Stocks on our Buy/Sell/Hold list are picked from the top gainers and losers from the previous week. Here are our picks for this week.

Honeywell Flour Mills: HOLD

Latest Results

The company last week released its full-year results for the 12 months ended March 2018. Revenue increased from N53.1 billion in 2017 to N71.4 billion in 2018. Profit before tax dipped slightly from N5.4 billion in 2017 to N4.8 billion in 2018. Profit after tax increased marginally from N4.3 billion in 2017 to N4.4 billion in 2018.

Honeywell Flour Mills has proposed a dividend of N0.06 per share, unchanged from last year.

Pricing

Current Share Price: N1.91

Price to Earnings Ratio: 3.52X

Price to Book ratio: 0.28

One Year return: 3.54%

Year to Date: -9.05%

External View: NONE

Our View

Honeywell Flour is a HOLD in Nairametrics view. Investors may have decided to offload the stock due to a poor dividend despite a good full year result. The stock is also trading at a year low of N1.91.

University Press Plc: HOLD

Latest Results

Results for the full year ended March 2018 show revenue increased from N1.6 billion in 2017 to N1.8 billion in 2018. Profit before tax increased from N164 million in 2017 to N354 million in 2018. Profit after tax also rose from N118 million in 2017 to N207 million in 2018.

Pricing

Current Share Price: N2.55

Price to Earnings Ratio: 5.30X

Price to Book Ratio: 0.42X

One Year return: -9.55%

Year to Date:  11.84%

External View: NONE

Our View

University Press is a HOLD in Nairametrics opinion. The stock is trading 7.6% below its year high of N2.76.  The stock could witness some slight upside until its qualification date of 31st August 2018.

Transcorp Plc: HOLD

Latest Results

First quarter results for the period ended March 2018 show revenue increased from N15.7 billion in 2017 to N26.3 billion in 2018. Profit before tax jumped from N1.7 billion in 2017 to N5.9 billion in 2018. Profit after tax also rose from N1.4 billion in 2017 to N5.4 billion in 2018.

Pricing

Current share price: N1.25

Price to Earnings Ratio: 7.65X

Price to Book Ratio: 0.42X

One Year return: -10.30

Year to Date:  -14.38%

Latest Information

The company’s board meeting earlier scheduled for Friday the 13th of July 2018, held yesterday. Among the issues to be discussed are its Q2 2018 results.

The results are yet to be released, as at the time of posting this report.

External View: NONE

Our View

Though the stock is trading close to its year low of N1.23, Transcorp Plc is a HOLD in Nairametrics opinion. While Q1 results showed a vast improvement, Q2 results which are by the corner would be a determining factor in making a decision to take a position in the stock.


This is not a buy sell or hold recommendation. Remember to consult a competent financial analyst or stockbroker if you need help with your investment decisions.

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