement said while also disclosing that the vaccine has been approved for people above the age of 18 to receive two shots.
“On the basis of all available evidence, WHO recommends the vaccine for adults 18 years and older, in a two-dose schedule with a spacing of three to four weeks,” the statement added.
The vaccine was created by Beijing Biological Products Institute, a subsidiary of Sinopharm subsidiary China National Biotec Group, with an efficacy of 79% for all age groups.
The WHO however, admitted that few older adults (over 60 years) were enrolled in clinical trials, so efficacy could not be estimated in this age group.
In case you missed it
The quest for vaccine efficiency got a major boost earlier this week as Nairametrics reported that the United States government announced that it supports the waiver of Intellectual Property Protections on Covid-19 vaccine development, in a bid to boost the fight against the pandemic, and says it will participate in the Okonjo-Iweala-led WTO negotiation to make it happen.
“Mama Taraba”, Former minister and senator, Aisha Al-Hassan is dead
Ex-Women Affairs minister, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead
A former Minister for Women Affairs and ex-Governorship Candidate in Taraba State, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead.
According to media reports she died in a hospital on Friday in Cairo, Egypt at the age of 61.
Al-Hassan, who was a former senator of the Federal Republic of Nigeria from Taraba North Senatorial District, was the All Progressive Congress (APC) Governorship Candidate for Taraba in the 2015 general elections.
She later contested for the same seat on the platform of the United Democratic Party in the 2019 general elections after resigning from APC and as a minister in the administration of President Muhammadu Buhari on July 27, 2018.
The former senator was born on the 16th of September, 1959 in Jalingo, Taraba State, to Alhaji Abubakar Ibrahim, Sarkin Ayukan Muri.
Aisha Jummai Al-Hassan attended Muhammed Nya Primary School, Jalingo and LEA Primary School, Tudun Wada, Kaduna before proceeding to Saint Faith College (now GGSS) Kawo Kaduna where she studied between January 1973 and June 1977.
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