Access post good Q1 results

Access Financial Services' profit jumps 29% in Q1.

Access Financial Services’ profit jumps 29% in Q1.

Investors have not reacted positively to the 29 percent gain in Access Financial Services profit for the June 2016 quarter over the results of the 2015 quarter, but they probably should, with earnings set to exceed $2 for the full fiscal year with the stock price below $20.
The company reported a moderate 10 percent growth in loan interest revenues to $301 million in the quarter over that of 2015. The loan portfolio for the June is 8.6 percent ahead of March, if the rate of growth continues, loans would end at $2.84 billion versus $2.1 billion as of March.
Total revenues moved by 10 percent from $315 million to $347 million for the June quarters while profit after tax for the quarter grew 29 percent to $146 million or 53 cents per share, compared to $112 million or 41 cents for the June 2015 quarter.
Cost was well contained at $184 million for the quarter, down from $186 million in 2015. Loan loss provisions fell from $54 million in 2015 quarter, to $43 million in 2016. IC Insider projects the provision to rise to $187 million for the full year, up from $184 million for the 12 months to March 2016, while earnings of $800 million or $2.90 per share are projected for the 12 months to March 2016, with growth to $4 per share or $1.1 billion in profits after tax, for 2017.
At the end of March, shareholders’ equity stood at $1.3 billion and borrowings at $1.1 billion with cash and equivalent at $299 million out of total assets of $2.7 billion.
The stock which remains BUY RATED last traded at $17.50 giving it a PE based on the above forecast at an attractive 6.

Simply Impressive

Honey Bun shot up by more than 500% in 2016 shortly after stock split.

Honey Bun shot up by more than 500% in 2016 shortly after stock split.

Junior market listed bakers, Honey Bun, is enjoying a glorious period of surging revenues and profit that fueled a huge jump in the stock price of 355 percent for 2016, after rising over 500 percent, earlier in the year.
In continuation of a successful year, revenues climbed 36 percent in the third quarter of financial year to June, spawning a 124 percent increase in profit before taxes to $38 million over the June 2015 quarter. Revenues climbed 35 percent to $903 million for the nine months to June, up from $672 million in 2015 while profit jumped 109 percent to $138 million before tax and $132 million after tax of $6 million.
Gross profit for the nine months climbed at a faster pace than revenues, at 40 percent while for the quarter, gross profit rose 34 percent, just below the growth in revenues for the quarter. Expenses excluding cost of sales, rose even slower than revenues, at 20 percent, with administrative expenses rising sharply by 33 percent to $147 million and selling and distribution costs increasing by 10 percent to $104 million, while depreciation rose by 4 percent to $28 million. For the June quarter administrative, selling and distribution expenses rose at a slower pace than for the nine months, at 12 percent.
One Honey Bun's Products.

One Honey Bun’s Products.

The company generated gross cash flows of $171 million for the nine months, before expending $75 million on the acquisition of property, equipment and fleet. Honey Bun is in a healthy state with cash balance and investments at $104 million after the company repaid $38 million in long term loans, leaving loans at $16 million. Current assets stood at $212 million and current liabilities ta $71 million. Shareholders equity climbed to $491 million.
The Company that listed on the Jamaica Stock Exchange Junior Market in June 2011, is now subject to taxation on profit for the next 5 years at 50 percent of the normal corporate income tax rate of 25 percent.
Earnings per share for the quarter came in at 8 cents and 28 cents for the nine months. IC Insider projects 34 cents or $160 million for the full year to September, with $147 million or 52 cents per share projected for 2017. The stock traded at $5.60 on the Jamaica Stock Exchange junior market for a PE of 16.5 times 2016 earnings, making it one of the highest valued stock on the market.
The stock was accorded a BUY RATED ranking in November 2015 but has since been placed on a watch list when it shot to over $7 per share.

Lasco Distributors hits junior index – Wednesday

Lasco Distributors fell initially to $6.55 and headed back to $7.40 and helped hit the junior market index down by 41 points, but main market stocks also slipped but marginally.JSE intra 28-07-16 The fall in the Lasco share price was in reaction to the company’s first quarter profit after tax of $175.4 million, or 33% more than the same period in 2015.
The market saw Scotia Investments trading 100,000 units at $25.01, JMMB Group 7.50% preference share traded 90,000 units at $1.10, Pan Jamaican Investment had 74,764 shares changing hands at $24.50 and Consolidated Bakeries traded 185,000 units at $2.15.
The all Jamaica Composite Index fell 29.18 points to 176,604.86 the Jamaica Stock Exchange Market Index is down 26.10 points to 158,957.91, the Jamaica Stock Exchange combined index declined 409.09 point to close at 169,565.09 points andthe junior market index dropped 37.51 points to 2,155.92.
Trading at 10:45 am resulted in only 22 securities changing hands, accounting for a volume of 663,102 shares, with 7 securities rising and 7 falling. The average number of shares traded amounts to 30,141 units.

Broilers trades 5m shares

JSE intra 26-07-16 The Jamaica stock market saw heavy trading in Jamaica Broilers Group with over 5 million shares with the bulk being crosses done by Scotia Investments.
The all Jamaica Composite Index fell 138.16 points to 176,289.78 the Jamaica Stock Exchange Market Index is down 123.54 points to 158,676.18, the Jamaica Stock Exchange combined index declined 170.79 point to close at 169,252.58 points andthe junior market index dropped 5.48 points to 2,150.93 with the jump in the price of Lasco Distributors.
Trading at 10:50 am resulted in only 27 securities changing hands, accounting for a volume of 7,009,625 shares, with 8 securities rising and only 12 falling. The average number of shares traded amounts to 259,616 compared to an average of 32,438 units on Monday.

Carib Cement bad news say buy

CCC GteJamaica’s sole cement manufacturing company Caribbean Cement, reported a fall in profit from $621 million in the June quarter of 2015 down to only $221 million and for the six months to June $1.05 billion versus $869 million.
Investors seemed to have focused more on the fall in the quarter than on the details of the results and the clear message sent by them. As a result, the stock was sold down to $19.25 from $23 the prior day, with very few buyers at the close, but investors who sold were making a bad decision. This is a classic case of bad news is indeed good news. For one, revenues climbed 9.6 percent in the quarter and 10.3 percent for the half-year but local sales of cement are up a very strong 27 percent. “Despite a reduction in export cement and clinker volumes by 8 percent and 77 percent respectively, total revenue increased by $777 million. This was mainly due to an increase in domestic cement volumes by 27 percent arising from increased projects and strong retail demand. Improvements in operational efficiencies, effective control of fixed costs, lower financing costs and lower energy costs, contributed to the improvement in earnings before interest, tax, depreciation, amortisation, manpower restructuring costs,” the directors’ report to shareholders stated.
CCC fact - 14Importantly, the cement company took a charge for manpower restructuring, amounting to $421 million, a huge positive development and augurs well for improved profit margin and increased profits going forward. In addition there is a charge for excess inventory amounting to $400 million, this is one off and therefore unlikely to recur. Stripped of these costs, earnings would be up by 63 percent to $1.16 million before tax compared to $708 million in 2015 that includes one off income of $168 million for the quarter and pretax profit of $2.1 billion versus $996 million in 2015.
Not only will the cost for redundancy not recur for the current set of staff being severed, it should results in savings in a year, in the region of the sum expended.
During the twelve months to June, the company repaid Trinidad Cement, its parent, loans and other debt $1.6 billion leaving only $556 million more to be paid. Cash funds were left at $788 million after more than $600 million was added to fixed assets since June 2015. At the pace profits are coming in the accumulated deficit of $4.6 billion will be wiped out in 2017.
IC Insider’s forecast for full years earning form normal operations is $4.75 which excludes the one off cost leaving the stock strongly in the buy column. The stock is listed on the main market of the Jamaica Stock exchange and closed at $22 on Friday.

JSE declines on Thursday

JSE intra 21-07-16

Juniors market up on Wednesday

Junior market trading closed with 15 securities being active accounting for just under 600,000 shares changing hands compared to less than 4.3 million on Tuesday. The junior index closed 37.85 points higher at 2,192.99 as 6 stocks gained and 6 declined.
JM - Sum 20-7-16At the close on Wednesday, 597,857 units traded, valued at $6,072,927 down from $20,712,312 on Tuesday. A total of 5 stocks closed with bids higher than their last selling prices and 2 ended with lower offers.
At the close, Cargo Handlers ended with 250 shares changing hands, at $46, Caribbean Cream fell 2 cents in closing at $6.98, with 48,600 shares traded, Caribbean Producers traded 3,550 shares and gained 19 cents to end at $3.20, Consolidated Bakeries traded 17,796 shares to end at $2.10. Derrimon Trading gained 1 cent to close at $3.05 with 27,000 shares changing hands, Iron Rock Insurance fell 2 cents in trading 11,000 shares and closed at $3.18, Jamaican Teas lost 30 cents in trading at $3.50 with 18,000 shares changing hands, JM Trdng Sht 20-7-16Knutsford Express had 270,000 units changing hands, to close at $15. Lasco Distributors ended with 141,930 shares changing hands, but rose 20 cents to $7.30, Lasco Financial ended with a rise of 14 cents while 17,700 shares changed hands at $3.40, Lasco Manufacturing closed at $5 with 16,000 shares trading a decline of 1 cent. Medical Disposables traded 2,743 shares and gained 39 cents to close at $3.49, Paramount Trading climbed 50 cents to $11 with 21,351 shares changing hands, Sweet River lost 19 cents in trading 1,000 shares to close at $3.80 and tTech ended with 937 shares changing hands to end at $3.80 after shedding 20 cents.

JSE makes early gains

IN-JSE fn Qts 13-07-16

Profit jumps 81% for Kremi

Kremi GapntProfit jump 81 percent to $71 million for Caribbean Cream in its latest quarter to May this year, the company reported, from a rise of 9 percent in sales to $316 million resulting in earnings per share of 19 cents.
Gross profit climbed faster than revenues by 24 percent to $138 million as production cost dipped slightly to $177.5 million from $178.4 in 2015, as the company continues to benefit from lower prices of sugar and milk based major production ingredients and from energy savings.
Administration cost declined by $2 million to $54.3 million while selling and distribution cost came in at $10.8 million from $11 million in 2015 and finance costs fell to $3 million from $4.6 million as the amount of loan funding declined from $140 million to $120 million, Gross cash flow amounted to $85 million up from $53 million in 2015. Having funded loan repayment and acquisition of fixed assets, the cash inflows helped push cash at the end of 2016 quarter to $194 million, from $50.75 million at the end of May 2015. Shareholders’ equity climbed to $509 million at the end of the quarter.
The company has declared an interim dividend of 5 cents per share or $19 million payable in September. The stock traded at $5.50 but should head higher with earnings projected by IC Insider at $1 per share for the full year.

Juniors hit by 6 losers – Tuesday

The junior market closed trading on Tuesday with the market index falling 16.25 points, to close at 2,190.45. A total of 13 active securities with only 450,190 shares valued at $1,993,763, changing hands. At the close, 4 stocks advanced and 6 declined.
JM - Sum 5-7-16At the end of trading 7 stocks closed with bids higher than their last selling prices and 3 ended with lower offers.
At the end of trading, CAC 2000 gained 1 cent with 1,500 shares changing hands, to end at $6.56, Investors reacted negatively to the release by the Caribbean Producers on Monday, about a write down of inventory and other charges, by marking the stock down by 78 cents, in trading 100,545 shares to close at $3.90.At the close there were bids to buy 2,000 units at $3.85 and 50,000 units at $3.50 then 200,000 units at $3, offers are 98,000 at $4.68 and $4.69 with 50,000 units at $4.75. Dolphin Cove traded 6,282 shares to end with a rise of 35 cents at $12, General Accident Insurance closed at $2.05 with 46,820 units trading, Honey Bun fell 10 cents to close at $5.50, with 76,633 units changing hands, JM Trde Sht 5-7-16Iron Rock Insurance traded 9,000 shares and fell 5 cents to close at $3.30. Jamaican Teas traded 1,800 shares to close at $3.80, Jetcon Corporation lost 35 cents in trading 54,044 units to close at $2.60, Lasco Distributors rose 2 cents while trading 23,496 units to end at $7.40, Lasco Financial ended with 10,098 shares changing hands at $3.20. Lasco Manufacturing fell 1 cent and closed at $5 with 119,342 shares trading, Medical Disposables gained 5 cents in trading 530 shares to close at $3.45 and tTech declined by 10 cents in trading 100 units to close at $4.40.