NSE WEEKLY MARKET STATISTICS & F

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					                      NSE WEEKLY MARKET
                    STATISTICS & FORECASTS
                                     50(2010)
                                WEEK 50(2010)


                       FOR THE WEEK ENDED DECEMBER 17TH 2010




December 17, 2010              E-mail: research@sterlingib.com   1
                                                          NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                          EPS
                                    %∆      Shares                        Mkt.       Trailing   Year     Trailing Price/Book          Historical   Div.    Projected†                                    Investment Comment(s)
Company         P.V   T.S   WAP*    Price   Traded       Shares Issued Cap.(KshM)      EPS       End      Prd       Value      DPS       PE        Yield      PE
                                                                                        MAIN INVESTMENT MARKET SEGMENT (MIMS)
                                                                                                                   Agriculturals

                                                                                                                                                                        Posted a 254.8% increase in 1H 2010 pre-tax profit from Ksh 54.82 Mn to Ksh 194.50 Mn.
                                                                                                                                                                        Sales grew by 16.31% to Ksh 808.3 Mn. Management attributed the improved profit over
                                                                                                                                                                        the period to satisfactory returns from its tea operations coupled with a 99.2% decline in
                                                                                                          10.55                                                         finance costs and a weaker Kenya shilling.
Kakuzi          5/-         80.00   2.56%       1,900        19,599,999   1,568.00    17.34     31-Dec   Months      1.24      2.50      4.61      3.13%      9.48

                                                                                                                                                                        Latest FY09 results show 11% decline in the profit after tax level. Import earnings to
                                                                                                                                                                        determine revenue growth. Banking on firm prices of fibre and favourable forex rates to
                                                                                                                                                                        help shore-up its earnings even as it warned that its full-year profit for 2010 is likely to
                                                                                                          13.55
                                                                                                                                                                        drop by more than a quarter.
Rea Vipingo     5/-   cd    15.50   0.00%     23,900         60,000,000    930.00      2.48     30-Sep   Months      0.95      0.50      6.25      3.23%      4.43


                                                                                                                                                                        Reported an 82% growth in pretax profit for the year ended September 30th to Ksh 1.38
                                                                                                                                                                        billion. Revenues increased by 5.3% to Ksh 2.9 billion from Ksh 2.2 billion in the previous
                                                                                                                                                                        period buoyed by strong international tea and coffee prices and more favorable
                                                                                                                                                                        exchange rates. The group’s diversification to value added activity continued to bear
                                                                                                                                                                        fruits with positive results from the coffee mill and Savanna Coffee Lounges. Net profit
                                                                                                                                                                        increased by 86% to 0.86 billion. EPS rose to Ksh 4.30 from Ksh 2.30 last year. The
                                                                                                                                                                        directors will in the forth coming AGM recommend a final dividend of Ksh 0.30 per share
                                                                                                          1.55                                                          to members in the register by close of business on 16th Feb 20.
Sasini          1/-   cd    13.00   0.00%    197,600        228,055,500   2,964.72     4.30     30-Sep   Months      0.52      0.40      3.02      3.08%      3.02
                                                                                                           Automobiles & Components
                                                                                                                                                                        Reported 40.3 percent growth in its first half pre tax profit which was attributed to the
                                                                                                                                                                        recovery of the economy. The company expects a similar performance in the second half
                                                                                                          10.55
                                                                                                                                                                        of the financial year.
Car & General   5/-   0     47.00   0.00%            -       22,279,616   1,047.14     8.8      30-Sep   Months      0.80      0.67      5.34      1.43%      3.93

                                                                                                                                                                        Introduced the Jaguar XF model in the Kenyan market. The new model will go for Ksh 8.5
                                                                                                                                                                        million, inclusive of tax and is targeted at the executive car market. Buyers will have a
                                                                                                                                                                        choice between a three litre V6 turbo diesel, a five-litre V8 petrol engine and a super
                                                                                                                                                                        charged version of five-litre V8. Decline in profitability attributable to increases in
                                                                                                                                                                        financing costs, depreciation of Kenya shilling , and the global economic downturn,
                                                                                                                                                                        competitionfrom Toyota East Africa, General Motors EA and DT Dobie. Pretax profit for
                                                                                                          10.55
                                                                                                                                                                        the six months down 31% to Ksh 433.57 Mn.
CMC             0.50/- 0    12.20   0.41%    919,400        582,709,440   7,109.06     0.93     30-Sep   Months      1.35      0.35     13.12      2.87%      5.87


                                                                                                                                                                        Marshalls is banking on new brands such as the luxury Audi model to turn around its
                                                                                                                                                                        declining sales and pull it out of losses. The firm’s losses have been linked to its thin
                                                                                                                                                                        product line. The Audi brand is targeted to capture the emerging middle class and the
                                                                                                                                                                        high-end consumers while the Leyland brand is meant for the heavy commercial market
                                                                                                                                                                        which is growing rapidly on the back of the recovering economy. The Audi brand will
                                                                                                                                                                        face off rivals BMW and Rang Rover in the high-end market, which has high margins. The
                                                                                                                                                                        firm is also set to sign a deal with India’s motor forces, manufacturer of ambulances, as it
                                                                                                                                                                        looks to tap into the ambulance market. Marshalls East Africa sunk deeper into losses to
                                                                                                                                                                        post a loss of Ksh 345 million for the year ended March 31st. This was attributed to the
                                                                                                          7.55                                                          increasing costs of sales rising from Ksh 443 million last year to Ksh 517 million this year.
Marshalls       5/-         14.10   0.00%   2,470,800        14,393,106    202.94     -11.80    31-Mar   Months      1.15      0.00       --       0.00%       --


         December 17, 2010                                                                        E-mail: research@sterlingib.com                                                                                                                            2
                                                       NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                          EPS
                                                                                                                                                                                                      Investment Comment(s)
                                    %∆      Shares                     Mkt.        Trailing              Trailing Price/Book            Historical Div. Projected†
 Company         P.V T.S WAP*      Price    Traded     Shares Issued Cap.(KshM)      EPS      Year End    Prd       Value        DPS       PE     Yield     PE
                                                                                                            Airlines, Hotel & Leisure

                                                                                                                                                                     Recorded a 21.14% in operating profits in 1H 2010. The EPS grew by 23.53% to Kshs 0.21
                                                                                                                                                                     per share annualized to Kshs 0.42. Turnover and profits after tax increased by 14.05 %
                                                                                                                                                                     and 21.14 % respectively driven by growth in both domestic and export market revenue.
                                                                                                                                                                     Gross Profit Margin declined to 20.3% from 23.7% due to the increase in cost of goods.
                                                                                                                                                                     Operating expenses were down 4.57 % to Kshs 336.59 Mn . The group is betting on a
                                                                                                                                                                     10% rise in the price of tyres to boost its earnings in the second half of the year.

                                                                                                        5.55
 Sameer Africa   5/-   -   7.35    12.21%    218,700 278342393.00 204581.66%                1 40543.00 Months               0.90 0.50 1289.47% 6.80%       17.50



                                                                                                                                                                     KQ resumed its flights on the Nairobi-Malindi route after it pulled out early last year due
                                                                                                                                                                     to losses on the route. The Nairobi-Malindi flight will also directly connect to Rome in
                                                                                                                                                                     Italy. Malindi is home to most Italian tourists. Many Italian pensioners have settled in
                                                                                                                                                                     Malindi and own hundreds of private villas and cottages and the direct flights from
                                                                                                                                                                     Malindi to Rome comes as a relief for most of them. Posted a 66.98% increase in net
                                                                                                                                                                     profits on the back of a global upturn in traffic and yields. Passenger yields in US cents
                                                                                                                                                                     increased by 8.8% and strengthened further to 10.3% when translated to Kenya shillings,
                                                                                                                                                                     due to the weaker Kenya shilling in the period. High passenger traffic growth of 19.8%
                                                                                                                                                                     was achieved in South Africa. Fuel costs increased by Ksh 2.5 Bn driven by higher jet fuel
                                                                                                                                                                     prices.
                                                                                                         10.55Mo
 Kenya Airways   5/-       45.25   0.00%     851,900     461,615,483   20,888.10       4.40 31-Mar        nths       1.22        1.00 10.284091 2.21%      7.27



                                                                                                                                                                     Announced a remarkable 100.64% increase in its 1H 2010 pre-tax profits to Ksh 215.62
                                                                                                                                                                     Mn from Ksh 107.47 Mn recorded in the same period last year. Sales were up 10.35% to
                                                                                                                                                                     Ksh 1.78 Bn from Ksh 1.62 Bn registered in 1H 2009. EPS grew to Ksh 1.34 from Ksh 0.67.
                                                                                                                                                                     The results are however not indicative of the full-year performance due to the seasonal
                                                                                                                                                                     nature of the industry. The rights issue recorded an oversubscription rate of 35.33%. The
                                                                                                                                                                     issue attracted applications worth Ksh 1.6 billion, against a target of Ksh 1.18 billion from
                                                                                                                                                                     the sale of the 24.7 million rights.
                                                                                                          11.55
 TPS (EA         1/-       68.00   0.00%      11,000     123,508,866    8,398.60     3.60      31-Dec    Months      3.10        1.25     18.89   1.84%    25.37


December 17, 2010                                                                               E-mail: research@sterlingib.com                                                                                                                                 3
                                                             NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                                   EPS
                                                                                                                                                                                                           Investment Comment(s)
                         T.             %∆       Shares                          Mkt.        Trailing   Year     Trailing   Price/Book          Historical   Div.    Projected†
 Company         P.V     S    WAP*     Price    Traded       Shares Issued     Cap.(KshM)      EPS       End       Prd        Value      DPS       PE        Yield      PE


                                                                                                                  Media & Advertising
                                                                                                                                                                                  NMG got approval from the Tanzania Capital Markets &Securities Authority
                                                                                                                                                                                  to cross list on the Dar es Salaam Stock Exchange (DSE). The company is
                                                                                                                                                                                  now expected to set the cross listing date. The DSE cross-listing makes NMG
                                                                                                                                                                                  present in all stock markets in member states of the East African Community
                                                                                                                                                                                  (EAC) after it cross-listed its shares on the Uganda Securities Exchange (USE)
                                                                                                                                                                                  in October and at the Rwanda OTC [Over The Counter] market in November.
                                                                                                                                                                                  Reported 51.6% growth in pretax profits for 1H 2010 from Ksh 588.2Mn to
                                                                                                                                                                                  Ksh 891.6Mn in 1H 2009 attributable to growth in market share, favorable
                                                                                                                 11.55Mo
                                                                                                                                                                                  global prices for newsprint and prudent cost management.
 Nation Media   2.5/-         154.00   -3.14%          -        157,118,572      24,196.26     7.70     31-Dec    nths         5.13      5.50     20.00      3.57%     21.39


                                                                                                                                                                                  Received regulatory approval to acquire a 50% stake in Ogilvy East Africa
                                                                                                                                                                                  and a 51% stake in O&M Africa BV in cash and stock transactions worth Ksh
                                                                                                                                                                                  418 Mn. The deal will give Scangroup minority stakes in 8 media agencies in
                                                                                                                                                                                  South and West Africa where Ogilvy Africa has stakes of between 30% and
                                                                                                                                                                                  12.5%; earning it stakes of between 6.4 and 15.3%. The firm is now looking
                                                                                                                                                                                  to boost its stakes in these companies by buying other shareholders with
                                                                                                                                                                                  targeted firms in Nigeria, Senegal, Cameroon, Gabon and Ivory Coast,
                                                                                                                                                                                  Zimbabwe, Namibia and Burkina Faso. This will help it grow its regional
                                                                                                                                                                                  presence and reduce its reliance on the East Africa from where it gets the
                                                                                                                                                                                  bulk of its earnings.
                                                                                                                  11.55
 Scangroup       1/-          60.00    0.00%    36,647,500      220,689,655      13,241.38     1.81     31-Dec   Months        6.32      0.50     33.15      0.83%     33.33



                                                                                                                                                                                  Posted 139.31% growth in 1H 2010 pretax profit from Ksh 90.57Mn to Ksh
                                                                                                                                                                                  216.74Mn in 1H 2010 attributable to business growth, favorable global
                                                                                                                                                                                  prices of newsprint and sustained cost-containment measures. Revenue rose
                                                                                                                                                                                  14.07% to Kshl.54 bn compared to Ksh1.35 bn the previous year as a result
                                                                                                                                                                                  of growing market share in circulation and advertising business.
 Standard                                                                                                         11.55
 Group           5/-          43.50    1.16%      234,800        73,275,029       3,187.46     3.24     31-Dec   Months        3.19      0.50     13.43      1.15%     14.50

                                                                                                                   EPS
                         T.             %∆       Shares                          Mkt.        Trailing   Year     Trailing   Price/Book          Historical   Div.    Projected†                            Investment Comment(s)
 Company         P.V     S    WAP*     Price    Traded       Shares Issued     Cap.(KshM)      EPS       End       Prd        Value      DPS       PE        Yield      PE
                                                                                                Information Technology & Telecommunication


                                                                                                                                                                                  Partnered with AON Minet to launch residential internet package with
                                                                                                                                                                                  subsidized home insurance. The partnership aims to grow insurance
                                                                                                                                                                                  penetration and internet usage in homes. According to Access Kenya, there
                                                                                                                                                                                  is a potential of 0.3 Mn homes with only 6% having access to the internet.
                                                                                                                                                                                  The company Posted a 55.25% decline in pre-tax profit to Ksh 40.12 Mn for
                                                                                                                                                                                  1H 2010. Turnover declined by 17.5% to Ksh 876 Mn from Ksh 1,062 Mn
                                                                                                                                                                                  while the EPS decreased by 59.46% to Ksh 0.15 from Ksh 0.37 per share.
                                                                                                                                                                                  Received shareholder approval to complete the buyout of its IT subsidiary
                                                                                                                                                                                  OpenView Business Systems.
                                                                                                                  10.55
 Access          1/-          13.55    -9.06%    1,716,800      206,331,223       2,795.79     0.76     31-Dec   Months        2.42      0.30     17.83      2.21%     45.17




                                                                                                                                                                                  Partnered with PesaPoint in a deal that will enable its postpay customers to
                                                                                                                                                                                  pay their bills using the PesaPoint ATM network. The service will not attract
                                                                                                                                                                                  charges from both parties but will be subject to withdrawal charges
                                                                                                                                                                                  designated by individual partner banks. Safaricom was back to the bonds
                                                                                                                                                                                  market to raise Ksh 4.487 Mn by issue of a 5-year note. The offer opened on
                                                                                                                                                                                  1st December and is scheduled to end on 14th December. Proceeds from
                                                                                                                                                                                  the notes will be used by Safaricom for its general corporate capital
                                                                                                                                                                                  purposes. Pretax Profit was up 14.3% to Ksh 10.4 billion from Ksh 9.13 billion
                                                                                                                                                                                  recorded in the previous period.


                                                                                                                  8.55
 Safaricom      0.05/-         4.70    0.00%       33,300     40,000,000,000    188,000.00     0.38     31-Mar   Months        3.68      0.20     12.37      4.26%     12.37



December 17, 2010                                                                                     E-mail: research@sterlingib.com                                                                                                                          4
                                                       NSE WEEKLY MARKET STATISTICS & FORECASTS

                                                                                                     EPS
                         T.           %∆      Shares                      Mkt.       Trailing Year Trailing Price/Book          Historical Div. Projected†                             Investment Comment(s)
  Company        P.V S WAP* Price             Traded     Shares Issued Cap.(KshM) EPS         End    Prd         Value   DPS       PE     Yield     PE
                                                                                                             Insurance


                                                                                                                                                             Announced a 2.55% increase in net profit to Ksh 750.65 Mn for 1H 2010
                                                                                                                                                             from Ksh 731.97 Mn in the same period last year. Gross premium grew by
                                                                                                                                                             11.76% to Ksh 2.23 Bn from Ksh 1.99Bn while the EPS increased to Ksh 1.25
                                                                                                                                                             in 1 H 2010 from Ksh 1.22 in 1H 2009.
  Kenya                                                                                              11.55
  Reinsurance   2.50/-        10.90 -8.02%     199,000      600,000,000   6,540.00 2.21 31-Dec Months             0.82   0.50     4.93    4.59%    4.36


                                                                                                                                                             Pretax profits grew by 440% to Ksh 239.5Mn from Ksh 44.3Mn posted in the
                                                                                                                                                             similar period last year. Gross premiums were up 28.4% to Ksh 1.73Mn
                                                                                                                                                             mainly due to growth in Bancassurance business. Life operations dropped
                                                                                                                                                             compared to same period last year mainly due to increased business
                                                                                                                                                             acquisition costs particularly on credit life and individual life new business
  Pan African                                                                                        11.55                                                   strain.
  Insurance      5/-          72.00 9.09%         100        48,000,000   3,456.00      2.89 31-Dec Months        3.59   1.70 24.91       2.36%     --


                                                                                                                                                             FY09 pre-tax profit rose 28 percent to Ksh 914 million. Gross written
                                                                                                                                                             premium up by 21 percent to Ksh 9Bn on the back of increased market
                                                                                                                                                             share in long term insurance market. Also announced plans to issue
  Jubilee                                                                                            11.55                                                   shareholders with one bonus share for every ten.
  Holdings       5/-          181.00 -2.16%     26,100       49,500,000   8,959.50 18.33 31-Dec Months            2.80   4.50     9.87    2.49%    10.26

December 17, 2010                                                                        E-mail: research@sterlingib.com                                                                                                                      5
                                                                   NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                                        EPS
                                                    Shares                           Mkt.       Trailing              Trailing Price/Bo           Historical   Div.    Projected†                                     Investment Comment(s)
Company           P.V     T.S   WAP*     %∆ Price   Traded      Shares Issued     Cap.(KshM)      EPS      Year End     Prd     ok Value   DPS       PE        Yield      PE


                                                                                                                     Banking & Mortgage Services

                                                                                                                                                                                    Reported a 5.8% growth in pretax profit to Ksh7.0 billion for the nine months to September
                                                                                                                                                                                    30th compared to Ksh 6.6 billion in the same period last year. In the period, Net interest
                                                                                                                                                                                    income grew by 11.35% to Ksh 12.05 billion from Ksh 10.82 billion. Non-interest income rose
                                                                                                                                                                                    to Ksh 8 billion as compared to Ksh 6.5 billion last year. During the period the bank
                                                                                                                                                                                    maintained a positive outlook and strengthened the business with the introduction of new
                                                                                                                                                                                    products and offers for consumers and corporate customers; including the revamping of the
                                                                                                                                                                                    mortgage product, strengthening the SME proposition and introducing linkages to M-pesa
                                                                                                                                                                                    services which drove up income. Concluded the transfer of its custody services business to
                                                                                                                                                                                    Standard Chartered Bank Kenya effective from October 31st. Proceeds of the transaction,
                                                                                                                                                                                    valued at Ksh 3.5 billion, will be re-invested in the bank’s business and help improve
                                                                                                                        11.55
                                                                                                                                                                                    shareholder earnings.
Barclays Bank     2/-           56.50     -5.83%     623,500      1,357,884,000     76,720.45     4.50      31-Dec     Months     3.17     2.50     12.56      4.42%     10.46



                                                                                                                                                                                    The bank reported a 75% jump in profit after tax for the 9 months to Sept to Ksh 3.7 Bn
                                                                                                                                                                                    compared to Ksh 2.1 Bn in a similar period last year. Pretax profit increase by 54% to Ksh 4.38
                                                                                                                                                                                    Bn in the period under review boosted by increase in net loans and rising customer numbers.
                                                                                                                                                                                    Its loan book increased to Ksh 80.5 billion. Customer base increased by 50% to over 1.5
                                                                                                                                                                                    million. The bank launched a loan product for women dubbed "Samaria Women's Loan"
                                                                                                                                                                                    aimed at supporting women in business to obtain working or investment capital.
Co-operative                                                                                                            11.55
Bank              1/-           18.90     -0.79%    5,968,900     3,492,369,900     66,005.79     0.85      31-Dec     Months     4.88     0.20     22.24      1.06%     14.10

                                                                                                                                                                                    DTB targets to increase its foothold in the Eastern and Central African by next year in order to
                                                                                                                                                                                    boost its market share and profitability. The bank plans to grow its network to 67 branches in
                                                                                                                                                                                    the Eastern and Central Africa region by next year in line with the it's strategic objective of
                                                                                                                                                                                    becoming a recognized Pan African Bank. DTB will open 4 to 5 new branches in Kenya, 3 in
                                                                                                                                                                                    Uganda, 2 in Tanzania, and 1in Burundi. The group also plans to double its network in Eastern
                                                                                                                                                                                    Africa to over 100 branches over the next 3 years. Pretax profit for the nine months ended
                                                                                                                                                                                    Sept. 30 rose to Ksh 2.7 Bn from Kshs 1.34 Bn a year earlier attributable to increased non-
                                                                                                                                                                                    interest income from fixed income trading. Loan book grew by 30% to Ksh 50.06 Bn.
                                                                                                                                                                                    Customer deposits rose to Ksh 62.53 from Kshs 61.69 Bn previously. The bank received a long-
                                                                                                                                                                                    term financing agreement of Ksh 2.08 Bn from the International Finance Corporation (IFC),
                                                                                                                       11.55
                                                                                                                                                                                    boosting its trade financing kitty for small and medium-sized companies.
Diamond Trust     4/-           131.00    -1.50%      34,800        163,037,108     21,357.86     7.67      31-Dec     Months     3.05     1.55     17.08      1.18%      9.07




                                                                                                                                                                                    Equity Bank linked with mobile phone firm Essar, to enable its customers to receive money
                                                                                                                                                                                    from abroad through the yuCash transfer system. The new deal will allow the remittance of
                                                                                                                                                                                    money from one’s bank account to Equity account holders, who can access it through the
                                                                                                                                                                                    yuCash if they are registered. Posted a 52.8% growth in pretax profit to Kshs 6.46 billion for
                                                                                                                                                                                    the 9 months to September 2010 . Net profit grew by 51.4% to Ksh 5.13 billion during the
                                                                                                                                                                                    period buoyed by higher interest income, commissions, increasing deposits, and a lower cost
                                                                                                                                                                                    income ratio.
                                                                                                                       11.55
Equity Bank       0.5/-         25.25     2.02%     4,039,800     3,702,777,020     93,495.12     1.14      31-Dec     Moths      3.63     0.40     22.15      1.58%     13.72


                                                                                                                                                                                    Posted a 67% growth in pre-tax profit for the first nine months of 2010 boosted by a strong
                                                                                                                                                                                    growth in lending and interest income. The firm reported pre-tax profit of Ksh 353 million for
                                                                                                                                                                                    the first nine months of the year compared to Ksh 211 million posted in a similar period last
                                                                                                                                                                                    year. The Group recorded an after tax profit of Ksh 250 million compared to Ksh 139 million
                                                                                                                       11.55                                                        recorded in the first nine months of 2009; an 80% growth.
Housing Finance   5/-           25.00     3.09%      260,700        230,000,000      5,750.00     1.02      31-Dec     Months     1.57     0.50     24.51      2.00%     20.16



       December 17, 2010                                                                                    E-mail: research@sterlingib.com                                                                                                                                   6
                                                  NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                                  EPS
                                                                                                                                                                                                                 Investment Comment(s)
                                              Shares                          Mkt.        Trailing              Trailing Price/Bo            Historical   Div.    Projected†
    Company     P.V T.S WAP*    %∆ Price      Traded      Shares Issued     Cap.(KshM)      EPS      Year End     Prd     ok Value   DPS        PE        Yield      PE


                                                                                                               Banking & Mortgage Services

                                                                                                                                                                               The KCB staff pension fund and retirement scheme is building a 21-storey office block in
                                                                                                                                                                               Nairobi’s Upper Hill at a cost of Ksh 2.1 billion. The building which is expected to be ready by
                                                                                                                                                                               Jan,2013, will have 450 parking slots and a total rentable space of 171,801 square feet. The
                                                                                                                                                                               bank will move its head offices from Kencom House to the new building and rent out the
                                                                                                                                                                               space for additional income with rental proceeds going to the fund and the scheme. Savings
                                                                                                                                                                               and Loans division of KCB plans to venture into the East Africa market, citing strength from its
                                                                                                                                                                               merger with KCB, better business environment, and growing demand for affordable housing
                                                                                                                                                                               among the middle class segment in the region. S&L hopes to be operational in at least four
                                                                                                                                                                               East African countries by the end of next year. Posted a 28% increase in net profits in the 9
                                                                                                                                                                               months to September 2010 to Ksh 4.5 Bn compared to Ksh 3.5 billion in the same period last
                                                                                                                                                                               year. The bank can now lend up to Ksh 7 billion to a single customer from Ksh 4 billion.
                                                                                                                                                                               Customer deposits grew by 27.9% to 193.14 Bn while Net Loans and advances grew by 20.7%
                                                                                                                 11.556                                                        to Ksh 137.89 Bn compared to a similar period last year.
    KCB         1/-     22.00             -   5,949,600     2,950,259,818        64,906     1.54      31-Dec     Months     3.08     1.00      14.29      4.55%     13.20



                                                                                                                                                                               NIC Bank reported a 68.8% increase in its pretax for the third quarter to September 2010 to
                                                                                                                                                                               Ksh 2 Bn from Ksh 1.19 Bn in the previous period. This was supported by 31% increase in Net
                                                                                                                                                                               interest income to Ksh 2.38 billion and a 43.8% growth in non-interest income to Ksh 1.48
                                                                                                                                                                               billion. The bank grew its loan book by 27% to Ksh 38.12 billion boosted by 26% growth in
                                                                                                                                                                               customer deposits to Ksh 48.29 billion. The Bank hopes to cash in on increasing trade in the
                                                                                                                                                                               East Africa Community to grow its loan book as businesses raise their uptake of asset finance
                                                                                                                                                                               credit. Posted a 53.57% increase in pretax profit to Ksh 1.2 Bn from Ksh 0.78 Bn in 1H 2009,
                                                                                                                                                                               attributable to the growth in lending portfolio and in the Tanzanian unit (Savings and Finance
                                                                                                                                                                               Commercial Bank) where NIC owns 51%.
                                                                                                                  11.55
    NIC Bank    5/-     47.50    -2.06%       1,326,700       358,997,784     17,052.39     3.31      31-Dec     Months     2.65     0.50      14.35      1.05%      9.50



                                                                                                                                                                               Posted a 17% rise in net profit Ksh to 4.3 billion in the nine months to September 2010
                                                                                                                                                                               compared to Ksh 3.6 billion in the same period last year on acccount of increased lending to
                                                                                                                                                                               households, companies and the government. The bank which completed a Ksh 3.5 billion
                                                                                                                                                                               purchase of Barclays Bank custody business grew its loan book to Ksh 55 billion from Ksh 48.3
                                                                                                                                                                               billion in September 2009. The bank announced an interim dividend of Ksh 5.00 payable to
                                                                                                                                                                               shareholders on the share register at the close of business on 1st December 2010. 1H 2010
                                                                                                                                                                               pre-tax profits were up 21.38%to Ksh 4.08Bn from Ksh 3.33Bn in 1H 2009.
                                                                                                                  11.55
    Stanchart   5/-    245.00    -4.30%        277,200        287,077,133     70,333.90    16.48      31-Dec     Months     5.28     12.00     14.87      4.90%     12.71




December 17, 2010                                                                             E-mail: research@sterlingib.com                                                                                                                                                     7
                                                         NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                                 EPS
                                              Shares                          Mkt.        Trailing              Trailing Price/Bo          Historical Div.   Projected†                                     Investment Comment(s)
Company            P.V T.S WAP*    %∆ Price   Traded     Shares Issued     Cap.(KshM)       EPS      Year End     Prd    ok Value   DPS       PE     Yield      PE


                                                                                                   Diversified Financials & Multi-sector Investments



                                                                                                                                                                          Reported a 712% growth in first half pretax profit to Ksh 926 Mn supported by strong growth
                                                                                                                                                                          in investment income which rose to Ksh 705 Mn from Ksh 64 Mn in 1H 2009. Basic EPS rose to
                                                                                                                                                                          Ksh 1.53 from Ksh 0.13 while diluted EPS stood at Ksh 1.43 from Ksh 0.12. The company said it
                                                                                                                                                                          was on course to achieving its strategic objective of growing assets under management to
                                                                                                                                                                          Ksh 30 billion and have at least 50% of its portfolio invested outside Kenya by March 2014.

Centum                                                                                                           8.55
Investment        0.50/-   22.25    2.30%      421,300       549,951,880      12,236.43     1.62      31-Mar    Months     1.50     0.00     13.73   0.00%      7.27


                                                                                                                                                                          CFC bank plans to issue a second bond to boost its capital base and enable the bank collect
                                                                                                                                                                          more deposits from customers. Based on the Q3 results, the bank’s core capital to deposit
                                                                                                                                                                          ratio was at 8.6%, 0.6 percent higher the required 8%. The bank risks being prohibited by the
                                                                                                                                                                          Central Bank from collecting any more deposits should the ratio drop below the statutory
                                                                                                                                                                          requirement of 8%. The bank will be seeking to raise Ksh 2.5 Bn through the issue. The
                                                                                                                                                                          banking arm of CFC Holdings reported a 53.6% growth in pretax profit to Ksh 1.5 billion for
                                                                                                                                                                          the nine months to September 2010 buoyed by a 94% growth in non-interest income to Ksh
                                                                                                                                                                          3.55 billion. Net interest income grew by 6.3% to Ksh 2.94 billion from Ksh 2.76 billion. During
                                                                                                                                                                          the period, the bank grew its loan book to Ksh 51.3 billion boosted by a 29% growth in
                                                                                                                                                                          customer deposits. Total assets grew to Ksh 104 billion, a 25% growth from the previous
                                                                                                                                                                          period’s Ksh 83.5 billion.
CFC Stanbic                                                                                                      11.55
Holdings           5/-     73.50    -4.55%      35,700       273,684,211      20,115.79    -0.22      31-Dec    months     3.18     0.00      --     0.00%     14.82


                                                                                                                                                                          The company reported a 34.7% decline in 1H 2010 pre-tax profit to Ksh 18.91 from Ksh 25.48
                                                                                                                                                                          in the same period last year. Turnover for the period reduced by 62.1% to Ksh 318.39 Mn.
                                                                                                                                                                          Costs of sales declined by 45% to Ksh 225.36 Mn. The costs are expected to remain low with a
                                                                                                                                                                          turnaround in the South Africa units which accounted for 60% of the period costs. The
                                                                                                                                                                          company expects significant contribution by the firms to its top line revenues in the second
                                                                                                                                                                          half. The absorption of losses from the South Africa units, and sharing of profit from Botswana
                                                                                                                 11.55                                                    and the Kenyan units resulted in a net loss of Ksh 2.8 Mn.
Olympia Capital    5/-     6.00     -1.64%      11,700        40,000,000        240.00      0.36      29-Feb    Months     0.44     0.10      --     1.67%      0.00


    December 17, 2010                                                                                 E-mail: research@sterlingib.com                                                                                                                              8
                                                          NSE WEEKLY MARKET STATISTICS & FORECASTS

                                                                                                                  EPS
                                                                                                                                                                                                              Investment Comment(s)
                                              Shares                           Mkt.        Trailing              Trailing Price/Bo          Historical Div.    Projected†
Company          P.V T.S WAP*      %∆ Price   Traded      Shares Issued     Cap.(KshM)       EPS      Year End     Prd    ok Value   DPS       PE     Yield       PE




                                                                                                                                                                            Reported a 93.45% decline in 1H 2010 pretax profit to Ksh 23.8 Mn attributable to poor
                                                                                                                                                                            performance by the Tanzanian subsidiary. The cable maker incurred a bill of Ksh 193 Mn on
                                                                                                                                                                            debt write-offs and restructuring of the Tanzanian unit. The Kenyan unit remained profitable
                                                                                                                                                                            posting a 7.66% rise in pretax profit to Ksh 269.6 Mn and an 11% per cent increase in after tax
                                                                                                                                                                            profit to Sh188 million. Overall, the group recorded a 5.9% growth in turnover to Ksh 1.8 Bn in
                                                                                                                                                                            the period.
                                                                                                                  11.55
E.A.Cables      0.50/-     15.70    -1.88%      61,400        202,500,000       3,179.25     1.52      31-Dec    Months     0.90     1.00     10.33   6.37%      25.32

                                                                                                                                                                            Received a Ksh 29.4 Bn concessionary loan from European Investment Bank (EIB) and French
                                                                                                                                                                            Development Agency (FDA) to boost its geothermal power production at Olkaria by an
                                                                                                                                                                            additional 280 MW. AFD will give KenGen Ksh 16.2 Bn to partly finance the construction of
                                                                                                                                                                            140-megawatt Olkaria IV power plant to be located at Olkaria while EIB will give Ksh 12.8 Bn
                                                                                                                                                                            to finance construction of a plant and a high voltage substation and transmission lines from
                                                                                                                                                                            Olkaria IV and Olkaria I unit four and five. The project is expected to be operational by July
                                                                                                                                                                            2013. To earn Ksh 70 Mn annually as carbon proceeds from its Olkaria II geothermal station,
                                                                                                                                                                            following recognition as a renewable project. KenGen is seeking a partner to produce nuclear
                                                                                                                                                                            power by 2022 to help meet rising demand and diversify from hydropower. Posted a 47.0%
                                                                                                                                                                            decline in pretax profit to Ksh 2.41Bn for FY09/2010 from Ksh 4.56 Bn. Operating profit was
                                                                                                                                                                            down 43% to Ksh 2.51Mn from Ksh 4.41 Mn posted in the same period last year occasioned
                                                                                                                                                                            by an 11% decline in revenues to Ksh 9.82 Mn and a 5% increase in operating expenses to
                                                                                                                  5.55
                                                                                                                                                                            4.40 Mn.
KenGen          2.50/- 0   16.85    -0.88%    1,340,500     2,198,361,456      37,042.39     0.89      30-Jun    Months     0.60     0.50     18.93   2.97%       9.16


                                                                                                                                                                            KPLC is to enter the carbon trading market. The company will today sign a deal with Standard
                                                                                                                                                                            Bank of South Africa to evaluate and buy its carbon credits. The carbon credits are the
                                                                                                                                                                            product of the energy savings bulb and renewable power generation projects it initiated
                                                                                                                                                                            which has helped reduce demand for thermal fuel that emits carbon dioxide. It is expecting its
                                                                                                                                                                            first cheque from the 1.25Mn energy saving bulbs it distributed freely to the market at a cost
                                                                                                                                                                            of Ksh 460.7 Mn, that saved the country 50 MW of electricity. The trading in carbon credit will
                                                                                                                                                                            step up KPLC’s diversification drive that has seen it enter the telecom markets by leasing
                                                                                                                                                                            excess internet capacity from its fibre optic cables. Posted 17.8% growth in pretax profit for
Kenya Power.&                                                                                                     5.55                                                      FY09/2010 boosted by a 52.8% decline in finance costs.
Lighting Co.    20/- cd    22.25    -2.20%    3,781,200     79128000         1760.598      5.87125     30-Jun    Months     0.07     8.00     3.79    35.96%      0.31

     December 17, 2010                                                                                 E-mail: research@sterlingib.com                                                                                                                                9
                                                       NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                        EPS                                                                                      Investment Comment(s)
                                   %∆       Shares                     Mkt.        Trailing   Year     Trailing Price/Book           Historical   Div.    Projected†
Company        P.V T.S   WAP*      Price    Traded     Shares Issued Cap.(KshM)      EPS       End      Prd       Value      DPS        PE        Yield      PE


                                                                                            Construction Materials & Building Products


                                                                                                                                                                       The cement manufacturer reported a 12.56% growth in pretax profit for the
                                                                                                                                                                       nine months to September to Ksh 0.76 billion up from Ksh 0.67 billion in the
                                                                                                                                                                       previous period. The profit was largely attributed to the 15.9% growth in
                                                                                                                                                                       turnover to Ksh 4.38 billion up from Ksh 3.78 billion. Net profit for the period
                                                                                                                                                                       was up 14.6% to Ksh 0.52 billion compared to Ksh 0.45 billion last year.
                                                                                                                                                                       Management said that the company’s prospects had improved despite the
                                                                                                                                                                       increased financing costs resulting from investment in the new clinker capacity
                                                                                                                                                                       which will double its capacity to 750,000 tonnes per year. The company’s
                                                                                                                                                                       expansionary strategy has increased ARM’s debts, pushing its interest expense
                                                                                                                                                                       up to Ksh 0.162 billion. Annualised EPS stands at Ksh 6.98.
Athi River                                                                                              11.55
Mining         5/-       172.00   0.00%       20,000      99,055,000   17,037.46     6.52     31-Dec   Months      4.13      1.50      26.38      0.87%      0.00



                                                                                                                                                                       Pre-tax profit for 1H 2010 dropped 27.7% from Kshs 4.5 Bn to Kshs 3.5 Bn.
                                                                                                                                                                       Turnover reduced to Kshs 13.0 Bn from Kshs 16.2 Bn due to slowed cement
                                                                                                                                                                       market growth in Kenya and Uganda, lower selling prices across all markets
                                                                                                                                                                       and the base effect of unusually higher market share recorded during the first
                                                                                                                                                                       half of 2009. An interim dividend of Kshs 1.50 per share was declared.
                                                                                                       11.556
Bamburi        5/-       194.00   -1.52%     108,700     362,959,275   70,414.10    18.32     31-Dec   Months      3.61      11.00     10.59      5.67%     14.88



                                                                                                                                                                       The paint manufacturer reported a 17.8% increase in its 1H 2010 pretax profit
                                                                                                                                                                       to Ksh 70.1 Mn from Ksh 59.5 Mn in the same period last year. Turnover rose
                                                                                                                                                                       by 16.34% to Ksh 1.43 Bn from Ksh 1.23 Bn. Finance costs were down 19.40%
                                                                                                                                                                       to Ksh 22.4 from Ksh 27.8 Mn. Earnings per share stood at Ksh 1.34. The
                                                                                                                                                                       company is planning to raise paint prices starting next January when it starts
                                                                                                                                                                       to pass over the increased cost of inputs to consumers. it said the prices of oil
                                                                                                                                                                       and titanium dioxide had surged steadily, with the latter going up 25% in the
                                                                                                                                                                       last three months, pushing up their production costs.
                                                                                                        11.55
Crown Berger   5/-       30.75    -0.81%       4,300      23,727,000     729.61      3.64     31-Dec   Months      0.89      1.25       8.45      4.07%      7.57


                                                                                                                                                                       To convert Uganda branch into East African Portland Cement Company
                                                                                                                                                                       Uganda, thus making it a wholly owned subsidiary of East African Portland
                                                                                                                                                                       Cement Company. The conversion will enable the company tap into the
                                                                                                                                                                       growing East African cement market owing to the ongoing reconstruction of
                                                                                                                                                                       the neighboring countries of Southern Sudan, Rwanda and Burundi and the
                                                                                                                                                                       promising markets of western Uganda, Ethiopia and even Somalia. The
                                                                                                                                                                       company will set up a factory in Uganda next year at a cost of Ksh10 Bn. It
                                                                                                                                                                       commissioned a coal fired plant, which is expected to save the company up to
                                                                                                                                                                       30% of current production costs. Appointed Mr Kephar Tande as its new
                                                                                                                                                                       managing director, replacing Mr John Nyambok who quit in July. Reported a
                                                                                                                                                                       Ksh 0.29 Bn loss in the year to June, compared to a profit of Ksh 1.8 Bn over a
                                                                                                                                                                       similar period last year despite growing its revenues to Ksh 9.4 Bn from Ksh 8.1
                                                                                                        5.55                                                           Bn.
E.A.Portland   5/-   0   90.00    -10.00%      3,600      90,000,000    8,100.00    -3.25     30-Jun   Months      1.32      1.30       0.00      1.44%       -



    December 17, 2010                                                                          E-mail: research@sterlingib.com                                                                                                                  10
                                                            NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                                EPS
                                                                                                                                                                                                             Investment Comment(s)
                                       %∆      Shares                          Mkt.       Trailing   Year     Trailing   Price/Book           Historical   Div.    Projected†
Company         P.V    T.S   WAP*     Price    Traded      Shares Issued    Cap.(KshM)      EPS       End       Prd        Value      DPS        PE        Yield      PE
                                                                                              Food, Beverages, Tobacco & Household products

                                                                                                                                                                                The pending amendments to the finance bill, which seeks to replace the
                                                                                                                                                                                current hybrid excise duty structure of cigarettes (which is solely based on
                                                                                                                                                                                retail selling price) prompted BAT to cut its earnings projections for next year.
                                                                                                                                                                                Adoption of the amendments is bound to put pressure on industry players to
                                                                                                                                                                                cut prices, a move that will trigger price wars in the sector thus reducing their
                                                                                                                                                                                revenues. The industry was last month hit by a ruling by World Health
                                                                                                                                                                                Organization that seeks to reduce Sugar additives with addictive effects in
                                                                                                                                                                                cigars. This will make it hard for the company to sell its products as the variety
                                                                                                                                                                                of tobacco produced in Kenya is harsh and requires additives to make it
                                                                                                                                                                                palatable. Posted a 19% rise in pretax profit for 1H 2010 helped by higher
                                                                                                                                                                                sales volumes. Pretax profit rose to Kshs 1.46 bn from Kshs 1.23 bn in the same
                                                                                                                                                                                1H 2009. BAT expects its cash position to improve towards the end of the
                                                                                                               11.55                                                            financial year.
BAT(K)          10/-         275.00   -1.43%      3,000       100,000,000     27,500.00    14.78     31-Dec   Months        5.89      14.75     18.61      5.36%     13.44




                                                                                                                                                                                Completed the acquisition of a 51% stake in Tanzania's Serengeti Breweries,
                                                                                                                                                                                giving it a higher market share in a key market. Reported Ksh 12.57 Bn in pre-
                                                                                                                                                                                tax profit for the FY09/2010, a 9% increase on Ksh 11.51Bn recorded over a
                                                                                                                                                                                similar period previuosly. EABL appointed Richard Wells as Managing Director,
                                                                                                                                                                                formerly commercial director of BrandHouse to replace Ajay Mehta. Allan
                                                                                                                                                                                Hood becomes the finance director and joins EABL from Diageo where he was
                                                                                                                                                                                a finance director in charge of Jamaica. Erick Adadevoh is the human resource
                                                                                                                                                                                director joining from Guinness Ghana Breweries while Carol Ndung’u assumes
                                                                                                                                                                                the role of marketing director after serving as marketing consultant for EABL.
                                                                                                                                                                                The new team is expected to help strengthen its position in the ongoing war
                                                                                                                                                                                against South Africa’s SABMiller for control of Tanzania’s beer market.


                                                                                                                5.55
E.A.Breweries   2/-          211.00   1.93%    2,134,900      790,774,356    166,853.39     9.09     30-Jun   Months        8.53      8.05      23.21      3.82%     19.11
                                                                                                                                                                                Eveready reported a 65% drop in net profits to Ksh 8.7 million for the year
                                                                                                                                                                                ended September on account of declining sales and rising production costs.
                                                                                                                                                                                Revenues dropped by 6.1% to Ksh 1.63 billion from Ksh 1.64 billion. Sales
                                                                                                                                                                                volumes and profitability for the company has been on the declinine in the last
                                                                                                                                                                                five years owing to a shift towards electricity-powered gadgets and cheap
                                                                                                                                                                                imports which have significantly reduced its market share. Eveready is banking
                                                                                                                                                                                on the new products introduced two years ago to reverse its declining returns.
                                                                                                                                                                                The new products including its Schick range of shaving products, LED
                                                                                                                                                                                flashlights and new varieties of Energizer batteries contributed nearly one third
                                                                                                                                                                                of its revenues this year.
Eveready East                                                                                                 5.55Mon
Africa          1/-           2.90    -1.69%     80,300       210,000,000       609.00      0.04     30-Sep     ths         1.54      0.00      72.50      0.00%       -

                                                                                                                                                                                Mumias Sugar is positioning itself to tap into a newly set up carbon credit
                                                                                                                                                                                fund by registering more projects eligible for carbon credits. This will make it
                                                                                                                                                                                easier for companies to benefit from the carbon credit scheme. The climatic
                                                                                                                                                                                change conference approved the setting up of a $100 Bn a-year-fund for
                                                                                                                                                                                buying carbon credits from developing countries. Mumias is seeking to
                                                                                                                                                                                double the close to Ksh 359 Mn it earned last year from the sale of carbon
                                                                                                                                                                                credits in the international markets. Posted an 82.7% increase in pre-tax profit
                                                                                                                                                                                to Ksh 2.18 Bn. Revenues rose by 32.40% to Ksh 18.80 Bn bolstered by higher
                                                                                                                                                                                sugar prices and revenues generated from the sale of 26 MW of electricity.
                                                                                                                                                                                Electricity cogeneration project earned the company Ksh 359 Mn in its first full
                                                                                                                                                                                year of operation. The company plans to start production of ethanol by the
                                                                                                                                                                                end of next year. The plant which is expected to produce about 22 Mn litres of
                                                                                                                                                                                ethanol a year will be the latest addition to the its product portfolio. Currently,
                                                                                                                                                                                it is estimated that production of ethanol in Kenya is slightly over 15 Mn litres
                                                                                                                5.55                                                            annually against a demand of 40 Mn litres.
Mumias          2/-           9.70    -0.51%   3,640,500    1,530,000,000     14,841.00     1.03     30-Jun   Months        1.73      0.40       9.42      4.12%      7.13


                                                                                                                                                                                Posted a 28.90% increase in pre-tax profit to Ksh 335 Mn for the year ended
                                                                                                                                                                                30 June 2010 from Ksh 260 Mn in the same period last year. Earnings per share
                                                                                                                                                                                rose by 17.42% to Ksh 1.82 from Ksh 1.55. The group attributes this to a
                                                                                                                                                                                reduction in unrealized foreign exchange losses and improved margins as a
                                                                                                                                                                                result of growth in wheat volumes in Kenya and Uganda, supported by a
                                                                                                                                                                                successful consumer promotion celebrating Unga Limited’s 100 year
                                                                                                                                                                                anniversary. The Board has recommended the payment of a first and final
                                                                                                                                                                                dividend of Ksh 0.50 per share subject to approval by the shareholders at the
                                                                                                                5.55                                                            AGM to be held on 1st December 2010.
Unga            5/-          10.95    -0.45%     67,800        75,708,873       829.01      1.82     30-Jun   Months        0.38      0.00       6.02      0.00%      0.00




    December 17, 2010                                                                                 E-mail: research@sterlingib.com                                                                                                                      11
                                                        NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                          EPS
                                 %∆      Shares                       Mkt.        Trailing              Trailing Price/Book          Historical   Div.    Projected†                              Investment Comment(s)
Company    P.V      T.S WAP*    Price    Traded      Shares Issued Cap.(KshM)       EPS      Year End    Prd       Value      DPS       PE        Yield      PE


                                                                                               Oil & Gas (Marketing & Transportation)

                                                                                                                                                                       BOC issued a profit warning for the year to end December 31st citing flat sales
                                                                                                                                                                       and rising operational costs. This comes after the company went on a
                                                                                                                                                                       restructuring exercise to bring it back to profitability. The company has been
                                                                                                                                                                       on an ambitious expansion in the East African region as it seeks to take
                                                                                                                                                                       advantage of the EA common market protocol. BOC also plans to invest in
                                                                                                                                                                       improving its production processes as it positions itself to grow its share in the
                                                                                                                                                                       carbon dioxide market. Reported a 31.6% decline in Pretax profit to Ksh 0.10 Bn
                                                                                                                                                                       from Ksh 0.15 Bn posted in the same period last year. Operating profit dropped
                                                                                                                                                                       by 32.5% to ksh 0.13 Bn dampened by 8.8% decrease in turnover and increased
                                                                                                         11.55                                                         costs of operation. EPS declined from ksh 5.27 to Ksh 3.59.
BOC (K)     5/-        132.00   -5.71%        100       19,525,446     2,577.36     7.88      31-Dec    Months      1.64      6.80     16.75      5.15%     18.38


                                                                                                                                                                       Reported a 20 per cent increase in net profit attributable to increased use of
                                                                                                                                                                       carbon dioxide by Kenya’s food manufacturers. Net profit grew to Ksh 307
                                                                                                                                                                       million in the year to June compared to Ksh 256 million for a similar period last
                                                                                                                                                                       year driven by a 12 per cent increase in sales to Ksh 620 million. The firm
                                                                                                                                                                       attributed its growing sales to increased demand for carbon dioxide from food
                                                                                                                                                                       and beverage firms such as East Africa Breweries, Coca-Cola, and flavoured
                                                                                                         11.55                                                         juice makers.
Carbacid    5/-        140.00   -3.45%      6,200       33,980,265     4,757.24     9.05      31-Jul    Months      1.53      5.00     15.47      3.57%      9.05



                                                                                                                                                                       Plans to open an office in Zimbabwe early next year , having registered a
                                                                                                                                                                       company in Mozambique, and has begun scouting for business opportunities
                                                                                                                                                                       in both countries. The move is aimed at consolidating its presence in the
                                                                                                                                                                       southern Africa region as it looks to diversify and enhance its position as a key
                                                                                                                                                                       player in East, Central and Southern Africa. KenolKobil has commissioned two
                                                                                                                                                                       Liquid Petroleum Gas (LPG) filling plants, one in Uganda and one in Rwanda, to
                                                                                                                                                                       support the strong growth of its LPG brand K-gas in the two markets, the
                                                                                                                                                                       company said. Recorded a 22.19% rise in 1H 2010 pre-tax profits. Net earnings
                                                                                                                                                                       grew to ksh 30.94 Mn against Ksh 25.31 Mn in 1H 2010. Gross profit rose to
                                                                                                                                                                       Ksh 217.16Mn from Ksh 212.79Mn posted in the same period last year.
                                                                                                         11.55
Kenol      0.05/-       9.60    -3.52%   1,838,500    1,471,761,200   14,128.91     0.88      31-Dec    Months      0.13      0.33     10.91      3.44%      5.52



                                                                                                                                                                       Reported a 53.07% increase in net profit for the period ended September 2010
                                                                                                                                                                       to Ksh 349 Mn from Ksh 228 Mn the previous year. Turnover increased by
                                                                                                                                                                       143.43% to Ksh 57.69 Bn buoyed by increased sales volumes in Network,
                                                                                                                                                                       Aviation, LPG and General Trade Channels. This is in line with expected
                                                                                                                                                                       performance of the new company after acquisition of Chevron business at the
                                                                                                                                                                       end of 2009. The Company’s inland market share increased to 27.6% in
                                                                                                                                                                       September 2010 from 13.3% in September 2009.
                                                                                                         5.55
Total       5/-         28.75   2.68%      38,100      175,028,706     5,032.08     1.62      31-Dec    Months      0.56      1.00     17.75      3.48%      8.31



  December 17, 2010                                                                             E-mail: research@sterlingib.com                                                                                                                  12
                                                               NSE WEEKLY MARKET STATISTICS & FORECASTS
                                                                                                                   EPS
                                      %∆      Shares                            Mkt.       Trailing              Trailing   Price/Book          Historical   Div.    Projected†                               Investment Comment(s)
Company      P.V      T.S   WAP*     Price    Traded        Shares Issued    Cap.(KshM)      EPS      Year End     Prd        Value      DPS       PE        Yield      PE
                                                                                       ALTERNATIVE INVESTMENT MARKET SEGMENT (AIMS)


                                                                                                                                                                                  A quiet counter. Latest results show that it is in negative earnings territory and
                                                                                                                                                                                  is under suspension.
A. Baumann    5/-     S     11.10    0.00%      0                3,840,066        42.62      (2.02)    31-Mar     56.55         --       0.00   -5.49505     0.00%       --


                                                                                                                                                                                  Posted a 14.37% increase in pretax profit to Ksh 33.74 million for the year
                                                                                                                                                                                  ended 31st July 2010. Total income for the firm stood at Ksh 38.43 Mn from
                                                                                                                                                                                  Ksh 35.64 Mn in the same period last year. The company has proposed a Ksh
                                                                                                                                                                                  4.00 per share dividend to shareholders who’ll be in the books of the company
                                                                                                                                                                                  by close of business on 29th November 2010. This is subject to shareholders’
                                                                                                                                                                                  approval during an AGM to be held on the same day.
                                                                                                                   4.55
City Trust    5/-           160.00   0.00%           100         5,728,314       916.53      5.89        31-Jul Months         3.55      1.00     27.16      0.63%     30.48

                                                                                                                                                                                  Recorded a 351.50% growth in 1H 2010 pretax profit to Ksh 49.7 Mn from a
                                                                                                                                                                                  loss of Ksh 11.01 Mn in the first six months of 2009. This was boosted by an
                                                                                                                                                                                  upward movement in international coffee prices for good quality coffees, which
                                                                                                                                                                                  translated to the prices fetched by the company's coffees offered for auction at
                                                                                                                                                                                  the Nairobi Coffee Exchange. Earnings per share rose to Ksh 2.21 compared
                                                                                                                                                                                  with 0.74 shilling for the whole of 2009, and a loss of 0.69 shillings first half
                                                                                                                  11.55                                                           2009.
Eaagads      1.25/-         48.00    -4.95%         3,000       16,078,500       771.77      0.74      31-Dec    Months        2.00      0.00     64.86      0.00%     10.86


                                                                                                                                                                                  Express Kenya posted a 22.19 per cent rise in 1H 2010 pre-tax profits. The
                                                                                                                                                                                  company returned net earnings of Sh30.94 million against Sh25.31 million
                                                                                                                                                                                  recorded in the same period last year. Gross profit grew to Kshs 217.16Mn
                                                                                                                                                                                  relative to Ksh 212.79Mn posted in the same period last year. This represented
                                                                                                                  11.55                                                           a marginal 2.05% growth
Express       5/-            8.00    -5.88%         5,200       35,403,790       283.23        0.15    31-Dec    Months        0.74      0.00     53.33      0.00%      4.60

                                                                                                                                                                                  Reported a massive 106% growth in 1H 2010 pretax profits to Ksh 131.78 Mn
                                                                                                                                                                                  from Ksh 63.46 Mn registered in the previous period. Revenues grew by 41% to
                                                                                                                                                                                  Ksh 603.95 Mn favoured by a weaker shilling against the US dollar. Tea output
                                                                                                                                                                                  increased in the period due to favourable climate and continued partnership
                                                                                                                                                                                  with smallholders of the green leaf.Operating profit was up 78% to Ksh 121.92
                                                                                                                                                                                  Mn.A revaluation gain of Ksh 100.5 million represented 109% of the tea
                                                                                                                                                                                  grower’s after-tax income. EPS more than doubled to Ksh 23.58 from Ksh 11.45
                                                                                                                                                                                  in thesame period last year. The Board recommended a Ksh 1.25 interim
                                                                                                                  8.55                                                            dividend per share. Books close on 31st Dec, 2010.
Kapchorua     5/-           115.00   -4.17%          700         3,912,000       449.88      35.6      31-Mar    Months        0.55      6.25      3.23      5.43%      2.44

                                                                                                                                                                                  Reported a 3.13% decline in Pretax profit for the first half of 2010 to ksh 0.64
                                                                                                                                                                                  Mn down from Ksh 0.66 Mn. Turnover increased by 4.89% to Ksh 9.84 Mn
                                                                                                                                                                                  compared to Ksh 9.38 Mn in a similar period last year. However, net profit grew
                                                                                                                                                                                  by 3.80% to Ksh 0.47 Mn from ksh 0.46 Mn propped by a 16.88% decline in
Kenya                                                                                                             23.55                                                           taxes. EPS remained at Ksh 0.30.
Orchards      5/-            3.00    0.00%             -        12,868,124        38.60      (1.24)    31-Dec    Months       -31.31     0.00     -2.42      0.00%     50.00


                                                                                                                                                                                  The company returned Ksh 33.2 Mn in pretax profit from a loss of Ksh 0.037Mn
                                                                                                                                                                                  in the first half of 2009. Tea output was 87% higher in the first six months of
                                                                                                                                                                                  this year at 478 tonnes which in turn raised Earnings per share catapulted to
                                                                                                                                                                                  19.28 shillings from 0.84 shillings in the same period previously, a 2,195% jump.
                                                                                                                  11.55                                                           A weaker shilling improved prices by 23% in first half.
Limuru Tea   20/-           300.00   0.00%             -         1,200,000       360.00      22.5      31-Dec    Months        6.43      7.50     13.33      2.50%      7.78


                                                                                                                                                                                  The company reported a 108% jump in first half 2010 pretax profit to Ksh
                                                                                                                                                                                  652.77 million. This was buoyed by favourable weather and higher deliveries
                                                                                                                                                                                  by smallholder growers. Favourable exchange rate also supported the gain in
                                                                                                                                                                                  revenues. Earnings per share jumped to Ksh 50.50 for Williamson Tea from Ksh
                                                                                                                                                                                  24.18 in the same period previously. A revaluation gain of Ksh 310.6 million on
Williamson                                                                                                        8.55                                                            Williamson Tea’s assets accounted for 70.2% of the company’s net profits.
Tea           5/-           165.00   -5.17%         3,500        8,756,320      1,444.79    96.42      31-Mar    Months        0.42      6.25      1.71      3.79%      1.63



    December 17, 2010                                                                                    E-mail: research@sterlingib.com                                                                                                                       13
                                                       NSE WEEKLY MARKET STATISTICS & FORECASTS

      Legend:

      cr = cum rights
      EPS= earnings per share
      xs = ex split
      xb = ex bonus
      xd = ex dividend
      ca = cum all
      s = suspended
      xr = ex rights
      cb = cum bonus
      xr = ex rights
      cd = cum dividend
      xa = ex all
      WAP = Weighted Average Price
      P/E = WAP*/EPS
      cs=Cum Split
      Market Cap. = Issued shares * Weighted average Price for the week
      DPS = Dividend per Share (Annual)
      PE = price to earnings ratio
      TP – Trailing Period
      Div. Yld = Dividend Yield
      Dividend Yield = DPS/WAP*
      * For the week ended17/12/2010
      P.V = Par Value
      T.S = Trading Status
      NB: The figures for projected earnings are annual indicative figures; for those companies that announced recently, the projected earnings are for the succeeding year
      For counters with forecasted negative EPS in H1, no P/E projections have been given.
      † The projections are according to information available to the SIB Research Team hitherto
      H1 = Half 1, please note, quarterly results are for the latest quarter announced results
        DPS for KenolKobil, Carbacid & Bamburi excludes Ksh 3.50, Ksh 5.00 and Ksh 4.00 respectively which the companies viewed as a special dividend over and above the normal dividend policy
      ‡ The company’s EPS registered a positive leap because of a one-off valuation gain to Kshs. 20.38 per share, otherwise, without this gain; the EPS would have been Kshs. 3.77 per share.



      Disclaimer
      All facts and figures are from sources deemed reliable and believed to be accurate. Information contained in this document has been prepared from data available as at the date of preparation and may have since
      changed. Past performance does not guarantee future results. This document should not be misconstrued to be an express recommendation for a buy, sell or hold position on any security.
      The investor should consider their investment objective and risk tolerance before taking any investment action.


December 17, 2010                                                                                   E-mail: research@sterlingib.com                                                                                       14

				
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