Pan Jamaican Investment Trust is one undervalued company that not many investors seem to be paying much attention at even as many seem to be piling into a few sexy overvalued ones, ignoring the gains being make in the bottom-line of the company. Net profit attributable to owners of Pan Jamaican Investment Trust increased 24 percent for the June 2015 quarter to $853 million, from $688 million in the 2014, second quarter.
Pan Jam generated net profit attributable to owners for the six months to June with an increase of 28 percent to $1.4 billion from $1.09 billion for 2014. Profits resulted in earnings per stock unit of $4.07 for the 2015, second quarter and $6.65 for the six months. Earnings for the year should be in the range of $15-17 per share. The stock traded last at $61.71 while the book value is at $105 per share.
Investment income of $158 million in the second quarter is 28 percent higher than last year’s comparable quarter’s income of $123 million. Year to date, investment income declined 25 percent from the 2014 period to $193 million. Investment income fell due a number of factors, “principally as a result of a profitable conclusion to a real-estate related investment in Canada, which more than offset lower foreign exchange gains of $33 million, versus $42 million last year, dividends and interest of $35 million, versus $45 million last year and trading gains of $26 million, versus $32 million last year. Year to date investment income of $193 million is 25 percent behind last year due principally to reduced foreign exchange gains of $31 million, versus $83 million last year, and trading gains of $12 million versus $37 million last year” the company said in a release accompanying the financials.
Share of results of associated and joint venture companies for the quarter, rose 32 percent to $791 million and grew by 35 percent for the six months period to $1,234 million. The results of Sagicor increased by $175 million or 31 percent for the quarter and by $289 million or 33 percent for the half year. The results for Sagicor Group have some non-recurring income that arose from loan loss recovery.
Operating expenses were held fairly tightly with a 12 percent rise in the quarter to $305 million and for the half year only 5 percent to $565 million. Finance costs declined compared to last year, by $25 million to $106 million for the quarter and $74 million to $200 million for the 6 months, resulting from reduced foreign exchange losses on the International Finance Corporation loan and reduced interest on a smaller average principal balance outstanding for the period compared to 2014.
[…] hands but the price rose fell $1 to close at $40, 138 Student Living traded 6,000 shares at $5.80, Pan Jamaican Investments traded 22,256 units at $95. Sagicor Group rose 4 cents with 584,105 shares changing hands at $23.55, […]