Daily retail report 27052015

1. Retail views
Nigeria
Wednesday, 27 May 2015
Daily Retail Report
.
Market Review
At today, the Nigerian Equity Market struggled for direction on a weak
gain as benchmark index appreciated by 17bps to return 34,355.31bps
with 5,386 deals. NSECNSM was the only sector monitored by the
exchange that closed in negative territory with losses recorded in Nestle
(-0.43%,) Dangsugar (-1.06%) and Flourmill (-0.43%). Other sectorial
indices moved northward with NSEIND leasding the pack on the back
of Betaglas (4.91%), Dangccem (0.56%) and Wapco (0.51)
Decliners beat advancers 26 to 31 while 52 remained unchanged ASI
year-to-date return currently stands at -0.86% as market capitalisation
appreciated by N21bn to close at 11.674Tril. Top in the gainers
territory are VONO (N1.61) UNITYBNK (N2.75) NPFMCRFBK
(N1.33)while MAYBAKER (N1.68) PREMBREW N3.26) INTERLINK
(N4.43) led the losers’ territory.
Great Nigeria Insurance Plc has released its FY results ended 31st
December, 2013. Gross premium of N3.046Bn and PAT (445m)
appreciated by 6% while PAT(N4.382) depreciated by 99.5%
respectively from prior year.
Computer Warehouse group proposed a 2kobo dividend payment for FY
ended December 2014. Closure date is 8th June - 12th june 2015.
We expect further positive movement as a new government take over
power at the end of this month
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 0.02 -0.57 105.54
NSE BNK10 -0.08 1.96 176.39
NSE CNSM10 -0.24 -3.75 87.82
NSE OILG5 0.49 -0.86 161.33
NSE INS10 0.28 1.74 15.88
NSE IND 0.56 1.36 18.06
Market Wrap
ASI 0.17% 34,355.31
Index year-to-datee -0.86%
Market Cap. N11.674Tril
Traded value 3.715Bn
Key gainers (%)
NASCON 4.73
TOTAL 4.19
DANGFLOUR 4.16
OANDO 1.00
HONYFLOUR 2.76
Key losers (%)
MAYBAKER -5.08
UBA -2.24
FIDELITYBK -2.13
NESTLE -1.26
CAP -1.20
NITTY
1M 13.6954
2M 13.7000
3M 13.7910
6M 14.2042
9M 14.7023
12M 14.8328
Crude oil spot price
Brent crude US$62.91
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
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 6.29 7.33 17% 1.90 0.40 0.60 0.70 9.19% 0.8% 22883.00 Dec.
DIAMOND BANK Buy 4.44 5.27 19% 1.54* 0.30 0.10 0.43* 7.5*% 1.8% 14475.00 Dec.
FIDELITY BANK PLC Under review 1.84 1.86 1% 0.45* 0.33 0.18 0.22* 10.8*% 6.9% 28974.00 Dec.
FBN HOLDINGS Buy 9.20 12.86 40% 2.54 0.04 0.10 0.58 1.10% 0.0% 32632.00 Dec.
GUARANTY TRUST BANK Buy 29.10 28.42 -2% 3.40 2.10 1.75 1.90 7.20% 7.3% 29431.00 Dec.
STANBIC HOLDINGS Hold 30.35 32.37 7% 2.98* 3.60 1.25 2.3* 3.7*% 4.3% 10000.00 Dec.
STERLING BANK Hold 2.17 1.57 -28% 0.34* 0.26 0.06 0.8* 6.5*% 5.2% 21592.00 Dec.
SKYE BANK Under review 2.73 Under review Under review 0.30 Under review 20.7% 13219.00 Dec.
U B A Buy 5.23 7.87 50% 1.29* 0.44 0.10 0.44* 11.3*% 4.0% 32981.00 Dec.
ZENITH BANK Buy 22.00 24.60 12% 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 6.55 Under review 0.60 7.4% 12000.00 Dec.
CADBURY NIG. Under review 40.00 Under review 0.65 4.7% 1878.00 Dec.
FLOUR MILLS Hold 34.85 54.80 57% 1.93 3.50 1.60 7.10 3.60% 1.8% 2385.00 Mar.
HONEYWELL FLOURMILLS Buy 3.72 5.20 40% 0.30 0.17 4.7% 7930.00 Mar.
NESTLE FOODS NIG. Under review 860.00 Under review 38.00 17.50 34.5* 2.10% 4.6% 792.00 Dec.
P Z INDUSTRIES Hold 28.66 34.60 21% 0.81 3.0% 3970.00 May
U A C N Buy 41.40 72.60 75% 1.75 4.7% 1920.00 Dec.
UNILEVER NIGERIA PLC Sell 45.10 24.30 -46% 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 96.99 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 155.72 111.00 -29% 6.30 2.70 7.00 9.30 5.40% 2.5% 1506.00 June
INTERNATIONAL BREWERIES Hold 20.00 24.50 23% 0.30 1.5% 3263.00 Mar.
NIGERIAN BREWERIES Sell 152.00 121.20 -20% 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 29.50 41.50 41% 2.20 3.00 0.25 9.00 3.20% 6.7% 953.00 Dec.
PRESCO PLC Buy 32.00 42.70 33% 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 44.00 78.60 79% 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 335.00 598.00 79% 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
AMCON
AMCON levy on banks: No reduction in sight
Bloomberg reported on Monday that the Asset Management Corporation of Nigeria (AMCON) had recovered 57% of the bad debts it took on five
years ago to rescue banks in Nigeria. The managing director of AMCON, Mr Chike Obi, also noted that it is unlikely that lenders will be offered
another bail out.
AMCON was established in 2010 to buy the non-performing loans of Nigerian banks with a view to stabilising the banking system. To pay for this,
banks were initially mandated to contribute 0.3% of total assets to a sinking fund. This was further increased to 0.5% of total assets in 2013, and
is gradually becoming a significant portion of bank’s total operating expenses (opex). Mr Chike Obi, however, mentioned that the levy on the banks
will not be eliminated or reduced until the agency is wound down.
An analysis of profits of 11 banks, excluding AMCON charges, shows that eradicating the AMCON charge would reduce the banks' 2014 opex by
N96.4bn (US$482m). Treating this increment for tax, we estimate it would add 17.8% to average Net Profits.
Going by Chike Obi’s comments, we see no possibility of a reduction in the levy. We are, however, encouraged by AMCON’s recovery rate as it
suggests that a further increase in the levy may not be warranted.
Today’s news headlines
Fuel queues will disappear next week – Marketers: The nation may continue to grapple with the effect of the latest fuel crisis until next week as
marketers of petroleum products have said the current supply challenge may not end this week. The marketers also confirmed in separate
interviews with one of our correspondents on Tuesday that loading of petrol had resumed across the board with members of the Major Oil
Marketers Association of Nigeria and Depot and Petroleum Products Marketers Association driving the exercise. Source: punchng.com
Oil workers want strategic alliance of OML 42 investigated: Although the strike action embarked upon by the Petroleum and Natural Gas
Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG) has been suspended,
they have, however, called on the incoming president, Muhammadu Buhari, to investigate the strategic alliance of the Oil Mining Lease (OML) 42.
The transfer of operatorship of OML 42, considered the most prolific block in the country, from the Nigeria Petroleum Development Company
(NPDC) to indigenous joint venture partner, Neconde, by the federal government, allegedly sparked a crisis which resulted to a near collapse of the
nation’s economy. Source: leadershipng.com
Power firms declare force majeure over tariffs, insurgency: Some electricity distribution companies popularly known as DISCOs have declared
political force majeure, the Bureau of Public Enterprises has said. The Head of Public Communications at the privatisation agency, Mr. Alex Okoh,
who said this in a statement made available to our correspondent in Abuja on Tuesday, also disclosed that the Yola Electricity Distribution
Company had declared another force majeure as a result of insurgency in the area of its operation. Source: punchng.com

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