Carib Cement 2019 profit mixed

July 31, 2019 by

Carib Cement silos

Caribbean Cement revenues climbed 5.6 percent in the June quarter to $4.68 billion and 4 percent year to June, with $9.13 billion booked.
The company reported lower profit the June quarter than in 2018, due mainly to $485 million incurred as foreign currency losses and ended up with profit after tax at $368 million versus $674 million in 2018. Or the half-year profit after tax grew 48.6 percent to $15 billion. The company reported earnings per share of 43 cents versus 79 cents in the similar quarter in 2018 and $1.76 compared to $1.18 in the 2018 six months period.
Expenses excluding depreciation and finance grew 2.7 percent for the quarter to $2.94 billion and fell 21 percent for the half-year to $5.47 billion. The sharp reduction in cost results from the termination of an equipment lease agreement with the parent company and the purchase of those assets. The acquisition of the assets drove depreciation charge for the quarter to $405 million from $340 million in 2018 and $796 million from $467 million for the six months periods. Finance cost including foreign exchange losses rose to $688 million from $412 million for the quarter and $856 million versus $386 million for the half-year.
The results boosted shareholders’ equity to $7.9 billion from $6.4 billion at the end of December last year as the company wiped out accumulated losses of $994 million at the end of 2018 leaving a surplus of $493 million. Borrowing amounts to $9.8 billion while cash funds amount to $394 million and net current assets stood at negative $759 million.
The stock trades at $80 on the Jamaica Stock Exchange main market. IC Insider.com projects earnings for the full year to December at $5 per share that would place the PE ratio at 16, just around the markets PE of 17. With the economy doing well and increased construction activities, investors should have their eyes focused on increased future earnings.

Filed Under: Company News, Company Results Tagged With: , , ,

Market watch spotlight on Junior Market

July 29, 2019 by

The focus this week is the entire Junior Market that remains severely undervalued, notwithstanding that it made up much-lost grounds in the past week. The Lab is the first stock to watch from this sector.
NCB Financial third-quarter results were far from inspiring with operating profit being lower in the quarter than for the prior year’s results, at the close on Friday there was good selling on offer that seems likely to keep a lid on the price for a while.  NCB reported Operating profit of $6.46 billion in the June 2019 quarter, down from $8.14 billion in 2018. A $700 million net gain in associated company results eased the difference somewhat.
Barita Investments is back at the record high of $83 it closed at the close on Friday, up from $72 at the end of the previous week. Importantly, supply has mostly dried up except for a block of 1 million units offered by Barita at $98 per share. Shareholders passed the resolution at last week’s extraordinary general meeting for a rights issue that will see 106 million shares or around one for every 15 shares of shares owned offered to shareholders, at an expected price in the $40 region.

Barita eyeing acquisition.

Results for Caribbean Cement are out by but reports indicate that the company reported increased sales for the June quarter but lower profit than in 2018, due mainly to $485 million incurred as foreign currency losses. The company reported 43 cents per share versus 79 cents in the similar quarter in 2018. For the half-year, Carib Cement reported earnings of $1,79 compared to $1.18 in 2018. The company looks like earning $5 per share for the full year with increased second-half sales. Do not look for the price of the stock to move up any time soon, with these results
Jamaica Broilers and Jamaica Producers may not break out just now but there is very limited selling and good news could push them higher at any time. Investors who thought that the sky was the limit for Wigton Windfarm may be having second thoughts with the company posting their full-year results, with earnings excluding foreign exchange gains or losses working out at 5 cents per share going forward. The stock seems poised to remain under $1 for a long time. More selling came for Radio Jamaica in the past week but with first-quarter results due mid-August, the stage could be set for a break beyond the $1.40 price level.
Sygnus Credit Investments is coming into its own with a limited supply of the stock for sale, the price closed at a record high at the close of the past week and may and could move higher this week. investors should continue to watch it. Wisynco Group traded close to $30 in the past week pushing the PE up considerably. It could settle just below the $30 range for a while.

Drax Hall branch of Elite.

The Junior Market finally found its footing in moving solidly higher during the past week to within less than 100 points from the previous record high in 2018. With the entire market severely undervalued, just about all stocks are to be watched. Some are more attractive than others and should enjoy a greater focus.
Blue Power closed on Friday with strong buying interest that suggests higher price ahead arising from a proposed split-up of the company into two separate ones. Caribbean Flavours has a limited supply of stocks for sale and is worth watching. Fontana pulled out of the fall to $7.41, in the previous week as demand pushed the price over $8. The branch in Kingston could influence investors to add the stock to their portfolio. Elite Diagnostic with rising demand and slowing supplies could bounce, having traded at $5. The company’s new Drax Hall branch in St Ann is set to open in August and will add to revenues and profit at a later stage. Elite has more than 387,000 units on offer at $5 and that could constrain upward price movement for some time. Jamaican Teas reported nine months results of 32 cents per share compared with 20 cents last year. Investors reacted positively to the results pushing the stock up to $5, but supply on sale is limited and could encourage more price movement this week. Lasco Financial price bounces around $4.50. The stock is undervalued and should see increased buying interest, with release of June quarter results, due out shortly. In 2018, first-quarter results were released on the 17 of July. Lasco Manufacturing released first-quarter numbers on the 31 of July last year and Lasco Distributors released theirs on the 19. The results could move the price of the stocks higher. Limners and Bards climbed 30 cents to settle at a record high of $1.30 with just 100 shares changing hands on the first day of trading, the stock closed with the bid at $1.65 and looks poised to hit $2, the stock was on offer at $2.95 at the close on Friday. Medical Disposables looks poised to move higher and first-quarter numbers will play an important role in further gains and Stationery and Office Supplies hit a record of $12 during the past week and should move higher with little supply offered for sale.

Filed Under: Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , ,

FX losses cut Wigton 2019 profit

July 26, 2019 by

Wigton shares are still the most heavily traded on the JSE.

Profit before tax at Wigton Windfarms fell from $768 million in 2018 to $727 million in 2019 from sales revenue of $2.44 billion for 2019 compared to $2.36 in 2018.
The 2019 results include a net loss of foreign exchange of $177 million. The company retired loans that were denominated in US dollars and swapped them for loans in local currency at interest rates that were higher than the prior loans but removing the risk of exchange rate adjustments.
Costs are relatively stable as well as income. Depreciation accounts for $665 million of the total administrative and operating cost of $1.17 billion. The audited financial statement had finance expenses of $1.05 billion but that figure includes foreign exchange losses of $663 million, partially offset by foreign exchange gains of $486 million.
Taxation charge for the year came out at $173 million. It will be difficult for the company to earn much more for the current fiscal year to March 2019, than the 5 cents per share recorded in 2019.
Wigton ended the year with shareholders’ equity of $2.9 billion, borrowings of $6.3 billion and cash and equivalent of $1.38 billion. Current liabilities were relatively insignificant.
The stock has been trading around 90 cents on the main market of the Jamaica Stock Exchange with a PE ratio of 17 times earnings.

Filed Under: Breaking News, Company News, Company Results Tagged With: , , ,

Pretax profit up 18% at the Lab

July 26, 2019 by

Limners and Bards (the Lab) reports pretax profit of $72 million half year to April, up 18 percent versus $61 million last year on revenues of $334.5 million compared to $261 million in 2018.
After-tax profit for the six months ends at $57 million, up 9 percent against $53 million in 2018. For the quarter to April revenues brought in $145 million and delivered pretax profit of $30 million against revenues of $136 million and pretax profit of $24.5 million.
The data suggest seasonality in earnings with full-year’s income of $483 million for the year to October last year and profit before tax of $76.5 million. The 2018 half year’s revenues amounted to 54 percent of income. Of significance is a sharp fall in operating expenses from $100 million in the second quarter of 2018 to $88 million in the 2019 period even as revenues rose resulting in gross profit rising from $36 million to $57 million. For the six-month period, gross profit moved from $100 million to $125 million. Partially offsetting the gross profit improvement is a $15 million in the second quarter is a rise in administrative expenses to $26 million in the quarter but was only up by $11 million for the half-year to $51 million.
The stock was listed on the Junior Market of the Jamaica Stock Exchange today at traded a small amount at $1.30 but closed with bids to buy at $1.65.

Filed Under: Breaking News, Company News, Company Results Tagged With: , , , , ,

Over 21,500 apply for Sagicor Select

July 26, 2019 by

Investors plunked down $6 billion in more than twenty-one thousand five applications, to buy the 5 billion shares recently offered by Sagicor Select Funds in an initial Public Offer, information reaching IC Insider.com confirmed.
The heavy subscription by retail investors strained the resources of Sagicor Investments in coming with the allocation within six business days specified by the Jamaica Stock Exchange.
In a release on the delay in the allocation, the broker for the issue advised that Sagicor Financial Select Fund are unable to submit the details and basis of allotment pursuant to its IPO that closed its subscription list on Tuesday, July 16th within the prescribed time. “The reason for the abovementioned delay is the unexpectedly high volume of applications received in the IPO which we estimate, as at the date of this letter, to be approximately twenty thousand.”
The broker advised that they continue to process applications and expects to be in a position to submit the details and basis of allotment by July 30, with refunds to applicants to be done by August 2.
At the same time investors in Limners and Bards share issue that closed on the same day of opening, last week had their account at the JCSD credited on Thursday, with the shares allocated to them.

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

Bulls push Junior Market over 3,300

July 25, 2019 by

Bulls let out their fury on bears in the Junior Market pushing the market index up 87.62 points at 10:15 am to reach 3,320.05, the highest level since October last year.
Amongst the stocks contributing to the big surge were Blue Power that rose to $11.95, Cargo Handlers $10.95, Elite Diagnostic at a record high of $5.99, Fontana traded as high as $8.99, Jamaican Teas $4.56, with third quarter results, more than tripling that of 2018 to $118 million versus $44 million and General Accident  at $4.50.
The JSE All Jamaican Composite Index gained 10.675.81 points to a record of 565,028.91, the JSE Index advanced 9,701.20 points to a record high of 514,451.64 and the JSE Financial Index rose 2.53 points a record of 137.90. Wisynco traded at a new record high of $28, subsequently NCB Financial traded at an all-time high of $229.99.

Filed Under: Breaking News, JSE Combined, Stock Market Tagged With: , , , , , , , , , ,

JSE profit jumps 36%

July 25, 2019 by

Profit climbed 36 percent in the June quarter, to $122 million from $90 million in 2018 at Jamaica Stock Exchange, from a 36 percent rise in revenues to $429 million, from $316 million in 2018.
For the six months to June, profit after tax climbed a robust 28 percent to $245 million from a 31 percent rise in revenues to $874 million compared to $666 million in 2018.
Administrative other expenses rose 37 percent to $262 million in the quarter and increased 32 percent in the six months period to $524 million. Staff cost rose 23 percent to $105 million for the quarter and 24 percent for the half-year, to $212 million. Advertising and promotion expenses were 192 percent higher in the quarter to hit $26 million and more than doubled in the half-year to $63 million from $31 million in 2018.
Earnings per share came out at 17 cents for the quarter and 35 cents for the six months and should end the year around $1.
The growth in 2019 is consistent with that from 2014. With the continued increase in the number of listings on the exchange and increasing trading activities, the immediate future looks promising for increased revenues and profit.
Gross cash flow brought in $400 million and after paying dividends of $175 million ended up with cash and equivalent of $151 million and investments of $413 million. Shareholders’ equity stood at $1.2 billion up from $1 billion at the end of June last year. Net current assets ended the period at $404 million.
The stock traded at $40 on the Jamaica Stock Exchange with a PE ratio of 40 times 2019 estimated earnings.

Filed Under: Company News, Company Results Tagged With: , ,

Blue Power to split in two

July 19, 2019 by

Blue Power will split into two separate companies, the directors of the group decided on, to enhance prospects for growth of the two divisions.
The “Board of Directors considered the issue of growth of the two divisions of the Company and has reached the conclusion that having the Lumber Depot Division operate as a separate company will enhance its prospects for growth through acquisitions of and or mergers with other companies in related lines of business. The same considerations would apply to the growth of the Blue Power Soap division.”
In order to effect this move, an Extraordinary General Meeting will be held following the Annual General Meeting on August 14, to consider the matter.
Shareholders will be asked approve the issue or transfer of shares in a newly created subsidiary, Lumber Depot Limited, to the group’s shareholders on record as at August 1, with the intent that after such actions, shares in New Lumber Depot shall be held by the shareholders of the group in proportion to their existing holdings..
Blue Power shareholders will also vote to transfer the business, assets and relevant liabilities of the Lumber Depot Division to the new Company.
The directors approved the payment of a dividend of 2 cents per share on August 12. The record date is July 25 and the ex-dividend date, August 9, 2019.
The last audited financial statements, show the Lumber shop division with sales to April this year of $1.197 billion and profit of $74 million, while the Soap division recorded sales of $469 million and profit of $85 million. In the previous year, the Lumber division recorded sales of $1.07 billion and profit of $62 million and the Soap division had sales of $440 million and profit of $53 million.
The assets of the Lumber shop amounts to $222 million at the end of April with liabilities of $54 million. The soap division had assets of $761 million and liabilities of just $31 million.
The two divisions are involved in two completely different business with little synergies. The two companies should have their own management and boards, suited to move the separate companies to much higher levels of operations and profits.
The stock last traded at $6 on the Junior Market of the Jamaica Stock Exchange on Thursday.

Filed Under: Company News, Dividends, General Business News Tagged With: , , , ,

AJ Index at record 550K – Wednesday

July 17, 2019 by

New record high for the JSE main market.

Investors pushed the Jamaica Stock Exchange to a new record on Wednesday, for the main market with NCB Financial trading at a new high of $219.99 having gained $9.99.
The JSE All Jamaican Composite Index jumped 12,035.55 points to  a record  of 550,672.36, the JSE Index climbed 10,937 points to a new record of 501,405.60 and the Junior market Index rose 24.93 points to 3,101.46 with Fontanahitting a new high of $7 and seeming poised to rise further, with the bid above the last selling price. Proven Investments traded at a new all-time high of $41 on the main market.

Filed Under: Breaking News, JSE Combined, Stock Market Tagged With: , , , , ,

Elite Drax Hall opens August

July 17, 2019 by

Word reaching IC insider.com is that the third branch of Elite Diagnostic is set to open by the beginning of August.
Earlier this week, IC Insider.com sited the new building that is substantially complete and seems ready to welcome patrons. Elite had purchase of MRI machine from early in 2018 and had it store for installation at this location.
The new location is expected to carry a smaller staff compliment that the two in Kingston. The new location will be a drag on earnings for the company until it gets up to speed, but the cost will be less than for the second location.
At the 2018 annual general meeting, the directors indicated that the cost to set up St Ann Bay is in the region of $20-22 million plus U$375,000 for the MRI machine.
The company bought the MRI equipment early because it became available locally, but it comes at a cost as it was being stored with rental and electricity cost incurred to maintain it at a cool temperature. While the company has 3 other MRI competitors in Kingston, there will be no immediate competitor within 50 miles in St Ann. Operating cost at this location will less than at Liguanea with the former being staffed by 7 employees versus a planned staffing of 4 or 5 for St Ann.

Drax Hall branch of Elite nearing completion.

Elite reported net profit for the December 2018 quarter of $5 million compared to $1 million for the same period a year ago. Net profit for the 6 months was $6.8 million, down from $12 million for the same period in 2017. Revenues rose strongly to $97 million in the second quarter compared to $72 million for the 2017 period. For the six months to December, revenues rose to $182 million compared with $142 million for the year ago period. The stock traded at $4.80 on the Junior Market on Tuesday, with PE ratio of 7.5 based on estimated 2020 earnings of 65 cents per share.

Filed Under: Company News, General Business News Tagged With: , , , ,