Retail views

Nigeria

Monday, 01 June 2015

Daily Retail Report .

Market Review The bears continue to rage amid oversold conditions in the Nigerian Equity Market. Except for NSEIND that gained points on the back of Portpaint (+4.40%) and Ashakacem (+0.33%), most sectorial indices closed in the red and were unable to lift the ASI into positive territory.

ASI currently stands at 34,044.65, returning -1.76% year-to-date.

At the closing bell, 20 stocks advanced relative to 43 decliners while

42 remained unchanged. Market activity level depreciated relative to

the previous session as 340million units valued at 5.502bn

represents 52% and 54% flow in volume and value traded

respectively. Top in the positive territory are HONYFLOUR (n3.89),

PORTPAINT (N3.80) and ETERNA (N2.87) while NPFMCRFBK

(N1.20), TOTAL (N161.00) and JBERGER (N50.00) led the gainers.

Japaul Oil and Maritime Services Plc has released its FY results for

the year ended 31st December, 2014. Revenue of N 10.572Bn

appreciated by 19% while PAT (2,362,832bn) depreciated by 6188%

respectively from prior period

In the trader’s opinion, investors are advised to tread cautiously.

Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)

NSE30 -0.89 -0.89 114.24

NSE BNK10 -1.39 -1.39 190.43

NSE CNSM10 -0.89 -0.89 95.22

NSE OILG5 -1.48 -1.48 174.19

NSE INS10 -1.20 -1.20 18.32

NSE IND 0.01 0.01 21.16

Market Wrap

ASI -0.77% 34,044.65

Index year-to-date e -1.76%

Market Cap. N11.568Tril

Traded value 5.502Bn

Key gainers (%)

HONYFLOUR 4.57

PZ 2.81

SEPLAT 2.07

UACN 0.73

STANBIC 0.33

Key losers (%)

TOTAL -7.47

JBERGER -5.12

FLOURMIL -4.67

FO -4.55

TRANSCORP -3.87

NITTY

1M 12.7331

2M 13.3003

3M 13.6282

6M 13.6403

9M 14.4177

12M 14.5408

Crude oil spot price

Brent crude US$65.30

Contact information

Phone: 01-2713923; 01-2713920

Mobile: 08068015502

Email: cslservice@fcmb.com

Open Account: Click here to register

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 6.20 7.33 18% 1.90 0.40 0.60 0.70 9.19% 0.8% 22883.00 Dec.DIAMOND BANK Buy 4.45 5.27 18% 1.54* 0.30 0.10 0.43* 7.5*% 1.8% 14475.00 Dec.FIDELITY BANK PLC Under review 1.90 1.86 -2% 0.45* 0.33 0.18 0.22* 10.8*% 6.9% 28974.00 Dec.FBN HOLDINGS Buy 9.18 12.86 40% 2.54 0.04 0.10 0.58 1.10% 0.0% 32632.00 Dec.GUARANTY TRUST BANK Buy 28.97 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 2.03 1.57 -23% 0.34* 0.26 0.06 0.8* 6.5*% 5.2% 21592.00 Dec.SKYE BANK Under review 2.65 Under review Under review 0.30 Under review 20.7% 13219.00 Dec.U B A Buy 5.35 7.87 47% 1.29* 0.44 0.10 0.44* 11.3*% 4.0% 32981.00 Dec.

ZENITH BANK Buy 20.91 24.60 18% 3.17 2.16 1.75 1.20 8.20% 4.3% 31396.00 Dec.

Food & BeverageEV/EBITDA (x)

2014

Yield FY 2014

DANGOTE SUGAR REFINERY Under review 6.50 Under review 0.60 7.4% 12000.00 Dec.CADBURY NIG. Under review 39.00 Under review 0.65 4.7% 1878.00 Dec.FLOUR MILLS Hold 34.51 54.80 59% 1.93 3.50 1.60 7.10 3.60% 1.8% 2385.00 Mar.HONEYWELL FLOURMILLS Buy 3.89 5.20 34% 0.30 0.17 4.7% 7930.00 Mar.NESTLE FOODS NIG. Under review 850.01 Under review 38.00 17.50 34.5* 2.10% 4.6% 792.00 Dec.P Z INDUSTRIES Hold 30.00 34.60 15% 0.81 3.0% 3970.00 MayU A C N Buy 41.50 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 2014eEV/EBITDA(x)

2014e

Yield FY

2014e

LAFARGE WAPCO PLC Under review 98.00 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 2014EV/EBITDA(x)

2014

Yield FY 2014

GUINNESS NIG. Sell 164.00 111.00 -32% 6.30 2.70 7.00 9.30 5.40% 2.5% 1506.00 JuneINTERNATIONAL BREWERIES Hold 20.01 24.50 22% 0.30 1.5% 3263.00 Mar.NIGERIAN BREWERIES Sell 147.00 121.20 -18% 5.62 6.40 3.50 10.80 4.50% 3.5% 7562.00 June

Agriculture EPS 2013eEV/EBITDA(x)

2014e

Yield FY

2014e

OKOMU OIL Buy 28.81 41.50 44% 2.20 3.00 0.25 9.00 3.20% 6.7% 953.00 Dec.PRESCO PLC Buy 34.00 42.70 26% 1.29 1.60 0.10 9.20 0.40% 1.7% 1000.00 Dec.

PharmaceuticalsEV/EBITDA (x)

2013

Yield FY 2013

GLAXOSMITHKLINE BEECHAM NIG. Buy 44.11 78.60 78% 3.10 4.30 0.75 8.90 2.50% 3.8% 957.00 Dec.

Oil & GasEV/DACF(x)

2014Yield FY 2014

SEPLAT Buy 345.00 598.00 73% 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

Daily Retail Report

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Retail views

Top Highlight

Politics

Nigeria has a new President

On Friday, 29 May, President Muhammadu Buhari was sworn into office. During his inaugural speech, the President stated his commitment to

serve everyone and commended the out-going President Goodluck Jonathan for his display of statesmanship during the general elections.

Judging from his inaugural speech, we believe the President’s top priorities to be: 1) Security: The President plans to step-up his offensive against

the terrorist group Boko Haram by relocating the Command Control Centre which is presently located in Abuja to Maiduguri; 2) Challenges in the Niger Delta: While noting that the amnesty programme in the Niger Delta is due to end in December, the President promised to invest in projects

and programmes currently in place; 3) Power and; 4) Unemployment.

The President is yet to make public the names of the members of his cabinet. However, on Sunday, he made his first appointments when he

named Mr. Femi Adesina who is the Managing Director of The Sun Newspaper in Nigeria, his Special Adviser, Media and Publicity, and Malam

Garba Shehu, who was the Director, Media and Publicity of the APC Presidential Campaign Council, as his Senior Special Assistant, Media and Publicity. We expect more appointments to be made this week (see, CSL: Buhari’s New Administration, 26 May).

Today’s news headlines

President names media aides as key appointments are awaited: President Muhammadu Buhari on Sunday announced the first set of

appointments into his administration with Mr. Femi Adesina and Malam Garba Shehu as his spokesmen. While Adesina would serve as Special

Adviser, Media and Publicity, Shehu would be the new Senior Special Assistant, Media and Publicity. Source: thisdaylive.com

Boko Haram bombs Maiduguri market, burns Yobe court: An Improvised Explosive Device believed to have been planted by suspected members

of Boko Haram on Sunday exploded at the Gamboru Market in Maiduguri, Borno State. No death were recorded but four persons were critically

injured in the incident which occurred barely 24 hours after 26 persons were reportedly killed when the sect members bombed a Monday market

in the city. The sect had on Friday night attempted to invade the troubled state capital but was repelled by the military, however this resulted in

16 people losing their lives. Source: punchng.com

Pressure mounts on Buhari to revisit fuel subsidy probe, oil blocks allocations: President Muhammadu Buhari has been under intense

pressure from oil and gas industry stakeholders to reopen all cases relating to fuel subsidy fraud with a view to prosecuting all those indicted. The

stakeholders said this has become necessary as most top officials indicted by the probe panel set up by former President Goodluck Jonathan

administration were released by security officials because they were close allies of the then government in power. They posited that all those

indicted one way or the other must face the full weight of the law, if the present government is sincere about ending corruption in the oil and gas industry and Nigeria as a whole. Source: thisdaylive.com

Declare your assets publicly, civil groups tell Buhari: Civil society groups and activists on Sunday faulted the failure by President Muhammadu

Buhari and Vice-President Yemi Osinbajo to publicly declare their assets as promised by them during their electioneering. They have therefore

demanded that the assets be made public in the best interest of transparency and accountability. A statement by the head of Buhari’s media

team, Garba Shehu, on Saturday had indicated that the President and the Vice-President had submitted their asset declaration forms separately to the Code of Conduct Bureau on Thursday. The contents of the forms were however not disclosed. Source: punchng.com

Daily Retail Report

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Retail views

Important Risk Warnings and Disclaimers

CSL STOCKBROKERS LIMITED (CSLS) is regulated and authorized by the Securities and Exchange Commission (SEC) of Nigeria and the Nigerian Stock Exchange (NSE). The details of the authorization can be viewed at the SEC Website at http://www.sec.gov.ng/consolidated-list-of-capital-market-operators.html and at the NSE Website at http://www.nse.com.ng/Regulation/ForBrokers/Pages/Dealing-Members.asp. RELIANCE ON THIS NOTE FOR THE PURPOSE OF ENGAGING IN ANY INVESTMENT ACTIVITY MAY EXPOSE YOU TO A SIGNIFICANT RISK OF LOSS. By receiving this document, you will not be deemed a client or provided with the protections afforded to clients of CSLS. When distributing this document, CSLS or any member of the First City Group is not acting for any recipient of this document and will not be responsible for providing advice to any recipient in relation to this document. Accordingly, CSLS will not be responsible to any recipient for providing the protections afforded to its clients.

If you are in the UK, the protections of the Financial Services and Markets Act 2000 (FSMA) or Financial Conduct Authority (FCA) do not apply to any investment activity engaged in as a result of this communication; and any resulting transaction would not fall within the jurisdiction of any FSMA or FCA dispute resolution or compensation scheme. By accepting this document you confirm that you are so aware of the above stated. If you do not accept the above stated and/or if the distribution of this document is otherwise unlawful where you are, you are required to return the document immediately to CSLS. This document is not an offer to buy or sell or to solicit an offer to buy or sell any security. This document does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The appropriateness of a particular investment will depend on an investor’s individual circumstances and objectives. The investments and shares referred to in this document may not be suitable for all investors. CSLS is a member of the FCMB Group Plc (“the Group”), a group of companies which includes First City Monument Bank Ltd., FCMB Capital Markets Ltd, First City Asset Management and FCMB UK. Either CSLS or any other member of the Group may effect transactions in shares mentioned herein, may take proprietary trading positions in those shares, and may receive remuneration for the publication of its research and for other services. Accordingly, this document may not be considered as objective or impartial. Additionally, information may be available to CSLS or the Group, which is not reflected in this material. Further information on CSLS’ policy regarding potential conflicts of interest in the context of investment research and CSLS’ policy on disclosure and conflicts in general are available on request. This document is based on information obtained from sources it believes are reliable but which it has not independently verified. Neither CSLS nor its advisors, directors or employees make any guarantee, representation or warranty as to its accuracy, reasonableness or completeness and neither CSLS nor its advisors, directors or employees accepts any responsibility or liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The opinions contained in this document are subject to change without notice and not to be relied upon and should not be used in substitution for the exercise of independent judgment.

Past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. Where an investment is denominated in a currency other than the local currency of the recipient of the research report, changes in the exchange rates may have an adverse effect on the value, price or income of that investment. In case of investments for which there is no recognized market it may be difficult for investors to sell their investments or to obtain reliable information about its value or the extent of the risk to which it is exposed.

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