Daily retail report 040315

1. Retail views
UBA Q4 results
Nigeria Wednesday, 04 March 2015
Daily Retail Report
.
Market Review
The Nigeria Stock Exchange witnessed a respite from yesterday’s
bullish run as the benchmark index struggled to remain in positive
terrain. Thanks to heavyweights Nestle (+0.61%) and Dangote
Cement (+0.35%), ASI added 0.05% to close in the green. While
investors patronage for consumer and industrial counters made
them the only sectors to record gains, NSEBNK, INS and OILG shed
points in account of GTB(-4.21%), Seplat(-4.2%), Mobil(-1.69%) and
Mansard(-4.67%)
Current year-to-date index figure stands at -7.41%. Among the
broad indices, volume and value of transactions depreciated by
25.3% and 0.06% relative to previous session. Top weak performers
were WEMABANK (N0.94), CHAMPION (N4.95) and AIRSERVICE
(N1.81) while INTEBREW (N19.47), UBN (N10.60) and PORTPAINT
(N3.82) topped the strong performers.
In the trader’s opinion, investors should take buy positions as
prices may likely dip in the coming sessions
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 1.49 2.24 -8.12
NSE BNK10 1.79 3.56 -2.29
NSE CNSM10 2.15 2.83 -11.58
NSE OILG5 0.01 -0.41 4.87
NSE INS10 0.23 -0.12 -5.44
Market Wrap
ASI +0.05% 30,614.93
Index year-to-date -7.41%
Market Cap. N10.215Tril
Traded value 4.907Bn
Key gainers (%)
FLOURMILL 3.55
GUINNESS 3.28
ZENITH 1.92
OANDO 1.50
CONOIL 0.63
Key losers (%)
SEPLAT -4.23
MANSARD -4.67
GUARANTY -4.21
PZ -3.45
MOBIL -1.96
NITTY
1M 14.1419
2M 14.2167
3M 14.8519
6M 15.4227
9M 15.9897
12M 16.8302
Crude oil spot price
Brent crude US$60.59
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
0
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 6.50 7.73 19% 1.60 1.90 0.35 0.80 7.10% 11.5% 22883.00 Dec.
DIAMOND BANK Buy 4.28 5.27 23% 2.00 1.70 0.30 0.60 5.40% 5.4% 14475.00 Dec.
FIDELITY BANK PLC Buy 1.33 1.86 40% 0.30 0.50 0.14 0.30 7.40% 11.6% 28974.00 Dec.
FBN HOLDINGS Buy 8.25 12.86 56% 2.20 2.30 1.10 0.80 10.00% 10.0% 32632.00 Dec.
GUARANTY TRUST BANK Buy 23.00 28.42 24% 3.20 3.30 1.45 2.20 6.90% 7.3% 29431.00 Dec.
STANBIC HOLDINGS Hold 26.02 32.37 24% 1.90 2.60 1.20 3.10 2.70% 3.5% 10000.00 Dec.
STERLING BANK Hold 2.32 1.57 -32% 0.40 0.40 0.25 0.80 10.90% 8.7% 21592.00 Dec.
SKYE BANK Under review 2.13 -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 19.10 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 6.49 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 35.00 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 36.00 72.60 102% 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 152.53 258.50 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 126.00 111.00 -12% 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 150.00 121.20 -19% 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 30.56 41.50 36% 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
Page 3
Retail views
Top Highlight
Brewers- NB launches Ace Root
Nigerian Breweries (NB) (Sell, price target: N121.1, current price: N149.9) recently launched a ready-to-drink brand, Ace Root. Ace Root is
positioned as a herbal ready-to-drink brand and we see the product as a direct response to Guinness Nigeria’s (Guinness) (Sell, price target:
N111.1, current price: N122.0) widely-popular Orijin ready-to-drink. Guinness’s Orijin is believed to be leading Guinness’s recovery in the
current period.
With Guinness’s Sales growing by 4.8% year-on-year (y/y) in H1 2015 and NB suffering its first Sales decline in over 10 years in FY2014, we are of
the view that brewers will attempt to compete based on relative product pricing and product innovation. Nigerian Breweries, prior to the merger
with Consolidated Breweries (CB), did not have a ready-to-drink brand in its product portfolio. Guinness has a June year-end. Nigerian Breweries
has a December year-end.
NB obtained its first recognisable ready-to-drink product, the Bacardi Breezer, following its merger with CB. Following the launch of Ace Root, NB
now has two ready-to-drink brands with which it aims challenge Guinness’s dominance in the Nigerian ready-to-drink segment.
The addition of Ace Root increases NB’s brand portfolio to 19. While we expected NB to respond to Guinness’s Orijin, we did not anticipate the
immediate launch of a closely-related brand less than a year after Orijin’s launch. However, given NB’s wide distribution network and marketing
spend, we believe NB’s ready-to-drink brands could pose problems for Guinness.
NB’s launching of Ace Root supports our broad view that competition in the beer market is set to intensify from FY2015. With NB and Guinness
producing brands which compete across all segments, it won’t be farfetched to expect SABMiller’s (N/R) to launch its own brand of ready-to-drink
in an effort to compete in this specific segment.
Today’s news headlines
Fuel scarcity: FG pays marketers N100bn (US$500m): The Federal Government on Tuesday expressed concern over the long queues of
motorists at petrol filling stations in Lagos, Abuja and other parts of the country, stating that a Sovereign Debt Note of N100bn had been issued by
the Debt Management Office to settle part of the subsidy arrears owed to oil marketers. The Minister of Finance, Dr. Ngozi Okonjo-Iweala,
confirmed the issuance of the SDN through a statement issued by her Special Adviser on Communications, Paul Nwabuikwu. Source: punchng.com
NNPC faces new AG query over N2.3trn (US$11.5bn) illegal ECA deduction: Fresh troubles appear to be unfolding for the embattled Nigerian
National Petroleum Corporation (NNPC) and other government agencies in the petroleum sector, as the Auditor General of the Federation has
queried the diversion of N2.30 trillion from the Federal Government’s (FG) account. Source: businessdayonline.com
Manufacturers condemn new electricity tariff: The recent increase in electricity tariffs approved by the Nigerian Electricity Regulatory
Commission will cripple the operations of industries in the country, the Manufacturers Association of Nigeria (MAN) has said. The association also
decried the “astronomical increase” in electricity fixed charges from N25,000 to about N250,000 on average for industrial outfits. Source: punchng.com

4. Daily Retail Report
Page 4
Retail views
Important Risk Warnings and Disclaimers
CSL STOCKBROKERS LIMITED (CSLS) is regulated and authorized by the Securities and Exchange Commission (SEC) of Nigeria and the Nigerian Stock Exchange (NSE). The
details of the authorization can be viewed at the SEC Website at http://www.sec.gov.ng/consolidated-list-of-capital-market-operators.html and at the NSE Website at
http://www.nse.com.ng/Regulation/ForBrokers/Pages/Dealing-Members.asp.
RELIANCE ON THIS NOTE FOR THE PURPOSE OF ENGAGING IN ANY INVESTMENT ACTIVITY MAY EXPOSE YOU TO A SIGNIFICANT RISK OF LOSS. By receiving this
document, you will not be deemed a client or provided with the protections afforded to clients of CSLS. When distributing this document, CSLS or any member of the First City Group
is not acting for any recipient of this document and will not be responsible for providing advice to any recipient in relation to this document. Accordingly, CSLS will not be responsible
to any recipient for providing the protections afforded to its clients.
If you are in the UK, the protections of the Financial Services and Markets Act 2000 (FSMA) or Financial Conduct Authority (FCA) do not apply to any investment activity engaged in
as a result of this communication; and any resulting transaction would not fall within the jurisdiction of any FSMA or FCA dispute resolution or compensation scheme. By accepting
this document you confirm that you are so aware of the above stated. If you do not accept the above stated and/or if the distribution of this document is otherwise unlawful where you
are, you are required to return the document immediately to CSLS.
This document is not an offer to buy or sell or to solicit an offer to buy or sell any security. This document does not provide individually tailored investment advice. It has been
prepared without regard to the individual financial circumstances and objectives of persons who receive it. The appropriateness of a particular investment will depend on an investor’s
individual circumstances and objectives. The investments and shares referred to in this document may not be suitable for all investors.
CSLS is a member of the FCMB Group Plc (“the Group”), a group of companies which includes First City Monument Bank Ltd., FCMB Capital Markets Ltd, First City Asset
Management and FCMB UK. Either CSLS or any other member of the Group may effect transactions in shares mentioned herein, may take proprietary trading positions in those
shares, and may receive remuneration for the publication of its research and for other services. Accordingly, this document may not be considered as objective or impartial.
Additionally, information may be available to CSLS or the Group, which is not reflected in this material. Further information on CSLS’ policy regarding potential conflicts of interest in
the context of investment research and CSLS’ policy on disclosure and conflicts in general are available on request.
This document is based on information obtained from sources it believes are reliable but which it has not independently verified. Neither CSLS nor its advisors, directors or
employees make any guarantee, representation or warranty as to its accuracy, reasonableness or completeness and neither CSLS nor its advisors, directors or employees accepts
any responsibility or liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection
with this document. The opinions contained in this document are subject to change without notice and not to be relied upon and should not be used in substitution for the exercise of
independent judgment.
Past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. Where
an investment is denominated in a currency other than the local currency of the recipient of the research report, changes in the exchange rates may have an adverse
effect on the value, price or income of that investment. In case of investments for which there is no recognized market it may be difficult for investors to sell their
investments or to obtain reliable information about its value or the extent of the risk to which it is exposed.
The information contained in this document is confidential and is solely for use of those persons to whom it is addressed and may not be reproduced, further distributed to any other
person or published, in whole or in part, for any purpose.
© CSLS 2013. All rights reserved
CSL STOCKBROKERS LIMITED
Member of the Nigerian Stock Exchange
First City Plaza, 44 Marina,
PO Box 9117,
Lagos State, NIGERIA