Stocks on our Buy/Sell/Hold list are picked from the top gainers and losers of the prior week, as well as various analyst reports
International Breweries: HOLD
Recent Results: Results for the nine months ended September 2018, show that revenue increased from N36.5 billion in 2017 to N83.3 billion in 2018. The firm however recorded a loss before tax of N9.1 billion in 2018, as against a N3.1 billion loss in 2017. It made a loss after tax of N7.1 billion in 2018, as against a N1.4 billion profit after tax recorded in 2017.
Price Information
Current Share Price: N16.7
Price to Earnings Ratio: NA
Price to Book Ratio: 4
Year to Date Return: -45.25%
One Year Return: -62.05%
External View
Analysts at FBNQuest have an ”Underperform” rating on the stock. They have a target price of N28.2, which represents a potential upside of 52.1% from the stock’s price of N18.6, as at when the report was prepared.
Analysts at United Capital have a “Hold” recommendation on the stock. They have a 12 month target price of N38.1, which represents a potential upside of 105.4% from the stock’s price of N18.6, as at when the report was prepared.
Our View
International Breweries is a HOLD in Nairametrics’ opinion. Though the company has yet to release its full year 2018 and Q1 2019 results (nor given guidance as to when they will be released), it will most likely record a loss.
Information from the parent company’s full year 2018 results however, show that the Nigerian unit had a healthy double digit growth.
The stock has also yet to significantly decline, to warrant entry.
Presco Plc : HOLD
Recent Results: Results for the first quarter ended March 2019 show that revenue dipped from N6.5 billion in 2018 to N5.5 billion in 2019. Profit before tax fell from N3.4 billion in 2018 to N2.5 billion in 2019. Profit after tax also declined from N2.5 billion in 2018 to N2.1 billion in 2019.
Price Information
Current Share Price: N50
Price to Earnings Ratio: 13.07X
Price to Book Ratio: 1.9
Year to Date Return: -21.88%
One Year Return: -28.67%
External View
Analysts at FBNQuest have a “Neutral” recommendation on the stock. They have a target price of N66, which represents a potential upside of 20% from the stock’s price of N55, as at when the report was prepared.
Analysts at United Capital have a “Buy” recommendation on the stock. They have a target price of N74.5, which represents a potential upside of 35.5% from the stock’s price of N55, as at when the report was prepared.
Our View
Presco Plc is a HOLD in Nairametrics’ opinion. The stock has underperformed the NSE All Share Index which is down 5.30% year to date. It still has room for further decline.
Dangote Sugar Refinery: HOLD
Recent Results: Results for the first quarter ended March 2019 show that revenue fell from N41.1 billion in 2018 to N31.1 billion in 2019. Profit before tax however increased from N8.3 billion in 2018 to N10 billion in 2019. Profit after tax also rose from N5.2 billion in 2018 to N7 billion in 2019.
Price Information
Current Share Price: N12.45
Price to Earnings Ratio: 6.25X
Price to Book Ratio: 1.40
Year to Date Return: -18.36%
One Year Return: -29.94%
External Views
Analysts at FBNQuest have a “Neutral” rating on the stock. They have a target price of N14.9, which represents a potential upside of 40.6% from the stock’s price of N10.60, as at when the report was prepared.
Analysts at United Capital have a “Hold” recommendation on the stock. They have a target price of N16.8, which represents a potential upside of 58.5%, from the stock’s price of N10.60, as at when the report was prepared.
Our View
Dangote Sugar is a HOLD in Nairametrics’ opinion. While the stock is currently trading at a PE ratio lower than the 8.2X average on the NSE, it has not declined sufficiently to our required entry point.
Disclaimer
Please consult a financial adviser before making an investment decision.
Some of what’s written in this article contradict each other.
For example; it’s stated that INTERNATIONAL BREWERIES has a loss before tax of ₦3.1 Billion in 2017. It’s also stated that it has a profit after tax of ₦1.7 Billion in the same year.
Hi Brian, International Breweries had a deferred tax of 4,758,820, an Income Tax Expense of (129,884), and a Loss before Tax of (3,199,617). If you subtract the Income Tax Expense and Loss Before Tax, you get a Profit After Tax of 1,429,319. Note: All figures are in Billions. I hope this better explain it to you.