Daily retail report 090315

1. Retail views
UBA Q4 results
Nigeria Friday, 09 March 2015
Daily Retail Report
.
Market Review
The market struggled to remain in positive terrain on the first
trading session of the week as the NSE lead index added 47bps to
return 31,195.93 bps with 5601 deals. All sub-sectors monitored by
the exchange closed northward except OILGS which lost 77bps.
NSEBNK led the chart as a result of heavy gains recorded by
Skyebank (4.85%), FidelityBk (3.60%), ETI (2.95%), Access (2.48%),
Zenithbank (2.20%).
ASI year-to-date return currently stands at -5.51% as market
capitalization hits N10.410Tril. In the broad market, decliners
thumped advancers 29 to 28 leaving 44 issues unchanged. Top in
the positive territory are CADBURY (N 41.28), AFRIPRUD (N3.15)
and CONTINSURE (N 0.86) while IKEJAHOTEL (N4.00), LIVESTOCK
(N2.09) and PRESCO (N29.24) led the negative territory.
In the trader’s opinion, investors are advised to tread cautiously.
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 0.63 4.59 -8.05
NSE BNK10 1.46 11.61 -2.77
NSE CNSM10 0.38 1.9 -11.18
NSE OILG5 -0.77 -1.44 3.53
NSE INS10 0.60 1.80 -6.74
Market Wrap
ASI 0.47% 31,195.93
Index year-to-date -5.51%
Market Cap. N10.410Tril
Traded value 5.043Bn
Key gainers (%)
CADBURY 8.92
NAHCO 4.00
UACN 3.41
JBERGER 2.35
FBNH 2.16
Key losers (%)
OKOMUOIL -0.26
PZ -2.00
OANDO -2.02
UBA -0.25
MOBIL -4.97
NITTY
1M 14.6533
2M 14.9373
3M 15.4064
6M 15.9236
9M 16.0687
12M 18.0821
Crude oil spot price
Brent crude US$59.37
Contact information
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Email: cslservice@fcmb.com
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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 6.60 7.73 17% 1.60 1.90 0.35 0.80 7.10% 11.5% 22883.00 Dec.
DIAMOND BANK Buy 4.50 5.27 17% 2.00 1.70 0.30 0.60 5.40% 5.4% 14475.00 Dec.
FIDELITY BANK PLC Buy 1.44 1.86 29% 0.30 0.50 0.14 0.30 7.40% 11.6% 28974.00 Dec.
FBN HOLDINGS Buy 9.00 12.86 43% 2.20 2.30 1.10 0.80 10.00% 10.0% 32632.00 Dec.
GUARANTY TRUST BANK Buy 24.51 28.42 16% 3.20 3.30 1.45 2.20 6.90% 7.3% 29431.00 Dec.
STANBIC HOLDINGS Hold 27.50 32.37 18% 1.90 2.60 1.20 3.10 2.70% 3.5% 10000.00 Dec.
STERLING BANK Hold 2.30 1.57 -32% 0.40 0.40 0.25 0.80 10.90% 8.7% 21592.00 Dec.
SKYE BANK Under review 2.38 -100% 1.20 1.10 0.30 0.30 11.10% 20.7% 13219.00 Dec.
U B A Buy 4.06 5.70 40% 1.40 1.50 0.50 0.70 10.10% 10.1% 32981.00 Dec.
ZENITH BANK Buy 21.40 24.60 15% 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 6.55 Under review N/A 0.89 1.20 0.60 4.70 7.40% 7.4% 12000.00 Dec.
CADBURY NIG. Under review 41.28 Under review N/A 2.90 3.20 1.30 7.60 0.00% 4.7% 1878.00 Dec.
FLOUR MILLS Hold 33.93 54.80 62% 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 27.43 34.60 26% 1.20 1.30 0.19 7.80 2.70% 3.0% 3970.00 May
U A C N Buy 36.73 72.60 98% 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 89.02 Under review N/A 9.40 9.40 3.30 8.20 3.30% 3.3% 3001.00 Mar.
DANGOTE CEMENT Buy 153.00 258.50 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 129.00 111.00 -14% 7.90 5.90 7.00 14.50 4.30% 3.0% 1506.00 June
INTERNATIONAL BREWERIES Hold 19.42 24.50 26% 0.90 1.30 0.30 16.20 1.00% 1.5% 3263.00 Mar.
NIGERIAN BREWERIES Sell 145.95 121.20 -17% 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 30.62 41.50 36% 2.20 3.00 1.00 9.00 3.20% 6.7% 953.00 Dec.
PRESCO PLC Buy 29.24 42.70 46% 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
Power
Fixing power supply will remain a priority for the incoming government
Last Thursday, NOI Polls, Nigeria’s leading opinion polls agency published the latest results from its monthly survey on power supply to Nigerian
households in the Business day Newspaper.
The poll results for February 2015 showed that electricity supply to households in February averaged 5.6 hours per day, 9.3% below the average
for the last twelve months of 6.2 hours per day. The highest level in the last twelve months was recorded in September 2014, when respondents
reported that they received electricity supply for an average of 8.2 hours per day.
Nigeria’s power supply has hovered around 3,500 megawatts (MW) in recent months, just a little higher than one quarter of the national average
demand, estimated at 12,800 MW. Inadequate gas supply to power plants, the delay in the take-off of the Transitional Electricity Market, and
dilapidated transmission infrastructure have been cited as chief among reasons for weak power supplies (see CSL Nigerian Power Sector Report,
Value Investment Opportunity or Value Trap?, 5 August 2014).
Electricity supply appears to have worsened despite the privatisation of seven power generation and 12 electricity distribution companies in
November 2013. The All Progressives Congress, Nigeria’s main opposition party in the upcoming elections, frequently alludes to the failure of the
Peoples Democratic Party (PDP) government to deliver on power supply, despite the numerous commitments it made at the onset of its
administration in 2011.
With presidential elections due on 28 March 2015, we believe that fixing Nigeria’s erratic electricity supply will remain a priority for the incoming
administration.
Today’s news headlines
Fresh explosion rocks Borno market, kills five: There was another bomb attack on a market in Borno State on Sunday where five persons were
killed, a member of the youth vigilante group Boko Haram, who does not want his name in print, told one of our correspondents on the telephone.
He said, “The insurgents planted a bomb at the entrance to the Beneisheikh market at around 10am on Sunday and this led to the death of five
persons while 15 others were injured. Source: punchng.com
Stress Test: CBN declares Nigerian Banks are sound: The Central Bank of Nigeria (CBN) on Sunday affirmed that all banks operating in the
country are sound. This, according to a statement from the central bank, was the result of a recent stress test carried out on the financial
institutions. It revealed that the banks have adequate capital to absorb unexpected losses. The CBN also stated that the unaudited results of
banks, and the results released so far, indicate that the economic headwinds have not significantly affected returns. The statement further noted
that banks have been directed to have effective risk management systems in place especially price hedging, adding that the CBN would continue to
monitor banks to ensure sufficient internal retention of capital to serve as buffers. Source: thisdaylive.com
FBN Holdings appoints two new board members: FBN Holdings Plc has announced the appointment of Mr. Omatseyin Akene Ayida and Mrs.
Bosede Adebola Osibogun as non-executive directors on its board. The directors bring to bear several years of experience spanning the banking
and financial services industry and their appointments are in tandem with FBN Holdings’ strategic focus to become the foremost financial services
company in Africa, according to a statement from the bank. The appointments are however subject to the approval of the Central Bank of Nigeria.
Source: thisdaylive.com

4. Daily Retail Report
Page 4
Retail views
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