Daily retail report 14042015

1. Retail views
UBA Q4 results
Nigeria Tuesday, 14 April 2015
Daily Retail Report
.
Market Review
The Nigerian Stock Exchange could not sustain the positive trend
that has prevailed the market in three straight sessions. Sectorial
indices monitored by the Exchange showed mixed performance
leading to 42bps depreciation in the All Share Index. NSEBNK and
NSECNSM closed in red as a result of the fall in UBN (-4.93),
Zenithbank (-2.93) and heavyweight NESTLE (-4.42) while NSEINS,
NSEIND and OILGS closed in positive terrain on the back of Wapco
(+1.27%) Mansard (+4.92%) and FO (+3.61%).
ASI year-to-date return currently stands at 1.27% as market
capitalisation lost N50bn to close at 11.941Tril. Among the broad
indices, volume and value of transactions depreciated by 28% and
21% respectively relative to previous figures as 248million units of
shares valued at N3.664bn exchange hands. Top in the gainers
territory are LIVESTOCK (N2.41), VITAFOAM (N4.43) and
AIRSERVICE (N2.10) while FIDSON (N3.23), UBN (N10.41),
PORTPAINT (N3.33) led the losers’ list
We reiterate that these are buying times for investors with long term
perspective, engage defensive stocks with healthy performance.
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 -0.59 12.47 22.89
NSE BNK10 -2.34 10.40 43.01
NSE CNSM10 -0.02 14.65 17.52
NSE OILG5 0.32 11.03 39.16
NSE INS10 1.11 2.97 -7.30
NSE IND 0.65 12.90 -11.39
Market Wrap
ASI -0.42% 35,043.44
Index year-to-datee 1.27%
Market Cap. N11.941Tril
Traded value 3.664Bn
Key gainers (%)
LIVESTOCK 6.17
VITAFOAM 5.48
OKOMUOIL 5.00
GUINNESS 4.99
INTBREW 4.99
Key losers (%)
UBN -4.93
TOTAL -4.44
NESTLE -4.42
PRESCO -3.75
UBA -3.27
NITTY
1M 12.6672
2M 13.8368
3M 13.9793
6M 14.2487
9M 15.0803
12M 15.2859
Crude oil spot price
Brent crude US$58.23
Contact information
Phone: 01-2714834 ; 01-2713920(3)
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
2014
1 Yr
forward
EPS
Last
Dividend
(N)
P/BV
2014
Yield FY
2014
Yield FY
2015e
Shares
Outstanding
(millions)
Year
End
ACCESS BANK Buy 6.60 7.33 11% 1.90 0.40 0.60 0.70 9.19% 0.8% 22883.00 Dec.
DIAMOND BANK Buy 4.54 5.27 16% 1.54* 0.30 0.10 0.43* 7.5*% 1.8% 14475.00 Dec.
FIDELITY BANK PLC 2.13 1.86 -13% 0.45* 0.33 0.18 0.22* 10.8*% 6.9% 28974.00 Dec.
FBN HOLDINGS Buy 9.50 12.86 35% 2.54 0.04 0.10 0.58 1.10% 0.0% 32632.00 Dec.
GUARANTY TRUST BANK Buy 28.00 28.42 2% 3.40 2.10 1.75 1.90 7.20% 7.3% 29431.00 Dec.
STANBIC HOLDINGS Hold 30.00 32.37 8% 2.98* 3.60 1.25 2.3* 3.7*% 4.3% 10000.00 Dec.
STERLING BANK Hold 2.29 1.57 -31% 0.34* 0.26 0.06 0.8* 6.5*% 5.2% 21592.00 Dec.
SKYE BANK Under review 2.58 Under review Under review 0.30 Under review 20.7% 13219.00 Dec.
U B A Buy 4.74 5.70 20% 1.29* 0.44 0.10 0.44* 11.3*% 4.0% 32981.00 Dec.
ZENITH BANK Buy 23.20 24.60 6% 3.17 2.16 1.75 1.20 8.20% 4.3% 31396.00 Dec.
Food & Beverage
EV/EBITDA (x)
2014
Yield FY 2014
DANGOTE SUGAR REFINERY Under review 7.18 Under review 0.60 7.4% 12000.00 Dec.
CADBURY NIG. Under review 41.52 Under review 0.65 4.7% 1878.00 Dec.
FLOUR MILLS Hold 34.00 54.80 61% 1.93 3.50 1.60 7.10 3.60% 1.8% 2385.00 Mar.
HONEYWELL FLOURMILLS Buy 3.20 5.20 63% 0.30 0.17 4.7% 7930.00 Mar.
NESTLE FOODS NIG. Under review 948.00 Under review 38.00 17.50 34.5* 2.10% 4.6% 792.00 Dec.
P Z INDUSTRIES Hold 27.20 34.60 27% 0.81 3.0% 3970.00 May
U A C N Buy 39.00 72.60 86% 1.75 4.7% 1920.00 Dec.
UNILEVER NIGERIA PLC Sell 41.62 31.80 -24% 0.64 2.11 0.10 0.30% 5.0% 3783.00 Dec.
Building Materials EPS 2014e
EV/EBITDA(x)
2014e
Yield FY
2014e
LAFARGE WAPCO PLC Under review 94.20 Under review 3.50 3.30% 3.3% 3001.00 Mar.
DANGOTE CEMENT Buy 180.00 198.40 9.07 9.87 6.00 13.00 3.60% 3.5% 17040.00 Dec.
Breweries EPS 2014
EV/EBITDA(x)
2014
Yield FY 2014
GUINNESS NIG. Sell 154.34 111.00 -28% 6.30 2.70 7.00 9.30 5.40% 2.5% 1506.00 June
INTERNATIONAL BREWERIES Hold 20.63 24.50 19% 0.30 1.5% 3263.00 Mar.
NIGERIAN BREWERIES Sell 172.00 121.20 -30% 5.62 6.40 3.50 10.80 4.50% 3.5% 7562.00 June
Agriculture EPS 2013e
EV/EBITDA(x)
2014e
Yield FY
2014e
OKOMU OIL Buy 27.31 41.50 52% 2.20 3.00 0.25 9.00 3.20% 6.7% 953.00 Dec.
PRESCO PLC Buy 25.70 42.70 66% 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 56.26 78.60 40% 3.10 4.30 0.75 8.90 2.50% 3.8% 957.00 Dec.
Oil & Gas
EV/DACF(x)
2014
Yield FY 2014
SEPLAT Buy 385.00 756.00 96% 0.58 0.87 3.10 4.70% 4.9% 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
Telecoms- MTN set to acquire Visafone Communications Limited.
According to reports from Bloomberg, the Mobile Telephone Networks (MTN) Group (MTN, N/R) has begun the process of acquiring Visafone
Communications Limited. MTN Group, Africa’s biggest mobile phone company, has been exploring acquisitions as it seeks to boost revenue from
data outside South Africa. Out of four existing mobile operators in Nigeria, MTN Nigeria is the leader with c.44% market share as of December
2014.
Although details of the deal have not been disclosed by either of the firms, it is believed that MTN is investing in Visafone’s data services. With
increased competition within the mobile operations market, 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.
Visafone was set up eight years ago by the Ex-managing director and current chairman of Zenith Bank Jim Ovia, and has grown its subscriber
base to 2.2m as at December 2014 from the 30,000 in December 2007. It is currently the only Code Division Multiple Access (CDMA) service
provider in Nigeria. We believe Visafone’s CDMA technology platforms, being smaller, is struggling to compete with the larger top-tier GSM
networks. The company also faces competition in the data business from LTE service providers such as Spectranet, Swift Networks, and Smile
Nigeria.
News Headlines
Power supply falls to 2,988MW: Power supply from the national grid again slumped below the 3,000-megawatts mark to 2,988.72MW on Sunday
on the back of gas shortfall and lower water supply to the nation’s thermal and hydropower plants respectively, our correspondent learnt on
Monday. Gas-fired power plants generate about 70 per cent of the nation’s electricity, while the balance is derived from hydro power plants,
including the Kainji and Jebba power stations, which have a combined installed capacity of 1,330MW. The downturn in power generation has
exacerbated outages and load-shedding being experienced in many parts of the country, and reversed the recent slight improvement seen after
supply fell to 2,767.45MW exactly one month ago. Source: punchng.com
World Bank backs Buhari to probe NNPC, others: The World Bank has thrown its weight behind President-elect, Maj.-Gen. Muhammadu Buhari
(retd.), to probe the Nigerian National Petroleum Corporation over allegations of missing funds. Speaking in a video conference from Washington to
journalists from across Africa on the release of the bank’s analysis of issues shaping the continent entitled, ‘Africa’s Pulse’, top officials of the bank
commended President Goodluck Jonathan for exhibiting political maturity after the 28 March presidential election that would end the tenure of his
administration on 29 May. The World Bank’s Chief Economist for Africa, Mr. Francisco Ferreira, said looking into financial records of the country,
especially allegation of corruption at the NNPC, would check impunity and build public institutions in the future. Source: punchng.com
29 May: FG transition committee meets: Ahead of the May 29th handover, the transition committee on Monday held its inaugural meeting to
develop the needed modalities. The transition committee is expected to see to the smooth exit and handover of the outgoing government to the
incoming, in respect of briefs and handover notes. Source: businessdayonline.com

4. Daily Retail Report
Page 4
Retail views
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