Analyst: Abigail Alabi* Target price: ₦256.95 Rating: SELL OKOMUOIL released its unaudited FY’23 earnings results, reporting a strong PAT growth of 22% y/y, which was bolstered by the surge in sales. OKOMUOIL rides export surge Amid the stable global CPO prices and strong local demand, revenue for the Q4’23 period increased by 58% y/y to ₦14...
A thorny path to harvest The Nigerian agricultural sector has been grappling with legacy issues and declining productivity which were further worsened by ongoing geopolitical tensions. However, with strategic policy implementation and intra African trade opportunities, there is potential for growth. The realization of these prospects faces obstacles, particularly the lack of infrastructural development in...
Supply constraints to fuel CPO price volatility Since late 2022 and Q1 2023, CPO (Crude Palm Oil) prices have been bolstered by heavy rainfall and flooding associated with the La Nina weather phenomenon, which disrupted harvesting and collecting activities across the industry. Another contributing factor was the market expectations of a significant rise in biodiesel...
Our conviction stocks closed higher in November, gaining 1.8% m/m, underperforming the ASI by 1.2ppts. Our picks have yielded a return of 71.2% YTD, outperforming the ASI by 32.0ppts. Starting with the Consumer Goods sector, it was a mixed month as DANGSUGAR eased 7.94% m/m, while NESTLE (+9.5% m/m) closed in the green. All in,...
Analyst: Abigail Alabi* Target price: ₦272.24 Rating: BUY OKOMUOIL released its 9M’23 earnings results, reporting a strong PAT growth of 16% y/y to ₦20 billion, which was bolstered by strong sales in the domestic and foreign markets. Unabating cost pressures drag margins For the Q3’23 period, revenue increased by 113% y/y to ₦20 billion. This...
Analyst: Abigail Alabi* Target price: ₦232.11 Rating: BUY In Q3’23, revenue increased by 65% y/y to ₦28.7 billion, primarily driven by strong domestic prices and increased volumes from the Siat Nigeria Limited acquisition. More so, gross margin expanded by 11ppts y/y to 59%, as the topline growth was able to mask the impact of...