Stock Recommendation 20012014

8/12/2019 Stock Recommendation 20012014

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EQUITY INVESTMENT GUIDE STOCK RECOMMENDATION

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Disclosure and Analyst certification on page 10

MARKET PREVIEWFor the week commencing January 20, 2014

Whilst the current market mood can best be described ascalm given the magnitude of gains and losses recorded since

the beginning of the year, the imminent market catalyst will

be expected 2013FY corporate actions.

In our view, market sentiments will move largely in favour ofstocks with expected attractive dividend yields. Also,

investors demand will likely tilt in favour of stocks with

attractive fundamentals.

Given our considerations above, we expect the market toclose the week on a positive note albeit marginal.

0.27

MARKET REVIEW

For the week ended January 17, 2014

Equities market remained calm through the previous week as

price movements in either directions stayed marginal. The All-

Share-Index closed the week 0.65% higher.

JAPAUL, DNMEYER and NSLTECH were the highest gaining

stocks with respective returns of 17.24%, 9.93% and 9.09%.

On the flip side, JBERGER, CILEASING and FO lost 9.95%, 8.33%

and 6.74% respectively WoW.

The overall market mood in the week was positive with

market breadth at 1.31x (46 advancers against 35 decliners).

Our market mood indicator settled at 0.27.

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MillionsVolume [RHS] Index [pts]

NSEASI & Meristem Research - Sectoral Indices [Return Profile]

WtD MtD QtD YtD

NSEASI 0.65% 1.02% 10.97% 1.02%

MERI-PENNY 20 0.13% -1.05% 20.61% -1.05%

MERI-BNK 3.35% -0.34% 11.37% -0.34%

MERI-INS -1.82% 0.66% 12.90% 0.66%

MERI OILG 1.46% 0.86% 14.02% 0.86%

MERI-CMG 0.59% -0.87% 2.75% -0.87%

MERI-IND -0.08% 4.39% 19.66% 4.39%

MERI-CONG 4.43% 51.40% 4.43% 96.65%

MERI-SERV 0.00% 16.67% -2.40% 33.55%

Cur. Week Prev. Week

NSEASI 41,751.55 41,480.62

Market Cap [NGN'tr] 13.483

Market Cap [USD 'bn] 84.135

Volume Traded [bn] 1.51 1.72

Value Traded [bn] 18.33 22.39

Most Traded Value Most Traded Volume

OANDO 2,173,647,392 TRANSCORP 147,966,544ZENITHBANK 1,908,683,104 FCMB 99,173,093

WAPCO 1,286,710,573 UNITYBNK 81,746,729

FLOURMILL 1,273,667,036 OANDO 80,992,620

NEM 1,062,219,664 ZENITHBANK 79,211,839

Highest Gainers % Highest Losers %

JAPAULOIL 17.24% JBERGER -9.95%

DNMEYER 9.93% CILEASING -8.33%

ZENITHBANK 8.23% FO -6.74%

UPL 7.77% ASHAKACEM -5.95%

VITAFOAM 6.97% IHS -5.66%

STOCKRECOMMENDATIONJANUARY2 , 2014

THE WEEK THAT WAS A REVIE


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EQUITY | INVESTMENT GUIDE | STOCK RECOMMENDATION

Tuesday, 21 January 2014

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Tickers 2014 TP

Closing

Price

Up/Down

Potential Wtd % Ytd %

Trailing

P/E

Trailing

P/BV

Trailing

Div.

Yield

Forward

P/E

Forward

P/BV

Forward

Div. Yield Ratingsinancial Services

Banks

ACCESS 9.51 9.57 -0.63% -0.31% 2.92 5.94 x 0.91 x 8.6% 5.84 x 0.96 x 7.2% HOLD

DIAMONDBNK 8.60 7.92 8.59% 2.19% 6.67 -0.12 x 0.95 x 0.0% 4.02 x 0.72 x 2.4% HOLD

TI 19.76 17.40 13.56% 2.35% 7.16 29.38 x 1.85 x 0.0% 4.25 x 0.83 x 3.6% HOLD

CMB 5.64 4.00 41.00% 2.83% 8.94 4.23 x 0.53 x 0.0% 4.71 x 0.44 x 0.0% BUYIDELITYBK 3.32 2.54 30.71% -3.42% -5.20 3.74 x 0.44 x 8.2% 3.74 x 0.42 x 9.4% BUY

BNH 19.84 16.10 23.23% 4.21% -3.07 6.00 x 1.21 x 6.3% 4.41 x 1.01 x 10.1% BUY

UARANTY 34.41 28.50 20.74% 0.71% 4.52 9.28 x 2.82 x 5.5% 7.20 x 2.59 x 6.6% BUY

KYEBANK 6.06 4.40 37.73% -3.51% 0.00 4.44 x 0.58 x 11.4% 3.19 x 0.60 x 14.3% BUY

TANBIC 17.56 22.00 -20.18% 2.33% 3.14 14.33 x 2.34 x 0.0% 8.80 x 1.34 x 7.0% SELL

TERLNBANK 2.51 2.42 3.72% -1.63% -3.60 3.85 x 0.78 x 8.3% 5.76 x 0.55 x 9.9% HOLD

UBA 8.17 8.93 -8.51% -0.78% 0.34 5.25 x 1.42 x 5.6% 3.50 x 0.90 x 7.3% HOLD

UBN 8.60 10.00 -14.00% -0.99% 8.00 24.88 x 0.86 x 0.0% 6.90 x 0.87 x 0.0% SELL

UNITYBNK 0.72 0.50 44.00% 0.00% 0.00 2.79 x 0.37 x 0.0% 10.00 x 0.50 x 0.0% BUY

WEMABANK 0.52 1.14 -54.39% -5.00% -4.10 -9.48 x 310.98 x 0.0% 19.00 x 1.56 x 0.0% SELL

ENITHBANK 29.61 25.11 17.92% 8.23% -9.27 7.60 x 1.62 x 6.4% 6.34 x 1.47 x 8.0% HOLD

nsurance

AIICO 0.90 0.87 3.45% -2.25% 2.38 4.57 x 0.52 x 9.3% 4.14 x 0.46 x 5.7% HOLD

ONTINSURE 1.38 1.20 15.00% 0.84% -4.07 7.35 x 0.90 x 8.5% 6.00 x 0.84 x 8.3% HOLD

HMARKINS 0.63 0.50 26.00% 0.00% 0.00 9.40 x 0.70 x 0.0% 5.56 x 0.61 x 6.0% BUY

USTODYINS 3.53 2.40 47.08% 1.69% 17.79 17.76 x 1.10 x 5.3% 4.44 x 0.86 x 8.8% BUY

MANSARD 2.50 2.37 5.49% -5.20% -3.27 13.50 x 1.60 x 4.6% 10.77 x 1.56 x 5.9% HOLD

UNITYKAP 0.80 0.50 60.00% 0.00% 0.00 4.29 x 0.74 x 4.0% 5.00 x 0.69 x 20.0% BUY

onsumer Goods

Brewery

UINNESS 283.79 237.80 19.34% 0.34% -0.21 27.45 x 8.55 x 3.0% 22.25 x 7.39 x 2.9% HOLD

NTBREW 17.38 29.00 -40.08% -1.69% 4.53 48.33 x 9.54 x 0.0% -36.25 x 38.67 x 0.0% SELL

NB 171.52 165.20 3.83% 0.12% -1.01 31.77 x 78.59 x 1.8% 20.15 x 6.99 x 2.7% HOLD


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Tickers 2014 TP

Closing

Price

Up/Down


Trailing

P/E

Trailing

P/BV

Trailing

Div.

Yield

Forward

P/E

Forward

P/BV

Forward

Div. Yield RatingsFood and Beverages

UP 68.11 71.40 -4.61% 0.00% 0.00 12.66 x 3.26 x 3.1% 11.89 x 4.44 x 3.1% HOLD

ADBURY 41.44 59.01 -29.77% 0.00% -1.25 26.51 x 8.80 x 0.9% 184.41 x 7.96 x 1.6% SELL

DANGSUGAR 8.45 12.23 -30.89% 0.91% 2.56 11.74 x 3.04 x 4.2% 9.78 x 2.57 x 8.3% SELL

ONYFLOUR 3.62 3.94 -8.23% 1.29% 4.90 10.99 x 1.68 x 0.0% 8.21 x 1.52 x 4.1% HOLD

LOURMILL 101.77 88.00 15.64% -1.19% 1.15 26.59 x 2.35 x 2.3% 20.95 x 2.36 x 2.3% HOLDNASCON 7.34 14.00 -47.55% 0.00% -6.60 13.27 x 5.11 x 6.4% 43.75 x 4.85 x 5.9% SELL

NESTLE 1,182.52 1,165.00 1.50% 0.43% -3.75 41.11 x 30.07 x 1.7% 32.26 x 19.85 x 2.9% HOLD

Personal / Household Products

Z 27.16 38.15 -28.80% 3.11% 1.49 28.47 x 3.26 x 1.5% 71.98 x 3.53 x 2.2% SELL

UNILEVER 44.45 53.58 -17.04% 1.09% 0.37 36.36 x 27.07 x 2.6% 35.48 x 20.22 x 2.6% SELL

VITAFOAM 6.53 5.22 25.00% 6.97% 10.41 7.32 x 1.28 x 0.0% 6.96 x 1.13 x 6.7% BUY

onglomerates

AGLEVENT 1.78 1.73 2.89% 1.76% 4.71 -37.85 x 0.37 x 0.0% 7.52 x 0.42 x 8.1% HOLD

UACN 39.66 70.00 -43.34% 4.48% 2.99 10.85 x 1.80 x 1.9% 25.00 x 1.85 x 4.0% SELL

ealthcare

MAYBAKER 2.43 2.25 8.00% -5.06% -4.08 50.85 x 0.69 x 0.0% 16.92 x 0.68 x 1.3% HOLD

IDSON 3.53 2.80 26.07% -0.36% -3.58 20.42 x 0.79 x 4.5% 7.53 x 0.86 x 7.9% BUY

LAXOSMITH 70.45 68.05 3.53% 0.07% 0.00 22.17 x 6.00 x 1.9% 18.53 x 4.60 x 2.1% HOLD

onstruction/Real Estate

BERGER 59.03 65.10 -9.32% -9.95% -9.95 9.37 x 5.49 x 0.0% 964.44 x 359.47 x 0.0% HOLD

ndustrial Goods

Cement

ASHAKACEM 21.32 19.91 7.08% -5.95% -4.72 18.89 x 0.88 x 2.1% 9.62 x 0.82 x 0.9% HOLD

CNN 11.64 10.87 7.08% -1.09% -8.77 9.73 x 1.61 x 0.0% 7.99 x 1.36 x 3.0% HOLD

DANGCEM 262.63 230.00 14.19% 0.00% 2.75 20.76 x 8.25 x 1.3% 16.37 x 5.57 x 2.4% HOLD

WAPCO 128.91 115.00 12.10% 0.00% 0.00 16.95 x 4.35 x 1.0% 10.99 x 2.96 x 2.2% HOLD


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Tickers 2014 TP

Closing

Price

Up/Down


Trailing

P/E

Trailing

P/BV

Trailing

Div.

Yield

Forward

P/E

Forward

P/BV

Forward

Div. Yield Ratings

Chemical and Paint s

AP 57.90 48.00 20.63% -1.80% -0.93 23.25 x 19.98 x 5.2% 16.33 x 13.56 x 4.1% BUY

ERGER 9.84 8.65 13.76% 2.37% 8.13 9.50 x 1.09 x 8.1% 8.16 x 0.98 x 7.6% HOLD

Oil and Gas

MRS 56.83 54.44 4.39% 10.00% 75.88 52.38 x 0.72 x 0.0% 20.37 x 0.74 x 1.0% HOLD

ONOIL 55.84 52.40 6.56% 0.00% -22.86 19.51 x 2.19 x 2.0% 11.99 x 2.16 x 4.3% HOLD

TERNA 5.40 5.23 3.25% 0.58% 15.96 7.49 x 0.96 x 0.0% 581.11 x 85.74 x 0.0% HOLD

O 66.77 83.00 -19.55% -6.74% -15.59 58.06 x 9.71 x 0.0% 22.12 x 7.08 x 1.1% SELL

MOBIL 148.96 120.21 23.92% 2.48% 1.38 10.08 x 6.72 x 4.2% 11.12 x 4.61 x 5.0% BUY

OANDO 18.61 25.60 -27.30% -2.77% 10.10 20.67 x 1.08 x 2.8% 16.39 x 1.82 x 2.1% SELL

OTAL 200.79 180.00 11.55% 2.59% 5.88 13.95 x 4.46 x 5.6% 11.46 x 4.88 x 6.2% HOLD

ervices

NAHCO 6.81 6.05 12.56% 0.00% -2.42 14.13 x 1.55 x 4.1% 12.60 x 1.61 x 4.1% HOLD

AIRSERVICE 4.24 3.55 19.44% 5.97% 10.94 5.91 x 1.16 x 7.0% 4.93 x 0.84 x 7.9% HOLD

Agriculture

OKOMUOIL 33.35 44.25 -24.63% 0.57% 0.89 14.61 x 1.62 x 7.9% 12.36 x 1.57 x 5.9% SELL

RESCO 37.26 41.06 -9.25% 2.65% 6.65 16.33 x 2.39 x 2.4% 11.73 x 1.97 x 2.4% HOLD


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Analysts Certification and Disclaimer

This research report has been prepared by the research analyst(s), whose name(s) appear(s) on the cover of this report.

Each research analyst hereby certifies, with respect to each security or issuer covers in this research that:(1) all of the views expressed in this report accurately reflect his or her personal views about any and all of the subjectsecurities or issuers (the Issuer); and(2) no part of any of the research analysts compensation was, is, or will be directly or indirectly related to the specific

recommendations or views expressed by the research analyst(s) in this report. Research analysts compensation is

determined based upon activities and services intended to benefit the investor clients of Meristem Securities Limited (theFirm). Like all of the Firms employees, research analysts receive compensation that is impacted by overall Firmprofitability, which includes revenues from other business units within the Firm.(3) each research analyst and/or persons connected with any research analyst may have interacted with sales and trading

personnel, or similar, for the purpose of gathering, synthesizing and interpreting non-material non-public or materialpublic market information.

As at the date of this report, any ratings, forecasts, estimates, opinions or views herein constitute a judgment, and are notconnected to research analysts compensations. In the case of non-currency of the date of this report, the views and

contents may not reflect the research analysts current thinking. This document has been produced independently of theIssuer. While all reasonable care has been taken to ensure that the facts stated herein are accurate and that the ratings,forecasts, estimates, opinions and views contained herein are fair and reasonable, neither the research analysts, the Issuer,nor any of its directors, officers or employees, shall be in any way responsible for the contents hereof, and no relianceshould be placed on the accuracy, fairness or completeness of the information contained in this document. No person

accepts any liability whatsoever for any loss howsoever arising from any use of this document or its contents or

otherwise arising in connection therewith.

Important Disclosure

Analysts Compensation: The equity research analysts responsible for the preparation of this report receivecompensation based upon various factors, including the quality and accuracy of research, client feedback, competitive

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and regulated by the Securities and Exchange Commission to conduct investment business in Nigeria .

Investment Ratings

Fair Value EstimateWe estimate stocks fair value by computing a weighted average of projected prices derived from discounted cash flowand relative valuation methodologies. The choice of relative valuation methodology (ies) usually depends on the firmspeculiar business model and what in the opinion of our analyst is considered as a key driver of the stocks value from a

firm specific as well as an industry perspective. However, we attach the most weight to discounted cash flow valuation

methodology.

Ratings Specification

BUY: Fair value of the stock is above the current market price by at least 20 percent

HOLD: Fair value of the stock ranges between -10 percent and 20percent from the current market price.

SELL: Fair value of the stock is more than 10 percentbelow the current market price.

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Stock Recommendation 20012014