Daily retail report 050315

1. Retail views
UBA Q4 results
Nigeria Thursday, 05 March 2015
Daily Retail Report
.
Market Review
The market reversed most on the gains garnered this week as the
benchmark index lost 82bps before the closing bell. Profit taking
activities ensued in both NSECNSM & NSEBNK as high cap
counters in the sectors lost over 100bps each to keep the ASI in
negative territory. While OILG and IND closed northward on the
backdrop of Oando (+5.00%), Mobil (+3.87%) and Dangcem
(+0.24%).
ASI –year-to- date currently stands at -8.23% as market
capitalization hits N10.131Tril. At the close of today’s session, 16,
stocks advanced relative to 38 decliners while 43 remained
unchanged. Top in the gainers territory are OANDO (N14.91),
IKEJAHOTEL (N4.46) and NPFMCRFBK (N0.89) while JBERGER
(N41.61), DANGFLOUR (N3.51) and UBCAP (N1.46) led the
decliners.
GTB released results for the period ended 31st December, 2014. In
line with general expectation, gross earnings (N242Bn) and PAT
(N98.69Bn) increased by 15% and 10% respectively from the prior
ended.
In the trader’s opinion, we don’t see the bank result as a catalyst for
a bull run.
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 -1.10 1.14 -8.12
NSE BNK10 -1.36 2.20 -2.29
NSE CNSM10 -1.48 1.35 -11.58
NSE OILG5 0.13 -0.28 4.87
NSE INS10 0.26 0.14 -5.44
Market Wrap
ASI -0.82% 30,365.05
Index year-to-date -8.23%
Market Cap. N10.131Tril
Traded value 4.124Bn
Key gainers (%)
OANDO 5.00
MOBIL 3.87
UBN 3.77
AIICO 3.66
VITAFOAM 1.16
Key losers (%)
JBERGER -9.72
DANGFLOUR -4.88
UBCAP -4.58
FIDELITYBK -4.51
GUARANTY -4.22
NITTY
1M 14.8990
2M 15.2247
3M 15.4437
6M 15.9420
9M 16.0048
12M 18.2727
Crude oil spot price
Brent crude US$60.76
Contact information
Phone: 01-2713923; 01-2713920
Mobile: 08068015502
Email: cslservice@fcmb.com
Open Account: Click here to register

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 6.45 7.73 20% 1.60 1.90 0.35 0.80 7.10% 11.5% 22883.00 Dec.
DIAMOND BANK Buy 4.10 5.27 29% 2.00 1.70 0.30 0.60 5.40% 5.4% 14475.00 Dec.
FIDELITY BANK PLC Buy 1.27 1.86 46% 0.30 0.50 0.14 0.30 7.40% 11.6% 28974.00 Dec.
FBN HOLDINGS Buy 8.00 12.86 61% 2.20 2.30 1.10 0.80 10.00% 10.0% 32632.00 Dec.
GUARANTY TRUST BANK Buy 22.03 28.42 29% 3.20 3.30 1.45 2.20 6.90% 7.3% 29431.00 Dec.
STANBIC HOLDINGS Hold 26.00 32.37 25% 1.90 2.60 1.20 3.10 2.70% 3.5% 10000.00 Dec.
STERLING BANK Hold 2.28 1.57 -31% 0.40 0.40 0.25 0.80 10.90% 8.7% 21592.00 Dec.
SKYE BANK Under review 2.07 -100% 1.20 1.10 0.30 0.30 11.10% 20.7% 13219.00 Dec.
U B A Buy 3.70 5.70 54% 1.40 1.50 0.50 0.70 10.10% 10.1% 32981.00 Dec.
ZENITH BANK Buy 19.00 24.60 29% 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 6.39 Under review N/A 0.89 1.20 0.60 4.70 7.40% 7.4% 12000.00 Dec.
CADBURY NIG. Under review 37.90 Under review N/A 2.90 3.20 1.30 7.60 0.00% 4.7% 1878.00 Dec.
FLOUR MILLS Hold 34.92 54.80 57% 2.90 3.50 1.60 8.90 3.30% 4.0% 2385.00 Mar.
HONEYWELL FLOURMILLS Buy 2.90 5.20 79% 0.40 0.30 0.17 12.00 5.70% 4.7% 7930.00 Mar.
NESTLE FOODS NIG. Hold 820.00 821.80 0% 28.10 31.30 24.00 24.90 2.60% 3.0% 792.00 Dec.
P Z INDUSTRIES Hold 27.99 34.60 24% 1.20 1.30 0.19 7.80 2.70% 3.0% 3970.00 May
U A C N Buy 35.10 72.60 107% 2.90 3.60 1.75 5.40 4.00% 4.7% 1920.00 Dec.
UNILEVER NIGERIA PLC Sell 34.86 31.80 -9% 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 87.99 Under review N/A 9.40 9.40 3.30 8.20 3.30% 3.3% 3001.00 Mar.
DANGOTE CEMENT Buy 152.90 258.50 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 19.47 24.50 26% 0.90 1.30 0.30 16.20 1.00% 1.5% 3263.00 Mar.
NIGERIAN BREWERIES Sell 145.00 121.20 -16% 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 30.70 41.50 35% 2.20 3.00 1.00 9.00 3.20% 6.7% 953.00 Dec.
PRESCO PLC Buy 32.38 42.70 32% 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 40.00 78.60 0.97 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
MTN-
MTN continues to look to Nigeria for growth
Yesterday, MTN Group (MTN, N/R), Africa’s largest wireless operator and the parent company of MTN Nigeria (not listed) released its full year
results for 2014.
MTN’s Revenues increased by 4.6% y/y in FY 2014, driven mainly by a 12.1% y/y growth in MTN Nigeria’s Revenues. MTN achieved growth despite
contraction in some key markets such as South Africa (its home market), where it recorded a 3.9% y/y decline in Sales.
MTN ascribes the growth in its Nigerian subsidiary to improved offerings to customers and increased promotions in the year. MTN Nigeria’s
subscriber base grew by 5.5% y/y in 2014 to 59.9 million.
Nigeria is MTN’s largest market both by Revenues and subscriber base. Nigeria contributed 36.7% to overall Revenues and 43.2% to EBITDA in
2014. South Africa contributed 26.5% to Revenues and 17.1% to EBITDA in 2014.
Out of four existing mobile operators in Nigeria, MTN Nigeria is the leader with c.44% market share as of December 2014. MTN entered into the
Nigerian market in 2001 following the liberalisation of the telecommunications sector.
As competition within the mobile operations market heightens, especially in the areas of voice calls and short message services, MTN Nigeria has
increasingly turned to opportunities in data sales, e-commerce, and mobile money banking to defend its market share.
Today’s news headlines
Access Bank extends N52.6bn rights issue by two weeks: Access Bank Plc has extended its Rights Issue by two weeks to March 18, following an
approval the bank received from the Securities and Exchange Commission (SEC). Access Bank Plc’s Rights Issue of 7.627 billion ordinary shares of
50 kobo each at N6.90 had opened on January 26, and was expected to close yesterday. However, the bank said the issue had been extended by
two weeks. The extension, according to Access Bank, is due to the need to give shareholders, who are yet to take up their rights more time to do
so considering the prevailing economic and political situation. Source: thisdaylive.com
Oando receives N50bn payout, despite slump in oil price: As exploration and production (E &P) companies contend with the reality of lower oil
prices translating to lower revenue and operating cash flows, the decline in prices has led to a substantial gain for Oando Energy Resources (OER),
the Upstream subsidiary of Oando Plc. The company said in a statement last night that it realised a cash windfall in the sum of $234 million due
to the proactive fiscal measures put in place prior to the slump in oil prices. Source: thisdaylive.com
CBN creates N300bn (US$1.5bn) fund for real sector operators: The Central Bank of Nigeria says it has established a N300bn real sector
support facility, in a bid to unlock the potential of the sector to engender output growth, value-added productivity and job creation. The CBN, in a
circular on Wednesday, said the facility would be used to support large enterprises for startups and expansion financing needs of N500m up to a
maximum of N10bn. The real sector activities targeted by the facility are manufacturing, agricultural value chain and selected service sub-sectors,
the bank said. Source: punchng.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
Member of the Nigerian Stock Exchange
First City Plaza, 44 Marina,
PO Box 9117,
Lagos State, NIGERIA