ItsMoneyMark Newsletter #84

Wisynco Group: Continues to Roar, Earnings up 35% 

The “Biggest Lion” in the “Foodie Jungle

We recently spoke about in an ItsMoneyMark newsletter, the “best of breed foodies” and the top ones to watch out for. In that publication, we were clear that (i) Wisynco & (ii) Seprod, were the ones to watch and the Top 2 based on such a wide range of “foodie companies” on the JSE – Jamaica Stock Exchange now. 

Wisynco Group Limited (JSE: WISYNCO) just came out with their 1st Quarter earnings and it was a “dandy”. Wisynco has not disappointed ItsMoneyMark and has as we would say, even if we lack earnings estimates in the Market, it has beat any such earnings expectations we have deciphered. 

By the numbers: 

  • EPS of J$ 35 cents versus J$ 26 cents, + 35%
  • Net profit for the quarter ended September 30, 2022, was J$ 1.29 billion versus J$ 967 million
  • Operating revenue improved to J$ 11.94 billion versus J$ 9.2 billion, + 30%
  • Wisynco‘s “war chest” of cash, short-term deposits, and investment securities, still a heavy, heavy J$ 7.6 billion 

Wisynco has been trading lately on or around J$ 17.70 – J$ 18.00 per share, with the potential for annualized EPS, or projected EPS for its current fiscal to hit J$ 1.40 or conservatively J$ 1.30 – J$ 1.50 range. All in all, putting Wisynco at a 12.5x P/E or lower with its current growth rate, makes life interesting… 

Market Moves: 

  • NCB Financial Group Limited (JSE: NCB FG), continues to carry on their superb quarterly numbers on a running basis. Huge 4th quarter and year end results by NCB FG

As the adage in the financial markets goes, “every quarter you start at zero, well NCB FG is living by that and executing that.” 

Based on a share price, market price of or around J$ 85, NCB FG is now trading at a TTM – trailing twelve months P/E of approximately 7x. NCB FG, even though once again, they did not declare a dividend at the Board of Directors meeting on November 10, 2022, NCB FG by the numbers, for the full year, 12 months, hit a colossal J$ 39.9 billion in net profit. Earnings per share for the year ended, September 30, 2022, was J$ 11.89. 

On a projected P/E basis, indicatively NCB FG could be trading arguably at 5x. Valuations not seen on the JSE – Jamaica Stock Exchange, more so for a leading financial conglomerate, blue chip, since 10 + years ago. 

  • Barita Investments Limited (JSE: BIL) keeps moving, and practically only Supreme Ventures Limited (JSE: SVL), may have more “corporate actions” on the JSE – Jamaica Stock Exchange than BIL

BIL has been on a roll and takes its, financial performance metrics very seriously & accountability. Inclusive of, Return on Equity, ROE, it’s Profitability and Balance Sheet benchmark ratios. 

The Company has advised of the following Senior Management appointments within the Company:  

  • Miss Stephanie Sterling – Vice President, Legal Counsel and, 
  • Mrs. Dianne Clunie-Wallace – Vice President, Marketing, effective October 1, 2022.

Barita, BIL continues to up the ante on its competitors & the Market, and its earnings, good vibes, and getting things done shows.

  • Eppley Limited (JSE: EPLY) roars to J$ 5.51 billion in total assets for the 3rd quarter, 9 months ended period, September 30, 2022. 

Net profit for the YTD – year to date, 9 months was J$ 186.7 million, and EPS – earnings per share, of J$ 97 cents. 

Asset Management income improved, year over year, to J$ 187.7 million, from J$ 178.9 million for the 9 months 2022. Total shareholders’ equity closed the quarter, the 3rd quarter at J$ 1.055 billion. 

In their MD&A – management, discussion & analysis to accompany the financial results, Eppley stresses the importance, focus and growth to come in their asset management business. 

  • Fontana, Fontana, Fontana, (JSE: FTNA) can Mr. Market get enough of this one. Evidently, the Market wants more with this quarter. FTNA keeps it moving and keeps firing on all cylinders. 

What a quarter, and a 1st quarter to kick off its new fiscal year. Whopping 3 months with revenues of J$ 1.643 billion versus J$ 1.306 billion, year over year, + 26%. Net profit and EPS – Earnings per Share, both nicely improved respectively, ringing the register at J$ 87.5 million and J$ 7 cents per share. On an Earnings basis, FTNA’s 1st Quarter improved by 40%, year over year 

Cash & cash equivalents continues to increase as well at FTNA, closing the quarter at J$ 1.34 billion. 

Of interest, to note, in the Directors’ Report, no mention, update, on FTNA Portmore though…

  • Cargo Handlers Limited (JSE: CHL) a hard company, in terms of ordinary shares to get your hands on, if you want them. CHL is tightly held and given the continued earnings performance, tends to be more buyers than sellers in the Market. 

CHL just put out there 12 months and 4th Quarter numbers; both were great. 

By the numbers CHL, hit revenue of J$ 118.6 million for the 4th Quarter ended September 30, 2022, versus J$ 82.4 million, year over year. Earnings per share alone for the 4th Quarter for CHL, was J$ 20 cents, versus J$ 11 cents, representing a significant increase of 82%. Net profit for the 4th Quarter was J$ 75.6 million. 

CHL’s balance sheet continued to be extremely healthy, with shareholders’ equity of J$ 766.8 million, and cash and investment JMMB, combined of J$ 508.6 million. 

To note, the line item “share of profit of associates”, has really paid off well for CHL, that is the Buying House Cement Limited. CHL reported in this line item for the quarter, J$ 18.9 million, improving from J$ 8.3 million, year over year. 

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