The Nigerian equities market ended the month of August positive as the All-Share Index (ASI) gained 1.59% for the month starting at 38,604.72 basis points and ending at 39,219.61 basis points. The market capitalization also grew from N20.08 trillion at the beginning of the month to N20.4 trillion at the close of trading on Tuesday, August 31, 2021, representing a 1.75% gain. These gains would not have been possible without stellar stock price performances from these top gainers, which gave the market an edge.
These were the top three gainers for the month of August.
Honeywell Flour Mill Plc – (HONYFLOUR) 156.29%
Honeywell operates in the consumer goods sector and deals in the manufacturing of food products that are wheat-based such as flour, semolina, whole wheat meal, noodles and pasta. The company is part of the Honeywell Group, a foremost indigenous Nigerian conglomerate engaged in select businesses in key sectors of the Nigerian economy, namely Foods & Agro-Allied, Energy, Real Estate, Services, and Infrastructure.
For the month of August, the company’s share price grew by 156.29%, from N1.67 at the beginning of the month to N4.28. A major reason for the recent appreciation in price is its financial performance. The company released its first-quarter 2021 financial highlights as the company’s end of year is on the 31st of March as opposed to 31st of December. The results revealed outstanding growth in top-line items on the income statement. The company generated a revenue of approximately N33.05 billion which represents a 25.24% growth compared to the second quarter of 2020. Ultimately, the Profit After Tax (PAT), stood at N150 million, representing a 233% growth.
Honeywell Flour Mill is the third most traded stock on the Nigerian Stock Exchange over the past three months. HONYFLOUR has traded a total volume of 768 million shares in 5,617 deals valued at N1.64 billion over the period, with an average of 12.2 million traded shares per session.
The company has shares outstanding of 7,930,197,658 units and a total market capitalization of N33,941,245,976.24, using the current market price, as of Tuesday’s close, of N4.28. According to Bloomberg, the company’s P/E ratio stands at 52.18, Earnings Per Share at 0.08 and dividend yield at 0.93%.
The company has proposed to make a dividend payment of N0.07 this year which represents a 75% growth from its 2020 dividend of N0.04. The company have never paid an interim dividend.
UPDC Plc (UPDC) – 57.63%
UPDC Plc operates in the real estate sector of the economy with construction and building development as its speciality. It is one of the leading real estate & facility management companies in Nigeria.
For the month of August, the company’s share price grew by 57.63%, from N1.18 at the beginning of the month to N1.86 at the end of the month. The company released its second-quarter 2021 financial highlights which revealed outstanding growth in top-line items on the income statement. It generated a revenue of approximately N244 million in the second quarter of the year which represents a 128.10% growth compared to the second quarter of 2020. The company posted a gain in operating profit of N124 million in the second quarter of the year, compared to the loss of N183 million made in the second quarter of 2020. However, the company made a loss of N204 million for the quarter majorly attributable to a finance cost of N242 million.
UPDC is the 21st most traded stock on the Nigerian Exchange over the past three months. It has traded a total volume of 246 million shares in 2,691 deals valued at N327 million over the period, with an average of 3.9 million traded shares per session. A volume high of 15.1 million was achieved yesterday.
The company has shares outstanding of 18,559,969,936 units and a total market capitalization of N34,521,544,080.96, using the current market price, as of Tuesday’s close of N1.86. Its share price is up 135.44% YtD.
Pharma-Deko Plc (PHARMDEKO) – 48.62%
Pharma-Deko Plc operates in the healthcare sector of Nigeria, specializing in the manufacturing and marketing of pharmaceutical & consumer products. The company is divided broadly into three (3) divisions; the pharmaceutical business group, consumer business group and contract manufacturing group.
For the month of August, the company’s share price grew by 48.62%, from N1.09 at the beginning of the month to N1.62. A major reason for the recent appreciation in price is its financial performance. Its Q2 2021 results revealed significant appreciation in top-line items on the income statement. The company generated a revenue of approximately N312 million in the first half of the year which represents a 125% appreciation compared to the first half of 2020. However, the company generated a loss of N8.3 million, which is significantly better than the loss generated in the first half of 2020, which stood at N177 million. The loss made is attributable to administrative expenses which took approximately N86 million.
Pharma-Deko is the 78th most traded stock on the Nigerian Stock Exchange over the past three months. PHARMDEKO has traded a total volume of 11.1 million shares in 217 deals valued at N17.1 million over the period, with an average of 176,819 traded shares per session.
The company has shares outstanding of 216,820,448 units and a total market capitalization of N351,249,125.76, using the current market price, as of Tuesday’s close of N1.62. According to Bloomberg, the company’s Earnings Per Share currently stands at -1.49. Its share price is up 8% Year-to-Date (YtD).
Other stocks with significant appreciation include:
MORISON – 45.00%
TRANSCOHOT – 44.82%
COURTVILLE – 29.17%
On the decliners side, are Meyer Plc leading the charge with a loss of 66.10%. This is followed by SCOA and JULI losing 26.15% and 26.02% respectively.
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