Interim Results for Quarter ended Sep 30th 18-Nov-2016

Transcription

1 MCB Lending to non-banks barely grew. NII by steady NIM of ~5.5%. NFCI to Rs787M (-5%) due to lower trade fin. fees while other inc. 38% mainly on FX. Lower exp. on par CIR of ~43%, which drove EBIT to Rs2.1bn (+5%). SBM Lending stagnant but depo to Rs114bn (+19%) YoY resulting in LDR to 62%. NIM to 7.2% but NII (-0.4%). NFCI to Rs265M (+4%) & Oth inc to Rs323 (+37%). EBIT to Rs865M (-18%) due to dep charges rel to IT which led to CIR of 48%. ABCB Loan book by 5% and deposits by 6%, which resulted in a steady LDR of ~41%. Almost 30% (down from 36% in Jun) of its assets is comprised of Govt securities. Although NIM by 100bps, NII surged to Rs80M (+19%), which drove its CIR from 43% to 41%. Financials FINC MEI MUA ,349 A 5% growth in asset financing led to a 13% bump in operating profits coupled with improved results at associates, namely MEDL and CAUD Although net premiums remained similar, a drop in claims appears to have boosted surplus to Rs19M (+60%) Casualty claims ratio deteriorated substantially in Q3-16 to register losses, which was only in part mitigated by a 50% jump in Property results. SWAN Casualty premium grew 16% but surplus was affected by a higher claims ratio. Property premiums shrank by 28% but its surplus fell by only 5%. SWANL Net premiums grew 8% to Rs940M in Q3-16. Invmt income boosted by the booking of "non-realised profits" in its stake in IBL post merger. CMBI [$] P to L Maiden Q3 reporting. Expenses outweighed income from investments. LUX Results affected by closure hotel in Maldives for refurb. Despite occupancies in Mauritius, margins were in part affected by GBP's post Brexit plunge. SUN Turnover exceeded Rs1bn (+31%) boosted by full ops. of Four Seasons & Touessrok. However, op losses due to dep., fin. Costs as well as costs relating to Kanuhura's renovation & refurbishment at La Pirogue. CHSL Rev/Room stable in Mtius, but marg. affected by closure of BMP for refurb. A poorer perf. in Mdves due to slowing arrival growth also hurt results. Travel & Leisure HTLS TPL SCT MOLI Please see note above for CHSL ,163 Revenue increased by 13% boosted by both improved occupancies and room rates. Operating margins doubled from 6% to 12% Turnover grew by a mere 3% to Rs111M, however, op. losses for the low season quarter almost halved coupled with lower fin. costs Despite a 4% growth in revenue, operating losses stood higher by Rs2M at Rs5M. MK Boosted by lower fuel prices, improved load factor and higher number of passengers carried, MK's operating margins soared from 10% to 15%. LOTO Sales slipped to Rs348M (-3%), resulting in net income. However, absence of one-off costs relating to the ban on cards and ads boosted PAT. ASL Revenue growth driven by Football, but margins hurt by higher Government Taxes. 1

2 Multi-Sector Conglomerates/Hldgs TERRA ALTEO OMNI MEDL IBL ROGE HML GAMMA EUDC UTIN EPS 2x boosted by Sugar: Mtius had better crop, TPC improved & Transmara capacity + Elec. offtake. Cyclical Prop. dev. fared worse P to L Sugar cluster hurt by refined production & packing costs dragged earnings down. Energy profits grew 14% & Holiday Inn's losses decreased Sugar Rev. 2x op. profits (Q3-15 affected by late harvest). sales of land also boosted its PAT. Leisure and Edu. clusters were almost on par Q3 PAT essentially boosted by improved sugar operations and "other" segment boosted by Land sales and Terra Rock. Maiden reporting post amalgamation. Comparatives not available. Related to LUX, ALTEO, UBP, PBL, MEI & BEEP ,720 Gains in Logistics offset by dip in hospitality (NMHL restructure). Gains in Fintech and Property (mainly ASCE) offset by expenditure in corp. offices L to P In spite of turnover in Tech & Retail, profits while results fr assocs due poor perf of Total & Rehm Grinaker. Also see MCFI & CMPL. All segments returned to profits & largest swing in contracting coupled with the re-categorisation of its cement biz from JV to integral part of biz Marginal gains across all clusters added up to boost EPS. Largest growth stemmed from Tourism but remained loss making in the low season Income in Q1-FY17 boosted by dividend income which led to operating profits, while portfolio FV loss incurred on GAZ's price slump. CIEL Finance cluster revenue grew by 6% but EBIT flat. Related to ALTEO, SUN, CTL and MASC. MDIT Income from investments dipped to Rs6.5M (-34%), however, FV gains on listed portfolio in-line with generally better SEM perf. boosted EPS. POLI Income plunged to Rs15M (-78%) resulting in a corresponding slide in EPS. Investment Holdings NITL PAD BMHL ENLL ENL(P) Income from investments decreased substantially, however a corresponding fall in expenses resulted in a slight PAT dip ,296 Income from shares increased by Rs12M which trickled straight down to PAT. Turnaround essentially driven by associate MEDL and subsidiary CAUD Excluding the perplexing "accountant treatment" of IBL's amalgamation, BMHL was affected by poorer performance from associates P to L Please see note for ROGE and ASCE. Income from sugarcane farming improved in-line with other sugar farmers and conglomerates P to L Related to ENLL, ROGE, ASCE, ENLC and NMHL. BEEP Turnover slid 33% at constant margins due to reduced demand for building materials on the east coast + accentuated losses at hotels. ASTO [$] 0.08 N/A Profits essentially derived from FV gains on investments. DALE Costs increased on account of new investment strategy and seeking for a secondary listing on JSE. 2

3 INNO Revenue up 2% but op. margins shrank from 5.3% to 4.6% & fin costs by 13M. Poultry demand hurt by salmonella scare afflicting small breeders. MOR In spite turnover stable, edible oil margins improved from 2.6% to 4% & significantly higher profits were generated from its imported food segment. PBL Local sales grew to Rs1.1bn (+6%) but marg. shrank fr. 9% to 7% due to raw mat. costs. Reunion inc. jumped 1.5x boosted by acquisition of Edena. PHIN Please see note for PBL. Consumer Staples QBL UNSE CSE LFL LMLC MIL L to P Turnaround noted in both beverages and advertising businesses. Revenue improved by Rs7M but op. profits by more than twice the quantum Reduced losses stem from improved performance of its agro (mainly sugarcane) segment coupled with improved performance of SCT. A Rs20M bump in agriculture (mainly sugarcane) revenue translated to Rs18M of op. profits against Rs3M In Q x jump in other income - we believe from sale of land - to Rs20M outweighed the halving of results from associates Revenue to Rs636M (+9%) coupled with better op. margins & lower fin. costs. Nevertheless, exports affected by outbreak of foot-and-mouth Turnover fell 21% due to lower retail prices, however, op. margins improved from 6% to 7%. The lower operating profits affected EPS Although turnover was relatively stable at Rs96M, operating profits halved to Rs5M due to fierce competition. SAIL L to P Revenue up to Rs141M (+6%) boosted by new strategies led to Rs9M gain in op.profits. MCOS Revenue shrank to Rs13M (-14%) which translated to a Rs1M drop in op. profits. GOLI [$] L to P Maiden reporting under new structure following purchase of homes for elderly & GOLI's nutritional supplements line through equity issue. CMPL Supermarket grew sales revenue to Rs212M (+4%) and improved CIR from 111% to 109%. Consumer Discretionary VEM CTL ENLC ABC RHT UBS ACC MSIL A 2.7x increase in revenue led to a 3x increase in op. profits % Revenue bump & Op. Margin improved from 41% to 47%. Turnover fell in-line with lower oil prices. Fall in regulated segment profits offset by gains in non-reg. segment and smaller unallocated expenses. Woven topline (+13%) and EBITDA margins improved to 9% from 7%; however Knits cluster experienced a 16% drop in sales revenue afflicted by reduced orders in the wake of Brexit but also by re-org. costs in Malagasy and Indian ops. Boosted by Peugeot's biz. in Auto + acquisition in Trading, however, Industry losses offset gains due to Cogir perf. & orders secured by Plastinax % dip in car sales revenue led to an 18% drop in op. profit which coupled with higher fin. costs depressed profits Investment income grew to Rs16M (+17%) and profits were essentially boosted by reduced expenditure in its investment cluster P to L 8% Revenue bump to Rs201M undone by CIR of 110% from 97% & op. losses of Rs20M, which was offset by 3x increase in other income. 3

4 ASCE In spite of part closure & works at Phoenix, Revenue up slightly to Rs245M & Op. Profits by Rs10M + Lower fin. Charges helped boost EPS. BLFE Gains in property dev. following delivery of Phase 2 offset lower returns from yielding assets + accentuated losses at hotels and higher overheads. CAUD ,381 Improved occupancy boosted rental to Rs64M (+25%) which resulted in 2.2x increase in operating profits. Security also fared better. Property CIMO NOVUS Rental income improved to Rs5M (+7%) due to improved rates and tenancy coupled with improved op. margins of 54% against 51% in Q EPS boosted by improved margins due to lower administrative & finance expenditure. Rental income held steady. APL Maiden reporting to complete Q3 under current structure. On target to achieve yield & next dividend expected to be declared in Feb-17. UTDL Rs1M drop in income offset by drop in financial costs. EPS hurt by higher operating expenses. ROCK [$] Rental income gain outweighed by drop in dividend income. Profits mainly boosted by FV gains on listed securities and lower finance costs. SAREF [$] L to P Boosted by increased income and FV Gains on investments. Some properties continued to face high vacancy rates. GBL1 Property ALPL [ ] DELP [$] MLND [ ] TADV [$] ,005 PAT boosted by a 3.5x increase in rental income following additional acquisitions PAT boosted by income from associates, lower finance charges, and a tax credit P to L Maiden reporting quarter. MLND yet to invest in real estate as it is awaiting for a secondary listing on the JSE's AltX ,798 Boosted by Dividend income to the tune of $693k and FV Gains on investments. STBR [$] UPL [ ] P to L Maiden reporting quarter. Only administrative expenses incurred in Q P to L Maiden reporting quarter. Capital raised on SEM & JSE currently placed in short-term term-deposits until key moment for investment. 4

5 UBP Core bulding material margins shrank from 17% to 15% which led to lower PAT, however attributable profit improved. MCFI L to P MCFI maintained local and regional momentum. A 55% surge in revenue resulted in a turnaround in operating profits to Rs8M from a Rs9M Loss. Materials CHEM BYCH GAZ Lower sales resulted in a lower topline income at Rs70M (-20%), opperating profits remained sticky at under Rs3M. PAT boosted by FX income Stagnant turnover resulted in another disappointing break-even quarter Despite a lower revenue of Rs28M (-14%) due to lower medical gas prices (fierce competition), cost cutting boosted margins from 7% to 15%. PIM A 20% drop in turnover from slowdown in local demand resulted in the halving of operating profits. PCCL Revenue climbed to Rs36M (+11%) which translated to a Rs1.5M bump in operating profits. Ind MFD FORT Higher revenue (+10%) coupled wth improved operating margins of 30% v/s 28% in Q3-15 & lower finance charges led to EPS growth Revenue jumped to Rs297M (+58%) which led to operating profits againts operating losses of Rs20M in Q3-15. Others SHUM [$] MASC BTEL Swing due to reception of FX gains in Q3-16 against losses in Q3-15 incurred for the Junior Mining and Coal Energy company Although turnover grew by 10%, operating profits remained very sticky at Rs25M Although susbcription income grew QoQ, BTEL shed subscribers compared to Q3-15. Cost containment measures are being implemented. Key Information Authors Trading Interim results for the designated quarter (three months). Attributable earnings are adjusted for non-recurrent and exceptional items. Bhavik Desai Prerna Cheekhooree Alexis Corson For investments or divestments in Melvyn Chung Adlette Rioux Head of Research Research Analyst Investment Analyst yielding securities, please liaise with : or Head of Trading Trader Disclaimer AXYS Stockbroking Ltd has issued this document without consideration of the investment objectives, financial situation or particular needs of any individual recipient. AXYS Stockbroking Ltd will not be under any liability for loss or damage of any kind whatsoever arising in connection with the contents of this document. This document is not, and should not be construed as, an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. This document has been based on information obtained from sources believed to be reliable but which have not been independently verified. AXYS Stockbroking Ltd makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. AXYS Stockbroking Ltd is a member of the Stock Exchange of Mauritius and is licensed by the Financial Services Commission. 5