Buy Rated — Page 4

Shakeup of ICTOP10

December 11, 2023 by IC Insider.com

The Main and Junior Markets closed the week lower, resulting in three new entrants into the top 10 listings and some notable price movements, with the two markets without a clear direction, but the Main Market is showing signs of bottoming out with a big breakout not seeming far away.
Some emerging signs of potential moves higher are emerging for some stocks, with a sharp decline in the volume of some select stocks being offered for sale, setting the stage for sharp upward push in prices of some stocks in the coming weeks. Scotia Group is one such, as it approaches the release of full year results and an announcement on dividend, but buying interest is currently low keyed. The stock trades at an extremely low PE of 5.7 times projected 2023 earnings. AMG Packaging trades at 6.5 times 2024 earnings with only 58,816 shares on offer at the close on Friday and so is Jamaica Teas, with offers now generally above $2.53, with buyers mostly at $2.30, Access Financial is yet another, but buying is weak, Caribbean Cement also has limited stocks on offer.
Four Junior Market stocks gained 6 percent and over and two ended with big losses, while the Main Market had two stocks with worthwhile gains and two with moderate losses of 4 and 6 percent.
The Main Market ICTOP10 ended with Palace Amusement rising 15 percent to $1.29, Key Insurance popped 10 percent to $2.20, while Margaritaville declined 6 percent to $16 and Caribbean Producers lost 4 percent to close at $9.08.
The Junior Market ended with Caribbean Cream jumping 19 percent to $3.69, AMG Packaging climbed 12 percent to $2.89 while Jamaica Teas rose 7 percent to $2.55, Iron Rock Insurance jumping 20 percent to $2.65 and Honey Bun rose 6 percent to $6.44. The losers were Iron Rock Insurance down 22 percent to $2.06 and Lasco Distributors with a fall of 12 percent to 3.61.
Honey Bun and Elite Diagnostic dropped out of Junior Market ICTOP10 and are replaced by Tropical Battery and Stationery and Office Supplies. Sygnus Credit Investments drop out of the Main Market TOP10 with Pulse Investments coming in to replace it.
Indications of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
The average PE for the JSE Main Market ICTOP 10 stands at 5.3, well below the market average of 12.8. The Main Market ICTOP10 is projected to gain an average of 287 percent by May 2024, based on 2023 forecasted earnings and now provides better values than the Junior Market.
In the Main Market ICTOP 10, a total of 15 of the most highly valued stocks representing 31 percent of the Main Market are priced at a PE of 15 to 108, with an average of 29 and 19 excluding the highest PE ratios, and a PE of 23 for the top half and 20 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 6.9, over half of the market, with an average of 13.2. There are 16 stocks, or 33 percent of the market, with PEs from 15 to 49, averaging 20 that are well above the market’s average. The top half of the market has an average PE of 18, possibly the lowest fair value for Junior Market stocks currently, with the market projected to rise by 200 percent on or around May 2024.
Of great significance is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2024 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Feature Stories Tagged With: 138 Student Living, Access Financial, Caribbean Assurance Brokers, Caribbean Cement, Daily Trading, Dolphin Cove, Emerging markets, General Accident, Guardian Holdings, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, JMMB Group, junior market, Key Insurance, Lasco Manufacturing, Margaritaville, Scotia Group, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity

Main Market surge failed to ignite ICTOP10

December 3, 2023 by IC Insider.com

The All Jamaica and the Junior Market indices closed the week higher than the previous week but with the Junior Market trading at its lowest since early June this year. The Main Market index which includes overseas companies, slipped back during the week. Stocks measured by the All Jamaica Index recorded gains of 4,565 points from the end of October in the past week and traded at a near two months high and have been flashing bullish signals with a sharp breakout looking very likely.
Some positives are visible in the market, with a sharp decline in the volume of some stocks being sold. Scotia Group is one such stock, as it approaches the release of full year results and an announcement on dividends, but buying interest is currently low keyed. The stock trades at an extremely low PE of 5.7 times projected 2023 earnings. AMG Packaging trades at 6.5 times 2024 earnings with a very limited supply of stocks on offer.
Even as the Main Market index rose in the past week, winners were hard to find the Main Market ICTOP10, with the highest riser up just 3 percent as Key Insurance dropped 20 percent to $2, followed by Palace Amusement down 14 percent to $1.12 and Sygnus Credit Investments declining 7 percent to $11.11.
The Junior Market has 6 stocks gaining, with Iron Rock Insurance jumping 20 percent to $2.65, Express Catering rallying 7 percent to $4 and AMG Packaging rising 4 percent to $2.59 while Caribbean Creamfell 16 percent to $3.10.
There was just one new addition to the ICTOP10 with a listing for the Junior Market with Access Financial dropping out of the list and replaced by Honey Bun, with projected earnings per share of 70 cents for the fiscal year ended September and $1 for 2024.
Indications of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
The average PE for the JSE Main Market ICTOP 10 stands at 5, well below the market average of 12.9. The Main Market ICTOP10 is projected to gain an average of 302 percent by May 2024, based on 2023 forecasted earnings and now provides better values than the Junior Market.
In the Main Market ICTOP 10, a total of 15 of the most highly valued stocks representing 31 percent of the Main Market are priced at a PE of 15 to 108, with an average of 29 and 19 excluding the highest PE ratios, and a PE of 23 for the top half and 20 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 6.9, over half of the market, with an average of 13.1. There are 15 stocks, or 30 percent of the market, with PEs from 15 to 49, averaging 20 that are well above the market’s average. The top half of the market has an average PE of 18, possibly the lowest fair value for Junior Market stocks currently, with the market projected to rise by 200 percent on or around May 2024.
Of import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2024 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Feature Stories Tagged With: 138 Student Living, Access Financial, Caribbean Assurance Brokers, Daily Trading, Elite Diagnostic, Emerging markets, General Accident, Guardian Holdings, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, JMMB Group, junior market, Key Insurance, Lasco Manufacturing, Margaritaville, Scotia Group, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity

Strong performance in ICTOP10 stocks

November 28, 2023 by IC Insider.com

The main market has been quietly rising since the start of November and closed the past week at the highest level since the start of the month while the Junior Market declined to the lowest level since early May this year but the performance of the ICTOP10 was mostly positive, with the Junior Market having 4 stocks gaining between 5 and 15 percent and two with declines of 6 and 7 percent. The Main Market had two stocks gaining 5 and 11 percent and two falling by 3 percent.
Against the above market movements, there was just one new addition to the ICTOP10 with listings for the Junior Market with Caribbean Flavours moving out with a 15 percent gain for the week to close at $1.39 and Access Financial taking its place. The other big action in the Junior Market, resulted in Paramount Trading gaining 12 percent to close at $1.68, Caribbean Cream rising 9 percent to $3.70 and Jamaican Teas adding 5 percent to end at $2.35. Lasco Manufacturing dropped 7 percent to $4.20 and Express Catering fell 6 percent to $3.75.
The Main Market closed the week with Key Insurance climbing 11 percent to $2.50, while 138 Student Living rose by 5 percent to $4.22.
Access Financial Services is enjoying a turnaround in its fortunes with profit for the second quarter to September surging 153 percent over the same period in 2022 to reach EPS of 51 cents even with allowances for credit losses rising to $89 million from $54 million in the 2022 period as revenues from interest climbed 25 percent to $556 million and revenues net of finance cost was up 9.5 percent to $567 million. For the half year, profit jumped 76 percent to $234 million as loan granted borrowers rose almost $600 million to $5.36 billion from $4.76 billion in September 2022 and the same amount since March this year. The company had more than $760 million available to lend plus cash flows from profit that should pushed lending up around 25 percent year over year and helped to swell profits for the year substantially above the six months levels.
Elsewhere, we upgraded Scotia Group’s earnings to $6 per share making it a more attractive IC TOP10 stock.
An indication of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
The average PE for the JSE Main Market ICTOP 10 stands at 5, well below the market average of 13.1. The Main Market ICTOP10 is projected to gain an average of 318 percent by May 2024, based on 2023 forecasted earnings.
In the Main Market ICTOP 10, a total of 15 of the most highly valued stocks representing 31 percent of the Main Market are priced at a PE of 15 to 108, with an average of 29 and 19 excluding the highest PE ratios, and a PE of 23 for the top half and 20 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 7, over half of the market, with an average of 12.9. There are 15 stocks, or 31 percent of the market, with PEs from 15 to 47, averaging 20 that are well above the market’s average of 12.9. The top half of the market has an average PE of 18, possibly the lowest fair value for Junior Market stocks currently, with the market projected to rise by 260 percent on or around May 2024.
Of great import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2024 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Feature Stories Tagged With: 138 Student Living, Access Financial, Caribbean Assurance Brokers, Caribbean Cement, Daily Trading, Dolphin Cove, Emerging markets, General Accident, Guardian Holdings, Image Plus Consultants, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, JMMB Group, junior market, Key Insurance, Lasco Manufacturing, Margaritaville, Scotia Group, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Tropical Battery

NCB profit plunges 56% for 2023 fiscal year

November 23, 2023 by IC Insider.com

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Profit at NCB Financial Group plunged a sharp 56 percent to $15.3 billion for the year to September 2023, from $35 billion in 2022. Consolidated net profit attributable to the Group’s stockholders amounts to $7.6 billion, a reduction of 68 percent from $23.9 billion the previous year.
For the September 2023 quarter, the Group reported a disappointing net profit of $1.6 billion, down 83 percent from $9.3 billion in 2022, but the Group’s stockholders hugged up a loss of $2.1 billion in the quarter compared with a profit of $5.2 billion for the September 2022 quarter.

NCB Financial Group Head Office

The results translate to negative earnings per share of 92 cents in the fourth quarter and positive earnings of $3.30 for the year, down from $2.28 and $10.39 for 2022 respectively.
The Group incurred a large charge for staff changes but in a typical investor unfriendly manner, the directors kept this important information from shareholders, leaving them to guess what the one off cost is and what normalised earnings are and could be going forward. The financial statements show staff costs jumping $7 billion in the final quarter over the June quarter and other operating expenses climbing by $4.5 billion for the same period suggesting that the charges for staff separation and compensation for the two former top executives would be in the range of $11 billion.
The group segments show mixed fortunes during the recently completed fiscal year, with the Consumer and SME Banking segment suffering a loss in the year from the generation of revenues net of interest cost of $34.9 billion, up from $32.8 billion in 2022 and an Operating loss of $719 million, with net results of $58 million in 2022. Payment Services contributed $17.8 billion in revenues net of interest cost, with net segment results of $1.5 billion, down from $2.25 billion in operating profit in 2022, following net revenues of $14.2 billion.
Corporate and Commercial Banking had a year with modestly higher revenues, with net income of $10.8 billion after interest expenses and a profit of $6.2 billion compared with 2022 with net revenues of $10.2 billion and segment profit of $6.66 billion.
The Treasury and Correspondent Banking segment generated revenues net of interest charges amounting to $13.26 billion, down from $14.9 billion in 2022, with an operating profit of $9.9 billion in 2023 versus $12.4 billion in 2022. Wealth, Asset Management and Investment Banking contributed revenues of $15.7 billion net of interest and $16 billion in 2022 with segment results of $8.8 billion in 2023 and $9.2 billion in 2022.

NCB branch in Montego Bay.

Life and Health Insurance and Pension Fund Management ended with net revenues of $40.5 billion in 2023, down sharply from $53.7 billion in 2022, with segment results of $21.5 billion in 2023, collapsing from $32.8 billion in 2022. The General Insurance segment had a great year as revenues hit $24.2 billion net of interest cost compared to $19.3 billion in 2022 with net results surging to $11.6 billion from $5.8 billion in 2022.
The Group’s loans and advances, net of credit impairment losses, totalled $614 billion, an increase of 6 percent over $581 billion in the prior year. According to the directors’ report, “Non-performing loans totalled $25.7 billion, which led to an improvement in the non-performing loan ratio, decreasing to 4.1 percent, from 4.4 percent in the prior year.”
At the end of the year, deposits totalled $748 billion, versus $715 billion in the prior year. Investment and pledged securities amount to $110 billion up from $96.8 billion in 2022.
Stockholders’ equity rose to $170 billion, from $146 billion. The improvement flowed from profit for the year as well as a partial reversal of investment losses in the previous year, with the current year delivering a surplus of $15.7 billion compared with a loss of $47.5 billion in 2022.
On the surface, the reported results are disappointing but investors should be looking beyond them knowing that a significant amount of the cost in the last quarter is unlikely to recur in 2024 while the revenues remain intact and should grow all things being equal.
The Group declared a dividend of 50 cents payable in December, this is a reduction from the amount of $1 last paid in February 2020.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging markets, Emerging Stock, Jamaica Stock Exchange, NCB Financial Group

Shakeup in ICTOP10

November 19, 2023 by IC Insider.com

A load of third quarter results hit the market during the past week, while some were good a large number were disappointing, collectively they offered no help to a market that continues to struggle with the Main Market being steady at the end of the week but the Junior Market declined compared with the previous week, for a second week of decline, having undergone wild daily swings during the week.
Price movements in the market and reduced profits in some cases resulted in three new ICTOP10 listings for the Junior Market and none for the Main Market.
Action in the Junior Market, resulted in Iron Rock Insurance gaining 10 percent to $2.19, followed by a 9 percent rise in Dolphin Cove to $18 after an announcement of an 80 cents dividend to be paid in December and the release of third quarter results and Jamaican Teas added 14 cents for a 7 percent rally. Everything Fresh shed 7 percent to $1.45, followed by Caribbean Cream down 6 percent to $3.38 and Lasco Manufacturing dropping 5 percent to $4.50.
The Main Market closed the week with few notable price changes and ended with Palace Amusement Company gaining 7 percent to $1.30, while 138 Student Living declined by 5 percent to $4.
There were no new additions to the Main Market IC TOP 10, however, the Junior Market, had 3 new additions with Express Catering coming in as well as Caribbean Flavours and Lasco Distributors, replacing Dolphin Cove enjoyed b appreciation during the week, Everything Fresh that also dropped out following downward adjustment to earnings, after the company released third quarter results with weak profit performance although revenues in the quarter rose nicely over the similar period in 2022 and Caribbean Assurance with management advising of a surprising 40 percent cut in “the International Comprehensive Health Insurance Programme’s renewal commission rate, with a corresponding 40 percent increase in its new business rate, with the expressed intention of incentivising the production and consistent growth of new business.” Unfortunately, Management gave no timeline when revenues will return to traditional levels.
An indication of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
The average PE for the JSE Main Market ICTOP 10 stands at 5, well below the market average of 13.1. The Main Market ICTOP10 is projected to gain an average of 320 percent by May 2024, based on 2023 forecasted earnings.
In the Main Market ICTOP 10, a total of 14 of the most highly valued stocks representing 29 percent of the Main Market are priced at a PE of 15 to 108, with an average of 30 and 20 excluding the highest PE ratios, and a PE of 23 for the top half and 16 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 6.9, just over half of the market, with an average of 13.1. There are 14 stocks, or 29 percent of the market, with PEs from 15 to 46, averaging 21 that are well above the market’s average of 13. The top half of the market has an average PE of 18, possibly the lowest fair value for Junior Market stocks currently, with the market projected to rise by 260 percent on or around May 2024.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
ICTOP10 stocks will likely deliver the best returns on or around May 2024 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Feature Stories Tagged With: 138 Student Living, AMG Packaging, Caribbean Assurance Brokers, Caribbean Cement, Caribbean Flavours, Caribbean Producers, Daily Trading, Dolphin Cove, Elite Diagnostic, Emerging markets, General Accident, Image Plus Consultants, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, JMMB Group, junior market, Key Insurance, Lasco Distributors, Lasco Manufacturing, Margaritaville, Paramount Trading, Scotia Group, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Tropical Battery

New additions to ICTOP10

November 13, 2023 by IC Insider.com

A series of third quarter company results were released during the past week, and most reported good numbers that augur well for the stock prices in the months ahead. Some of the results are companies in the ICTOP10. During the week the JSE Main Market rose but the Junior Market lost ground moderately for a second week.
Price movements in the market resulted in two new ICTOP10 listings for the Junior Market and one for the Main Market. In the Junior Market, Dolphin Cove rose 6 percent to $16.50 and AMG Packaging rose 4 percent to $2.44 after trading at a 52 weeks’ low of $1.95 during the week. Paramount Trading dropped 12 percent to $1.48, followed by Everything Fresh shedding 11 percent to $1.56, Iron Rock Insurance fell 9 percent to $2 and Caribbean Assurance Brokers declined 8 percent to end at $2.85.
The Main Market closed the week with Sygnus Credit Investments climbing 7 percent to $11.90, Margaritaville and Jamaica Broilers rising 6 percent to $17.58 and $34.97 respectively. General Insurance dropped 9 percent to end at $5.04.
Lasco Financial and Lasco Distributors released half year results but dropped out of the Junior Market ICTOP10 and Lasco Manufacturing also reported six months results but remained in the ICTOP 10. Following the release of the results, Lasco Distributors earnings were reduced from $1.65 to $1.60 for the full year and sits at number 12 in ICInsider.com rankings. Importantly selling in the stock has been drastically reduced with just 19 offers up to $15.90 amounting to less than 200,000 shares and 19 bids above $4, with the highest bid amounting to more than the total stocks being offered. Earnings per share for Lasco Financial were reduced to 15 cents for the year and holds the 31st spot on the list.
Jamaica Teas also released results for the year to September, showing an improvement over 2022 and disclosed expected improvements from major changes already undertaken, which should improve 2024 results added to that, stocks should do better in the coming year, resulting in exposure of projections for 2024 as such it along with Caribbean Cream are now in the ICTOP10.
Returning to the Main Market TOP 10 is Palace Amusement Company replacing Caribbean Cement.
The average PE for the JSE Main Market ICTOP 10 stands at 5, well below the market average of 12.2. The Main Market ICTOP10 is projected to gain an average of 319 percent by May 2024, based on 2023 forecasted earnings.
An indication of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
In the Main Market ICTOP 10, a total of 14 of the most highly valued stocks representing 29 percent of the Main Market are priced at a PE of 15 to 108, with an average of 30 and 20 excluding the highest PE ratios, and a PE of 23 for the top half and 16 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 5.7, just over half of the market, with an average of 11.9. There are 11 stocks, or 23 percent of the market, with PEs from 15 to 48, averaging 21 that are well above the market’s average. The top half of the market has an average PE of 17, possibly the lowest fair value for Junior Market stocks currently, with the market projected to rise by 260 percent on or around May 2024.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2024 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Feature Stories Tagged With: 138 Student Living, Caribbean Assurance Brokers, Caribbean Cement, Daily Trading, Emerging markets, General Accident, Guardian Holdings, ICTOP10 Stocks, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, JMMB Group, junior market, Key Insurance, Lasco Manufacturing, Margaritaville, Palace Amusement, Scotia Group, Stocks to Watch, Sygnus Credit Investments, Trading Activity, Tropical Battery

Profit climbs 22% at Stationery & Office Supplies

November 12, 2023 by IC Insider.com

Profit climbed in 2023 at Stationery and Office Supplies an under the radar company until listing on the Jamaica Stock Exchange transformed it into one of the leading companies peddling office supplies in Jamaica. For the quarter ending September this year, profit after tax climbed 22 percent to $96 million from $79 million last year and for the nine months $294 million up 14 percent from $252.5 million.

Stationery & Office Supplies hit a record high on Friday.

Stationary & Office Supplies – Montego Bay office.

The year-to-date figures include a gain on the sale of assets amounting to $7.1 million and $30 million in 2022 as such this year’s ongoing profit performance is greater than the net figures suggest.
Year to date, the operating profit before finance charges and gains or loss on the sale of fixed assets is up a solid 38 percent for the nine months and 12 percent for the quarter.
For the September quarter, revenues inched up from $473 million to $488 million. A fair bit of the slowdown is due to price discounts granted based on originally listed prices following falling input costs. For the year to date, revenues climbed 16 percent to $1.53 billion from $1.32 billion in 2022.
Administrative and general expenses rose 23.5 percent to $138 million from $112 million in the September quarter of 2022 and for the year to date, it climbed 20 percent to $378 million from $314 million. Selling and promotional costs fell to $29 million for the September 2023 quarter from $35.8 million last year, with the year to date figures being almost flat at $97 million in 2023 versus $96 million in 2022. Depreciation charges were slightly down from $8.7 million in the September quarter of last year to $8.4 million this year and year to date the numbers are flat at $26.4 million.
Earnings per share for the third Quarter was 4 cents compared to 3 cents in 2022 and for the nine months end September this year, 13 cents per share, up from 11.33 cents.
ICInsider.com projects 19 cents per share for the year, from revenues of just over $2 billion and 30 cents for 2024. The stock last traded at $1.72, with a PE of 8.9 times current year’s earnings, well below the market average of 12.
Operations produced cash inflows of $356 million, up from $259 million in 2022 and at the end of the period with a surplus of $189 million that brought the total to $320.8 million up from just $99 million at the end of September. The 2023 growth in Cash inflows is after spending $72 million on acquiring property, plant and equipment, $50 million in dividend payments and $40 million used in repaying loans. Some of the amount on hand is earmarked to fund the acquisition of properties to be used for storage to allow for continued expansion of the business.
Current assets closed the period at $1 billion, with Receivables rising from $194 million to $317 million and inventories at $349 million compared with $356 million in 2022. Current liabilities rose to $305 million from $148 million in 2022.
Shareholders’ equity stands at $1.35 billion which is up from $884 million from a year ago and borrowed funds used in its operations is only $65 million.
Going forward, the Seek manufacturing division is to get new machines to help meet growing demand as the current facility is said to be at its peak. The distribution of 3M stationery products has been added to the company’s line in the latter months of 2023 and will boost revenues in 2024, with a full year of sales.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging markets, Emerging Stock, Jamaica Stock Exchange, junior market, Seek, SOS, Stationary and Office Supplies

Profit jumps 31% at Lasco Manufacturing

November 9, 2023 by IC Insider.com

Profit climbed 31 percent after taxation of $258 million to $615 million in the September quarter this year at Lasco Manufacturing, from $469 million after provision for taxation amounting to $210 million in 2022. For the half year, after taxation of $453 million, profit jumped 29 percent to $1.14 billion from $883 million in 2022 after taxation of $361 million.
Sales revenues rose 11 percent for the quarter, to $3.19 billion from $2.9 billion in 2022 and grew 10 percent for the year to date, to $6 billion from $5.5 billion in 2022.
After a brief one year dip in profit in the 2020 fiscal year, profit has been on a roll since and seems destined for a new record in the current fiscal year ending next March.
Management delivered an improvement in profit margin in the second quarter to 38 percent from 37 percent last year resulting in gross profit rising faster than sales with an increase of 13 percent, with a gross profit of $1.22 billion versus $1.08 billion in 2022. Gross profit for the half year soared 38 percent from 36 percent last year, resulting in an increase of 16 percent to $2.3 billion compared with $1.98 billion in 2022.
Operating expenses rose by just 4 percent in the quarter and half year to $394 million in the second quarter from $378 million in 2022 second quarter and in the half year to $755 million from $725 million in 2022. Finance cost declined in the quarter, to $23 million from $36 million in 2022 and from $15 million to $5 million for the six months period.

Lasco’s ICool drinks.

The operations generated Gross cash flow of $588 million and it was increased to $778 million after a reduction in funds previously tied up in working capital, additions to fixed assets of $309 million. After pumping $589 million into short term investments and $496 million in dividends the net cash position ended at $1.6 billion.
Current assets ended at $9.2 billion inclusive of trade and other receivables of $3.3 billion, cash and bank balances of $3.8 billion, while inventories were steady at $2 billion. Current liabilities ended at $1.86 billion. Net current assets was a solid $7.3 billion.

At the end of September, shareholders’ equity closed at $11.75 billion up from $9.9 billion at the end of September last year. There was no long-term borrowing, while short term loan was just $89 million.
Earnings per share for the quarter was 15 cents and 28 cents for the year to date. IC Insider.com computation projects earnings of 70 cents per share for the fiscal year ending March 2024 and 90 cents in 2025, with a PE of 6.7 times the current year’s earnings based on the price of $4.60 the stock traded at on the Jamaica Stock Exchange

Lasco’s products

Junior Market and the value is well down on the average for the market at 11.6, a clear indication of the potential gains ahead in the price. Net asset value ended the period at $2.85 with the stock selling at 1.6 times book value.
The company is in a healthy financial position to do a major acquisition, with no major loan commitment currently and a tidy wad of liquid funds, with more to come as profit increases in the rest of the fiscal year.
Buy and hold for a few years until growth in sales and profit slows considerably to single digits, investors should see a doubling in the stock price by next year June.
ICInsider.com gives the stocks Buy Rated seal of approval.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging markets, Emerging Stock, IC Insider BUY RATED, junior market, Lasco Manufacturing

Profit to jump 40% in 2024 at Wisynco

November 9, 2023 by IC Insider.com

Profit after tax for the first quarter ending September this year jumped 20 percent at Wisynco Group to $1.55 billion in the current year from $1.3 billion in 2022. Profit before tax also grew by 20 percent from $1.73 billion in 2022 to $2.1 billion, but profit is projected to jump 39 percent for the current year to $6.8 billion, ICInsider.com projections show.
The profit performance resulted from a 15 percent rise in revenues from $11.95 billion in 2022 to $13.73 billion in the current year. Although revenues climbed 15 percent, gross profit increased by just 11 percent, from $4.3 billion in 2022 to $4.8 billion in the current year, as input cost climbed 17 percent to $8.93 billion from $7.6 billion in 2022.
Selling and distribution expenses rose 14.3 percent from $2.12 billion to $2.43 billion and administrative expenses popped nearly 13 percent from $455 million to $513 million. Finance income brought in $168 million versus $85 million in the previous year, but finance cost fell from $150 million to just $11 million, despite borrowings standing at $8.9 billion at the end of the period.
Earnings per share for the quarter rose to 41 cents from 35 cents last year and is projected to reach $1.84 for the full year and $2.40 in 2025. The stock, up 15 percent for the year to date, trades at a PE of 11.3 at the last traded price of $20.70 on the Main Market at the Jamaica Stock Exchange. The PE is slightly below the market average of 12.2.
A dividend of 23 cents per share, totalling $863 million, was paid in July, up from 22 cents per share, totalling $751 million in July 2022. In addition to the above dividends, 22 cents per share was paid in March 2023 and 20 cents in March 2022. The stock trades at 3.4 times a net book value of $6.05 at the end of September.
Cash flow generated for the 2023 quarter amounted to $2.2 billion and $1.9 billion in 2022. After working capital movements, operations delivered net flows of $2.4 billion, up from just $800 million in 2022

Wata is one of Wisynco’s known brands.

Shareholders’ Equity climbed to $22.7 billion at the end of September, up from $19 billion in September last year. Long term borrowings jumped to $2.8 billion from $790 million at the end of September last year and short term loans ended at $1.3 billion and $920 million in 2022. Some of the amounts borrowed are used explicitly to fund a significant expansion of its facilities currently on the way, so far consuming $1.8 billion in the quarter.
Net Current Assets closed the period at $13.5 billion, up from $11 billion at the end of September 2022 and emanate from Current Assets of $12 billion and $8.9 billion at the end of September last year and includes cash and investments of $10.2 billion and $7.7 billion in 2022. These amounts do not take into consideration $2.2 billion in longer term securities at the end of the quarter.
Current Liabilities ended at $7.4 billion at the end of September this year compared to $6.1 billion last year.
The group acquired the distribution rights for the Jamaican Teas products for sale locally. It will add around 2-3 percent to revenues in an entire year in addition to the expansion of the factory and warehousing currently underway and expected to come on stream by March 2024. The expansion will allow for increased production to meet demand they are unable to fill currently and provide capacity to expand exports.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Dividends, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, Jamaican Teas, Wisynco Group

Q3 profit triples at Transjamaican

November 8, 2023 by IC Insider.com

Profits more than tripled in the September quarter, moving by 208 percent to $6.46 million from $2.1 million in 2022 at Transjamaican Highway, from a 15 percent increase in revenues over the September 2022 quarter to $19.2 million from $16.7 million. For the nine months, profit chipped in with a 327 percent surge to $17.5 million, up from $4.1 million in 2022, from a 17.8 percent rise in revenues to $55.4 million from $47 million in 2022.

Operating expenses fell from $9.9 million in the September 2022 quarter to $5.6 million and from $29 million to $16.6 million for the nine months to September. Administrative expenses rose from just $358,000 to $2 million for the quarter and year to date, it moved from $1 million to $6 million. Finance costs inched down from $3.75 million to $3.63 million and, for the nine months, from $11.2 million to $10.94 million.
Profit before tax amounts to $8.6 million versus $2.8 million in the previous year’s third quarter and year to date, it jumped to $23.2 million from just $5.8 million in 2022.
Taxation accounted for $2.1 million in the September 2023 quarter, up from $714,000 and for the nine months, to $5.77 million versus $1.7 million in the previous year.
Earnings per share reported for the quarter is 0.0005 US cents, up from 0.0002 US cents in 2022 and year to date, 0.0014 US cents versus 0.0003 US cents in the previous year. The full year results should be around 2 US cents per share.
The exceptional results emanate primarily from acquiring the majority shares in Jamaican Infrastructure Operators that lowered operating costs and raised revenues.
Gross cash flow of $35 million was generated, up from $17.9 million nine months to September in the prior year, resulting in $12.9 million in free funds available for use at the end of the fiscal period from $7.3 million at the end of September 2022 after repaying $5.4 million in loans, compared with $4.7 million for the same period in the previous year and after moving $17.7 million to restricted cash, up from $10.6 million in 2022, but before the payment of dividends.

Transjamaican Highway

Shareholders’ equity stands at $42 million, down from $51 million in September 2022 and $40 million at the end of 2022. Total current assets amount to $15.4 million, up from $8.4 million at the end of September 2022. Total current liabilities ended at $32.3 million, including a provision of $15 million for dividend payment and $7 million in 2022, the latter being a part of the $23 million in total current liabilities at the end of September 2022.
The Board of Directors approved an interim dividend of J$0.1866 per share paid on October 25, totalling J$2.33 billion. A dividend of $0.0855 per share amounting to J$1.069 billion was paid on October 25, 2022.
ICInsider.com projects 30 Jamaican cents per share earnings for the current year and 40 cents for 2024, which will be helped by the company earning income from the new leg of the highway from May Pen to Mandeville. The Jamaica dollar denominated stock traded at $2.58 on the Jamaica Stock Exchange on Tuesday, with a PE of 8.3 and is valued at 6 times 2024 earnings.
At the above price, the dividend yield is 7.23 percent per annum, but by 2024, the yield based on the present price will most likely be higher as the company increases the amount paid as profit grows.
In April with the price at $1.77, ICInsider.com placed the stock on a Stock to Watch list, since then the price is up 47 percent and 57 percent including the 2023 dividend.