Stock Recommendation for the Week, December 16, 2019

The Nigeria’s bourse closed the prior week negative, shedding 119bps to close at 26,536.21 pts with market capitalization losing N154.1 billion. Last week’s decline was spurred by Telecom (-1.54%), Banking (-1.23%), Cement (-1.80%), Food (-1.27%) and Personal care (-2.61%) sectors. Sell offs were seen in MTNN (-2.29%), GUARANTY (-2.34%), STANBIC (1.90%), UBA (-1.49%), FBNH (-2.26%), DANGCEM (-1.89%), CCNN (-2.08%), UNILEVER (-2.38%) and NESTLE (-3.70%) WoW, muting gains in NB (+2.93%) and GUINNESS (+1.72%) amongst others.


• Dangcem– STRONG BUY (FVE: N240.87): DANGCEM’s earnings will be pressured this year (EPS: N14, vs N22 in 2018) owing to lower volumes in Nigeria business (due to increased competition from BUA Cement) and some of its Pan Africa business, as well as high base of tax credits from last year. However, DANGCEM currently trades at FY 19E P/E of 11x on our estimates, which is cheap compared to WAPCO and CCNN of 17.7x and 16.8x, respectively. We believe current valuation is unjustified given the superior ROE of 24%.

• Zenith Bank Plc – STRONG BUY (FVE: N31.50): We have made adjustment to our FY 2019 expectation for Zenith Bank following some surprises in the Q2 numbers. In specifics, we revised net interest income lower due to compressed yields on its loans and treasury asset (H1 18:10.6%, H1 19 9.1%) amidst contraction in funding cost. Elsewhere, we adjusted NIR higher due to upward review of electronic fee income and trading book. Thus, we now forecast PBT of N218 billion (-5.5% YoY), while we cut our FVE to N31.57/share (previously: N33.71/share).

• Nestle Plc – OVERWEIGHT (FVE: N1447.39): Amongst the food producers, Nestle Nigeria Plc has managed to stay afloat, reporting modest growth in earnings amidst incessant competition. For 9M 19, EPS expanded by 11.2% YoY to N46.48 driven largely by the absence of impairment charges which created a high base for input costs over the same period last year. Asides from improved earnings, its strong cash balance, return on equity and 100% dividend payout further supports the case for a STRONG BUY rating.

• Nigerian Breweries Plc – STRONG BUY (FVE: N75.82): Intense competition from International Breweries (IB) and graduated excise duty (+17% YoY) that kicked-off in Jan-19, revenue growth is expected to be slow even as we expect higher finance cost (+38% YoY) to be another pressure point to earnings this year. However, given our case for a slight improvement in volumes and decline in cost of sales (-1.1% YoY) which translates to gross (+120bps YoY) and EBIT (+101bps YoY) margin expansion, the misery seems moderated. Overall, the net impact of all our adjustments translates to PBT of N29.9 billion and EPS of N2.58 (+6.3% YoY) over 2019.

• Seplat Plc – STRONG BUY (FVE: N828.90): Seplat’s total production declined in Q3 19, as the drop in gas production offset improvement in the oil segment. That said, we remain positive on growth in production going into the final quarter of the year (especially in oil) and into 2020 as Seplat increases capex. Cashflows remain healthy. Upsides reside in the ANOH Gas project and acquisition of Eland Oil & Gas Limited.

Kindly, visit ARM Research Portal for full stock reports.

Picture Credit: PremiumTimes.Com

A cheat guide to staying fit this Christmas

Christmas

What is Christmas without food and drinks? No wonder some of us come back in January with a resolution to shed those mysterious pounds that somehow snuck in unnoticed.

We have all been there. Oh, the torture! But hey, there’s good news.

Here are ways to curtail any unnecessary weight gain this Christmas without hitting the gym – because honestly, who wants to be at the gym at Christmas?

Eat before going out

Don’t skip meals. Try to eat something before heading out. Doing this helps you avoid the temptation to overindulge yourself or eat a lot.

Drink moderately (and responsibly)

It’s okay to be merry and enjoy a few glasses. But it is best to watch your drinking since alcohol, soft drinks or other juices will only add more calories to the ones you’ve already eaten.

Stay active

It is very hard, almost impossible to find time amidst the activities of the season to exercise. But try to do as much as you can. Little things like simply walking some more, chasing the kids around or using the stairs can burn some calories too. If dancing is your thing, dance like no one is watching. You’ll be having fun and burning some calories too, win-win.

Drink plenty of water

Water can satiate your appetite and keep you hydrated all the time. Plus, it will also help prevent a possible hangover if you go aboveboard with the alcohol.

Order your meals with caution

If you’ll be going to restaurants or ordering your meals, think more of protein and veggies, less of carbohydrates. And don’t forget that salad dressings often pack lots of calories, so order them on the side that you can control how much you’ll be using.

Enjoy yourself

It’s a festive season. So, enjoy the foods and drinks you love but in small/moderate portions and move as much as you can in the ways that you actually enjoy.

This cheat guide can help set you on the right track weight-wise, health-wise and ready for the New year.

But if all else fails, wear black. We hear it’s slimming 😉

Have a Merry Fit Christmas!

ARM Trustees bags international award for Private Trust

ARM Trustees has been recognized with an award for its contributions to Private Trust Law practice in Nigeria.

The award was given by Lawyers World, a United Kingdom-based awarding body on July 12th. 2019, named ARM Trustees in the Global Category of outstanding Private Trust law specialists following the success and growth of the Private Trust business, its international and local collaborations and several other factors taken into consideration by the voting public. The announcement was made after a comprehensive collation of thousands of voting nominations sent in from voters over a period of 12 months.

In response to this award, Mrs. Folashade Adeloye, Managing Director of ARM Trustees Limited said “We are delighted to receive this award and also accept it as a challenge to do even more in ensuring that  our clients receive the best strategies for effective estate planning. We remain focused on helping our clients preserve and enhance their wealth for generations to come.”

Established in 2001, Lawyers World Awards boasts of providing definitive guides to the world’s leading law specialists. They have awarded hundreds of outstanding law specialists from over 20 countries in various categories since 2011 in their Global and Country Law experts Categories respectively.

GIFTING GUIDE FOR A LUXURIOUS SEASON

GIFTING GUIDE FOR A LUXURIOUS SEASON

It’s that time of the year when there’s festive cheer.

But it can also be a demanding period. Gift shopping for your loved ones – and the underlying anxiety of finding the perfect luxury present – can quickly become a chore.

From thoughtful, small luxuries to splash-the-wealth statement gifts, we have taken the hard work out of modern luxury gifting by putting together an ultimate gift guide that will delight your loved ones – from the style savant, to the urban jet setter, and the liqueur connoisseur.

Whether purchasing a present for a family member who deserves something extra special, or seeking an item for that friend with impeccable taste, at the heart of gift-giving is a desire to select thoughtful pieces that will make someone’s life feel a little more decadent. Here, a little inspiration to guide you in the right direction.

Rare, Vintage and Special-Edition Wine

Charles Krug’s three-bottle Vintage Selection Cabernet Sauvignon set containing 1979, 1989, and 2009 vintages. Spanning a 40-vintage range, the set is ideal for Cabernet lovers and offers a unique chance to give a wine that is both ready to enjoy now, and bottles that could cellar for another three decades. With more than 157 years of winemaking expertise, Charles Krug is the ultimate winery destination.

| charleskrug.com

Bespoke Monogrammed Linen

Specialists in handmade linens and tableware, Julia B’s logo, “Handmade for Life,” quite deliberately refers not only to the fact that the company’s products are made by hand, but equally that they are made to last a lifetime and beyond, often becoming heirlooms that are passed from generation to generation. Most of the brand’s designs cannot be produced by machine.
| juliab.com

The Chameleon Ring by Annoushka

Available exclusively at Harrods (UK), the Chameleon ring may be fine jeweller Annoushka’s greatest engineering coup yet. This 18ct yellow gold and sapphire ring wraps around your finger with an interchangeable middle stone-slot in striking malachite in the morning; lapis lazuli at lunch and a beguiling tiger’s eye for after dark. Price: £12,500

==

Pebbled Leather  Mr. Thom Bag

Impeccable Italian construction by Thom Browne, coupled with 100 per cent incredible leathers. Excellent bag for a weekend. | farfetch.com | Price: $3,690.00

 Bang & Olufsen Speaker Tiles

BeoSound Shape is a wall-mounted wireless speaker system for design conscious music lovers. This set of speaker tiles delivers Bang & Olufsen’s signature immersive sound and combines it with customisable design and integrated noise dampers for improved room acoustics. Choose the number of tiles and play with endless colour combinations to create a one-of-a-kind luxury gift anyone will love. Price: €3,350.00 to €8,430.00

| bang-olufsen.com/en/speakers/beosound-shape

Amrapali Gem Bar

Situated within the Harrods Luxury Jewellery Room, Amrapali’s pick-and-mix Gem Bar is a jewellery fan’s fantasy. The Jaipur-based jewellery house unveiled London’s first Gem Bar this year, offering a kaleidoscopic rainbow of eclectic gemstones that include amber, emerald, sapphires and spinels in all shapes and sizes – and price points, ranging from £1,000 to as much as £500,000

Amrapali’s ruby and diamond ring (pictured) delivers standout glamour this season, inspired by India’s rich heritage in decorative arts. Price: £10,000

| Harrods.com

Purdey Washbag and Watch Roll

For the man who has everything, it’s the necessities that make a difference. Storage solutions don’t come more sophisticated than Purdey’s natural vegetable tanned leather washbag and Alcantara-lined watch roll, each of which is beautifully crafted and useful.

Protect your timepiece during transit with a multi-functional travel roll. The leather lid unclips to reveal a watch space and slots to carry cufflinks or rings. The internal roll lifts out and the side pops off to reveal a hidden compartment, perfect for storing secret items.

Leather wash bag, £449,

Travel watch roll, £699

 | purdey.com 

 

 

 

The post GIFTING GUIDE FOR A LUXURIOUS SEASON appeared first on Realising Ambitions.

6 Safety Tips for the Festive Season

It’s the festive season and excitement is in the air! Children and adults are getting ready to celebrate Christmas and the New Year but sometimes, celebrations can lead to accidents if care is not taken.

Here’s how to keep your family safe and healthy throughout the festive period.

Secure the house

If you will be traveling out of town, make sure you lock all entrance to your apartment to avoid your house being boggled. Also, tell your neighbours that you are going away for a while. This will help them keep an eye out in case of any suspicious movement in your apartment while you are away.

Keep the floor dry

Children will be home this period for the holiday, and they will run around with their friends. Make sure the floor is devoid of any liquid that may cause them to fall. Surely, it can be tiring watching our kids and trying to restrict them, but it can be more tiring nursing them when they have avoidable injuries.

Minimise the use of lightings

It’s the period of Christmas lights and other fancy lightings. As much as you may want to decorate your house with these lightings, you may have to scale back depending on your outlets. Check the lights’ packaging for the power output, and never plug in more than what a power outlet can handle. Don’t forget that December is the dry season where fire accidents and its wild spread is always on the high.

Eat and drink responsibly

This season, there will be lot of food and drinks to be consumed. But remember that there is a limit to what your body can take.  Over eating or drinking can result to serious health issues. You wouldn’t want to spend the rest of the year in the hospital bed, would you?

Keep alcoholic drinks out of children reach.

You are likely to get carried away due to activities of the festive period. Ensure you keep alcohol and other drugs out of reach of the children. It is for their safety.

Obey Traffic Rules

People are likely to get carried away with the frenzy and be reckless especially on the road. Ensure you obey all traffic rules while driving. Remember that disobeying traffic rules puts your life and the lives of other road users at serious risk.

We wish you a hitch-free celebration.

C&I Leasing Rights Issue FAQ

C&I Leasing Rights Issue FAQ

  1. What is a rights issue?

A rights issue is an offering of rights to the existing shareholders of a company that gives them an opportunity to buy additional shares directly from the company at a discounted price rather than buying them in the secondary market. The company issues new shares to the public in order to raise capital.

But until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way that they would trade ordinary shares.

  1. Who is C&I Leasing?

C & I Leasing Plc is Nigeria’s foremost leasing company and a leading brand for finance leases, and other ancillary services in Nigeria. The company, which started as a consumer finance leasing company licensed by the Central Bank of Nigeria in 1991, has grown to become a diversified, leasing and business service conglomerate providing support services to various indigenous and multinational organizations in West Africa in:

  • Fleet Management
  • Personnel Outsourcing
  • Marine Services
  1. Why is C&I Leasing raising funds through a rights issue?

C&I leasing wishes to use the proceeds to:

  • Capital restructuring – Ensure optimum capital structure that appropriate balance of debt and equity
  • Repay short term loans
  • Acquire equipment and vessels to expand their marine services business
  • Provide working capital requirements as the needs arise
  1. How much capital is C&I leasing raising?

N3.5 billion

  1. Issue Price:

N6.00 per share

  1. What effect will the rights issue have on C&I Leasing’s shareholders’ equity?

Current existing shares: 404,252,500

Rights shares: 539,003,333

Post rights issue shares: 943,255,833

  1. Issue criteria:

4 new rights for every 3 shares held

Each right entitles the shareholder to 1 new share

  1. Is there a minimum subscription to complete the rights offering?

No

  1. Who is eligible to purchase rights?

Shareholders of C&I leasing at the record date can use their rights to subscribe to newly issued shares

Non-shareholders can buy rights from the market from C&I Leasing shareholders selling their rights at market value

  1. When can I subscribe to the rights issue?

The issue opened on November 17 and closes on December 27

  1. How long will it take for me to get my shares after the rights issue?

CSCS accounts will be credited and Investors will receive share certificates on the 29th of January 2020

  1. How do I subscribe to the rights issue?

Contact customer service at ARM securities at +234 (1) 2701096, 2701653 or [email protected] to gain access to application forms

  1. Can I sell my Rights – can they be traded?

Yes, A right is an option to buy shares, but you are not obligated to do so. You may decide not to exercise your right to purchase all or some of the shares you are entitled to, in which case you can sell all or some of your rights at market value.

C & I Leasing Plc Seeks to Raise N3.2 billion Right Issue

C & I Leasing Plc Right Issue

C & I Leasing Plc is seeking to raise N3.2 billion by way of Rights Issue. The company is offering 539 million ordinary shares of 50 kobo each at a rights price of N6.00/share to existing shareholders based on 4 new ordinary shares for every 3 ordinary shares held as at 4th of September 2019.  The Rights issue opened on the 18th of November 2019 and closes on the 27th of December 2019.

Use of Proceeds

  • Capital Restructuring. Ensure optimum capital structure that appropriate balance of debt and equity.
  • Repayment of Short-Term Loans. Reduction of short-term debt through the redemption of some existing Commercial Papers.
  • Working Capital Needs. Provide working capital requirements as the needs arise.
  • Business Expansion. Acquisition of equipment and vessels to expand the marine services business. Increase in fleet.
  % N Expected Completion Time
Business Expansion 29.2% 943,350,630 18 Months
Refinancing of Loans 58.3% 1,886,701,260 1 Month
Investment in Working Capital 9.7% 314,635,638 6 Months
Issue Expenses 2.8% 89,332,470 Immediately
Total 100.0% 3,234,019,998

About C&I Leasing

The Company was incorporated in 1990 as a limited liability Company and duly licensed by the Central Bank of Nigeria to offer operating and finance leases and other ancillary services.

Over the years, C&I Leasing Plc has enjoyed consistent growth and has expanded its scope of business to cover major sectors of the Nigerian economy, providing specialized services, in Marine, Telecommunications, Oil and Gas, Equipment Rentals, Manpower Outsourcing and Transportation

The Company provides the following services

  1. C&I Marine – a leading Nigerian content player in the offshore marine vessel space, operating a fleet of over twenty vessels that include terminal tugs, patrol vessels, fast support intervention vessels, and a platform support vessel.
  2. C&I Outsourcing – outsourcing services with strength in various Human Resource competencies. They have access to a large database of skilled and experienced hires for both permanent and temporary roles ranging from Engineers to direct sales agents, diverse professionals, and consultants.
  3. C&I Fleet Management – structured fleet management business support service designed to meet the diverse needs of clients regardless of the number of cars they own
  4. SDS Training Services – accredited training institute and associate member of the International Federation of Training and Development Organizations providing carefully designed modules of training and education programs
  5. CITRANS Telematics Solutions – Nigeria Communications Commission (NCC) licensed provider of unique fleet management solutions to suit various business needs. The platform offers a hardware configuration that includes a built-in accelerometer for intelligent driver behaviour with all its applications monitored remotely from a web-based software.

The Company has two (2) subsidiaries;

  • Leasafric Ghana Limited

Leasafric Ghana Limited was incorporated in March 1992 and licenced by the Bank of Ghana as a non-bank financial institution to carry out the business of finance leasing as its principal business. Leasafric has since then been running an Asset Finance business using the technique of finance leasing.

  • EPIC International FZE

This asset-based subsidiary was incorporated in 2011, as a free trade zone establishment in United Arab Emirates and licensed to trade in ships and boats, ships and boats spare parts, components and automobile and it commenced operations fully in 2014 with four vessels. The vessels are then chartered from C & I Leasing by the various international oil companies. This arrangement has expanded and helped grow the fleet size of C & I Leasing to 22 vessels currently.

Evolution of C&I Leasing

 

Financial performance

Revenue, PBT, and Shareholder’s Fund (N ’billions)

What to do with your rights

  • Subscribe to the rights issue to purchase in full:

To take advantage of the rights issue in full, you would need to pay the full amount according to the number of shares you are allowed to purchase. As you are getting the shares at a discounted price the average share price would be lower than the total current market value. So, if you buy those shares and sell them immediately then also you would be in a profit.

  • Sell your rights to other investors:

In most cases, your rights allow you to choose whether you want to buy those shares or sell your rights to other investors or to the underwriter.

For more Information…

Contact customer service at ARM securities at +234 (1) 2701096, 2701653 or [email protected] to gain access to application forms

FGN SAVINGS BOND – DECEMBER 2019 AUCTION

The December 2019 Auction opened today December 2, 2019 and closes on Friday, December 6, 2019. Please find the details stated below.

N

 Subject Features

1

 2 Year FGN SavingsBond 9.091% per annum

2

 3 Year FGN SavingsBond 10.091% per annum

3

 Tenor 2 or 3 years

4

 Settlement Date Wednesday, December 11, 2019

HOW TO INVEST IN THE FGN SAVINGS BOND

  1. Ensure you have a CSCS Account Number with ARM Securities. If you haven’t any, open an account online at ARM Stocktrade or fill this form and submit at any of our offices.
  2. Print/download and carefully fill the portions of the FGN Savings Bond application form relevant to you.
  3. Transfer the amount you intend to invest into the following bank account detailed below:
Bank Details. Account Name:

ARM Securities Ltd
GTB UBA Zenith Diamond
0002962204 1015290060 1011558489 0001983873

Please note that we do not accept cash payment.

Submit the completed form(s) to ARM Securities at customerservice@armsecurities.com.ng (or office drop-off) before 5:00pm on Thursday December 5, 2019.

To enjoy this new opportunity, or learn more about the FGNSB, please contact us at customerservice@armsecurities.com.ng or call us on 012715000, 0700CALLARM (0700 2255 276).

We look forward to hearing from you soon.

UAC Nigeria Plc. (UACN.NL): Old things have passed away…

• In this report, we resume coverage on UACN with a target price of N8.96 which translates to a BUY rating at current price. While UACN’s history of reporting poor operating performance dulled investor’s sentiment, we believe lower finance cost and little or no impairment charge in coming years, post exit from UPDC, supports a rerating. Coupled with recovery in the feeds business, we see improvement in earnings over our forecast period. Comparing 5-year historical average EV/EBITDA of 9.9x, to current level of 3.3x, UACN presents a good entry point on current valuation. At current price and based on our FY 19E dividend of N0.65, we view expected dividend yield of 10.6% as attractive and could be compelling to investors.

• Restructuring exercise is positive for UACN. Ahead of the planned restructuring of UACN (which would involve UACN’s outright dissolution of its interest in UPDC directly to its shareholders), UPDC was classified as a discontinued operation as at 9M 19 unaudited numbers. Accordingly, related finance cost and impairment charges (through the fair value difference between UPDC REIT and market value) were classified as discontinued operation, leaving UACN 9M 19 numbers at the strongest level we modelled post restructuring. With the exclusion of UPDC from 9M numbers and restatement of prior year, UACN delivered EBIT and PBT expansion of 175bps and 150bps YoY respectively, with EPS growing 30% YoY. Notably, without the exclusion of UPDC and restatement of the prior year, UACN would have reported a loss after tax of N12.8 billion (9M 18 loss of N994 million). With the exclusion of the volatility emanating from impairment charge on the real estate property and higher finance expense (UPDC account for 80% to 90% of total UACN borrowings) we expect stable growth in earnings over our forecast period, with EPS CAGR of 12.4% between 2020 and 2024.

• Recovery in feeds business to soften OPEX pressure. Our market survey revealed that OLAM and UACN’s feed products now sell at similar price points, as OLAM steps down its aggressive pricing strategy. As a result, we see improvement in sales from feeds with contribution to group revenue gradually picking up to pre-2018 levels. In the short term, we believe the extended border closure creates some incentive for sales upside for local poultry products and by extension the feeds business.

• Value play or value trap? With the recovery in sale of feeds already evident in the 9M 19 numbers, amidst flattened cost, we expect improvement in gross and operating margins by 117bps and 116bps YoY to 19% and 3.9% respectively in 2019. Though the management guided to an improvement in its operating expense, we are less optimistic of a significant change as the company has only been able to tame the cost and not reduce it as at 9M 19. On that note, we left opex to sales ratio unchanged at 15% till 2020 and gradual improvement from 2021 with mild improvement in operating margin to 4.1% in 2020 and average of 7% over FY21-24. Further down, with reduced finance cost and absence of impairment charge, following the reclassification of UPDC as discontinued operation, we expect earnings from continued operation to print at N1.35 in 2020 (N1.32 in FY 19E from a loss per share of N2.08 recorded in the prior year) with 5-year earnings CAGR of 12.4% between 2020 and 2024. At current market price, UACN trades at 2019E and 2020E EV/EBITDA of 3.12x and 3.01x respectively, which is attractive when compared to 5-year historical average of 9.9x.

Stock Recommendation for the Week, November 12

The Nigerian bourse ended last week in green as gains particularly on Monday (+41bps) and Friday (+48bps) trading muted losses observed every other day of the week. Consequently, the ASI as well as Market Cap increased by 8bps WoW to 26,314.49 pts and N10.3 billion respectively. Banking sector (+8.07%) anchored the gains while other sectors closed negative, with bulk of the decline seen in Personal Care (-20.45%) WoW. On stock performances, ACCESS (+17.95%), FCMB (+16.25%), UBA (+13.79%), GUARANTY (+13.49%), CCNN (+10.06%) recorded gains muting declines in UNILEVER (-26.59%), INTBREW (-25.4%) and DANGCEM (-2.47%) WoW amongst others.

• DANGCEM– STRONG BUY (FVE: N240.87): DANGCEM’s earnings will be pressured this year (EPS: N14, vs N22 in 2018) owing to lower volumes in Nigeria business (due to increased competition from BUA Cement) and some of its Pan Africa business, as well as high base of tax credits from last year. That said, DANGCEM currently trades at FY 19E P/E of 11x on our estimates, which is cheap compared to WAPCO and CCNN of 17.7x and 16.8x, respectively. We believe current valuation is unjustified given the superior ROE of 24%.

• Nigerian Breweries Plc – STRONG BUY (FVE: N75.82): Intense competition from International Breweries (IB) and graduated excise duty (+17% YoY) that kicked-off in Jan-19, revenue growth is expected to be slow even as we expect higher finance cost (+38% YoY) to be another pressure point to earnings this year. However, given our case for a slight improvement in volumes and decline in cost of sales (-1.1% YoY) which translates to gross (+120bps YoY) and EBIT (+101bps YoY) margin expansion, the misery seems moderated. Overall, the net impact of all our adjustments translates to PBT of N29.9 billion and EPS of N2.58 (+6.3% YoY) over 2019.

• Guaranty Trust Bank Plc – STRONG BUY (FVE: N49.66): GTB’s 9M 19 earnings expanded modestly with PAT and EPS expanding only 3.4% YoY to N146.9 billion and N4.99/share respectively. Although, we expect a slower growth in EPS (+4% YoY to N6.53) over 2019, our case for GUARANTY remains the resilience in NIR, improved cost management, still strong loan book with a moderate expansion in credit loss provision to 0.5%.

• Nestle Plc – STRONG BUY (FVE: N1447.39): Amongst the food producers, Nestle Nigeria Plc has managed to stay afloat, reporting modest growth in earnings amidst incessant competition. For 9M 19, EPS expanded by 11.2% YoY to N46.48 driven largely by the absence of impairment charges which created a high base for input costs over the same period last year. Asides from improved earnings, its strong cash balance, return on equity and 100% dividend payout further supports the case for a STRONG BUY rating.

• Seplat Plc – STRONG BUY (FVE: N828.90): Following a stronger than expected oil exit rate in Q2 19, we have revised our FY19E total production estimate slightly higher to 50,266 boepd (previous: 49,765boepd) and crude oil price to $63.9/bbl. (previous: $60/bbl.). This coupled with a surprise gas toll revenue of $67 million in Q2, increased 2019E revenue to $701 million (previous: $656 million). Thus, our 2019E EPS and FCF/s were revised higher to $0.33 and $0.12, from previous estimate of $0.31 and -$0.02, respectively.

Kindly, visit ARM Research Portal for full stock reports.