junior market — Page 119

New ICTOP10 entrants

June 20, 2021 by IC Insider.com

In a week when the main and junior markets of the Jamaica Stock exchange broke loose from resistance, with the Junior Market just creeping away and the Main market surging more than 14,000 points up, as investors appear more bullish than they have been for some time.
Scotia Group, along with Caribbean Cream, fell out of the TOP10 based on downward revisions to their earnings for the coming financial year ends. Moving into the Junior Market TOP10 is ISP Finance with the price dropping to $15.60 on Friday and the Main Market listed, Berger Paints moving back in the TOP10 with the price at $13.85 on Friday.
JMMB Group came outwith solid results for the full year to March, leading to a revision of the projection for the 2022 fiscal year, making the stock a solid buy even after it rose 12 percent to $38.45 from $32.50 last week, Grace Kennedy jumped 5 percent from $94.97 last week to close at $99.46, PanJam Investment moved up 11 percent from $54.50 to $69 and Future Energy Sources closed the week at a 52 weeks’ high of $1.10, to be marginally up for the week from $1.07.
The average gains projected for the Junior Market slipped from 210 percent last week to 207 percent as the market slowly rises. The average projected gains for the Main Market stocks dropped last week from 170 to 166 percent as the market gained 3 percent for the week.
The top three stocks in the Junior Market continue to be Elite Diagnostic heading the list, followed by Medical Disposables and Caribbean Assurance Brokers, with the potential to gain between 247 to 300 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investments and JMMB Group, with expected gains of 160 to 391 percent.
The targeted PE ratio for the market remains an average of 20 based on profits of companies reporting full year’s results up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. One reason why the Junior Market stocks have outperformed Main Market ones since last year can be seen from the big difference between the valuations of both markets, with the latter values close to maturity, based on present valuation metrics.
The Junior Market, with an average PE 13 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17, for the market to get to last year average, would require a 32 percent rise in the market, that would equate to a rise of 54 percent to March 2022 if it were to reach the targeted PE of 20. The Junior Market Top 10 stocks average a mere 6.7 at just 51 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 17.1, a little distance from the 19 the market ended in March, suggesting just an 11 percent rise at a PE of 19 and 17 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.9 or 46 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share 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: General News Tagged With: Access Financial, Berger Paints, Caribbean Assurance Brokers, Caribbean Producers, Daily Trading, Emerging markets, FESCO, Future Energy Source, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, junior market, Lasco Financial, Main Event, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

JSE main market surges in early trading

June 17, 2021 by IC Insider.com

JSE Main Market stocks are trading at their highest level in more than a year with the All Jamaican Composite Index that closed at 461,341.26 points on Wednesday, opening at 469,362.12 on Thursday and going as high as 471,844.39 within 20 minutes of the opening and now trades at 470,898.31 with three minutes to go before 10 am.
Grace Kennedy is trading up to $97 from $96, JMMB Group is up to a 52 weeks’ high of $38.80, Kingston Properties is trading at a new 52 weeks’ high of $11. PanJamaican is trading up strongly at $69.90 from just over $65, but Sagicor Group is down to $53.25 from $55,
The Junior Market Index traded as high as 3,375.79, up from 3,339.77 at the close on Wednesday, as Express Catering that fell on Wednesday to $5.50 is trading up, with the latest price at $6.17.

Filed Under: JSE Junior Market, Stock Market Tagged With: Daily Trading, Emerging markets, Express Catering, Grace Kennedy, Jamaica Stock Exchange, Jamaican stocks, JMMB Group, junior market, Kingston Properties, PANJAM Investment, Sagicor Group

122% gain pushes stock out of ICTOP10

June 13, 2021 by IC Insider.com

Two companies in the transportation sector swapped places in the IC Junior Market TOP10 this week as another TOP10 stock gained more than 100 percent for the year, the fourth such feat for the Junior Market TOP10. Jetcon Corporation’s price popped 61 percent for the week to a 52 weeks’ high of $1.75 to record gains of 122 percent for the year to date and dropped out of the TOP10, and is replaced by Future Energy Sources.
Other than Jetcon, prices of other TOP10 stocks had notable increases during the past week; these include; Jamaica Broilers and Grace Kennedy from the main market but Radio Jamaica, PanJam and Scotia Group prices took hits. In the Junior Market, Caribbean Cream, Access and Stationery and Office Supplies had nice gains resulted in the average gains projected slipping from 216 percent last week to 210 percent. The average projected gains for the Main Market stocks inched up last week from 169 to 170 percent.
The Junior Market closed the week at 3,327.84, down from 3,339.02, last week, as it continues to consolidate around the zone of resistance. The JSE All Jamaica Composite Index hit 466,915.58 points during the morning session on Friday, before closing lower at 459,273.23, up from 456,395.73, at the close of the previous week, as the market continues to wrestle with resistance.
The top three stocks in the Junior Market are Elite Diagnostic heading the list, followed by Medical Disposables and Caribbean Assurance, with potential to gain between 250 to 303 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investments and Wisynco, with expected gains of 153 to 394 percent.
This week’s focus: Access Financial Services came out with full year results that reflected increased lending and EPS of 50 cents in the March quarter. ICInsider.com upgraded earnings to just under $3 per share for the current fiscal year. Scotia Group also reported results for the six months to April, with a 12 percent rise in profit for the April quarter over the 2020 same quarter and an 11.4 percent rise for the six months results. The big negative is that the loan portfolio continued its decline into the April quarter. ICInsider.com now projects 2021 earnings at $4 per share.
The targeted PE ratio for the market averages 20 based on companies’ profits reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market.
The Junior Market, with an average PE 12.6 based on ICInsider.com’s 2021-22 earnings, is currently trading below the target, as well as the recent historical average of 17.1; this represents another 35 percent rise in the market that would equate to a rise of 59 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.6 at just 53 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 17.1, still some distance from the 19 the market ended March, suggesting a 17 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 45 percent of the PE of that market and well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in periodic movements in and out of the lists. Revisions to earnings per share 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 Tagged With: Access Financial, Caribbean Assurance Brokers, Caribbean Producers, Daily Trading, Emerging markets, FESCO, Future Energy Source, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, junior market, Laco Distributors, Lasco Financial, Main Event, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

SOS back in ICTOP10 stocks

June 5, 2021 by IC Insider.com

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Main Event price popped nearly 14 percent from $4.65 last week to $5.28 following this week’s public forum the company CEO presented, leading the stock to dropped out of the Junior Market ICTOP10 and Stationery and Office Supplies price dipped to $7.52 and moved in to fill the slot left by Main Event.

Stationery & Office Supplies hit a record high on Friday.

Stationery & Office Supplies – Montego Bay office.

Prices of some ICTOP10 stocks bounced around during the week, resulting in changes within the list as a result. The average gains projected for the Junior Market fell from 218 percent last week to 216 percent. The average projected gains for Main Market stocks moved up last week, from 162 to 169 percent, are up again this week to 171 percent.
The markets continue to face resistance, with the Junior Market trading at the very top of its upward sloping channel while the JSE Main Market sits a few thousand points away and facing turbulence in getting to the peak. The recent release of results by two Lasco companies did not move the market this past week, investors are likely to be looking at a sideward moving market until later in the month, in keeping with the historical pattern of a recess after the completion of earnings season.
The Junior Market Index closed the week at 3,339.02, slightly up from 3,329.50, last week, after it was up moderately from 3,324 at the end of the previous week. The JSE All Jamaica Composite Index ended at 456,395.73 on Friday, up from 454,375.81 at the close of the previous week.
The Junior Market has to decidedly break the upper limit of the current upward sloping trading channel to free it to move on to the next area of resistance, of just over 4,000 mark, but the Main Market has room to run for a few thousand points before it hits the channel top at 460,000 points which it came close to on Friday at 459,758 before pulling back.
The top three stocks in the Junior Market for this week, are Elite Diagnostic, followed by Medical Disposables and Caribbean Producers, with the potential to gain between 238 to 300 percent. The top three Main Market stocks are Radio Jamaica, followed by PanJam Investments and Wisynco Group, with expected gains of 153 to 371 percent. The latter potential gain is based on earnings for the financial year starting in July, investors should not expect an early upward movement for the price until after the release of full year results to June this year, around the end of August.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March, with the average PE at 17 for Junior Market stocks and 19 for the Main Market.
The Junior Market with an average PE of 12.3 based on ICInsider.com’s 2021-22 earnings, is currently trading below the target, as well as the recent historical average of 17, this represents another 37 percent rise in the market that would equate to a rise of 63 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.5 at just 52 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.2, some distance from the 19 the market ended March, suggesting a 23 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.7 or 48 percent of the PE of that market and well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios 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 per share 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 Tagged With: Access Financial, Caribbean Assurance Brokers, Caribbean Producers, Daily Trading, Emerging markets, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, junior market, Lasco Financial, Main Event, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

Profit bounces at Stationery & Office Supplies

June 5, 2021 by IC Insider.com

Many investors miss out on highly profitable investments in the stock market by focusing on the wrong things. Take the case of Stationery and Office Supplies that suffered a major reversal in profits in 2020 with just $33 million versus $135 million in 2019, with earnings per share of a mere 13 cents versus 54 cents in the prior year.

Operating profit at Stationery & Office Supplies grew 33% in 2021 Q1 over 2020.

Some investors see the historical PE Ratio for Junior Market for 2020 to be around 24 cents per share, as such, the company would be worth around $3 per share. Others would prefer to use the trailing four quarters earnings. Based on that, the company’s trailing earnings to March would be just 22 cents and the value would be even less than the full year’s numbers suggest. On the above two bases, at $7.52, the last price the stock traded at would be highly overvalued. The stock price jumped from $6 in trading before the results to trade mostly over $8 suggesting others investors are looking beyond the historical earnings and focusing on the future.
For the March quarter, revenues fell 7 percent to $313 million from $337 million in 2020. Importantly the average monthly sales rose 29 percent over the average for all 2020 to $104,522 but fell 7 percent against the 2020 first quarter. Despite the fall in revenues, profit rose 33 percent before gains on sale of fixed assets and loss of fair value of financial investments. A loss of $22 million was incurred in the June quarter last year, with negative 9 cents per share and profit in the September quarter last year was a mere $6.8 million from a 19 percent fall in revenues to just $240 million or $79,855 per month.
The company enjoys a ten-year tax profit break and will be subject to zero taxation until mid-2022 and 50 percent thereafter for five years.
Gross profit margin rose to 54 percent for the quarter, from 49 percent in 2020, as gross profit rose just four percent to $170 million. Administrative and other costs fell six percent to $81 million from $86 million in 2020. Selling and promotion expenses fell 10 percent from $23 million in 2020 to $21 million. Finance costs dipped from $3.3 million to $2.5 million as the company continues to use limited debt financing to grow its business.
The principal activities of the company are the sale and distribution of stationery and office furniture.
Shareholder’s equity stood at $665 million at the end of March 2021 and loans amounts to $163 million, with $36 million earmarked to be repaid to March 2022. Current assets totaled $522 million and current liabilities $140 million. Inventories rose to $245 million from $226 million in 2020 and receivables dropped from $172 million to $124 million representing around a month of sales.
Cash funds and investments amount to $121 million after the company generated cash funds of $69 million before working capital and capital financing needs. ICInsider.com projects earnings of $1 for the financial year to December 2021 and $1.60 for 2022.
The stock last traded at $8.20, with a PE ratio of 8 based on the reported earnings and 5 based on the 2022 projected earnings.
Contributors to this article own shares in the company.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging markets, ICInsider BUY RATED, Jamaica Stock Exchange, junior market, Stationery and Office Supplies

Cost cuts drive up Lasco Distributors profit

June 1, 2021 by IC Insider.com

Profit at Lasco Distributors is 26 percent higher for the year to March 2021 at $909 million, but profit before taxation climbed a much stronger 36 percent to $1.1 billion from $818 million in 2020 as cost reduction and moderate revenue growth of four percent helped with the increase in the bottom-line. Pretax profit in the fourth quarter rose 23 percent to $246 million over $201 million in the 2020 period.
The company enjoyed a ten-year tax profit break and is now subject to full taxation as of October 12, last year.
Gross profit margin came in at 18 percent for the year, down from 19.4 percent in the 2020 fiscal year and the prior two years. Revenues climbed for the fiscal year to $20.3 billion from $19.5 billion in 2020 but fell three percent in the final quarter to $5.06 billion, from $5.195 billion in 2020.
Administrative and other costs fell 10 percent for the year to March to $2.13 billion from $2.37 billion in 2020. Staff cost fell from $1.72 billion to $1.56 billion as the number of workers fell from 532 to 509. Selling and promotion expenses fell from $703 million to $549 million.
Finance cost dipped from $15 million to $5 million as the company continues to pay down loans that stood at $1.05 billion at the end of March 2020 to $820 million at March 2021, with $454 million earmarked to be repaid in 2022 fiscal year. Taxation charged for the year amounts to $207 million, up from $93 million in 2020.

The principal activity of the company is the distribution of the manufactured products of Lasco Manufacturing that includes soy-based products, juice drinks, water and packaging of milk-based products and Pharmaceutical and other products manufactured by third parties.
Shareholder’s equity stood at $6.5 billion at the end of March 2021. Cash funds and investments amount to $2.69 billion after the company generated cash funds of $1.27 billion before working capital and capital financing needs and paying a dividend of $179 million.
Lasco generated earnings per share for the year of 26 cents, up from 21.3 cents in 2020. ICInsider.com projects earnings of 40 cents for the fiscal year to March 2022 and 45 cents for 2023.
The stock last traded at $4, with a PE ratio of 10 based on the reported earnings and 9 based on the 2023 projected earnings. The price target to March 2022 for the stock is $6.

Filed Under: Company News, Company Results Tagged With: Emerging markets, Jamaica Stock Exchange, Jamaican stocks, junior market, Lasco Distributors

ICTOP10 – Guardian a better buy now

May 31, 2021 by IC Insider.com

The average gains projected for the Junior Market fell from 225 percent last week to 218 percent as the prices of a number of the top 10 stocks rose during the past week, but with no new entrant to either Top 10 list. The average projected gains for the Main Market stocks move up from 162 to 169 percent helped in a big way by the fall of Guardian Holdings from $790 last week to $763.

Guardian Holdings hit a low of J$750 on Friday.

The price slippage for Guardian shares below $790 provides investors a better value proposition, with the PE at 8.3 times, rather than 8.6 that the NCB Global offer price for the 2 million shares they are offering to the public.
The markets continue to face resistance this past week, with the Junior Market is trading at the very top of its upward sloping channel while the JSE Main Market sits a few thousand points away and facing turbulence in getting to the peak. With the two Lasco companies releasing results after the market closed on Friday it will be interesting to see what investors do with their prices. If they rise appreciable the resistance is likely to be broken and clear the way to move to a new yearly high in the weeks ahead.
The Junior Market closed the week at 3,329.50, up slightly from 3,324 at the end of the previous week. The JSE All Jamaica Composite Index ended at 454,375.81 on Friday, marginally lower than 454,479.33 at the close of the previous week.
The top three stocks in the Junior Market, remain unchanged for this week, with Elite Diagnostic heading the list, followed by Caribbean Assurance Brokers and Caribbean Producers, with the potential to gain between 255 to 303 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investments and Wisynco, with expected gains of 149 to 371 percent.
This week’s focus: RJR suffered badly from the effects of the curtailment of business in 2020 after showing signs of recovering from the prior years’ slow growth and high cost of operations. In 2020 they moved to deal with the pressure the fallout had and showed marked improvement in the second half of the calendar year. Importantly, there was significant cost cutting with the third quarter showing the effects with vastly improved results.
The impression given in the group’s December quarterly report is that the sharp fall in direct operating, selling and marketing costs were directly related to the fall off in revenues. That of course is only part of the story. The fall in cost has been far greater than the reduction in revenues suggesting that actual cost cutting was effected. ICInsider.com confirmed that the group that made some staff redundant also made changes by discontinuing unprofitable programs and publications. “Regarding cost reductions, some changes in the distribution network and workflows are permanent,” this publication was informed but revenues for some of the newspapers continue to run below pre Covid-19 levels.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Market stocks and 19 times for the Main Market.
The Junior Market with an average PE 12.4 based on ICInsider.com’s 2021-22 earnings, is currently trading below the target, as well as the recent historical average of 17, this represents another 37 percent rise in the market that would equate to a rise of 61 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.4 at just 52 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 7.8, some distance from the 19 the market ended March, suggesting a 17 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 48 percent of the PE of that market and well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share 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 Tagged With: Access Financial, Berger Paints, Caribbean Assurance Brokers, Caribbean Producers, Carreras, Daily Trading, Emerging markets, FESCO, Future Energy Source, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Laco Distributors, Lasco Financial, Lumber Depot, Main Event, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

Lasco Manufacturing 2021 profit jumps 41%

May 30, 2021 by IC Insider.com

Cost cuts and moderate revenue growth drove profit at Lasco Manufacturing 41 percent higher for the year to March this year to $1.33 billion, with the fourth quarter rising 83 percent to $367 million over that of 2020.
Pretax profit jumped a strong 83 percent for the quarter, to $457 million from $249 million in the 2020 March quarter and 46 percent for the 12 months to March, with $1.75 billion up from $1.2 billion in 2020. The profit is subject to full taxation as of October 12, last year.
Gross profit margin came in at 38 percent for the year, up from 37 percent of the 2020 fiscal year. Revenues climbed four percent for the fiscal year, with $6.2 billion but were flat at $2 billion for the fourth quarter.
Administrative and other costs fell 13 percent for the year to March to $1.19 billion from $1.36 billion in 2020, resulting from a fall of $167 million in staff cost from $717 million to $550 million, primarily as the company incurred no share option cost in the year versus $185 million in the prior year. Selling and promotion expenses fell from $291 million to $137 million.
Finance cost dipped from $94 million to $59 million as the company continues to pay down loans that stood at $1.05 billion at the end of March 2020 to $820 million, with $454 million earmarked to be repaid in the 2022 fiscal year. Taxation consumed $376 million of profits, up from $217 million in 2020.
The company’s principal activities remain, the manufacture of soy-based products, juice drinks, water, and packaging of milk-based products.

Lasco Manufacturing products.

Shareholder’s equity stood at $7.9 billion at the end of March 2021. Cash funds and investments amount to $2.35 billion after the company generated $1.6 billion in cash inflows, before working capital and capital financing needs and paying a dividend of $251 million.
Lasco generated earnings per share for the year of 33.2 cents, up from 23.67 cents in 2020. ICInsider.com projects earnings of 40 cents for the fiscal year to March 2022.
The stock last traded on the Junior Market of the Jamaica Stock Exchange at $5.50, with a PE ratio of 16.6 based on the reported earnings and 13.8 based on the 2022 projected earnings. The price target for the stock, to March 2022, is $7-8.

Filed Under: Company News, Company Results Tagged With: Emerging markets, Jamaica Stock Exchange, junior market, Lasco Manufacturing

Profit jumps 77% at Honey Bun

May 25, 2021 by IC Insider.com

Net profits surged 77 percent to $77 million at Honey Bun in the quarter to March, this year from $43 million earned in the 2020 March quarter from a 16 percent rise in revenues to $527 million from $453 million in 2020.
For the six months to March, profit after tax grew 20.7 percent to $112 million from $92 million in 2020, with revenues coming in 13 percent ahead of the 2020 income of $876 million to close out the March 2020 half year at $989 million.
“The improvement was attributable to a number of factors, including the introduction of new products such as the Hot Dog roll and Cinnamon loaf’, chairman Herbert Chong and Michelle Chong, Chief Executive Officer, stated in their jointly signed commentary on the results.
Gross profit for the quarter grew 19 percent to $254 million over the $214 million realized in the prior year, whilst gross profit margin rose to 48 percent from 47.3 percent in the prior year.
“Easter bun sales performed well, in particular, Easter bun exports grew 48 percent over prior year,” the directors reported.
For the half year, gross profit came in at $472 million, 11 percent more than the prior year’s $426 million. Gross profit margin slipped to 47.7 percent compared to 48.6 percent in the prior year. “The decline was due to increased cost of raw materials and other manufacturing inputs that occurred mainly in the first quarter,” the directors stated.
Administrative cost rose 15 percent to $109 million in the quarter from $95 million in 2020 and climbed 18 percent to $216 million for the half year from $184 million. Selling and distribution costs slipped to $59 million from $63 million in the 2021 quarter versus that of 2020 and, for the half year, ended at $128 million for 2021 from 129 million in 2020.

Honey Bun historical earnings with projections for 2021.

“The company invested $69 million in capital expenditure in the period, mainly to upgrade vehicle fleet to service new routes, and to acquire additional manufacturing equipment,” the directors reported.
Fixed assets net of depreciation of $36 million for the half year amounts to $588 million. The company also has investments of $64 million.
Current assets climbed from $474 million at the end of March 2020 to $506 million, including cash and equivalent of $347 million and receivables of $81 million, compared to $119 million at the end of March 2020. Inventories declined from $94 million to $75 million at the end of the half year. Current liabilities stood at $181 million compared to $203 million at the 2020 half year and include trade and other payables of $161 million, down from $180 million at the end of March 2020. The movement in the working capital resulted in net current assets ending at $326 million, 20 percent higher than March 2020.
Shareholders’ equity ended at $939 million that compares with borrowed funds of just $25 million.
The company generated net cash of $168 million for the six months and paid out $42 million for dividends and, after spending to acquire fixed assets and investments, ended up with additional funds of $50 million.
Earnings per share for the quarter was 16 cents and is up from 9 cents in 2020, with the half year ending at 24 cents compared to 20 cents in 2020. ICInsider.com projects earnings of 50 cents per share for the current year giving it a PE of 13.5, slightly above the market average currently of 12.5, but less than others that are priced around 17. The stock traded at $6.75 on Friday on the Junior Market of the Jamaica Stock Exchange.

Filed Under: Company News, Company Results Tagged With: Emerging markets, Emerging Stock, Honey Bun, Jamaica Stock Exchange, Jamaican stocks, junior market

Guardian Holdings in ICTOP10

May 23, 2021 by IC Insider.com

Guardian Holdings moved into the IC TOP 10 following the release of a prospectus from NCB Global that is offering 2 million shares to the public at $790 each, with the stock price falling immediately, after by more than $110, to be in line with the public offer price, valuing the company’s shares at 8 times 2021 projected earnings.

Guardian Holdings now in ICInsider.com’s TOP10.

Elsewhere, with the passage of earnings season, the markets have lost most of their recent firepower to drive prices forward at a time when the Junior Market is trading at the very top of its upward sloping channel while the JSE Main Market is a few thousand points away and in facing much turbulence in attempting to break through the peak.
At the start of the past week, the Junior Market pulled back from last Friday’s close, to sit just above the 3,300 level but climbed on each succeeding day of the week, but pulled back slightly on Friday to close at 3,324 points just a few points higher than at the end of the previous week. At the same time, the JSE Main Market made attempts to come close to the 460,000 mark of the All Jamaica Composite Index but was rebuffed on each occasion and ended the week at 454,479.33, up from 451,713.66 at the close of the previous week.
The Junior Market has to decidedly break through the upper limit of the trading channel, to free it to move on to the next area of resistance, just over 4,000 mark, but the Main Market has room to run for a few thousand points before it hits the channel top at 460,000 points.
There is a shakeup of the top three stocks in the Junior Market, this week. Elite Diagnostic heads the list, followed by Caribbean Assurance Brokers and Caribbean Producers, with potential to gain between 247 to 300 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by Wisynco and PanJam Investments, with expected gains of 151 to 344 percent.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months or so.
The Junior Market with an average PE 12.5 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17, this represents another 36 percent rise in the market that would equate to a rise of 60 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.2 at just 50 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.5, some distance from the 19 the market ended March, suggesting a 15 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.9 or 48 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 225 percent and 162 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.