-
Benso Oil Palm profit jumps on higher commodity prices
The revenue of Benso Oil Palm Plantation (BOPP) rose by 14.1%y/y to GHS89.67 million for the first nine months of 2020 (9M-2020), driven by 37.%y/y rise in the price of Crude Palm Oil to USD798.12 per MT in September 2020. The price Palm Kernel Oil also increased by 25.1%y/y to USD767.14 per MT in September, according to data from the World Bank. The company’s margins were also buoyed...
Read more -
Why Ecobank’s earnings improved despite the pandemic
Ecobank Ghana maintained a strong revenue growth of 18.5%y/y (versus 19.5%y/y in 9M-2019) to GHS1.52 billion in 9M-2020 despite the impact of the coronavirus pandemic on banking activity. Revenue was mainly driven by a 14.5%y/y growth in interest income to GHS1.16 billion on back of a strong growth (+41.3%y/y) in interest bearing non-trading assets to GHS4.13 billion. However, non-interest income contracted on the back of lower fees and commissions as... Read more
-
Unilever Ghana needs more time for earnings to rebound
The contraction in Ghana’s GDP by 3.2%y/y in the second quarter of 2020 on the back of the impact of the covid-19 pandemic on economic activity translated into a 6.7%y/y contraction in the revenue of Unilever Ghana to GHS319.82 million in 9M-2020 from GHS342.90 million in 9M-2019. However, like other companies in the consumer goods space, we expect the rebound in consumer confidence to boost the company’s sales in the...
Read more -
Fan Milk’s earnings deteriorate on revenue contraction
Fan Milk’s revenue dropped by 19.1%y/y to GHS267.12 million in 9M-2020 on the back of the impact of the coronavirus pandemic, which significantly limited the movement of people including the company’s sales boys who use bicycles to penetrate communities and local markets. However, since the lockdown in Q2, we have seen rising consumer confidence that could help the company to make up for some of the lost revenue in the...
Read more -
Why Cal Bank posted lower earnings growth in Q3-2020
CAL Bank’s gross revenue grew by 11.7%y/y (vs. 15.4%y/y in 9M-2019) to GHS810.62 million in 9M-2020 despite contraction in fees and commissions arising from slowdown in banking activity during the pandemic and waiver of some fees as part of covid-19 relief package to customers. Revenue was driven by a 7.4%y/y rise in interest income on the back of 8.7%y/y expansion in the loan book to GHS2.69 billion in 9M-2020. Furthermore,...
Read more -
GGBL posts earnings recovery on improving consumer confidence
Guinness Ghana Breweries Limited (GGBL) has announced 31.7%y/y rise in topline to GHS207.29 million for the first quarter (July-September 2020) of its 2021 financial year. Consumer confidence, which hit a low during the coronavirus lockdown in April, has been recovering the last four months according data from the central bank. This has been a huge boost to the fortunes of consumer goods companies such as Guinness Ghana. GGBL’s revenue performance...
Read more
-
MPC maintains policy rate at 14.5% as economy recovers
The MPC of the BoG held the benchmark policy rate at 14.50% in line with our expectations at its Nov-2020 meeting. Macroeconomic conditions have largely improved since the last meeting. Inflation continues to ease towards the medium-term target band while economic growth has shown a faster than expected path to recovery. The exchange rate has also been broadly stable as FX reserves have been robust. Headline inflation continues on a...
Read more -
Why consistent drop in inflation could drive down yields
Consumer inflation dropped by 30bps to 10.1% in October 2020 from 10.4% in the previous month, largely driven by a reduction in non-food inflation, which constitutes 45.3% of the inflation basket. The consistent drop in inflation towards the Bank of Ghana’s (BoG) target band of 6-10% could create a window of opportunity for the central bank to drive down treasury yields in the coming weeks, especially given that demand has...
Read more -
Headline inflation drops for second consecutive month to 10.4%
Ghana’s headline inflation has dropped for the second consecutive month to 10.4% in September 2020 from 10.5% in the previous month on lower food prices. Food prices have started to drop following the start of the harvest season in the country. Although inflation is inching towards the central bank’s upper band target of 10%, we think that there could be inflationary risks in the last quarter of the year on...
Read more -
A tough 2018 for financial markets, but pockets of opportunities could drive recovery in 2H 2019
2018 was a challenging year for Ghanaian financial markets as the spillover effects of a local banking sector crisis and unfavorable global events (trade tensions, global inflation, and Fed rate hikes) combined to create adverse outcomes for the stock market, currencies and mutual funds.
Read more -
Ghana – Central bank set to cut benchmark policy rate tomorrow
The Monetary Policy Committee of the Bank of Ghana is set to resume its policy easing cycle tomorrow after putting it on hold in the last two MPC meetings. We believe that the macroeconomic variables (economic growth and inflation) that influence the decision making of the MPC have improved since
Read more -
Doobia Pre MPC Note: Status Quo to be maintained on upside risks to inflation
The central bank's Monetary Policy Committee (MPC) met last week to review developments in the economy since the last MPC meeting to enable the MPC appropriately position the benchmark policy rate going forward. Ghanaian authorities have been
Read more
-
TOTAL’s dividend would be a welcome relief to shareholders
Total Petroleum has announced an interim dividend of GHS0.0694 per share for the 2020 financial year ending December 31, 2020. And based on the company’s corporate practices in the last decade, it is likely to declare a final dividend in respect of the 2020 financial year later in 2021. The interim dividend would result in a dividend yield of 3.0% given the company’s prevailing market valuation of GHS2.35 per...
Read more -
GGBL to pay dividend this year despite earnings contraction
GGBL has declared a dividend for the third consecutive year in respect of the 2020 financial year. However, the dividend per share of GHS0.0138 is 52.9% lower than the dividend of GHS0.0293 declared in the previous year. The lower dividend was driven by a contraction in earnings by 32.6%y/y to GHS12.16 million in 2020 from GHS18.05 million in 2019. The company is expected to pay a total dividend of...
Read more -
EGL announces 20.0%y/y rise in dividend to GHS0.054 per share
EGL has announced 20.0%y/y rise in dividend to GHS0.054 per share for the 2019 financial year on the back of 53.6%y/y rise in net profit attributable to shareholders to GHS79.63 million in 2019 from GHS51.86 million in the previous year. This
Read more -
CAL Bank's dividend payout ratio rises to a 7-year high of 32.2%
CAL Bank is set to pay a dividend for the second consecutive year. The bank has proposed a dividend of GHS0.089 per share for the 2019 financial year, and this reflects 85.4%y/y growth over the dividend of GHS0.048 per share paid in the previo
Read more -
Society Generale announces 125.0%y/y rise in dividend for 2019
Society Generale Ghana (SOGEGH) has announced a 125.0%y/y growth in dividend per share to GHS0.09 in respect of the 2019 financial year from GHS0.04 in the previous year. The significant growth in dividend was driven by 107.4%y/y rise in net e Read more
-
MTN Ghana to pay a final dividend of GHS 0.04 per share
MTN Ghana has announced a final dividend of GHS 0.04 per share for the 2019 financial year. Having paid an interim dividend of GHS 0.02 per share earlier, this brings the total dividend in respect of the 2019 financial year to GHS 0.06 per sha Read more
-
CAL Brokers initiates coverage of GGBL with a BUY recommendation
We initiate coverage of Guinness Ghana Brewery Limited (GSE:GGBL) With a BUY recommendation based on a price target of GHS2.70 per share, with reference from the current market price of GHS2.20, translating into capital appreciation of 22.73%.
Read more -
CAL Brokers continues coverage of TOTAL with a BUY recommendation, projects 56% return
The equity market return has been sluggish on a YTD basis, however, a number of opportunities have started emerging that offer investors the chance to make significant capital gains on the market. CalBrokers research identified that TOTAL's sh
Read more -
Bullion Securities initiates coverage of Republic Bank with a BUY recommendation
Republic Bank Ghana retraced its step into profitability by posting PAT growth of 95.64% Y/O/Y following two consecutive years of making losses. The turnaround in FY 2017 was mainly due to non-impairments on financial assets and loan recoverie Read more
-
CAL Brokers maintains BUY recommendation on Unilever
We maintain a BUY recommendation on Unilever Ghana at a revised price target of GHS 22.79p from the current market price of GHS17.78, after assessment of their third quarter earnings report. Our valuation is derived from forward PE, PS and PB
Read more -
Why CAL Brokers initiated coverage of GOIL with a BUY recommendation
CAL Brokers has initiated coverage of Ghana Oil Limited (GOIL:GSE) with a BUY recommendation based on a price target of GHS 3.20p, from the current market price of GHS 2.60, which reflects potential price appreciation of 22.68%. In addition, CAL Brokers expects dividend yield
Read more -
CAL Brokers Initiates coverage of Fan Milk with a SELL recommendation
CAL Brokers has initiated coverage of Fan Milk Limited (GSE:FML) with a SELL recommendation based on a price target of GHS 12.61p which represent a do
Read more
Macro-Watch
MPC maintains policy rate at 14.5% as economy recovers
The MPC of the BoG held the benchmark policy rate at 14.50% in line with our expectations at its Nov-2020 meeting. Macroeconomic conditions have largely improved since the last meeting. Inflation continues to ease towards the medium-term target band while economic growth has shown a faster than expected path to recovery. The exchange rate has also been broadly stable as FX reserves have been robust. Headline inflation continues on a...
Macro-Watch MPC maintains policy rate at 14.5% as economy recovers
Dividend Watch TOTAL’s dividend would be a welcome relief to shareholders
Earnings Update Benso Oil Palm profit jumps on higher commodity prices
Stock Ideas CAL Brokers initiates coverage of GGBL with a BUY recommendation