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Nigerian stocks: Top 3 gainers for the month of July

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The Nigerian equities market ended the month of July positive as the All-Share Index (ASI) gained 1.71% for the month starting at 37,898.56 basis points to ending at 38,547.08 basis points. The market capitalization also grew in similar fashion from ₦19.8 trillion at the beginning of the month, ending the month above the ₦20 trillion mark, representing a 1.66% gain.

These gains would not have been possible without stellar stock price performances from these top gainers, which gave the market an edge. These stocks include:

Cutix (CUTIX)

Cutix operates in the industrial goods sector and it deals in the production and manufacturing of quality wire & cable products and services. The company is one of the biggest manufacturer and supplier of cables in Nigeria. It produces insulated power cables, PVC insulated power cables, polyester aluminium enamelled wire, speaker wire and cable, bare aluminium strand wire and cable, and irrigation cable.

For the month of July, the company’s share price grew by 71.07%, from ₦2.80 at the beginning of the month to ₦4.79. A major reason for the recent appreciation in price is its financial performance. On Friday, July 30, 2021, the company released its full-year 2021 financial highlights as the company’s end of year is on the 30th of April as opposed to the regular 31st of December.

The results revealed outstanding growth in top-line items on the income statement. The company generated a revenue of approximately ₦6.7 billion which represents a 34.31% growth compared to the second quarter of 2020. Ultimately, Cutix Profit After Tax (PAT), stood at ₦594 million, representing a 60% growth. Notably, on the company’s balance sheet, the total asset of the company grew significantly. This line item grew by 32% from ₦3.6 billion to ₦4.8 billion.

The company has shares outstanding of 1,761,322,026 units and a total market capitalization of ₦8,436,732,504.54, using the current market price, as of Friday’s close, of ₦4.79. According to Bloomberg, the company’s P/E ratio stands at 17.11, Earnings Per Share at 0.28 and dividend yield at 3.13%.

Its share price has grown by 108.26% Year-to-Date (YtD) and the company has proposed to make a dividend payment of ₦0.15. Although the company did not pay dividend last year due to poor financial performances as a result of the COVID-19 pandemic, its proposed dividend this year represents a 15.39% growth from its 2019 dividend of ₦0.13. The company have never paid an interim dividend.

Oando (OANDO)

Oando Plc is a Nigerian multinational energy company operating in upstream, midstream and downstream sectors. Oando is Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange. The company is also involved in oil exploration.

For the month of July, the company’s share price grew by 62.46%, from ₦3.01 at the beginning of the month to ₦4.89 at the end of the month. It is worth noting that the company has not been releasing its financial statements as a result of an indefinite suspension of the Company’s 2018 Annual General Meeting (AGM) due to a lawsuit between the company, Mr. Jubril Adewale Tinubu and the Nigerian Stock Exchange.

The company has shares outstanding of 12,431,412,481 units and a total market capitalization of ₦60,789,607,032.09, using the current market price, as of Friday’s close, of ₦4.89. According to Bloomberg, the company’s P/E ratio stands at 2.11 and Earnings Per Share at 2.32. Its share price has grown by 32.16% Year-to-Date (YtD) as of the time of writing this report.

FTN Cocoa (FTNCOCOA)

FTN Cocoa processors Plc was formerly registered as Fantastic Traders Nigeria Limited, a Limited Liability Company which was incorporated in 1991. It is an agro-based business and its main revenue source is the processing of cocoa.

For the month of July, the company’s share price grew by 45.45%, from ₦0.33 at the beginning of the month to ₦0.48. On Friday, the company released its second-quarter financial results. The results revealed a significant decline in top-line items on the income statement. The company generated a revenue of approximately ₦127 million which represents a 41.54% decline compared to the second quarter of 2020. Ultimately, the Loss After Tax (LAT), stood at ₦690 million, representing a 265% growth compared to the second quarter of 2020. This increase is attributable to increases in finance costs.

The company has shares outstanding of 2,200,000,000 units and a total market capitalization of ₦1,056,000,000, using the current market price, as of Friday’s close, of ₦0.48. According to Bloomberg, the company’s Earnings Per Share currently stands at -0.30. Its share price is down 27.27% Year-to-Date (YtD).

Other stocks with significant appreciation include:

TOTAL 40.14%

UPDC 39.53%

UAC-PROP 33.72%

On the decliners side, we have Linkage Assurance losing 34.78% leading the charge. This is followed by PHARMDEKO and UPL losing 18.66% and 14.37% respectively.

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