Analyst: Chidozie Daniels* Equity Markets – Fiscal policies dictate investor sentiment in Q3’23. It has been a mixed year for our coverage markets, and that did not change in Q3’23. For Nigeria and Ghana, domestic investors have been net buyers, despite foreign investors maintaining a risk-off stance to their respective stock markets, due to a...
Analyst: Olumide Sole* In its Q3 financial statements, ZENITHBANK reported a 68% y/y jump in Gross Earnings to ₦362 billion, 8% below our estimate of ₦392 billion. This improvement was majorly a result of the expansion of the bank’s loan book in Q3 amid elevated interest rates, as Interest Income grew 71% y/y to ₦256...
Analyst: Ibukun Omoyeni* In Q3’23, Nigeria’s real GDP growth slowed to 2.54% y/y, 9bps lower than our estimate (Vetiva: 2.63% y/y) and 30bps higher than the prior year (Q3’23: 2.25% y/y). We attribute this outcome to better oil production outcome, improved embrace of digital financial services platforms, and the negative passthrough of subsidy removal to...
Executive Summary. The world has seen a significant increase in economic activity as countries have reopened their economies and supply chains have eased. China has been at the forefront of this recovery, with its economy reopening and supply chains easing. However, the Ukraine war has had a significant impact on the global economy. The conflict...
Analyst: Abigail Alabi* Target price: ₦41.76 Rating: BUY FX loss weighs on bottom lineIn Q3’23, volumes declined by 10.5% y/y, as there was a significant decrease in volumes across the cement industry due to the heavy rainfall in the review period. Nonetheless, a 22% increase in revenue per ton, caused an upswing in revenue by...
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...
