NAHCO Aviance Plc has had a relatively hitch-free 2018, leading to an uptick in both its top-line and bottom-line. A recovering economy means the company will turn a sharply positive result compared to 2017.

NAHCO Aviance is Nairametrics Stock Pick of the week.

About the company  

NAHCO Aviance commenced operations on April 4, 1979, with operations at the Muritala Mohammed International Airport (MMIA), but currently operates across 35 airports in the country.

The Federal Government initially held a 60% stake in the company but sold its stake through an Initial Public Offer (IPO). The company’s shares were listed on the Nigerian Stock Exchange in November 2006. The company is a member of Aviance, an international alliance of airport service providers.

Recent results  

Results for the nine months ended September 30, 2018, show revenue rose from N5.7 billion in 2017 to N7.2 billion in 2018. Profit before tax increased from N336 million in 2017 to N731 million in 2018. Profit after tax also jumped from N287 million in 2017 to N601 million in 2018.


Current Share Price: N3.35
Year High: N4.90
Year Low: N3.27
Year to date return: -15.83%
One Year return: -17.28%

Price Outlook  

Possibilities of the stock going high are quite slim at this time of the year. The stock is trading at 2.45% above its year low of N3.27 and could dip lower depending on market sentiments. Possibilities of a sharp fall in price are quite low, due to the fairly illiquid nature of the stock.


NAHCO is currently trading at a price to earnings ratio of 4.78, far lower than the average PE ratio on the Nigerian Stock Exchange.

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Company Outlook  

Figures from the company’s Q3 2018 results show an increase in both top-line and bottom-line compared to the prior year.

The company’s Q3 earnings per share of N0.37 is twice the amount recorded in 2017. This, however, could be due to the absence of one-off factors that crippled the company’s performance last year such as the strike by workers and the economy largely being in recession.

Standard chartered

NAHCO operates in a duopoly alongside SAHCO, and the market is basically shared between both firms. NAHCO, however, has an upper hand in passenger handling and could witness a slight uptick in the fourth quarter of the year, due to the increase in passenger traffic.

Godsmart Nigeria Limited in July took a 16.7% stake in the company and is now the largest individual shareholder. This could be an indication the firm would exert significant influence in terms of strategy.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via


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