Cement developments

March 22, 2017 by

Carib Cement silos.

There is some amount of excitement in the air, regarding developments in the Jamaican economy. Many investors are interpreting see the change signaling meaningful growth that will lead to increased demand for cement as developers increase their building activities to meet a growing demand for housing and commercial space.
According to Anya Levy of ReMax Elite realtors, demand is extremely high for space to accommodate Business Outsourcing Operations as foreign operations fall in love with the opportunities Jamaica is offering. The problem she states, is that the demand is mostly for 30-60,000 square foot space that is currently is in short supply. In a number of cases, existing commercial space is being converted to meet demand. But it is not only in the commercial arena that there is demand she states.
There are lots of residential units coming on stream. The Millsborough area in Kingston, is slated she says for some major developments for Townhouses in the US$500-600,000 price range. More units are expected that will be similar to the high rise 20 South building going up on South Avenue in Kingston, with another slated to be constructed next door to it. The story does not end there, Levy states that a number of units to be built in the country largest city, will be slated for the short term rental market.
All of this means more demand for cement. Investors expect, the country’s sole cement plant to benefit from the surge in demand that is expected to flow form these new developments as well as the office complexes to be built by Grace Kennedy and the Ministry of foreign affairs in downtown Kingston. Added to the list is the build out of 5,000 hotel rooms in the western side of the island and the many other smaller developments that are planned or started. It may be more than all of that, Levy intimated that she understands that a price increase is on the cards for cement.
Investors are keeping keen eyes on the operations of Caribbean Cement, with great expectations for a major rise in the stock price in 2017 with the company having cut cost and expected to reap increased sales from increased demand in the local economy with increased exports also expected. Against this background the RMOD arm of the Jamaica Stock Exchange wrote to the Company formally on Thursday, March 9, 2017, requesting their response for the reasons of an increase in “contracted” lease payment to Trinidad Cement and the increase in raw materials and consumables costs that rose by 33 percent and seems out of line with the increase in the sales.
The 2015 accounts show that US$22,500,000 (J$2,700,675,000) was due in lease payments in 2016. At an exchange rate of $128.44:US$1 the amount expensed in 2016 was $3,323,635,000 or US$25,876,946. The amount seems to conflict with the reduction by US$22,500,000 of the remaining lease commitment outstanding from US$66,500,000 to US$44,000,000 at the end of 2016.
According to information provided to IC Insider.com, the company who had promised a response by March 20, now indicates that a response is drafted for sign off by management.

Filed Under: Company News, Real Estate Tagged With: , , , ,

Jamaica Broiler’s profit rises strongly

March 15, 2017 by

Jamaica Broiler’s profit from continuing operation climbed 25 percent to $721 million up from $579 million for the January quarter and rose just 4 percent to $1.55 billion compared to $1.49 billion for the nine months to January.
Sales of table eggs in Haiti, penetrated the market sharply for the group, with market share nearly doubling to 21 percent of the market up from 13 percent in 2015, the company reported in their latest fiscal quarterly, to January this year.
The strong growth in market share, helped profit in the Caribbean division to climb 161 percent from $115 million to $299 million from continuing operations, but profit in the Jamaican operations fell 20 percent to $1.9 billion while the US division recorded flat profits. Importantly, the Jamaican operations recorded an increase of 24 percent in segment results reversing the negative growth experience in the previous quarters. Gross profit margin for the year to date, fell slightly to 25.8 percent from 25.9 percent in 2016 but grew nicely in the January 2017 quarter, to 26.3 percent from 25.6 percent in the prior year. The improved margin enjoyed in the January quarter over the previous two quarters, translates to increased profit before tax of $200 million per year.
Earnings per share ended at 60 cents for the quarter and $1.29 for the nine months and should end up around $1.70 for the full year, from net profit of $2 billion. The 2018 fiscal profit is preliminarily forecasted by IC Insider at $2.
Revenue for the group climbed 12 percent, to $11.7 billion in the latest quarter, from $9.9 billion and $32 billion compared to $28 billion for the nine months to January. Divisionally, revenues to third parties in the Caribbean division climbed 23 percent from $1.15 billion, the Jamaican operations rose 13 percent to $23.4 billion while the US division recorded an increase of 20 percent to $7.5 billion. Broilers produced positive cash flows of $2.4 billion in the nine months, but ended up with just $303 million more at the end of the period after a net inflows of loan proceeds, paying dividends and capital spend, as the group continues to expand.
The stock traded at $15 on Tuesday on the Jamaica Stock Exchange for a PE of 7.5 based on 2018 estimated earnings and is well below the market average of 12.6.

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JSE stock drops 90c with 36M shares

March 6, 2017 by

Scotiabank pumped up the JSE on Friday.

Jamaica Stock Exchange had a big block of 36,298,043 shares trading on Friday with with the price ending at $7.50, with a loss of 90 cents. The shares were sold by Stocks & Securities and bought by Sagicor Stockbrokers. The trade means that Stocks & Securities are no longer major shareholders in exchange.
Trading ended on Friday with 25 securities changing hands with 2 trading in the US dollar market on day when Scotia Group jumped $5.49 to be the main pusher in the market indices. In the main market, 7 stocks advanced and 14 declined in the main market, while two stock rose in the US dollar market. Trading levels in main market ended at 42,703,583 units valued at $422,229,138 compared to 6,321,606 units valued at $60,670,887 at the close on Thursday. Trading in the US dollar market accounted for 871,891 units valued at US$291,484.
The All Jamaica Composite Index jumped sharply by 3,676.85 points to close at 256,245.23, just over 1,000 points shy of the all-time record close of 257,395.71 reached on February 10. The JSE Market Index advanced 3,287.75 points to finish at 233,503.31 and the JSE US dollar market index gained 18.12 points to close at 238.66.
In market activity, Berger Paints gained 50 cents, closing at $11.50 with trades of 9,008 units, Cable and Wireless lost 10 cents to close at $1.35 with 1,513,758 shares changing hands, Caribbean Cement closed lower by $1.90 to $36.10 trading 17,650 shares. Carreras closed at $66.50 with an exchange of 1,740 units, Grace Kennedy slid 16 cents to close at $41.51 trading 100,176 units, Jamaica Broilers closed at $14.54, losing $1.46 trading 70,774 shares, Jamaica Producers lost 70 cents trading 192,548 units at $16.80,. JMMB Group closed 98 cents lower to $19.51 with an exchange of 98,812 units, Kingston Wharves gained 50 cents to close at $32 trading 15,322 shares, Mayberry Investments jumped $1.39 cents to a 52 weeks’ high of $6.39 with trades of 182,245 units. The stock has not seen this price level since June 15, 2005, when it traded at $6.45, after it was listed in April and reached a high of $8.20 on April 26, 2005. National Commercial Bank fell 50 cents to $62.50, after swapping 63,512 units, Pan Jamaican closed at $35.20, losing 80 cents with an exchange of 22,498 shares, Radio Jamaica gained 5 cents to close at $1.65 trading 120,820 units, Sagicor Group closed at $36.26, losing 24 cents with trades of 2,938,603 units. Sagicor Real Estate Fund closed 22 cents higher at $10.47 with 2,100 units changing hands, Scotia Group closed at $44, with gains of $5.49 trading 456,247 shares, Scotia Investments traded 1,600 shares at $39.50, Seprod lost 49 cents to close at $40.51 with trades of 16,229 shares. Sterling Investments traded at a 52 weeks’ high of $17.50 with gains of $1.30 and an exchange of 1,000 units, Supreme Ventures closed at $5.70, losing 30 cents with 405,888 shares being exchanged, Proven Investments gained 2 US cents to close at 32 US cents trading 859,891 ordinary shares. JMMB 7.5% preference share closed at $1.75 with gains of 4 cents and 3,296 units changing hands, JMMB Group 7.5% preference share gained 2 cents trading 114,502 units at $1.07 and JMMB Group US$ 6% preference share closed at US$1.10 with trades of 12,000 units.

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JSE main market stocks drop again -Thursday

March 2, 2017 by

C&W reacted negatively to results to the end of 2016.

Trading in the main market of the Jamaica Stock Exchange closed on Friday with 25 securities changing hands with 1 trading in the US dollar market.. In the main market, 9 stocks advanced and 7 declined in the main market.
Trading levels in main market ended at 6,321,606 units valued at $60,670,887 compared to 4,208,705 units valued at $25,855,773 at the close on Tuesday. Trading in the US dollar market accounted for 77,435 units valued at US$22,856.
The All Jamaica Composite Index declined 841.40 points to close at 252,568.38 the JSE Market Index lost 752.36 points to finish at 230,215.56 and the JSE US dollar market index was down 3.00 points to close at 220.54. The average trade in the main and US dollar markets ended at 246,117 units compared to 166,173 units on Tuesday.
In market activity, Berger Paints declined 89 cents to close at $11, trading 52,918 units, Cable and Wireless lost 20 cents, closing at $1.45 with an exchange of 4,079,487 shares, as investors reacted negatively to the loss of $1.56 billion incurred for the nine months to December last year, Caribbean Cement closed higher by $1 at $38 with 17,270 shares changing hands. Carreras added 49 cents to close at $66.50 with trades of 4,645 units, Grace Kennedy gained 67 cents to close at $41.67 trading 140,156 units, Jamaica Broilers closed at $16 trading 190,919 shares, Jamaica Producers traded 86,911 units at $17.50, having gained $1.22, Jamaica Stock Exchange closed at $8.40, with a loss of 60 cents trading 102,218 shares. JMMB Group gained 9 cents to close at $20.49 with an exchange of 162,176 units, Kingston Wharves closed at $31.50 trading 5,340 shares, Mayberry Investments closed 40 cents lower at $5, with trades of 112,534 units. National Commercial Bank rose to $63, gaining 24 cents after swapping 21,089 units, 1834 Investments traded 15,369 shares to close 1 cent higher at $1.75, Pan Jamaican closed $1.05 higher at $36, with an exchange of 128,130 shares, Portland JSX traded 6,730 units at $10.60, Pulse Investments closed at $7.50 with 20,074 shares changing hands, Radio Jamaica fell 21 cents to close at $1.60 trading 19,391 units. Sagicor Group closed at $36.50, gaining 25 cents with trades of 5,079 units, Sagicor Real Estate fund closed 75 cents lower to $10.25 with 292,712 units changing hands. Scotia Group closed at $38.51, losing $1.71, trading 702,136 shares, Seprod traded 1,600 shares at $41, Supreme Ventures closed at $6 with 124,293 shares traded, while Trinidad Cement closed at $63 with trades of 100 units. Proven Investments closed at 30 US cents trading 77,435 ordinary shares and JMMB Group 7.5% preference share traded 27,229 units at $1.05.

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Car dealer doubles 2015 profit

March 1, 2017 by

Jetcon ends at a new closing high of $13 on Tuesday.

Profit for 2016 more than doubled for pre-owned car dealer, Jetcon Corporation, moving from $51 million in 2015 to $105 million before tax and from $40 million to $98 million after tax and resulted in a 49.4 percent average rate of return on capital, up from 46.6 percent in 2015.
Earnings per share ended the year at 54 cents for the first year that the company listed on the junior market of the Jamaica Stock Exchange.
Revenues for the year grew by 64 percent, higher than the 49 percent increase for 2015 over 2014. The performance resulted in revenues of $858 million versus $524 million in 2015. The company’s revenues increased over the prior year, in each quarter, ending at $148 million in the first quarter, $195 million in the June quarter, $268 million in the September quarter and $228 million in the December quarter.
Gross profit increased by 75 percent as gross profit margin increased over 2015. Selling and marketing expenses more than doubled to $13 million from $6 million in 2015 while administrative and other expenses climbed by a third to $36 million from $27 million.
Growth in profit, helped to propel the stock from its initial listing price of $2.25 to a high of $13 reflecting a gain of 478 percent since it listed in March 2016. A trade at $14.80 towards the end of trading on Tuesday was cancelled.
Capital| Jetcon put the net new capital of just under $90 million raised in the initial public offer (IPO) into increased inventory, resulting in increased choices and strong sales growth in the post listing period.
The economic environment is positive to allow for increased business. Some of these are reduction in lending rates and a high percentage of the value of vehicles covered by lending institutions. Improvement in the wider economy backed by tax reductions for some workers, along with increased remuneration and the lowest inflation rate in several decades would all have played a part.
Gross cash flow generated from operations, ended at $100 million but inventories grew by $166 million, to end the year at $251 million, including goods in transit. The capital from the IPO and the profit for the year strengthened to financials, with equity capital of $294 million up from just $107 million at the end of 2015.

Jetcon Corporation revenues enjoyed strong growth for 2016

The directors approved an interim dividend of 7 cents per share, payable on March 15, 2017 to shareholders on record as of February 24, 2017 and will be recommending that a 3 for 1 stock split be considered by shareholders for approval at the upcoming annual general meeting to be hold later this year.
Update| According to a release by the company, revenues for 2017 up to the date of the report, is 77 percent ahead of the first two months of 2016. “Based on orders on our books and sales for 2017 towards the end of February, we expect revenues and profit in Q1, to be ahead of that for 2016, barring unforeseen developments.”
“Whilst we cannot say with certainty that the above pace of sales growth will continue for the full year, our budgets, forecast and strategies for the year, is for increased revenues and profit as we work as a team to build the company into one that the stakeholders will view positively”, the statement concluded.
If the pace of growth in revenues seen for the first two months, continues to the end of March, revenues for the quarter would be the higher than in any quarter for 2016.
Persons contributing to articles on listed companies may have connection with them and may have interest in their shares.

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Gains for JSE main market – Wednesday

February 22, 2017 by

Jamaica Producers closed at $15.10, losing $2.80 & is down from a high of $22 earlier this year.

Trading in the main market of the Jamaica Stock Exchange closed on Wednesday with 25 securities changing hands with 1 trading in the US dollar market on another day of good gains for the market. In the main market, 14 stocks advanced and 11 declined in the main market while 1 rose in the US dollar market.
Trading levels in main market ended at 2,551,901 units valued at $30,836,774 compared to 14,630,432 units, valued at $92,049,016 at the close on Tuesday. Trading in the US dollar market accounted for 9,768 units valued at US$3,077.
The All Jamaica Composite Index climbed 744.89 points to close at 255,197.40 the JSE Market Index moved higher by 666.06 points to finish 232,566.36 and the JSE US dollar market index rose 9.57 points, to close at 235.54.
In market activity, three stocks that became highly over-priced recently, continue to retreat from their excessive pricing levels. There remain room for further downward adjustments as the PE ratios are still well ahead of the market average. In trading, Berger Paints gained 4 cents to close at $11.80 with 21,925 units changing hands, Cable and Wireless closed at $1.38, up 5 cents trading 1,398,114 units, Caribbean Cement advanced 15 cents to close at $36.15 with trades of 16,062 shares, Carreras closed lower at $74 for a loss of $1 while 4,105 units changing hands. 1834 Investments gained 25 cents to close at $1.80 with an exchange of 1,000 shares, Grace Kennedy closed at $41 trading 79,906 units, Jamaica Broilers lost 35 cents to close at $14.50 with an exchange of 17,849 shares, Jamaica Producers closed at $15.10, losing $2.80 with 26,987 units changing ownership, the price peaked at $22 previously. Jamaica Stock Exchange price rose to a high of $13.50 in February, closed at $10, losing 50 cents with 143,060 shares crossing the exchange ticker, JMMB Group climbed $1.49 to $21.49 with an exchange of 124,820 units, Kingston Wharves that hit a peak of $34 in January, slid $1.80 on Wednesday in closing at $28.20 while trading 10,504 units. Mayberry Investments lost 2 cents to close at $5.30 with 173,148 shares changing hands. National Commercial Bank closed lower at $61.50 with a loss of 50 cents, after swapping 78,916 units, 138 Student Living closed at $4.60 trading 17,254 shares. Pan Jamaican closed trading lower at $38.50 with a loss of $1.50 while exchanging 42,799 shares, Pulse Investments closed at $6.80 with 10,200 shares changing hands, Radio Jamaica added 1 cent to close at $1.86 trading 31,741 units. Sagicor Group gained 20 cents to close at $37.30 with trades of 144,110 units while Sagicor Real Estate fund lost 55 cents, closing at $10.45 with an exchange of 13,650 units. Scotia Group closed at $40.50 having traded 38,867 shares, Scotia Investments closed lower at $38, losing $2 trading 113,463 units, Seprod traded 1,000 units at $38.55 with gains of $5.95, Supreme Ventures closed 10 cents higher at $5.60 with an exchange of 26,455 shares. Proven Investments closed with gains of 1.5 US cents to 31.5 US cents trading 9,768 ordinary shares, Jamaica Money Market Brokers 7.5% preference closed at $2.06 with trades of 3,466 shares and JMMB Group 7.5% preference closed at $1.05 trading 12,500 units.

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Main Event doubles IPO price

February 20, 2017 by

Staff members of Main Event

Shares of main Event Entertainment that issued shares to the public in January at $2 each has more than doubled since.
The stock traded on the first day of listing, the 8th of February, at $2.61 but with just 100 units trading, with the next trade, taking place at $3.70 for 100 units. On Friday February the 10, 15,722,362 units traded with the price ending at $4.70 for a rise of 135 percent. Monday February 13, the stock closed trading at $.81 while trading 537,458 shares. On Tuesday the price slipped back to end at $4.51 as 757,244 shares changed hands. Wednesday saw trading in 696,685 shares be executed at $4.50, on Thursday 592,737 shares traded to close at $4.51 and 420,952 units traded on Friday to close at $4.80, to crown a successful two weeks for the stock that has gained 140 percent from the IPO price.
The stock which IC Insider.com project will earn around 35 cents per share in 2017, now trades at a PE of 14, with the junior market average now around 11.5, the upside from now will be challenging.

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6 TTSE stocks rose 4 declined – Thursday

February 16, 2017 by

FirstCaribbean International Bank closed at a 52 weeks’ high on Thursday.

Market activity on the Trinidad & Tobago Stock Exchange on Thursday, resulted in an increase in active securities but with far less volume and value than on Wednesday.
At the close, all three indices headed higher as 18 securities were exchanged compared to 11 on Wednesday, the prices of 6 stocks advanced, 4 declined and 8 held firm in an exchange of 371,489 shares valued at $2,456,056 compared to Wednesday’s 723,552 shares valued at $21,761,282.
The Composite Index advanced 3.39 points to 1,252.83, the All T&T Index gained 1.87 points to 1,834.08 and the Cross Listed Index gained 0.67 points to 90.07 with year to date gains of 15.22 percent.
IC bid-offer Indicator|The Investor’s Choice bid-offer ended with 5 stocks with bids higher than last selling prices and 5 with lower offers.
Gains| First Caribbean International Bank closed at a 52 weeks’ high of $9.01 with gains of 16 cents and 20,130 units changing hands, Guardian Holdings closed 65 cents higher to a new 52 weeks’ high of $16, trading 56,711 shares, valued at $907,376, LJ Williams B share gained 4 cents to close at 75 cents with an exchange of 3,200 units. Scotia Investments closed at $2.20, gaining 1 cent with 7,146 units trading, Trinidad Cement added 1 cent to close at $4.17 with 300 units being exchanged and Trinidad & Tobago NGL closed with gains of 20 cents to $23 and 10,949 shares changing owners.
Losses| National Enterprises declined 10 cents, closing at $10.80 with an exchange of 4,843 shares, National Flour closed 7 cents lower to $2.60 with an exchange of 179,171 units valued at $465,165. Praetorian Property lost 5 cents to close at $2.85 with trades of 1,352 shares and Readymix closed at a 52 weeks low of $10.80, after losing 20 cents trading 1,500 units.
Firm Trades| Clico Investment was unchanged at $22.50 trading 1,786 units, First Citizens closed at $32.49 with trades of 150 shares, JMMB Group ended trading at $1.20 with an exchange of 2,565 units, National Commercial Bank remained at $4 with 65,000 units changing hands. Point Lisas traded 9,783 shares at $3.70, Prestige Holdings held firm at $10.99 trading 4,171 units, Scotiabank closed at $58.75 with 2,612 shares trading and West Indian Tobacco remained at $127 with 120 units changing hands.

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Profit climbs 31% at Cargo Handlers

February 15, 2017 by

Overvalued Cargo Handlers.

Revenues rose 32 percent for the Montego Bay based, Cargo Handlers, in the December 2016 quarter, with profit rising 31 percent to $46 million after tax.
The company recorded earnings per share of`12 cents for the quarter which is in line with IC Insider.com’s forecast of 55 cents, for the full year. “Increased passenger vessel traffic coupled with the seasonal increases in containerized cargo, pushed revenues to $91.1 million,” management stated in their report accompanying the results. While revenues grew quite strongly, cost also grew, with operating cost rising in line with revenues by 33.5 percent to $33.5 million and administrative expenses climbing by 36 percent to $4.5 million.
Gross cash flow, generated in the quarter was $52 million, increased receivables and reduction in payables help to reduce the net flows for the quarter to just $6 million, but still ending with a healthy cash position of $232 million at the end of the year. Receivables ended the year at $86 million and current liabilities at just $27 million.
Montego Bay is one of the fastest growing regions in Jamaica, with increasing tourism and BPO activities and more expansion in these areas to come. The port is likely to be used as the centre for exporting of LNG to the Eastern Caribbean, Cargo Handlers should benefit from the growth in the area down the road. Cargo Handlers last traded on Tuesday at $24.50 for a rich PE of 45, based on IC Insider.com’s forecast of 55 cents per share.
The company is slated to pay an interim dividend of 13.5 per stock unit on March 21.

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Profitable growth continues at Access

February 9, 2017 by

Access closed last traded at $30 on the junior market.

Profit grew by an impressive 87 percent at Access Financial Services (AFS) to $142 million after tax for the quarter ending December, last year. In 2015 AFS reported net profit of $76 million for the corresponding period. The result represents a return on average equity of 49 percent.
Profit for the nine months to December rose 67 percent to $494 million and should end up around $740 million for the full year or $2.75 per share.
Net operating income for the quarter ended December 2016 amounted to $378 million, an increase of $83 million, or approximately 28 percent, when compared to the corresponding 2015 period. For the nine months it moved from $917 million to $1.07 billion. Income from loans increased by $30 million or 10 percent to $312 million for the quarter and from $824 million to $931 million of the nine months for a 13 percent increase.
Operating expenses for the quarter, increased by only 4 percent or $8 million when compared to the corresponding period ended December 2015 as a result of an increase in staff cost and other operating expenses. The company recorded a reduction in provision for loan loss based on portfolio risk assessment which showed improved credit quality. For the nine months operating expenses fell to $526 from $581 as loan loss provisions drop sharply from $195 million to just $94 million in 2016. While other operating expenses grew from $145 million to $199 million.
The net loan portfolio continues to show growth, with an increase of $441 million or 20 percent for the quarter since December 2015 to $2.65 billion. The Asset base of the company grew by $443 million which represents an 18 percent increase over the comparative period.

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