Daily retail report 24032015

1. Retail views
UBA Q4 results
Nigeria Tuesday, 24 March 2015
Daily Retail Report
.
Market Review
The Nigeria Stock Exchange sustained the positive trend that has
prevailed the market in three straight sessions. NSE All-Share-
Index appreciated by 0.26% to return 29,584.00bps with 3,850
deals. NSE sectorial indices showed mixed performance, as
NSECNSM, NSEIND, NSEOILGS closed negative while NSEBNK and
NSEINS closed in positive terrain on the back of UBA(7.30%),
SKYEBANK(N4.70%), DIAMONDBNK(4.49%), FIDELITYBK(4.44),
WEMABANK(4.35)
ASI year-to-date currently stands at -12.65% as market
capitalization adds N26Bn to return 9.872Trillion. At the close of
today’s session, 23 Stocks advanced relative to 28 decliners while
38 remained unchanged. Top in the positive territory are UBA
(N3.97), FCMB (N2.80) and HONYFLOUR (N3.00) while CCNN
(N10.79), MAYBAKER (N1.41) and SEPLAT (N370.00) were top in
the negative territory.
MOBIL and JBERGER released their FY results for the period ended
31st December, 2014. PAT of N6.392Bn and N8.239Bn represents
an appreciation of 84% and 4.92% respectively from the prior
period. MOBIL and JBERGER has proposed a dividend of
N6.60kobo/share and N2.70kobo/share respectively.
In the trader’s opinion, value Investors are advised to take up
buying opportunities as stock prices remain fairly priced.
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 0.20 -0.58 -7.49
NSE BNK10 0.20 3.07 -6.61
NSE CNSM10 -0.02 -2.14 -7.98
NSE OILG5 -1.90 -8.37 -7.19
NSE INS10 0.10 3.25 -17.14
NSE IND -0.03 -1.59 -12.94
Market Wrap
ASI 0.27 29,584.00
Index year-to-datee -12.65
Market Cap. N9.872Tril
Traded value 2.850Bn
Key gainers (%)
UBA 7.30
HONYFLOUR 4.90
DANGFLOUR 4.84
SKYEBANK 4.70
PZ 4.58
Key losers (%)
CCNN -8.56
SEPLAT -4.66
UACN -2.08
OANDO -2.07
UBN -1.91
NITTY
1M 14.1886
2M 14.2052
3M 14.3508
6M 15.2420
9M 15.4232
12M 16.3278
Crude oil spot price
Brent crude US$55.30
Contact information
Phone: 01-2713923; 01-2713920
Mobile: 08068015502
Email: cslservice@fcmb.com
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2. Daily Retail Report
Page 2
Retail views
Stock Recommendations
Banking Comment
Current
Price
Target
Price
Potential
Upside %
EPS
FY
2013
1 Yr
forward
EPS
Last
Dividend
(N)
P/BV
2013
Yield FY
2013
Yield FY
2014e
Shares
Outstanding
(millions)
Year
End
ACCESS BANK Buy 5.90 7.70 31% 1.60 1.90 0.35 0.80 7.10% 11.5% 22883.00 Dec.
DIAMOND BANK Buy 3.96 3.80 -4% 2.00 1.70 0.30 0.60 5.40% 5.4% 14475.00 Dec.
FIDELITY BANK PLC Buy 1.41 1.90 35% 0.30 0.50 0.14 0.30 7.40% 11.6% 28974.00 Dec.
FBN HOLDINGS Buy 8.35 12.90 54% 2.20 2.30 1.10 0.80 10.00% 10.0% 32632.00 Dec.
GUARANTY TRUST BANK Buy 22.50 28.40 26% 3.20 3.30 1.45 2.20 6.90% 7.3% 29431.00 Dec.
STANBIC HOLDINGS Hold 27.90 32.40 16% 1.90 2.60 1.20 3.10 2.70% 3.5% 10000.00 Dec.
STERLING BANK Hold 2.29 1.60 -30% 0.40 0.40 0.25 0.80 10.90% 8.7% 21592.00 Dec.
SKYE BANK Under review 2.45 Under review #VALUE! 1.20 1.10 0.30 0.30 11.10% 20.7% 13219.00 Dec.
U B A Buy 3.97 5.70 44% 1.40 1.50 0.50 0.70 10.10% 10.1% 32981.00 Dec.
ZENITH BANK Buy 16.70 24.60 47% 3.00 3.00 1.75 1.30 8.10% 8.3% 31396.00 Dec.
Food & Beverage
EV/EBITDA (x)
2013
Yield FY
2013e
DANGOTE SUGAR REFINERY Under review 6.15 Under review N/A 0.89 1.20 0.60 4.70 7.40% 7.4% 12000.00 Dec.
CADBURY NIG. Under review 39.23 Under review N/A 2.90 3.20 1.30 7.60 0.00% 4.7% 1878.00 Dec.
FLOUR MILLS Hold 32.93 54.80 66% 2.90 3.50 1.60 8.90 3.30% 4.0% 2385.00 Mar.
HONEYWELL FLOURMILLS Buy 3.00 5.20 73% 0.40 0.30 0.17 12.00 5.70% 4.7% 7930.00 Mar.
NESTLE FOODS NIG. Hold 805.00 777.60 -3% 28.10 31.30 24.00 24.90 2.60% 3.0% 792.00 Dec.
P Z INDUSTRIES Hold 25.55 34.60 35% 1.20 1.30 0.19 7.80 2.70% 3.0% 3970.00 May
U A C N Buy 33.49 72.60 117% 2.90 3.60 1.75 5.40 4.00% 4.7% 1920.00 Dec.
UNILEVER NIGERIA PLC Sell 34.00 31.80 -6% 1.30 1.60 1.25 13.70 3.80% 3.8% 3783.00 Dec.
Building Materials EPS 2013e
EV/EBITDA(x)
2013e
Yield FY
2013e
LAFARGE WAPCO PLC Under review 84.00 Under review N/A 9.40 9.40 3.30 8.20 3.30% 3.3% 3001.00 Mar.
DANGOTE CEMENT Buy 152.88 198.40 N/A 11.80 11.90 7.00 16.10 3.40% 3.5% 17040.00 Dec.
Breweries EPS 2013e
EV/EBITDA(x)
2013e
Yield FY
2013e
GUINNESS NIG. Sell 127.00 111.00 -13% 7.90 5.90 7.00 14.50 4.30% 3.0% 1506.00 June
INTERNATIONAL BREWERIES Hold 18.00 24.50 36% 0.90 1.30 0.30 16.20 1.00% 1.5% 3263.00 Mar.
NIGERIAN BREWERIES Sell 132.00 121.20 -8% 5.70 5.60 4.50 13.30 2.90% 2.1% 7562.00 June
Agriculture EPS 2013e
EV/EBITDA (x)
2013e
Yield FY
2013e
OKOMU OIL Buy 28.42 41.50 46% 2.20 3.00 1.00 9.00 3.20% 6.7% 953.00 Dec.
PRESCO PLC Buy 27.78 42.70 54% 1.29 1.60 0.10 9.20 0.40% 1.7% 1000.00 Dec.
Pharmaceuticals EV/EBITDA (x)
2013
Yield FY 2013
GLAXOSMITHKLINE BEECHAM NIG. Buy 42.00 78.60 0.87 3.10 4.30 1.30 8.90 2.50% 3.8% 957.00 Dec.
Note – for full report on the recommended stocks kindly send an email to cslcsu@firstcitygroup.com

3. Daily Retail Report
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Retail views
Top Highlight
Politics
Inter-party defections
Last week, several local newspapers reported that President Goodluck Jonathan paid a visit to Nigeria’s former Vice-President (1999-2007), Atiku
Abubakar, who lost to General Muhammadu Buhari at the All Progressives Congress (APC) presidential primaries in 2014, at his residence in
Adamawa State. This, coupled with reports that supporters of the former Vice-President have defected to the Peoples Democratic Party (PDP) is
fuelling speculation that Atiku Abubakar may be re-joining the PDP which he left in 2014.
With barely a week to the presidential election (28 March 2015), there are reports that the Deputy Governor of Rivers State, Tele Ikuru, has
rejoined the PDP. Ikuru was a former member of the PDP but defected to the APC in 2013, alongside his boss, Rotimi Amaechi, who is the
Governor of Rivers state and the current head of the APC’s campaign organisation.
Inter-party defections are not unusual in the Nigerian political space, and we will not be surprised if there are more cases of changing sides after
the presidential elections, due this weekend.
News Headlines
CAR: CBN extends deadline for systemically important banks: The Central Bank of Nigeria (CBN) has extended the deadline for the
implementation of higher capital adequacy ratio (CAR) requirements for systemically important banks (SIBs), THISDAY learnt on Monday.
THISDAY also gathered that the banking sector regulator has also set a fresh deadline for banks that breached the minimum CAR under Basel II
to submit their recapitalisation plans and execute them. Specifically, the CBN gave the affected banks a 15-month breather. They have been given
three months, till 13 June 2015, to submit recapitalisation plans and till 30 June 2016 to implement them. The CBN’s letter also affirmed the
regulator’s willingness to support any under-capitalised bank and added that it may require rapid remedial actions if adequate capitalisation is not
restored. Source: thisdaylive.com
Development bank begins operation with N300bn (US$1.5bn):: President Goodluck Jonathan on Monday formally inaugurated the Development
Bank of Nigeria with a capital base of $1.5bn. The bank is being supported by development partners such as the African Development Bank, World
Bank, Agence Francaise de Development, and KFW Entwicklungsbank of Germany. The development bank, according to the President, will support
medium to long-term lending to Micro, Small and Medium-scale Enterprises, with duration of up to 10 years and a moratorium period of up to 18
months. The moratorium period is to enable the MSMEs a grace period before they will start repaying the loans. Source: punchng.com
Supreme court adjourns hearing on Brittania-U, Chevron, Seplat case to May 18: The Supreme Court on Monday could not hear the appeal
in the case involving Brittania-U Nigeria Limited and Chevron Nigeria Limited, as the apex court stated that the appeal cannot be heard when
the issue in litigation before the court had allegedly been disposed off by the respondent during the pendency of the appeal. When the case was
called, counsel to all the parties were in court but the main appeal was not heard because of the alleged developments after the last adjourned
date, which was February 24, 2015. Source: thisdaylive.com

4. Daily Retail Report
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Retail views
Important Risk Warnings and Disclaimers
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5. Daily Retail Report
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Retail views
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