Equity Research Articles
Jamaica - Equity Market Review & Outlook - January 2024
Summary
The performance of all entities listed on both the Main and Junior Markets is gauged by the JSE Combined Market. Over several years, this market has demonstrated a broad spectrum of performances, reaching its pinnacle in 2015 with a yield of 102.3% and plunging to its nadir in 2020 with a return of -22.3%, due to the influence of COVID. The diagram below offers an insight into the performance track record of the JSE Combined Market since 2010…Read More
JMMB Local Equities 2020 Outlook - March 2020
Summary
The Local Equities Market continued its bull run in 2019. The JSE Combined Index moved from 384,556.48 points as at Dec. 31, 2018, to 505,253.98 points as at Dec. 31, 2019. This performance represents a 31.39% year-over-year improvement, which was mainly due to the performance of the Main Market Index…Read More
Access Financial Services (AFS)
Proven Investments - Offer of Access Financial Shares - Analysis & Recommendation - October 2019
Summary
Proven Investment Limited (PROVEN) is inviting individuals to apply to purchase 68,627,460 units or 25% of the issued shares of Access Financial Services Limited (AFS). Proven currently owns 136,486,292 shares or 49.72% of the issued shares of AFS and if this sale is successful will see its stake reduced to 24.72% of issued shares. Proven retains the right to upsize the Offer by an additional 34,313,730 ordinary shares (i.e. up to 50% additional shares).
The successful completion of this transaction will result in Proven relinquishing Board control. The Company stated that while it continues to be pleased with its portfolio investment, it is opting to reduce its holding in AFS to realize profits on its investment and raise liquidity to fund new acquisition opportunities. The proceeds will be used to settle a transaction relating to another portfolio investment…Read More
Access Financial Services -Analysis & Recommendation- February 20 2018
Summary
Access Financial Services Limited is one of the leading institutions in the Microfinance sector, listed on the Junior Market of the Jamaica Stock Exchange. The Company contributes significantly to economic growth by providing funding to the Microfinance Sector, which in turn spurns productivity through job creation. Access’ Small and Medium Enterprise (SME) loan recipients are involved in activities across various business sectors such as Service, Manufacturing, Trading and Agriculture. The company operates out of 17 branches covering 80% of the island and serving more than 20,000 individuals and MSME’s...Read More
Barita Investments Limited (BIL)
Barita Investments Limited (BIL) - APO Analysis & Recommendation - September 2021
Summary
Barita Investments Limited is seeking to raise J$10,000,000,000.00 in additional equity financing. The Company is inviting offers for the subscription of 125,000,000 new ordinary shares at a price of J$80.00 per share in an Additional Public Offer (APO). Barita may upsize this Offer by an additional 62,500,000 shares. BIL intends to use the proceeds of the Offer to: add capacity to its principal investment portfolios; expand its local and regional footprint; expand its investment banking underwriting capacity and footprint regionally and cover transaction fees....Read More
Barita Investments Limited (BIL) - APO Analysis & Recommendation - August 2020
Summary
Barita Investments Limited is seeking to raise approximately J$9,000,000,000 in additional equity financing via the issue of 173,733,220 new ordinary shares (with the ability to upsize by an additional 86,866,610 new ordinary shares) at prices which range between $49.00 and $52.00 per share. BIL intends to use the proceeds of the Offer to capitalize its investment banking unit, fund its digital transformation, expand its footprint and fund new investment strategies and products...Read More
Barita Investments Limited-Rights Issue - Analysis & Recommendation - September 2019
Summary
Barita Investments Limited is seeking to raise J$3,505,378,635.00 in equity financing via a Rights Issue. Existing shareholders are being offered the right to subscribe for 77,897,303 new ordinary shares a price of J$45 per share. BIL intends to use the proceeds of the Offer to pursue investment opportunities and for general corporate purposes…Read More
Barita Investments Limited (BIL) - Analysis & Recommendation - June 2019
Summary
Incorporated in September 1977, Barita’s primary business activities are Equities and Fixed Income Trading, Foreign Currency Trading, Wealth Management, Investment Research, and Unitized Portfolio Management. BIL reported net operating revenues of $1.16B for the first half of the 2018/19FY, a 137.4% or $673.6M increase year-over-year. As a result, BIL reported a 485.3% or $580.47M increase in pre-tax profits, which amounted to $700.07M. BIL reported net profits of $516.71M, a 946.7% or $467.34M increase year-on-year. The performance led to a sharp improvement in the net profit margin, which moved from 10.1% to 44.4%...Read More
Berger Paints Jamaica Limited (BRG)
Berger Paints Jamaica Limited - Analysis & Recommendation - December 30 2022
Summary
Berger Paints Limited (BRG), was incorporated in 1953 and its shares listed on the Jamaica Stock Exchange in 1992. In 2017, BRG became a subsidiary of the Ansa Mcal Group, as they purchased Lewis Berger Limited, which owned 51.1% of Berger Paints Jamaica Limited. This acquisition was done via a wholly owned subsidiary of the Ansa Macal group, called Ansa Mcal Coatings International. BRG’s principal activities include the manufacturing and distribution of industrial and decorative paints and paint related materials for the construction, automotive and other industries.
Over the period FY2018-FY2021, BRG grew revenues by a compound average growth rate (CAGR) of 4.61%. Since posting record revenue numbers of $2.7B in FY2018, BRG has seen yearly declines in revenue. Since then, BRG has noticed recovery in revenue recorded for the FY2021, a 31% growth of $2.37B the 2020FY year to $3.11B. Subsequently, BRG reported revenue at $2.18B for the nine-month period FY2022, an 11.4% year over year growth compared with the corresponding 2021 period...Read more
Berger Paints Jamaica Limited - September 2017
Summary
Despite the negative impact of local cement shortages and adverse weather conditions on net sales, Berger was still able to put in a creditable performance for the June-2017 quarter when compared to the comparable period in 2016. A 10.2% decrease in net sales was offset by a continued focus on efficiency both in administration and operations to yield a 10.6% increase in net profits...Read more
Blue Power (BPOW)
Blue Power - Analysis & Recommendation - January 2019
Summary
Blue Power Group Limited (BPOW) is located at 4 Victoria Avenue, Kingston CSO. BPOW was listed on the Junior Market of the Jamaica Stock Exchange on April 22, 2010. BPOW’s main pursuits are the production and sale of soap (laundry and beauty) and the sale of lumber, hardware supplies and related products. The soap segment has been the most significant contributor to operating profit since FY 2014. In Q2 2019 $14.21 million in operating profit was earned from the lumber division versus $24.94 million from the soap division. BPOW has significant exposure to... Read More
Cable & Wireless Jamaica Limited (CWJ)
Offer Circular by CWC CALA Holdings Limited for Ordinary Shares in Cable & Wireless Jamaica Limited
Summary
CWC Cala (CWC Cala) Holdings and its affiliates, are currently the majority shareholders of ordinary shares in Cable & Wireless Jamaica (82%). They are making a voluntarily offer for the outstanding minority ordinary shares in CWJ. Persons who currently own shares in CWJ can voluntarily sell their shares to CWC Cala. Payments for shares will occur within 21 days after the offer has closed.
Caribbean Cement Company Limited (CCC)
Caribbean Cement Company Limited - Analysis & Recommendation - October 2023
Summary
Caribbean Cement Company Limited (CCC), a company listed publicly, has been operational since 1952. The principal business activities encompass the production and distribution of Carib Plus Vertua and High-Early (HE) Strength Cement. The company's primary facility and operations are located in Rockfort, Kingston, supplemented by quarry operations in St. Andrew and St. Thomas. CCC manufactures superior quality products utilising 100% local raw materials. CCC is part of the TCL Group, where Cemex, S.A.B. de C.V holds a majority stake.
Over the period from FY 18 to FY 22, CCC has shown a nearly consistent rise in local cement sales, with a compound annual growth rate (CAGR) of 3.9%. Despite this, FY 22 witnessed a decline of 5.3% in local cement sales, totaling approximately 1.02 million tons. However, the company aims to increase its capacity by approximately 300,000 tons or 30%, with a goal of early FY 25 to meet local demand and boost export sales. Both revenue and profit hit record highs at the end of FY 22. The decrease in operating cash flow for FY 22 can be linked to an upsurge in inventory stocks...Read More
Caribbean Cement Company Limited - Analysis & Recommendation - February 2022
Summary
Caribbean Cement Company (CCC) began operations in 1952 and is a member of the TCL Group, with CEMEX S.A.B de C.V being its ultimate parent. The main activities of CCC and its subsidiaries are the manufacture and sale of cement, clinker and the mining and sale of gypsum, shale and pozzolan. CCC is the sole manufacturer of Portland and blended cement in Jamaica, with its central plant located at Rockfort, Kingston.
Commencing in 2017, CEMEX has provided its expertise to CCC, which aided its operations. In November 2021, CCC announced that at its general meeting on December 7, 2021, it would propose entering a Master Services and Intellectual Property Agreement with CEMEX for services provided. The royalty fee payment will begin on January 1 2022, and will not exceed 4% of CCC’s consolidated net sales. The news was received negatively by many investors as it would result in a significant increase in costs for CCC...Read More
Caribbean Cement Company Limited - Analysis & Recommendation - June 2021
Summary
Caribbean Cement Company (CCC) began operations in 1952 and is a member of the TCL Group, with CEMEX S.A.B de C.V being its ultimate parent. The main activities of CCC and its subsidiaries are the manufacture and sale of cement, clinker and the mining and sale of gypsum, shale and pozzolan. CCC is the sole manufacturer of Portland and blended cement in Jamaica, with its central plant located at Rockfort, Kingston.
Revenue surged by $1.4 billion or 31.2% to $6 billion for the 3-months ended March 30, 2021, while profits increased by $1 billion or 215.9% to $1.5 billion. The primary reason for the increase in profits was cement sales, which in March 2021 reached a record 100,000 metric tonnes. Furthermore, cash flow from operating activities surged by 103.3% to $2.3 billion...Read More
Caribbean Cement Company Limited - Analysis & Recommendation - December 2019
Summary
Caribbean Cement Company (CCC) began operations in 1952 and is a member of the TCL Group, with CEMEX S.A.B de C.V being its ultimate parent. The main activities of CCC and its subsidiaries are the manufacture and sale of cement, clinker and the mining and sale of gypsum, shale and pozzolan. CCC is the sole manufacturer of Portland and blended cement in Jamaica with its central plant located at Rockfort, Kingston...Read More
Caribbean Cement Company Limited - Analysis & Recommendation - February 2019
Summary
Caribbean Cement Company (CCC) began operations in 1952 and is a member of the TCL Group, with CEMEX S.A.B de C.V being its ultimate parent. The main activities of CCC and its subsidiaries are the manufacture and sale of cement, clinker and the mining and sale of gypsum, shale and pozzolan. CCC is the sole manufacturer of Portland and blended cement in Jamaica with its central plant located at Rockfort, Kingston.
For the 9-months ended September 30, 2018 revenue increased by $1.17 billion to $13.44 billion while profits slipped 27.62% to $1.31 billion. The primary reasons for the decline in profits are increased depreciation of more than $400 million and net finance cost of more than $1.08 billion. Both expense increases were due to the acquisition of Kiln 5 and Mill 5 in April 2018...Read More
Caribbean Flavours & Fragrances (CFF)
Caribbean Flavours & Fragrances - Analysis & Recommendation - March 2024
Summary
Caribbean Flavours and Fragrances Limited (CFF), was established in 2001 and its shares listed on the Junior Market of the Jamaica stock exchange in 2013. In 2017, CFF became a subsidiary of the Derrimon Trading Group, as they increased their holdings in the company from just over 45% to 75%. CFF’s principal activities include the manufacture and distribution of flavours, mainly for the beverages, baking and confectionary industries. At the onset of the COVID-19 pandemic, the company began producing its own brand of hand sanitizer.
Over the period FY2020-FY2023, revenue improved at a compound average growth rate (CAGR) of 14.9%. CFF recorded revenues of $900.8M in the 2023FY, as demand of CFF’s products increased. CFF profits improved from $61.7M to $132.8M for the 2023FY...Read More
Caribbean Flavours & Fragrances - Analysis & Recommendation - December 22 2022
Summary
Caribbean Flavours and Fragrances Limited (CFF), was established in 2001 and its shares listed on the Junior Market of the Jamaica stock exchange in 2013. In 2017, CFF became a subsidiary of the Derrimon Trading Group, as they increased their holdings in the company from just over 45% to 75%. CFF’s principal activities include the manufacture and distribution of flavours, mainly for the beverages, baking and confectionary industries. At the onset of the COVID-19 pandemic, the company began producing its own brand of hand sanitizers.
Over the period FY2018-FY2021, revenue has declined at a compound average growth rate (CAGR) of 1.8%. CFF had record revenues of $637.7M in the 2021FY, as the company continues to capitalize on opportunities provided by the pandemic and begin to recover from the onset of the pandemic as the economy reopens. Subsequently, CFF reported revenue at $561.94M for the nine-month period FY2022, a 21.1% year over year growth compared to the corresponding 2021 period...Read More
Caribbean Flavours & Fragrances - Analysis & Recommendation - July 2021
Summary
Caribbean Flavours and Fragrances Limited (CFF), was established in 2001 and its shares listed on the Junior Market of the Jamaica Stock Exchange in 2013. In 2017, CFF became a subsidiary of the Derrimon Trading Group, as they increased their holdings in the company from just over 45% to 75%. CFF’s principal activities include the manufacture and distribution of flavours, mainly for the beverages, baking and confectionery industries. At the onset of the COVID-19 pandemic, the company began producing its own brand of hand sanitizers.
Over the period FY2017 - FY2020, CFF grew revenues by a compound average growth rate (CAGR) of 13%. CFF had record revenues of $593M in the 2020FY, as the company capitalized on opportunities provided by the pandemic. Revenues for the 1st quarter of the 2021FY declined by 10.5% from $149M to $133M, as the flavours section of the business continues to experience a slowdown. However, CFF improved its margins and benefited from an increase in finance income, which led to an increase in first-quarter profits by 19.7%...Read More
Caribbean Producers Jamaica Limited (CPJ)
Caribbean Producers Jamaica Limited (CPJ) - Analysis & Recommendation - March 2024
Summary
Incorporated in April 1994 by Mark Hart and Thomas Tyler, Caribbean Producers (Jamaica) Limited (CPJ) serves as a supplier of consumer goods aimed at the hospitality industry. The primary business activities of the enterprise encompasses the wholesale and distribution of food and beverages, provision of non-food supplies, along with producing and distributing fresh juices and meats. On 20 July 2011, CPJ made its debut on the Junior Market, and subsequently moved to the Main Market in July 2021.
In the financial year ending June 2023, the Company registered a revenue growth of 18.9%, marking a high for the period under review. Despite this, there was a downturn in profits by 23.2% during the same term, concluding at USD 5.8 million. In tandem, there was a rise in equity by 24.9%, standing at USD 28.9 million, whilst cash inflow from operational activities showed positive signs of improvement, culminating to USD 1.9 million...Read More
Caribbean Producers Jamaica Limited (CPJ) - Analysis & Recommendation - June 2021
Summary
Caribbean Producers (Jamaica) Limited (CPJ) was founded in April 1994 by Mark Hart and Thomas Tyler as a distributor of consumable products to the hospitality industry. The Company’s primary activities are the wholesale and distribution of food and drinks, the distribution of non-food supplies and the manufacture and distribution of fresh juices and meats. CPJ listed on the Junior Market on July 20, 2011; therefore, it will no longer receive tax breaks associated with the Junior Market after July 2021. CPJ holds 100% of the issued shares of CPJ Investments Limited (CPJIL). The primary activity of CPJIL is the holding of 51% investment in CPJ (St. Lucia) Limited, whose primary business is the wholesaling and distribution of food and drinks and distribution of non-food supplies in St. Lucia.
CPJ’s revenue has trended higher from FY 2015 to FY 2019 however revenues fell 16.3% in FY 2020 due to the deleterious impact of COVID-19. The decline in revenue triggered a loss of US$4.1 million in FY 2020. The weakness in revenue and earnings continued in the 9M period ended March 2021, where revenue fell 56.8% to US$37.1 million. Meanwhile, losses for the 9M period grew to US$3.6 million...Read More
Caribbean Producers Jamaica Limited (CPJ) - Analysis & Recommendation - March 2019
Summary
Caribbean Producers (Jamaica) Limited (CPJ) was founded in April 1994 by Mark Hart and Thomas Tyler as a distributor selling consumable products to the hospitality industry. CPJ's registered office is at Shop No. 14 Montego Freeport Shopping Centre, Montego Bay, and St. James. The company is currently a distributor of food, non-food, beverages, wine & spirits, a manufacturer of meats & juices. CPJ listed on the Junior Market on July 20, 2011. As of March 18, 2018 CPJ holds 100% of the issued shares of CPJ Investments Limited (CPJIL). The primary activity of CPJIL is the holding of 51% investment in CPJ (St. Lucia) Limited, whose primary business is the wholesaling and distribution of non-food supplies...Read More
Carreras Limited (CAR)
Carreras Limited (CAR) - Analysis & Recommendation - March 2022
Summary
Carreras Ltd. (CAR), is incorporated and domiciled in Jamaica and is a 50.4% subsidiary of Rothmans Holding (Caricom) Limited. The company’s principal activities are the marketing and distribution of cigarettes. The ultimate parent company is British American Tobacco PLC, incorporated in the United Kingdom and listed on the London Stock Exchange. Carreras’ operations have been affected by several government actions which include but are not limited to, the banning of smoking in public spaces and a 21.4% increase in excise duty...Read More
Carreras Limited (CAR) - Analysis & Recommendation - July 2020
Summary
Carreras Ltd. (CAR), is incorporated and domiciled in Jamaica and is a 50.4% subsidiary of Rothmans Holding (Caricom) Limited. The company’s principal activities are the marketing and distribution of cigarettes. The ultimate parent company is British AmericanTobacco PLC, incorporated in the United Kingdom and listed on the London Stock Exchange. Carreras’ operations have been affected by several government actions taken which include but are not limited to, the banning of smoking in public spaces and a 21.4% increase in exercise duty.
For the 9 month period ended December 2020, CAR’s recorded revenues of $4.9Bn, a 2.88% decrease year-over-year(y-o-y). Despite a reduction in revenue CAR’s efficient cost management throughout the pandemic has led to profits for the 9 month period of $2.59Bn, up 5.91% y-o-y...Read More
Carreras Limited (CAR) - Analysis & Recommendation - May 2020
Summary
Carreras Ltd. (CAR), is incorporated and domiciled in Jamaica and is a 50.4% subsidiary of Rothmans Holding (Caricom) Limited. The company’s principal activities are the marketing and distribution of cigarettes. The ultimate parent company is British American Tobacco plc, incorporated in the United Kingdom and listed on the London Stock Exchange. Carreras’ operations have been affected by several government actions taken which include but are not limited to, the banning of smoking in public spaces and a 21.4% increase in excise duty. ...Read More
Carreras Limited (CAR) - Analysis & Recommendation - June 8 2018
Summary
Carreras Limited is incorporated and domiciled in Jamaica and is a 50.4% subsidiary of Rothmans Holdings (Caricom) Limited. The principal activities of the company are the marketing and distribution of cigarettes.
For the 2017/18 financial year, Carreras reported a decline of 7.1% or $959.10M in revenues, which amounted to $12.55B. The cost of operating revenue amounted to $6.25B, a 10.3% decrease year-over-year but this improvement was not enough to offset the decline in revenues as gross profits fell 3.6% to $6.30B. As such, pre-tax profits fell 7.4% or $372.56M to $4.64B while net profits attributable to shareholders declined by 8.5% or $321.69M, to $3.81B. Carreras’s underperformance for the year has been attributed to diminishing market share as the company contends with the rise of the illicit cigarette trade...Read More
Derrimon Trading Company Limited (DTL)
Derrimon Trading Company Limited -Analysis & Recommendation- February 2023
Summary
Derrimon Trading Company Limited (DTL) was founded in December 1998 as a private company that distributed commodities. DTL was listed on the Junior Market of the Jamaica Stock Exchange (JSE) in December of 2013. Over the past 3 years, DTL has grown revenues by a Compound Annual Growth Rate (CAGR) of 24% while growing net income by a CAGR of 17%. Over the 12-month period ended December 2021, DTL has grown revenues to $17.74B, a 38.88% increase over the 2020YE revenues of $12.78B. DTL has also grown profits to $448.18M for the period under review, compared to profits of $311.09M for the 2020YE.
More recent, DTL reported a 15% increase in profits of $482.2M for the nine-month period ended September 2022, compared to profits of $419.8M for the corresponding nine-month period in 2021. DTL used the proceeds from the additional public offer (APO) that concluded January 2021, to fuel its acquisition initiatives, which has begun to bear fruit, as is evident in the company’s top line...Read More
Derrimon Trading Company Limited -Analysis & Recommendation- May 2022
Summary
Derrimon Trading Company Limited (DTL) was founded in December 1998 as a private company that distributed commodities. DTL was listed on the Junior Market of the Jamaica Stock Exchange (JSE) in December of 2013. Over the past 3 years, DTL has grown revenues by a Compound Annual Growth Rate (CAGR) of 24% while growing net income by a CAGR of 17%. Over the 12-month period ended December 2021, DTL has grown revenues to $17.74B, a 38.88% increase over the 2020YE revenues of $12.78B. DTL has also grown profits to $448.18M for the period under review, compared to profits of $311.09M for the 2020YE...Read More
Derrimon Trading Company Limited APO -Analysis & Recommendation- October 2021
Summary
Derrimon Trading Company Limited (DTL) was founded in December 1998 as a private company that distributed commodities. DTL was listed on the Junior Market of the Jamaica Stock Exchange (JSE) in December of 2013.
Over the past 3 years, DTL has grown revenues by a Compound Annual Growth Rate (CAGR) of 23.86% while growing net income by a CAGR of 4%. This difference in the growth rate of revenues and net income illustrates that expenses have outpaced revenue growth over the period. One such expense which has experienced significant growth is finance costs, which has grown by a CAGR of 31.29%. Management has, however, signaled their intention to reduce this expense as they have used the proceeds from the recently concluded additional public offer (APO) to retire existing expensive debt and ease their interest burden. We have observed that margins have been decreasing over the past 3 years and this presents a risk as in an environment of increased unpredictability, the company may stand vulnerable...Read More
Derrimon Trading Company Limited APO -Analysis & Recommendation- January 2021
Summary
Derrimon Trading Company Limited (DTL) was founded in December 1998 as a private company which distributed commodities and was listed on the Junior Market of the Jamaica Stock Exchange (JSE) in December 2013. The corporate is seeking to raise $3.5 billion in capital in this APO.
Over the past three (3) years, DTL has grown revenues by a Compound Annual Growth Rate (CAGR) of 23.7% while increasing net income by a CAGR of 8.7%. The growth in net income in a competitive sector with slim margins underscores management’s ability to not only contain costs but seek organic and inorganic growth opportunities. The management of DTL aims to continue the corporate’s growth trend using the proceeds from APO). DTL earmarked the funds to complete two (2) acquisitions and retire debt. These activities could help to drive revenue growth and lower finance costs...Read More
Derrimon Trading Company Limited -Analysis & Recommendation- April 11 2018
Summary
DTL was founded in 1998 as a distributor of bulk commodities in the Kingston area and in 2009 branched out into the retail space by acquiring Sampars Cash ‘N’ Carry, a large wholesale business in Kingston. The Company now operates seven retail stores under the Sampars Cash ‘N’ Carry brand and its flagship supermarket under the Select Brand via a joint venture agreement.
During the 2017 financial year, DTL purchased the former Empire Supermarket, at 1-3 Retirement Road, and finalized a Joint Venture Agreement to purchase the assets of Caribbean Home Entertainment Systems Limited, the former operators of Carihome Supermarket Limited, rebranding the operations under the Select Grocers brand. DTL’s strategy of removing low margin products that do not meet a required threshold or provide a negative contribution, to focus on higher yield products has borne fruit and we expect such margin management to continue in the current year....Read More
Derrimon Trading Company Limited – February 2017
Company Background
Derrimon Trading Company Limited (DTL) is a private company limited by shares, incorporated and domiciled in Jamaica. Its registered office is located at 233 and 235 Marcus Garvey Drive, Kingston 11. The principal activity of the DTCL is the distribution of bulk household food items inclusive of meat products. DTL also distributes branded products on behalf of a major global corporation.
In 2009, DTL purchased the assets of a wholesale distribution company and continued to operate from its original location at
33 Marcus Garvey Drive, Kingston 11. DTL maintained the entity’s trading name, Sampars Cash & Carry...Read more
Dolla Financial Limited (DOLLA)
Dolla Financial Limited IPO - Analysis & Recommendation - May 27 2022
Summary
Incorporated in 2009, Dolla Financial Limited (Dolla) is a Jamaican microfinancing company seeking to list on the Junior Market of the Jamaican Stock Exchange. The Company is inviting applications for up to 250,000,000 ordinary shares in the Company at a price of $1.00 per share. Dolla is also inviting applications on behalf of selling shareholders for purchase of up to another 250,000,000 shares, also at a price of $1.00 per share.
The Company intends to use the funds raised for itself to fund its regional expansion and strengthen its capital base. The proceeds from the sale of the existing shares will be used to reduce the debt of the Selling Shareholders...Read More
Dolphin Cove (DCOVE)
Dolphin Cove - Analysis & Recommendation - August 9 2017
Summary
Incorporated and domiciled in Jamaica, Revenue from Dolphin Attractions is the primary revenue generating activity and involves the sale of dolphin, stingray and shark interaction programmes. The Group’s sales also include revenue from “Ancillary Services” which includes the sale of souvenirs, photographs, food and beverages and the use of its beach cabanas and tours such as kayaks, boat, and the Yaa man park opened in 2017. The company continues to earn most of its income in United States dollars…Read more
Eppley Limited (EPLY)
Eppley Limited Preference Share Offer - November 2018
Summary
Eppley Limited is inviting applications for subscription for 66,500,000 new fixed-rate Cumulative Redeemable 7.50% Preference Shares due 2024 in the Company for a consideration of J$399,000,000. Eppley may elect to upsize this offer by an additional 33,500,000 units, bringing the total consideration to J$600,000,000. Read More
Express Catering Limited (ECL)
Express Catering Limited - Analysis & Recommendation - January 2024
Summary
The principal operation of ECL involves the management of recognised sports bars and eateries located at Sangster International Airport (SIA). The firm is a subsidiary of Margaritaville St. Lucia Inc, with the ultimate parent entity being Margaritaville Caribbean Group Limited. In July 2017, ECL entered the Junior Market at a price point of J$1.50. Established in 2001, ECL has been serving millions of individuals with its food and beverage services at the SIA every year. Since 2011, it has become the principal partner for food and beverage services to MBJ Airports Limited, following a successful negotiation of a long-term contract to oversee and provide a substantial proportion of the food and beverage offerings at the SIA. ECL holds a substantial stake in the pre-security food and beverage offerings, whilst enjoying exclusive rights for the post-security sections. At present, ECL manages numerous international franchises, including household names such as Starbucks, Quiznos, Wendy’s, and Domino’s...Read More
Express Catering Limited - Analysis & Recommendation - October 2021
Summary
On June 26, 2001 Express Catering Limited (ECL) was incorporated under the laws of Jamaica. ECL’s primary activity is operating branded sports bars and restaurants at Sangster International Airport (SIA). The Company is a Margaritaville St. Lucia Inc subsidiary, whose ultimate parent is Margaritaville Caribbean Group Limited. ECL was listed on the Junior Market at J$1.50 in July 2017.
ECL has been in operation since 2001, providing food and beverage offerings to millions of individuals arriving and departing via the SIA annually. The Company has been the primary food and beverage partner of MBJ Airports Limited since 2011, when it negotiated a long-term contract to manage and supply the majority of food and beverage offerings at the SIA. ECL has a meaningful share of pre-security food and beverage offerings and exclusive rights for the post-security sections. ECL currently operates several international franchises, including Starbucks, Quiznos, Wendy’s and Domino’s...Read More
Express Catering Limited - Analysis & Recommendation - September 2020
Summary
Express Catering Limited (ECL) was incorporated under the laws of Jamaica on June 26, 2001. ECL’s primary activity is the operation of branded sports bars and restaurants at Sangster International Airport (SIA). The company is a subsidiary of Margaritaville St. Lucia Inc, whose ultimate parent is Margaritaville Caribbean Group Limited. ECL was listed on the Junior Market at J$1.50 in July 2017.
ECL has been in operation since 2001 providing food and beverage offerings to millions of individuals arriving and departing via the SIA annually. The company has been the primary food and beverage partner of MBJ Airports Limited since 2011 when it negotiated a long-term contract to manage and supply the majority of food and beverage offerings at the SIA. ECL has a meaningful share of pre-security food and beverage offerings and exclusive rights for the post-security sections. ECL currently operates several international franchises including American Dairy Queen, Starbucks, Quiznos, Wendy’s and Domino’s....Read More
Express Catering Limited - Analysis & Recommendation - June 2019
Summary
Express Catering Limited was formed in 2001 to carry out food & beverage operations at the Sangster International Airport in Montego Bay. The Company operates international and local brands such as: Quiznos; Dairy Queen; Domino’s Pizza; Wendy’s; Cinnabon; and Starbucks.
Express Catering reported revenues of $12.11M for the period ended Feb. 28, 2018, a 7.4% increase year-over-year. However, operating profits amounted to $2.81M, up just 0.5% year-over-year due to erosion in operating margins from the previous year’s results. Net profit for the period amounted to $2.55M, up 0.9% year-over-year, up just $23.88K....Read More
Express Catering Limited - Analysis & Recommendation - May 21 2018
Summary
Express Catering Limited was formed in 2001 to carry out food & beverage operations at the Sangster International Airport in Montego Bay. The Company operates international and local brands such as: Quiznos; Dairy Queen; Domino’s Pizza; Wendy’s; Cinnabon; and Starbucks. Express Catering reported revenues of $11.27M for the period ended Feb. 28, 2018, a 12.4% increase year-over-year. Operating profits amounted to $2.80M, a 135.9% or $1.61M increase from the previous year’s result...Read More
Future Energy Source Company Limited (FESCO)
FESCO - Analysis & Recommendation - October 2022
Summary
Future Energy Source Company Limited (FESCO) established in 2013, is the fifth (5th) largest transportation fuel marketer in Jamaica and the second (2nd) largest local marketer by volume/litres of fuel sold, as at March 2022. FESCO engages in the marketing and distribution of petroleum and automotive products. The company offers E10 87 and E10 90 octane, E10 88 blends, automotive diesel oil, ultra-low sulphur diesel, and lubricants to retail and commercial customers. It also provides oil-based coolants, coolants, windshield wash fluids, and deionized water under the FUTROIL and FUTRLUBE brands. In addition, it offers heavy fuel oil and kerosene; fuel storage tanks and dispensers; service station management equipment; fleet management; and tank gauging equipment and technology, as well as drinking water.
Over the past 3 years, FESCO has grown revenues by a Compound Annual Growth Rate (CAGR) of 32.6%, while net income improved by a CAGR of 85.6%. Over the 12-month period ended March 2022, FESCO has grown revenues to...Read more
First Rock Capital Holdings (FCH)
First Rock Capital Holdings IPO - Analysis & Recommendation - January 2020
Summary
First Rock Capital Holdings (FCH) is inviting investors to participate in an initial public offer (IPO) of up to 106,083,332 ordinary shares in the Capital of the Company with the right to upsize the offer by an additional 53,041,666 shares in the event of oversubscription.
First Rock is an investment holding company with a focus on real estate and private equity in First Rock Capital Holdings Limited is an International Business Company (IBC) incorporated under the laws of St. Lucia on October 4, 2017. FRCH commenced trading activities in late March of 2019 upon the completion of a Private Placement Offer. The Company was created to “take advantage of investment opportunities in the acquisition and development of real property with the primary aim to provide its Shareholders with a tax-efficient vehicle for real estate investment, good dividend yield and capital appreciation in diversified real estate assets.”...Read More
FosRich Company Limited (FOSRICH)
FosRich Company Limited - Analysis & Recommendation - November 2023
Summary
Fosrich Company Ltd. (FOSRICH), was established in 1993 and had its shares listed on the Junior Market of the Jamaica stock exchange on December 19, 2017. Fosrich’s principal activities are the manufacturing of PVC pipes and fittings as well as the distribution of lighting, electrical and solar energy products. Fosrich has subsequently ventured into the pole mount transformer repairs business via firm, Blue Emerald Limited.
FosRich recorded $3.37B in revenue and $324.7M in net income for their 2022 financial year (FY). Revenues have grown by a 4-year compound average growth rate (CAGR) of 27.1% while the 4-year CAGR of net income has outpaced the growth in revenues as it stands at 37.7%. More recent,
FosRich reported a downturn in profits to $162.5M for the six-month period ended June 2023, compared to profits of $298M for the corresponding
six-month period in 2022...Read More
FosRich Company Limited - Analysis & Recommendation - April 2023
Summary
Fosrich Company Ltd. (FOSRICH), was established in 1993 and had its shares listed on the Junior Market of the Jamaica stock exchange on December 19, 2017. Fosrich’s principal activities are the manufacturing of PVC pipes and fittings as well as the distribution of lighting, electrical and solar energy products. Fosrich has subsequently ventured into the transformer repairs business via recently created firm, Blue Emerald Limited.
FosRich recorded $2.35B in revenue and $199.3M in net income for their 2021 financial year (FY). Revenues have grown by a 4-year compound average growth rate (CAGR) of 22% while the 4-year CAGR of net income has outpaced the growth in revenues as it stands at 38%. More recently, FosRich reported an increase in profits to $387.8M for the nine-month period ended September 2022, compared to profits of $179.2M for the corresponding nine-month period in 2021...Read More
FosRich Company Limited - Analysis & Recommendation - March 2022
Summary
Fosrich Company Ltd. (FOSRICH), was established in 1993 and had its shares listed on the Junior Market of the Jamaica stock exchange on December 19, 2017. Fosrich’s principal activities are the manufacturing of PVC pipes and fittings as well as the distribution of lighting, electrical and solar energy products. Fosrich has subsequently ventured into the transformer repairs business via recently created firm, Blue Emerald Limited.
Fosrich recorded $2.35B in revenue and $199.3M in net income for their 2021 financial year (FY). Revenues have grown by a 4-year compound average growth rate (CAGR) of 22% while the 4-year CAGR of net income has outpaced the growth in revenues as it stands at 38%...Read More
FosRich Company Limited - Analysis & Recommendation - June 2021
Summary
Fosrich Company Ltd. (FOSRICH), was established in 1993 and its shares listed on the Junior Market of the Jamaica stock exchange on December 19, 2017. Fosrich’s principal activities are the manufacturing of PVC pipes and fittings as well as the distribution of lighting, electrical and solar energy products. The company has subsequently ventured into the transformer repairs business, via a recently created firm, Blue Emerald Limited.
Fosrich recorded $1.89Bn in revenue and $125.7M in net income for their 2020 financial year (FY). Revenues have grown by a 3 year compound average growth rate (CAGR) of 22% while the 3 year CAGR of net income has outpaced the growth in revenues as it stands at 32%...Read More
GraceKennedy Limited (GK) Limited
GraceKennedy Analysis & Recommendation - July 2022
Summary
GraceKennedy Limited (GK) was founded in February 1922 and is currently listed on the Jamaica Stock Exchange and the Trinidad & Tobago Stock Exchange. GK has two primary divisions: Food Trading and Financial Services. The Financial Services division is further divided into three segments Banking & Investments, Insurance and Money Services.
Food Trading (GK Foods) operations include retail outlets, food manufacturing and distribution of Grace and Grace-owned brands locally and internationally. In addition, GK Foods has subsidiaries in several countries, including Jamaica, Central America, North America, Africa, the United Kingdom, and several European countries. Meanwhile, the Financial Services division operates in commercial banking, general insurance, health insurance, creditor life insurance, insurance brokerage, investment banking, remittance, cambio and payment services business. The majority of FY 2021 revenue was generated in three geographic locations, namely Jamaica (53.6%), North America (19.6%) and Europe, including the UK (13.1%)…Read More
GraceKennedy Analysis & Recommendation - June 2020
Summary
GraceKennedy Limited (GK) was founded on February 14, 1922 and is listed on both the Jamaica Stock Exchange and the Trinidad & Tobago Stock Exchange. GK is structured into two primary divisions, namely Food Trading and Financial Services. The Financial Services division is further divided into four segments Food Trading, Banking & Investments, Insurance and Money Services. For the three months ended March 2020, Food Trading generated the majority of GK’s revenue, $23.45 billion or 81.28%. However, the Money Services segment is a significant contributor to operating profits, generating $841.63 million or 40.17% for the same period…Read More
GraceKennedy Analysis & Recommendation - October 2019
Summary
GraceKennedy Limited (GK) was founded on February 14, 1922 and is listed on both the Jamaica Stock Exchange and the Trinidad & Tobago Stock Exchange. GK is structured into two primary divisions, namely Food Trading and Financial Services. The company is further divided into four segments Food Trading, Banking & Investments, Insurance and Money Services. For the six months ended June 2019, Food Trading constitutes the majority of revenue $40.93 billion or 79.49%. However, the Money Services segment is the most significant contributor to operating profits $1.43 billion or 41.62% for the same period…Read More
GraceKennedy Limited (GK) Limited - Analysis & Recommendation - March 2019
Summary
GraceKennedy Limited (GK) Limited was founded on February 14, 1922 and is listed on both the Jamaica Stock Exchange and the Trinidad & Tobago Stock Exchange. GK is constructed into two primary areas Food Trading and Financial Services. The company is further divided into four segments Food Trading, Banking & Investments, Insurance and Money Services. For the nine months ended September 2018, Food Trading constitutes the majority of revenue $58.54 billion or 79.29%. However, the Money Services segment is the most significant contributor to pre-tax profits $2.37 billion or 46.58% for the same period....Read More
GraceKennedy Limited - Analysis & Recommendation - June 4 2018
Summary
GK’s revenues grew by 4.8% to $92.48B for the year ended December 2017 relative to the same period last year following improvements in all divisions (see Table 1 and Graph 1). On the other hand, direct expenses grew 5.0% to $88.94B during the review period. Gross profit declined 1.4% to $3.53B for the year ended December 2017 relative to the previous year. Further, there was a decrease in other operating income amidst a reduction in the net foreign exchange gains. GK benefited from the recognition of tax credits. From this standpoint, net earnings for the year ended December 2017 increased by 5.2% to $4.77B from $4.53B for the same period last year. As such, the earnings-per-share (EPS) for GK amounted to $4.80 for the current period relative to $4.56 last year....Read More
Guardian Holdings Limited (GHL)
Guardian Holdings Limited (GHL) - Analysis & Recommendation - June 2021
Summary
Guardian Holdings Limited (GHL) is the parent company for an integrated financial services group known as the Guardian Group, with a focus on life, health, property and casualty insurance, pensions and asset management. GHL, incorporated in Trinidad and Tobago (T&T) in 1982 is a public limited liability holding company. The Group is one of the largest insurance providers in the Caribbean. GHL provides a diversified range of financial and insurance services with three main business segments: - Life, Health and Pensions (LHP), Property and Casualty Insurance (P&C) and Asset Management Services. GHL’s products and services are marketed and distributed throughout the Eastern Caribbean, the Bahamas, the Cayman Islands, the United States Virgin Islands and Belize....Read More
GWest Corporation Limited (GWEST)
GWest Corporation Limited (GWEST) - Analysis & Recommendation - March 2020
Summary
GWest Corporation Limited (GWEST) is a limited liability company, founded in 2007. Its primary activities are the development
of commercial properties and the provision of healthcare services. GWEST listed on the Junior Market on December 21, 2017
and the registered office of the company is lot 6 Crane Boulevard, Fairview, Montego Bay, St. James.
GWest Centre is a 3-storey multi-purpose commercial complex focused on medical professionals and services. The general practice
and specialist suite opened in May 2017. Subsequently, the GWest Urgent Care Centre commenced operations in November 2017
and later became a 24-hour facility. The company makes revenue from two primary sources medical services and lease/rental from
owned spaces....Read More
GWest Corporation Limited (GWEST) - Analysis & Recommendation - March 2019
Summary
GWest Corporation Limited (GWEST) is a limited liability company, founded in 2007. Its primary activities are the development of commercial properties and the provision of healthcare services. GWEST listed on the Junior Market on December 21, 2017 and the registered office of the company is lot 6 Crane Boulevard, Fairview, Montego Bay, St. James. The company has sold/leased 80% of GWest Centre to complementary health and medical facilities....Read More
GWest Coporation Limited Valuation and Recommendation
Summary
GWest Corporation Limited (GWest) is a limited liability company which is incorporated in Jamaica. Its main activities are to undertake the development of commercial and residential properties and the management of health care facilities (namely; GWest centre). The GWEST Centre will provide a full range of services to complement such medical specialties as internal medicine and subspecialties, general surgery, cardiology, oncology, neurosurgery, orthopaedics, gynaecology, and mental health services. The company which was incorporated on December 3, 2007 has completed its major project of development of a medical and dental complex on lands at Fairview, Montego Bay and began trading in the current year. The registered office of the company is 34 Market Street, Montego Bay...Read more
Honey Bun (1982) Limited (HONBUN)
Honey Bun (1982) Limited (HONBUN) - Analysis & Recommendation - March 2022
Summary
Honey Bun (1982) Limited (HONBUN) is a limited liability company incorporated under the laws of Jamaica, and its registered office is 26 Retirement Crescent, Kingston 5. The Company was established in 1982 by Herbert Chong and Michelle Chong and listed on the JSE’s Junior Market on June 3, 2011. Its primary activities are manufacturing and distributing baked products for local and export markets. HONBUN became Jamaica’s first Internationally Food Safety Certified (Hazards Analysis Critical Control Point - HACCP) bakery in March 2016 and subsequently completed a 5 for 1 stock split on June 1, 2016.
HONBUN’s revenue increased at a CAGR of 14.4% between FY 2017 and FY 2021 to a record $2.1 billion. Meanwhile, profits have grown at a CAGR of 23.5% for the same period. Revenue and profit growth rate accelerated in Q1 FY 2022, up 44.1% and 30.9%, respectively....Read More
Honey Bun (1982) Limited (HONBUN) - Analysis & Recommendation - June 2021
Summary
Honey Bun (1982) Limited (HONBUN) is a limited liability company incorporated under the laws of Jamaica, and has its registered office at 26 Retirement Crescent, Kingston 5. The Company was established in 1982 by Herbert Chong and Michelle Chong and listed on the JSE’s Junior Market on June 3, 2011. Its primary activities are the manufacture and distribution of baked products for local and export markets. HONBUN became Jamaica’s first Internationally Food Safety Certified (Hazards Analysis Critical Control Point - HACCP) bakery in March 2016 and subsequently completed a 5 for 1 stock split on June 1, 2016.
HONBUN has increased revenue at a CAGR of 8.9% between FY 2016 to FY 2020 (period under review) to $1.7 billion. Meanwhile, profits have grown at a CAGR of 3.6% for the same period. The revenue and profit growth rate accelerated, for the 6 months ended March 31, 2021, up 12.9% and 20.7%, respectively....Read More
Honey Bun (1982) Limited (HONBUN) - Analysis & Recommendation - August 2020
Summary
Honey Bun (1982) Limited (HONBUN) is a limited liability company incorporated under the laws of Jamaica, and its registered office is 26 Retirement Crescent, Kingston 5. HONBUN was established in 1982 by Herbert Chong and Michelle Chong and listed on the JSE’s Junior Market on June 3, 2011. Its primary activities are the manufacture and distribution of baked products for local and export markets. The company specializes in producing individually packaged pastries and baked snacks. HONBUN became Jamaica’s first Internationally Food Safety Certified (Hazards Analysis Critical Control Point - HACCP) bakery in March 2016 and subsequently completed a 5 for 1 stock split on June 1, 2016...Read More
Honey Bun (1982) Limited (HONBUN) - Analysis & Recommendation - May 24 2018
Summary
Honey Bun (1982) Limited is a producer of baked goods and snack products. The product line includes: donuts, cinnamon rolls, snack cakes, raisin breads, cheese breads, and its spiced buns with injected soft cheese. We recommend HONBUN as MARKETWEIGHT. While we view the expansion of the productive capacity and the addition of new product offerings favourably we also believe the stock is currently trading close to its fair value. HONBUN is suitable for investors with a medium risk appetite and a medium to long-term investment horizon seeking primarily capital appreciation. While HONBUN is a consistent dividend-payer, these dividends are modest as it continues to expand....Read More
Image Plus Consultants Limited
Image Plus Consultants Limited's IPO Analysis - December 28 2022
Summary
Cofounded by Dr. Karlene McDonnough and Dr. Lilieth Ann Robinson-Bridgewater, Image Plus Consultants Limited is the owner & operator of Apex Radiology. The Company was started with the goal of offering accessible, high-quality diagnostic imaging services at a reasonable cost. The Company is inviting applications for up to 247,889,936 new ordinary shares in the Company at a price of $2.00 per share. Image Plus has reserved 65,000,000 shares for employees, key stakeholders and the broker, with the remaining 182,889,936 shares available for subscription for the general public. The Company intends to use the funds raised to strategically and sustainably expand their business...Read more
Jamaica Broilers Group Limited (JBG)
Jamaica Broilers Group Limited (JBG) - Analysis & Recommendation - February 2021
Summary
Jamaica Broilers Group Limited (JBG) was incorporated in 1958 in Jamaica, with its registered office located at Content, McCooks Pen, St. Catherine. The primary activities of JBG include the production and distribution of poultry products, animal feeds and agricultural items. JBG is a vertically integrated group with the Jamaican operations being 100% self-sufficient in the production of poultry meat and eggs. JBG has several well-known brands, including The Best Dressed Chicken, Reggae Jammin, and Hamilton’s Smokehouse.
JBG currently reports operations for its three major geographical segments, namely Jamaica, US and Haiti. Of which the Jamaican and US operations are the primary contributors of FY 2020 external revenue, contributing 62.36% and 33.93% respectively... Read More
Jamaica Broilers Group Limited (JBG) - Analysis & Recommendation - March 2020
Summary
Jamaica Broilers Group Limited (JBG) was incorporated in 1958 in Jamaica, with its registered office located at Content, McCooks Pen, St. Catherine. The primary activities of JBG include the production and distribution of poultry products, animal feeds and agricultural items. JBG is a vertically integrated group with the Jamaican operations being 100% self-sufficient in the production of poultry meat and eggs. JBG has several well-known brands, including The Best Dressed Chicken, Reggae Jammin, and Hamilton’s Smokehouse.
JBG currently reports operations for its three major geographical segments, namely Jamaica, US and Haiti. Of which the Jamaican and US operations are the primary drivers of FY 2019 external revenue, contributing 65.13% and 30.52% respectively... Read More
Jamaica Broilers Group Limited (JBG) - Analysis & Recommendation - December 2018
Summary
For the period ended October 2018, JBG reported an 11.7% or $2.7B increase in revenues to $25.71B from the comparable period of the previous year. This performance was driven by growth in all three reporting segments. Sales in Jamaica were up 7.0%, or $1.13B, to $17.16B while the US Operations reported a 24.1%, or $1.43B, increase in revenues to $7.38B. The Haitian segment’s revenues... Read More
Jamaica Broilers Group Analysis & Recommendation- January 23 2018
Summary
Incorporated in 1958, Jamaica Broilers Group Limited (JBG) is a publicly-listed company whose principal activities include the production and distribution of poultry products, animal feeds and agricultural items. In addition, one of the company’s subsidiaries, JB Ethanol Limited contractually processes fuel products on behalf of customers for a fee...Read More
Jamaica Producers Group Limited (JP)
Jamaica Producers Group Limited – November 2022
Company Background
Jamaica Producers Group Limited (JP) is incorporated and domiciled in Jamaica, with its registered office at 4 Fourth Avenue, Newport West Kingston 13. Its primary activities are port terminal operations, logistics, the cultivation, marketing & distribution of fresh produce, Food & Juice manufacturing and land management, and holding investments. JP has two primary operating divisions: JP Food & Drink (F&D) and JP Logistics & Infrastructure (L&I). JP Food & Drink includes Hoogesteger, St. Mary’s, Alaska, CoBeverage and Tortuga brands. Meanwhile, JP L&I subsidiaries include Kingston Wharves Limited, Geest Line and JP Shipping Services.
The L&I division accounts for most of JP’s assets and generates most of the Company’s profits. However, the F&D segment generates the majority of JP’s revenue. JP has exposure in several countries across the Caribbean and Europe, particularly Jamaica and the Netherlands, which accounted for 42.2% and 34.1% of FY 21 revenues, respectively…Read more
Jamaica Producers Group Limited – February 2017
Company Background
Jamaica Producers Group Limited (JP), formerly the Jamaica Banana Producers Association Limited, is a wholly Jamaican-owned company listed on the Jamaica Stock Exchange. The Group was incorporated on April 1, 1929, as a direct descendant of the Jamaica Producers Association formed in 1925, under which separate co-operatives – one for the marketing of each agricultural product – were set up. The company was formed with the objective of protecting the co-operative and the local banana industry from failure due to fierce competition from the large foreign-owned fruit companies in the shipping and marketing of Jamaican bananas.
The business has grown, diversifying into shipping, food and juice manufacturing, and moving up the value chain to provide processed foods like smoothies, banana chips, rum cakes and juices, in addition to branching out into other agricultural products such as pineapples…Read more
Jamaica Stock Exchange Limited (JSE)
Jamaica Stock Exchange Limited - Analysis & Recommendation - October 2023
Summary
The Jamaica Stock Exchange Limited (JSE), a corporation based in Jamaica, has its headquarters situated at 40 Harbour Street Kingston. The fundamental roles of the JSE involve directing and managing the operations of the Jamaican Stock Exchange, as well as facilitating its growth. Moreover, it offers a platform designed for effective trading of securities. The JSE owns a direct subsidiary, the Jamaica Central Securities Depository Limited (JCSD). The JCSD Trustee Services, an offshoot of JCSD, delivers services related to trustee custodianship and other associated functions.
The JSE's income is composed of two primary sources: Cess Income and Fee Income. Cess Income, while a significant component, is subject to fluctuation. It stems from a...Read More
Jamaica Stock Exchange Limited - Analysis & Recommendation - February 2023
Summary
The Jamaica Stock Exchange Limited (JSE), incorporated in Jamaica, operates and regulates the Jamaica Stock Exchange with its registered
office located at 40 Harbour Street in Kingston. The Company’s primary function is to facilitate efficient securities trading through its proprietary
platform and the development of the stock exchange. The JSE also owns a wholly owned subsidiary, the Jamaica Central Securities Depository
Limited (JCSD), which offers trustee custodianship and related services through its subsidiary, JCSD Trustee Services.
The JSE’s revenue streams consist of Cess Income and Fee Income. Although a significant contributor, Cess Income is a volatile source derived from
a 35-basis point fee applied to all Stock Exchange transactions. In contrast, Fee Income is a substantial and stable revenue source, with major contributors
including Registrar, Trustee, and Annual Listing fees. The Company has demonstrated financial stability, with high margins, high liquidity levels, low
solvency ratios, and strong cash flows for the review period (2017-2021)...Read More
Jamaica Stock Exchange Limited - Analysis & Recommendation - January 2022
Summary
The Jamaica Stock Exchange Limited (JSE) is incorporated in Jamaica and has its registered office at 40 Harbour Street Kingston. The main activities of the JSE are the regulation & operation of the Stock Exchange in Jamaica and the development of the same. The Company also operates a platform to allow efficient trading of securities. The Company has a wholly-owned subsidiary, the Jamaica Central Securities Depository Limited (JCSD). The JCSD’s subsidiary JCSD Trustee Services provides trustee custodianship and related services...Read More
Jamaica Stock Exchange Limited - Analysis & Recommendation - June 2021
Summary
The Jamaica Stock Exchange Limited (JSE) is incorporated in Jamaica and has its registered office at 40 Harbour Street Kingston. The main activities of the JSE are the regulation & operation of the Stock Exchange in Jamaica and the development of the same. The Company also operates a platform to allow efficient trading of securities. The Company has a wholly-owned subsidiary, the Jamaica Central Securities Depository Limited (JCSD). The JCSD’s subsidiary JCSD Trustee Services provides trustee custodianship and related services.
Cess Income is a significant revenue contributor to the JSE, derived from a fee of 0.33% applied to all Stock Exchange transactions. In FY 2020, transaction value fell 42.6%, resulting in Cess Income of $380 million...Read More
Jamaica Stock Exchange Limited - Analysis & Recommendation - April 2020
Summary
The Jamaica Stock Exchange Limited (JSE) is incorporated in Jamaica and has its registered office at 40 Harbour Street Kingston. The main activities of the JSE are the regulation & operation of the Stock Exchange in Jamaica and the development of the same. The company also operates a platform to allow efficient trading of securities. The JSE has a wholly owned subsidiary, the Jamaica Central Securities Depository Limited (JCSD). In turn, the JCSD, has a subsidiary JCSD Trustee Services, which as the name implies provides trustee custodianship and related services...Read More
Jamaica Stock Exchange Limited - Analysis & Recommendation - June 2019
Summary
The Jamaica Stock Exchange Limited (JSE) is incorporated in Jamaica and has its registered office at 40 Harbour Street Kingston. The JSE’s main activities are the regulation of the operations of the Stock Exchange in Jamaica, and it operates a platform that allows participants to execute transactions efficiently. JSE has a wholly-owned subsidiary, the Jamaica Central Securities Depository Limited (JCSD). The JCSD, in turn, has a subsidiary JCSD Trustee Services, which as the name implies provides trustee custodianship and related services...Read More
Jetcon Corporation Limited (JETCON)
Jetcon Corporation Limited (JETCON) - Analysis & Recommendation - April 2020
Summary
Jetcon Corporation Limited (JETCON) is domiciled in Jamaica and has its registered offices at 2 Sandringham Avenue Kingston 10 Jamaica. Effective March 24, 2016 JETCON was listed on the Junior Market at $2.25 (split-adjusted price $0.75), subsequently, on June 22, 2017 JETCON completed a 3 for 1 stock split. The main activities of JETCON are the importation and sale of motor vehicles and parts.
Profits have increased at a CAGR of 10.57% to $60.30 million for the period under review (FY 2015 to FY 2019) and peaked in FY 2017 at $153.79 million. The primary reasons for the decline in profits are deterioration in revenue and margins...Read More
Jetcon Corporation Limited (JETCON) - Analysis & Recommendation - April 2019
Summary
Jetcon Corporation Limited (JETCON) is domiciled in Jamaica and has its registered offices at 2 Sandringham Avenue Kingston 10 Jamaica. Effective March 24, 2016 JETCON was listed on the Junior Market of the Jamaica Stock Exchange and on June 22, 2017 JETCON completed a 3 for 1 stock split. The main activities of JETCON is the importation and sale of motor vehicles, motor vehicle parts and the servicing of vehicles...Read More
Jetcon Corporation Limited (JETCON) - Analysis & Recommendation - May 21 2018
Summary
Jetcon saw its revenues exceed the billion dollar mark in 2017 as turnover amounted to $1.18B, a 37.3% or $319.54M increase on the $857.04M reported in the 2016 financial year. Profit before taxation rose 49.1% to $153.85M while net profit for the year was $153.79M, up 145% year-over-year.
Positive growth is expected to continue into 2018 as Jetcon became the first occupant of Kingston Wharves’ Global Logistic Centre which was commissioned in December 2017. Jetcon has stated its intent to target the export market for additional revenue opportunities as the company is in talks with suppliers in Japan to distribute pre-owned cars to Caribbean markets. This arrangement will allow the company to import a large shipment of cars into the logistics centre at once, and then distribute...Read More
Key Insurance Company Limited (KEY)
Key Insurance Company Limited - Analysis & Recommendation - February 2023
Summary
Key Insurance Company Limited is registered and domiciled in Jamaica, and its principal activity is the underwriting of motor, commercial and personal property and casualty insurance. On March 29, 2020 Grace Kennedy Financial Group Limited (GKFG) acquired 65% of the issued stock units of Key Insurance Company Limited (KEY). Subsequently, on April 9, 2020, KEY graduated from the Junior Market of the Jamaica Stock Exchange (JSE) to the Main Market...Read More
Knutsford Express Services Limited (KEX)
Knutsford Express Services Limited - Analysis & Recommendation - January 2024
Summary
Knutsford Express Services Limited (KEX) is incorporated in Jamaica, and its registered office is located at 1222 Providence Drive, Montego Bay, St. James. The company’s wholly-owned subsidiaries provide transportation services, courier services and undertake property development and other investments. KEX became a publicly listed company on January 14, 2014 and effected a five for one stock split in May 2017.
KEX has produced revenue growth at a CAGR of 9.5% for FY2019 to FY2023. Furthermore, profits have improved at a CAGR of 12.7% for the same period. Over the 12-month period ended May 2023, KEX has grown revenues to $1.65B, a 48.0% surge over the 2022FY revenues of $1.11B. KEX has also grown profits to $304.36M for the twelve-months period ended May 2023, compared to profits of $77.82M for the corresponding period in 2022...Read More
Knutsford Express Services Limited - Analysis & Recommendation - June 2021
Summary
Knutsford Express Services Limited (KEX) is incorporated in Jamaica, and its registered office is located at 10 Harbour Circle, Montego Bay, St. James. The Company has three wholly-owned subsidiaries, which provide transportation services in Jamaica & Florida and undertake property development and other investments. KEX became a publicly listed company on January 14, 2014 and effected a five for one stock split in May 2017.
KEX has produced revenue growth at a CAGR of 15% to $1.1 billion for FY 2016 to FY 2020 (period under review). Meanwhile, due to the negative impact of COVID-19, profits have declined at a CAGR of 27.6% for the same period...Read More
Knutsford Express Services Limited - Analysis & Recommendation - February 2020
Summary
Knutsford Express Services Limited (KEX) is incorporated in Jamaica, and its registered office is located at 10 Harbour Circle, Montego Bay, St. James. KEX has three wholly-owned subsidiaries KE Connect Limited, KE Connect US LLC and Knutsford Express Investments Limited. KE Connect Limited and Knutsford Express Investments Limited are registered and domiciled in Jamaica. The former provides transportation throughout the island, while Knutsford Express Investments undertakes property development and other investments. KE Connect US LLC is incorporated and domiciled in the state of Florida. KEX is a publicly listed company as at January 14, 2014, and effected a 5 for 1 stock split in May 2017. Given its listing date KEX has commenced paying taxes at half the effective rate starting in January 2019....Read More
Kingston Wharves Limited (KW)
Kingston Wharves Limited - Analysis & Recommendation - November 2022
Summary
Kingston Wharves Limited is the region’s leading multipurpose port terminal operator, connecting Jamaica’s importers and exporters to over 30 international ports in the Caribbean, Latin and North America. The port terminal provides full-range cargo handling and logistics services 24 hours per day, 7 days per week, including: multi-cargo handling services for break-bulk cargo, dry and liquid bulk cargo; mooring and unmooring of vessels; stevedoring; equipment rental; container stripping, stuffing and reconsolidation; multi-storage and warehousing; transhipment; refrigerated container management and support; third and fourth party logistics services; labour services; and port and industrial security…Read More
Kingston Wharves Limited - Analysis & Recommendation - October 2022
Summary
Kingston Wharves Limited is the region’s leading multipurpose port terminal operator, connecting Jamaica’s importers and exporters to over 30 international ports in the Caribbean, Latin and North America. The port terminal provides full-range cargo handling and logistics services 24 hours per day, 7 days per week, including: multi-cargo handling services for break-bulk cargo, dry and liquid bulk cargo; mooring and unmooring of vessels; stevedoring; equipment rental; container stripping, stuffing and reconsolidation; multi-storage and warehousing; transhipment; refrigerated container management and support; third and fourth party logistics services; labour services; and port and industrial security…Read More
Kingston Wharves Limited - Analysis & Recommendation - October 2019
Summary
Kingston Wharves Limited is the region’s leading multipurpose port terminal operator, connecting Jamaica’s importers and exporters to over 30 international ports in the Caribbean, Latin and North America. The port terminal provides full-range cargo handling and logistics services 24 hours per day, 7 days per week…Read More
Kingston Wharves Limited-Analysis & Recommendation- January 26 2018
Summary
Kingston Wharves produced net profits attributable to shareholders of $741.88M for the six months ended June 2017, a 33.8% or $187.32M increase year-over-year. Driving these results were revenues of $2.94B, up 18.9% or $467.42M. The Terminal Operations Division reported revenues of $2.30B, up 19.5% year-over-year, while the Logistics and Ancillary Services Division generated revenues of $643.02M, up 17%...Read More
Lasco Distributors Limited (LASD)
Lasco Distributors Limited (LASD) - Analysis & Recommendation - November 2023
Summary
Founded in 1988, LASCO Distributors Limited (LASD) is a market leading distribution company in Jamaica. LASD is comprised of two divisions:
Consumer and Pharmaceutical. The company is well known for several innovations and product introductions: namely its flagship product LASCO
Food Drink and LaSoy - a range of soy beverage products, curves sanitary napkins, and the iCool range of water, flavoured water and juice drinks.
Over the past 4 years, LASD has grown revenues by a Compound Annual Growth Rate (CAGR) of 10.0% while growing net income by a CAGR of 22.7%.
Over the 12-month period ended March 2023, LASD has grown revenues to $26.56B, a 13.8% increase over the 2022YE revenues of $23.34B. LASD has
also grown profits to $1.35B for the period ended March 2023FY, compared to profits of $1.02B for the 2022FY...Read More
Lasco Distributors Limited (LASD) - Analysis & Recommendation - March 2020
Summary
Founded in 1988, LASCO Distributors Limited is now a market leading distribution company in Jamaica. LASD is comprised of two divisions: Consumer and Pharmaceutical. The company is well known for several innovations and product introductions, namely its flagship product LASCO Food Drink and LaSoy - a range of soy beverage products, Curves Sanitary Napkins, and the iCool range of water, flavoured water and juice drinks...Read More
Lasco Financial Services Limited (LASF)
Lasco Financial Services Limited- Analysis & Recommendation - November 2023
Summary
Lasco Financial Services Limited (LASF) provides a range of financial services to customers in Jamaica. The main business activities are money transfer within Jamaica and, to and from the rest of the world; currency exchange; consumer loans to salaried borrowers; and business loans and support to micro and small businesses.
LASF reported net revenues of $2.27B for the 2023FY, a 9.5% decrease year-over-year. Driving this downturn was a 9.5% decrease in remittance services to $1.0B, while cambio services fell 4.0% to $795.67M and loans were down 28.6% year over year. Net profits declined from $306.45M to $213.96M, down 30.2%. More recently, LASF reported net revenues of $1.15B for the 6M period FY2024, a downturn of 3.2% year over year...Read More
Lasco Financial Services Limited- Analysis & Recommendation - April 2021
Summary
Founded in 1988, LASCO Distributors Limited is now a market leading distribution company in Jamaica. LASD is comprised of two divisions: Consumer and Pharmaceutical. The company is well known for several innovations and product introductions: namely its flagship product LASCO Food Drink and LaSoy - a range of soy beverage products, Curves Sanitary Napkins, and the iCool range of water, flavoured water and juice drinks...Read More
Lasco Financial Services Limited- Analysis & Recommendation - September 25 2018
Summary
Founded by Chairman Lascelles Chin, LASCO Financial Services Limited is a publicly listed company on the Junior Market of the Jamaica Stock Exchange and a leading provider of retail financial services. On acquiring the CreditScotia microfinance business the company has seen astronomical growth in both revenues and profits. We are forecasting a continuation of this trend for the current financial year and maintain an Overweight recommendation on the stock...Read More
Lasco Manufacturing (LASM)
Lasco Manufacturing - Analysis & Recommendation - November 2022
Lasco Manufacturing (LASM) was incorporated in October 1994 and is a member of the LASCO Affiliated Companies and listed on the Junior Market on October 12, 2010. The Company is domiciled in Jamaica with its registered office at 27 Red Hills Road Kingston 10 but operates from White Marl St. Catherine. LASM’s range of products created at its dry plant includes LASCO Food Drink, LaSoy Lactose-Free, Porridge Mix, Enriched Milk Powder, Readi Milk and Nutrify. Meanwhile, the liquid plant began operations in July 2014 and its portfolio includes iCool Juice Drinks, iCool Water, iCool Flavoured Water, iDrade, Lyrix and Konka.
Financial statements indicate that LASM is well-capitalised and has produced consistent returns for investors over the review period. Near-term liabilities appear sustainable, given the liquidity ratios. At the same time, solvency ratios continue to improve from an already strong position. Furthermore, operating cash flow has been consistently positive over the review period...Read More
Lasco Manufacturing - Analysis & Recommendation - January 2022
Lasco Manufacturing (LASM) was incorporated in October 1994 and is a member of the LASCO Affiliated Companies and listed on the Junior Market on October 12, 2010. The Company is domiciled in Jamaica with its registered office at 27 Red Hills Road Kingston 10 but, it operates from White Marl St. Catherine. LASM’s range of products created at its dry plant includes LASCO Food Drink, LaSoy Lactose-Free, Porridge Mix, Enriched Milk Powder, Readi Milk and Nutrify. Meanwhile, the liquid plant began operations in July 2014 and its portfolio includes iCool Juice Drinks, iCool Water, iCool Flavoured Water, iDrade, Lyrix and Konka.
Financial statements indicate that LASM is well-capitalised and has produced consistent returns for investors over the review period. Near-term liabilities appear sustainable given the liquidity ratios. At the same time, solvency ratios continue to improve from an already strong position. Furthermore, operating cash flows have been consistently positive over the review period...Read More
Lasco Manufacturing - Analysis & Recommendation - February 2019
Summary
LASM was incorporated in October 1994 and is a member of the LASCO Affiliated Companies and listed on the Junior Market on October 12, 2010. Lasco Manufacturing Limited (LASM) is domiciled in Jamaica with its registered office at 27 Red Hills Road Kingston 10 but, it operates from White Marl St. Catherine. LASM’s range of products created at its dry plant includes LASCO Food Drink, LaSoy Lactose-Free, Porridge Mix, Enriched Milk Powder, Readi Milk and Nutrify. Meanwhile, the liquid plant began operations in July 2014 and its portfolio includes iCool Juice Drinks, iCool Water, iCool Flavoured Water, iDrade, Lyrix and Konka.
For its FY 2019 profits tumbled by $146.70 million or 20.74% to $560.56 million. Meanwhile over that same period revenue fell $291.74 million or 4.20% to $6.95 billion. However, the company is off to a good start in the first half of FY 2019. For the six months...Read More
Lumber Depot Company Limited (LUMBER)
Lumber Depot Company Limited - Analysis & Recommendation - March 2024
Summary
Lumber Depot Company Limited (LUMBER), born out of the Blue Power Group (BPOW), was incorporated and domiciled in Jamaica on July 30, 2019. The company began trading on August 1, 2019 and listed on the Junior Market of the Jamaica Stock Exchange on December 16, 2019. The main activities of the company comprise of the sale of lumber, hardware supplies and other construction related products.
Over the 12-month period ended April 2023, LUMBER has grown revenues to $1.52B, a 3.2% decrease over the 2022FY revenues of $1.57B. LUMBER’s profit also experienced a downturn by 21.1% to $145.17M for the period under review, compared to profits of $183.89M for the 2022FY. More recent, for the six-month period, LUMBER noticed an uptick in revenue by 0.7% to $782.06M, as there has been a slow-down in the construction industry. LUMBER’s net profits grew to $86.73M for the period ended October 2023, compared to profits of $78.20M for the corresponding six-month period in the 2022/23FY...Read More
Lumber Depot Company Limited - Analysis & Recommendation - February 2022
Summary
Lumber Depot Company Limited (LUMBER), born out of the Blue Power Group (BPOW), was incorporated and domiciled in Jamaica on July 30, 2019. The company began trading on August 1, 2019 and was listed on the Junior Market of the Jamaica Stock Exchange on December 16, 2019. The main activities of the company comprise of the sale of lumber, hardware supplies and other construction-related products.
Over the 12 month period ended April 2021, LUMBER has grown revenues to $1.43B, a 55% increase over the 2020YE revenues of $921M. LUMBER has also grown profits to $145M for the period under review, compared to profits of $22M for the 2020YE. Lumber Depot continues to service the growing construction sector which has seen a rise in commodity prices coupled with an increase in demand for these commodities...Read More
Lumber Depot Company Limited - Analysis & Recommendation - June 2020
Summary
Lumber Depot Company Limited (LUMBER), born out of the Blue Power Group (BPOW), was incorporated and domiciled in Jamaica on July 30, 2019.
The company began trading on August 1, 2019 and listed on the Junior Market of the Jamaica Stock Exchange on December 16, 2019. The main activities
of the company comprise the sale of lumber, hardware supplies and other construction-related products.
Over the 9 month period ended January 2021, LUMBER has grown revenues to $1.05B, a 14.2% increase over the 2020YE revenues of $921M. LUMBER
has also grown profits to $100M for the period under review, compared to profits of $22M for the 2020YE. Lumber Depot continues to service the growing
construction sector which has seen a rise in commodity prices coupled with an increase in demand for these commodities...Read More
Mailpac Group Limited (MGL)
Mailpac Group Limited IPO - Analysis & Recommendation - September 2021
Summary
Mailpac is a leading provider of logistic services in the Caribbean, offering: e-commerce fulfillment services from the United States to Jamaica; cross-border online shopping with local landed prices; local online shopping and delivery from local retailers; online shopping financing; a branded MasterCard for shopping online; sea freight shipping; and brokerage services.
The Company has been able to improve on this performance, attributing its gains to improved brand awareness and an increase in e-commerce trends. However, the company noted its expectation of a potential reduction in consumer dependency on online shopping as COVID-19 movement restrictions shift in the coming months...Read More
Mailpac Group Limited IPO - Analysis & Recommendation - November 2019
Summary
Mailpac Group Limited is inviting applications on behalf of itself and the Selling Shareholder for 500,000,000 ordinary shares, of which 250,000,000 are newly issued shares for subscription and 250,000,000 are existing shares of the Selling Shareholder for sale to be subsequently listed on the Junior Market of the Jamaica Stock Exchange. The Company intends to use the proceeds for general corporate purposes and debt repayment...Read More
Massy Holdings Ltd. (MASSY)
Massy Holdings Ltd. - Analysis & Recommendation - February 2022
Summary
For the three months ended December 31st, 2021, Massy Holdings Limited (MASSY) realized a profit after tax of $203.74 million, an 8.1% increase when compared to the period for the previous year. Basic EPS increased 9.7% and EPS from continuing operations increased 7.8% YoY.
The group’s steady performance was supported primarily by a stronger revenue generation in almost all its territories. Every territory except for Colombia recorded a revenue averaging 10% above the previous year.
On the JSE, MASSY currently trades at a discount relative to its TTSE price. This is a result of the heavy supply for the stock on the JSE outpacing its demand. Investors that bought the stock on the TTSE are now selling on the JSE to gain USD. This selling pressure currently has the spread between the TTSE and JSE prices around 14%...Read More
NCB Financial Group (NCBFG)
NCB Financial Group - Analysis & Recommendation - February 2023
Summary
NCBFG is a financial services company incorporated and headquartered in Jamaica. It is majority owned by AIC (Barbados) Limited, which is itself ultimately controlled by Portland Holdings Inc., a Canadian company. Hon. Michael A. Lee-Chin, OJ, is the Chairman of NCBFG and serves as the head of Portland Holdings Inc. NCBFG has a presence in several countries, including Jamaica, the Cayman Islands, Trinidad & Tobago, Barbados, Bermuda, and the United Kingdom. Furthermore, NCBFG has several subsidiaries, including National Commercial Bank Jamaica (NCBJ), Clarien Group Limited, and NCB Global Holdings Limited, which controls Guardian Holdings Limited.
In recent years, NCBFG has seen strong growth in a number of critical areas, including net operating income, total assets, loans, and customer deposits. However, in FY 22, equity attributed to NCBFG shareholders declined by 7.4%...Read More
NCB Financial Group - Analysis & Recommendation - February 2022
Summary
NCB Financial Group Limited (NCBFG) is incorporated and domiciled in Jamaica and is 52.63% owned by AIC (Barbados) Limited. The ultimate parent company of AIC is Portland Holdings Inc., which is domiciled in Canada. Hon. Michael A. Lee-Chin, OJ controls Portland Holdings Inc. and serves as Chairman of NCBFG. The Company currently has operations in Jamaica, Cayman Islands, Trinidad & Tobago, Barbados, Bermuda and the United Kingdom, and several other countries through its subsidiary Guardian Holdings Limited. NCBFG has three direct subsidiaries, namely National Commercial Bank Jamaica (NCBJ), Clarien Bank Limited (Clarien) and NCB Global Holdings Limited (Holding Company of Guardian Holdings Limited).
NCBFG has produced consistent growth on several vital measures, including net operating income, total assets, loans, customer deposits and equity. However, net profit attributable to NCBFG shareholders fell for the review period, primarily due to the negative impacts of COVID-19... Read More
NCB Financial Group - Analysis & Recommendation - April 2021
Summary
NCB Financial Group Limited (NCBFG) is incorporated and domiciled in Jamaica and is 51.75% owned by AIC (Barbados) Limited. The ultimate parent company of AIC is Portland Holdings Inc., which is domiciled in Canada. Hon. Michael A. Lee-Chin, OJ controls Portland Holdings Inc. and serves as Chairman of NCBFG. The Company currently has operations in Jamaica, Cayman Islands, Trinidad & Tobago, Barbados, Bermuda and the United Kingdom, and several other countries through its subsidiary Guardian Holdings Limited. NCBFG has three direct subsidiaries, namely National Commercial Bank Jamaica (NCBJ), Clarien Bank Limited (Clarien) and NCB Global Holdings Limited (Holding Company of Guardian Holdings Limited)... Read More
NCB Financial Group - Analysis & Recommendation - October 2020
Summary
NCB Financial Group Limited (NCBFG) is the most profitable listed entity in Jamaica, reporting record FY 2019 profits attributable to its shareholders of $29.58 billion. NCBFG is incorporated and domiciled in Jamaica, it is 52.10% owned by AIC (Barbados) Limited. The ultimate parent company of AIC is Portland Holdings Inc., which is domiciled in Canada. Portland Holdings Inc. is controlled by Hon. Michael A. Lee-Chin, OJ, who serves as Chairman of the NCBFG. The company currently has operations in Jamaica, the Cayman Islands, Trinidad & Tobago, Barbados, Bermuda and the United Kingdom, plus several other countries through its subsidiary Guardian Holdings Limited... Read More
NCB Financial Group - Analysis & Recommendation - February 2019
Summary
NCB Financial Group Limited (NCBFG) is the most profitable listed entity in Jamaica, reporting record FY 2018 profits attributable to NCBFG shareholders of $27.96 billion. NCBFG is incorporated and domiciled in Jamaica, it is 53.02% owned by AIC (Barbados) Limited. The ultimate parent company of AIC is Portland Holdings Inc., incorporated in Canada. Portland Holdings Inc. is controlled by Hon. Michael A. Lee-Chin, OJ, and Chairman of NCBFG. NCBFG currently has operations in Jamaica, Cayman Islands, Trinidad and Tobago, Barbados and Bermuda and the United Kingdom.
The NCB Group has several subsidiaries including National Commercial Bank (NCBJ), NCB Capital Markets Limited, NCB Insurance Company Limited and Advantage General Insurance Company Limited. In May 2016 NCBFG acquired a 29.99% interest in Guardian Holdings Limited (GHL); also in Q4-2018 NCBFG reduced its stake in JMMB Group Limited from 26.30% to 20.01%... Read More
NCB Financial Group Limited - September 2017
Summary
Net earnings for the 6-months ended June 2017 was $14.72B, representing a 48.1% increase relative to a year ago. Net interest income grew by 5.5% from $21.04B to $22.19B on account of growth in the loan portfolio and a decline in funding costs. Meanwhile, non-interest income increased by 29.3% to $22.02B from $17.03B generated in the previous year. This outturn in non-interest income emanated from gains on foreign currency and investment activities and improvements net of fee and commission income. The movement in net fee and commission income emanated from growth in unit trust portfolios and increases in pension management fees. As a result, earnings-per-share (EPS) amounted to $5.97 compared to $4.03 for the same period last year...Read more
One on One Educational Services Limited (ONE)
One on One Educational Services Limited (ONE) - Analysis & Recommendation - November 2023
Summary
One on One Educational Services Limited (ONE) commenced its business operations in 2013 and made its initial appearance on the Junior Market of the Jamaica Stock Exchange, with an opening share price of $1.00 as at the 1st September 2022. The firm is engaged in delivering tailor-made e-learning solutions to government entities, corporate bodies and private individuals, with the purpose of providing education and training via their Learning Management System (LMS). Over its operational years, the One on One team has facilitated digital learning for more than 150,000 learners by means of their platform.
Over the review period of 5 years (FYE August 19 to FYE August 23), there has been a compound annual growth rate (CAGR) of 64.8% in revenue. However, since FYE August 21, revenue growth has experienced a significant slowdown, and in fact, a marginal decline of 0.1% was observed at the end of FYE August 23. On another note, profits have seen substantial fluctuations during this review period. They reached their zenith at $67.5 million in FYE August 21 and dipped to their lowest at $37.8 million in FYE August 23...Read More
One Great Studio Company (1GS)
One Great Studio Company IPO - Analysis & Recommendation - August 2023
Summary
One Great Studio Company (1GS) was incorporated in 2012 under the Companies Act of Jamaica. Djuvane Browne and Gina DeLisser are the founders. It is domiciled in Jamaica, with its registered office at 32 Lady Musgrave Road, Kingston 6. One Great Studio is a Digital-First Agency that offers a comprehensive suite of digital marketing services, prioritising digital channels, including branding, design, development, optimisation, and analytics. The principal activities of the Group are to provide search engine optimisation (SEO), web design and development and software development services...Read More
PanJam Investment Limited (PJAM)
PanJam Investment Limited (PJAM) - Analysis & Recommendation - October 2023
Summary
The primary operations of Pan Jamaica Group Limited, encompassing its subsidiaries, joint ventures and affiliates, spans across portfolio management, hospitality management, port terminal operations, maritime transport and logistics, bespoke food and beverage production, farming, financial services and investment holdings. In November of FY 22, a deal was struck between PanJam and JP that eventually led to JP transferring primary operational businesses over to PanJam in exchange for a 34.5% equity stake in the latter. After the merger completion on April 1st of 2023, Pan Jamaica Group Limited was successfully established...Read More
PanJam Investment Limited (PJAM) - Analysis & Recommendation - October 2022
Summary
PanJam Investment Limited (PJAM) is incorporated and domiciled in Jamaica, and its registered office is at 60 Knutsford Boulevard. Its primary activities are holding investments and controlling the operations of subsidiaries. PJAM’s subsidiaries and associated companies operate in several business segments, including Property Management & Development, Investment Management, Life Insurance, Office Rental, Hotel Management and Captive Insurance.
PJAM has several associated companies, including Sagicor Group Jamaica Limited, New Castle Company Limited, Chukka Caribbean Adventures Limited, and Caribe Hospitality Jamaica Limited. The principal contributor to earnings from associated companies is Sagicor Group Jamaica (SJ). In FY 21, PJAM reported earnings from associated companies of $5.5 billion, significantly higher than the $3.9 billion reported the prior year. The primary sources of revenue for PJAM are Investment and Property Income...Read More
PanJam Investment Limited (PJAM) - Analysis & Recommendation - April 2021
Summary
PanJam Investment Limited (PJAM) is incorporated and domiciled in Jamaica, and its registered office is at 60 Knutsford Boulevard. Its primary activities are holding investments and controlling the operations of subsidiaries. PJAM’s subsidiaries and associated companies operate in several business segments, including Property Management & Development, Investment Management, Life Insurance, Office Rental, Hotel Management and Captive Insurance.
PJAM has several associated companies, including Sagicor Group Jamaica Limited, New Castle Company Limited, Chukka Caribbean Adventures Limited, and Caribe Hospitality Jamaica Limited. The principal contributor to earnings from associated companies is Sagicor Group Jamaica (SJ). In FY 2020, PJAM reported earnings from associated companies of $3.90 billion...Read More
PanJam Investment Limited (PJAM) - Analysis & Recommendation - May 2020
Summary
PanJam Investment Limited (PJAM) is incorporated and domiciled in Jamaica, with registered office at 60 Knutsford Boulevard. Its primary activities are holding PanJam Investment Limited (PJAM) is incorporated and domiciled in Jamaica; its registered office is at 60 Knutsford Boulevard, New Kingston. Its primary activities are holding investments and controlling the operations of subsidiaries. PJAM’s subsidiaries and associated companies operate in several market segments, including Property Management & Development, Investment Management, Life Insurance, Office Rental, Hotel Management and Captive Insurance...Read More
PanJam Investment Limited (PJAM) - Analysis & Recommendation - July 2019
Summary
PanJam Investment Limited (PJAM) is incorporated and domiciled in Jamaica, with registered office at 60 Knutsford Boulevard. Its primary activities are holding investments and controlling the operations of subsidiaries. PJAM’s subsidiaries and associated companies operate in several market segments, including Property Management & Development, Investment Management, Life Insurance, Office Rental, Hotel Management and Captive Insurance...Read More
PanJam Investment Limited (PJAM) -Analysis & Recommendation- April 2018
Summary
PanJam Investment Limited (PJAM) is an investment holding company listed on the Jamaica Stock Exchange. Through its subsidiaries it provides property management services in Jamaica, including the rental, management and development of commercial real estate properties, and captive insurance.
PJAM reported total revenues of $2.41B for the year ended Dec. 31, 2017, up $670.41M or 38.5% yearover- year. This increase was driven by a 29.3% increase in property income to $1.79B and a 76.6% increase in investment income to $422.70M. Net profits attributable to shareholders for the year amounted to $4.13B, up 2.0% or $80.98M year-over-year...Read More
Paramount Trading (Jamaica) Limited (PTL)
Paramount Trading (Jamaica) Limited (PTL) - Analysis & Recommendation - March 2021
Summary
Paramount Trading Jamaica (PTL) Limited was incorporated in 1991 and effectively listed on the Junior Market on December 31, 2012 at $2.43 ($0.243 split adjusted) per share. The primary activities of PTL are the importation and distribution of chemicals, lubricants, other related products and haulage services. The company has five reportable segments namely Chemical, Construction & Adhesive, Manufacturing, Transportation and Lubricants. The three segments which contribute the most to revenue in FY 2020 are Chemicals, Manufacturing and Lubricants which make up 55.2%, 17.2% and 15.3% of revenue, respectively.
In January 2018, PTL expanded its relationship with Allegheny Petroleum Products Company (Allegheny) the supplier of its lubricants and commenced blending operations at the plant located at 39 ¼ Waltham Park Road. In November 2019, PTL amended its relationship with Allegheny through a License Agreement and Supply & Distribution Agreement…Read More
Paramount Trading (Jamaica) Limited (PTL) - Analysis & Recommendation - February 2020
Summary
Paramount Trading Jamaica (PTL) Limited was incorporated in 1991 and effectively listed on the Junior Market on December 31, 2012 at $2.43 per share. The primary activities of PTL are the distribution of chemicals, lubricants, other related products and haulage services. As a result, PTL has five reportable segments namely Chemical, Construction & Adhesive, Manufacturing, Transportation and Lubricants. The primary revenue source for PTL is the chemicals segment which accounted for 81% of FY 2018 revenue. Located at 39 Waltham Park Road and 8 East Bell Road is the chemical segment; it distributes chemicals and chemical products for food and pharmaceutical additives and ingredients. In January 2018, PTL through a joint venture with its supplier of lubricants began blending operations at its plant located at its central location. PTL has an arrangement to distribute SIKA branded hardware products, which include anchoring adhesives and sealants principally dispersed to the commercial hardware market...Read More
Paramount Trading (Jamaica) Limited (PTL) - Analysis & Recommendation - March 2019
Summary
Paramount Trading (Jamaica) Limited (PTL) is seeking to raise J$300 million via the issuance of 8.75% fixed cumulative redeemable preference shares due in 2021. PTL will issue 150 million preference shares at $2.00 each. The dividends are payable on the last business day of each month beginning on April 30, 2019. The offer opens on March 28, 2019 and closes on April 4, 2019....Read More
Paramount Trading (Jamaica) Limited - Analysis & Recommendation - June 2018
Summary
Paramount Trading (Jamaica) Limited is a private company limited by shares, incorporated in 1991 and domiciled in Jamaica. Effective, 31 December 2012, the Company’s shares were listed on the Junior Market of the Jamaica Stock Exchange (JSE). The principal activity of the Company is importation and distribution of chemicals and other related products. During the year ended 31 May 2010, the Company acquired a franchise with a recognized brand to manufacture chemicals on behalf of an international company. In addition, the Company also entered into arrangements with another international company to distribute “SIKA” branded hardware products. The products include anchoring adhesives and sealants principally distributed to the commercial hardware market....Read More
Proven Investments Limited (ProvenJA)
Proven Investments Limited - Analysis & Recommendation - November 2021
Summary
Proven Investments Limited (PIL) began operations in February 2010. The Company is an International Business Corporation, with its registered office at 20 Micoud Street, Castries, St. Lucia. PIL is a private equity firm with a core strategy to acquire, grow and extract value from its portfolio of investments. Proven Management Limited (PML) is the Investment Manager of PIL’s operations.
PIL has several associated companies and subsidiaries. Some of the significant contributors to PIL’s earnings and its respective stake are Proven Wealth Limited (100%), BOSLIL Bank Limited (75%), JMMB Group Limited (20.01%) and Access Financial Services (24.72%). Additionally, PIL has recently acquired Heritage Educations Funds International and Roberts Manufacturing Limited and sold its 20% stake in Dream Entertainment Limited....Read More
Proven Investments Limited APO - Analysis & Recommendation - January 2020
Summary
Proven Investments Limited (PIL) is seeking to raise funds via the issuance of 89,416,037 new ordinary shares. The company retains the right to upsize the offer to 134,124,037 new shares, which would result in the company receiving gross proceeds of US$30.28 million (net proceeds US$29.34 million). If successful PIL intends to use the newly acquired funds to pursue further acquisitions and investments.
Since listing, PIL has displayed its expertise in fund management by consistently returning value to shareholders. Furthermore, PIL has recently entered into an agreement to purchase a majority stake (50.5%) of Roberts Manufacturing Co. Limited (RMCL) from Massy Properties (Barbados) Limited for US$21.45 million. RMCL produces shortening, margarine, spread and cooking oil from its 21-acre complex at Lower Estate, St. Michael in Barbados. This acquisition will increase the diversity of PIL’s investment holdings while increasing core earnings....Read More
Proven Investments Limited - Analysis & Recommendation - September 2018
Summary
Net revenue grew by 17.4% to US$8.51M for the 3 months ended June 2018 relative to US$7.25M last year. The increase in net revenue was due to an increase in net interest income and improvements in foreign exchange gains. Meanwhile, operating expenses grew 11.5% to US$5.55M for the period ending June 2018 relative to US$4.98M for the same period last year, on account of administrative and general expenses, preference share dividend and IFRS Provisioning....Read More
QWI Investments Limited (QWI)
QWI IPO - Analysis & Recommendation - September 2019
Summary
QWI Investments Limited (QWI) was incorporated as an investment company on December 13, 2018 by Jamaican Teas Limited (JAMT) and KIW International Limited (KIW). QWI’s primary business is the holding of securities of other companies. QWI is seeking to raise $787 million by issuing 600 million shares at various prices ranging from $1.20 to $1.35. QWI may upsize the offer by an additional 300 million shares at $1.35 subject to approval by the Financial Services Commission (FSC)…Read More
Radio Jamaica Limited (RJR)
Radio Jamaica Limited (RJR) - September 2017
Summary
RJR generated a net profit of $145.23M for the 2016/17 financial year, a $370.03M increase on the net loss of $224.8M reported for the previous year. This performance was driven by the amalgamation of the RJR group to the GCML, which contributed $95M to net profit, and an improvement in the preamalgamated RJR Group profits on higher revenues and lower operating costs...Read more
Sagicor Group Jamaica Limited (SJ)
Sagicor Group Jamaica Limited - Analysis & Recommendation - June 2018
Summary
The Sagicor Group is a leading provider of insurance products and related services in the Caribbean region. It also provides insurance products in the United States of America (USA) and banking services in Jamaica. The main business lines are life, critical illness and health insurance, annuities and pension management, asset management, together with property and casualty insurance. The customer base is predominately individuals but certain lines are marketed to employers to provide employee benefits, and to commercial enterprises to provide property and casualty coverage.....Read More
Sagicor Group Jamaica Limited-Analysis & Recommendation- January 2018
Summary
Sagicor Group Jamaica (SGJ) is a leading financial services group in Jamaica, commanding the largest market share in many of the lines of business it operates. SGJ primary business segments include: the Individual Insurance Division; Employee Benefits; Sagicor Bank Jamaica Limited; and Sagicor Investments Jamaica Limited. SGJ is incorporated and domiciled in Jamaica and is listed on the Jamaica Stock Exchange. It is 32.45% (2015 – 32.45%) owned by LOJ Holdings Limited which is also incorporated and domiciled in Jamaica and wholly owned by Sagicor Financial Corporation (SFC). The other significant shareholder in SGJ is PanJam Investment Limited...Read More
Scotia Group Jamaica Limited (SGJ)
Scotia Group Jamaica Limited Analysis & Recommendation - February 2021
Summary
Scotia Group Jamaica Limited (SGJ) is a 71.78% subsidiary of Scotiabank Caribbean Holdings Limited, which in turn is a 100% subsidiary of The Bank of Nova Scotia Canada. SGJ is the parent of the Bank of Nova Scotia Jamaica Limited (100%) and Scotia Investments Jamaica Limited (100%). The primary operations of SGJ include Banking, Mortgage Financing, Life Insurance, Investment Banking and Fund Management.
SGJ reported net income of $9.05 billion in FY 2020, a decline of 31.37% or $4.14 billion versus the previous FY. The decline in profits was due to a significant increase in impairment charges from $2.6 billion in FY 2019 to $5.8 billion in FY 2020 due to revised assumptions incorporated into SGJ’s impairment methodology resulting from the global pandemic. The increased impairment charges also impacted Total Operating Income (TOI), which fell by $4.38 billion or 10.30% to $38.2 billion…Read More
Scotia Group Jamaica Limited Analysis & Recommendation - September 2020
Summary
Scotia Group Jamaica Limited (SGJ) is a 71.78% subsidiary of Scotiabank Caribbean Holdings Limited, which in turn is a 100% subsidiary of The
Bank of Nova Scotia Canada. SGJ is the parent of the Bank of Nova Scotia Jamaica Limited (100%) and Scotia Investments Jamaica Limited (100%).
The primary operations of SGJ include Banking, Mortgage Financing, Life Insurance, Investment Banking and Fund Management.
Scotia Group Jamaica (SGJ) reported net income of $4.02 billion for the 6-months ended April 2020, which represents a 28.44% decline versus
the comparable period last year. The decline in profits was due to a significant increase in impairment charges in Q2 FY 2020. The increased
impairment charges also impacted Total Operating Income (TOI) for the 6-month period, which fell…Read More
Scotia Group Jamaica Limited Analysis & Recommendation - October 2019
Summary
Scotia Group Jamaica (SGJ) reported net income of $9.79 billion for the nine months ended July 2019, which represented a 12.28% decline over the comparable period last year. The decline in profits was due to non-recurring gains from the sale of Credi-Scotia in FY 2018 and an increase in staff costs. Total Operating Income (TOI) grew by only $42 million or 0.13% for the nine months ended July 2019 versus the comparable period FY 2018. The weak growth in TOI was due to a decline in Net Interest Income (NII) of $1.2 billion or 6.55%. However, it was offset by a Net Gain on Foreign Currency Activities (GFC) of $1.6 billion or 45.39%…Read More
Scotia Group Limited - Analysis & Recommendation - January 2019
Summary
Scotia Group Jamaica (SGJ) reported net income of $12.77 billion for the FY 2018 ended October 2018, which represented a 2.93% increase over the comparable period last year. The marginal rise in profits was assisted by a surge in net gain on foreign currency activities and the sale of Credi-Scotia for a gain of $753.15 million. In Q4 ended October 2018 profits fell 52.80% or $1.81 billion to $1.61 billion over the comparable period last year. SGJ faced these declines due to a reduction in net gain on foreign currency activities due to the JMD revaluing 5.06% versus the USD in the quarter. Also, of note all revenue line items with the expectation of insurance revenue declined in the Q4... Read More
Seprod Limited (SEP)
Seprod Limited - Analysis & Recommendation - November 2023
Summary
Seprod Limited (SEP) is a leading Jamaican manufacturing, agribusiness and distribution company. The Company maintains large positions in the Jamaican market for several products including edible oils and fats, milk and sweetened condensed milk. In addition, it owns many consumer brands such as Betty, Butterkist, Chef, Chiffon, Cool Fruit, Gold Seal, Golden Grove, Lider, Miracle, Serge, Supligen and Swizzle. Seprod was found in 1944 and was listed on the Jamaica Stock Exchange in 1985.
Over the past four (4) years, SEP has grown revenues by a Compound Annual Growth Rate (CAGR) of 51.6% while growing total net income by a CAGR of 40.1%. Over the 12-month period ended December 2021, SEP has grown revenues to $78.43B, a 78.7% increase over the 2021YE revenues of $43.88B. SEP has also grown total net income to $2.92B for the 2022FY. More recent, Seprod reported an increase in total net profits to $2.54B for the six-month period ended June 2023, compared to net profits of $1.58B for the corresponding six-month period in 2022...Read More
Seprod Limited - Analysis & Recommendation - July 2022
Summary
Seprod Limited is a leading Jamaican manufacturing, agribusiness and distribution company. The Company maintains large positions in the Jamaican market for several products including edible oils and fats, milk and sweetened condensed milk. In addition, it owns many consumer brands such as: Betty, Butterkist, Chef, Chiffon, Cool Fruit, Gold Seal, Golden Grove, Lider, Miracle, Serge, Supligen and Swizzle. Seprod was founded in 1944 and was listed on the Jamaica Stock Exchange in 1985.
Over the past 3 years, SEP has grown revenues by a Compound Annual Growth Rate (CAGR) of 24.9% while growing net income by a CAGR of 23.4%. Over the 12-month period ended December 2021, SEP has grown revenues to $43.88B, a 16.3% increase over the 2020YE revenues of $37.73B. SEP has also grown profits to $595.2M for the quarter ended March 2022, compared to profits of $546.3M for the corresponding three months period in 2021...Read More
Seprod Limited - Analysis & Recommendation - August 2020
Summary
Seprod Limited is a leading Jamaican manufacturing, agribusiness and distribution company. The Company maintains large positions in the Jamaican market for several products including edible oils and fats, milk and sweetened condensed milk. In addition, it owns many consumer brands such as: Betty, Butterkist, Chef, Chiffon, Cool Fruit, Gold Seal, Golden Grove, Lider, Miracle, Serge, Supligen and Swizzle. Seprod was founded in 1944 and was listed on the Jamaica Stock Exchange in 1985...Read More
Facey Group’s Offer of Seprod Limited Shares- Analysis & Recommendation - October 2018
Summary
Facey Group Limited is inviting individuals to apply to purchase 91,914,894 ordinary shares of Seprod Limited. In March 2018, Seprod announced that it had reached an agreement with Facey to acquire its consumer business, Facey Commodity Holdings Limited (Facey Consumer), which deals in the distribution of consumer and pharmaceutical products in Jamaica. Seprod paid US$53.8M to acquire Facey Consumer – US$16M in cash and 217,148,396 newly issued shares of Seprod worth US$37.8M.
The deal was closed in September in 2018, subject to the issuance of the shares. Facey intends to retain 125,234,043 shares for itself and is making the remaining 91.9M shares available to prospective investors as keeping them would bring Musson’s (Parent company of Facey) overall stake in Seprod above 50%, triggering a mandatory takeover offer to the other shareholders...Read More
Stationery Office & Supplies Limited (SOS)
Stationery Office & Supplies Limited (SOS) - Analysis & Recommendation - March 2024
Summary
Stationery and Office Supplies Ltd. (SOS), started operations in 1965. The company’s shares were listed on the Junior Market of the Jamaica Stock Exchange on August 10, 2017. SOS specialized in the selling of stationery items and office supplies but since then has expanded its product offerings to office furniture, shelves, partitions and fittings needed for an office space and industrial racks. The company is the sole local distributor for the Fursys and Boss brands of office furniture.
Pre-pandemic, SOS was in acquisition and expansion mode, as they entered into the manufacturing space, with an $80M acquisition of the SEEK brand of notebooks during the 2018FY. This acquisition started bearing fruit for SOS in the 2019FY as the business line became marginally profitable during this period. However, the pandemic has been a major setback to this business arm. Since then in 2022FY, SOS has made significant recovery in its revenue and profitability. Moreover, the acquisition of SOS’s former competitor, D&K’s Printing and Office Supplies, contributed to the growth in the company’s revenue...Read More
Stationery Office & Supplies Limited (SOS) - Analysis & Recommendation - July 6 2023
Summary
Stationery and Office Supplies Ltd. (SOS), started operations in 1965. The company’s shares were listed on the Junior Market of the Jamaica Stock Exchange on August 10, 2017. SOS specialized in the selling of stationery items and office supplies but since then has expanded its product offerings to office furniture, shelves, partitions and fittings needed for an office space and industrial racks. The company is the sole local distributor for the Fursys and Boss brands of office furniture.
Pre-pandemic, SOS was in acquisition and expansion mode, as they entered into the manufacturing space, with an $80M acquisition of the SEEK brand of notebooks during the 2018FY. This acquisition started bearing fruit for SOS in the 2019FY as the business line became marginally profitable during this period. However, the pandemic has been a major setback to this business arm. Since then in 2022FY, SOS has made significant recovery in its...Read More
Stationery Office & Supplies Limited (SOS) - Analysis & Recommendation - December 20 2022
Summary
Stationery and Office Supplies Ltd. (SOS), started operations in 1965. The company’s shares were listed on the Junior Market of the Jamaica Stock Exchange on August 10, 2017. SOS specialized in the selling of stationery items and office supplies but since then has expanded its product offerings to office furniture, shelves, partitions and fittings needed for an office space and industrial racks. The company is the sole local distributor for the Fursys and Boss brands of office furniture. Pre-pandemic, SOS was in acquisition and expansion mode, as they entered into the manufacturing space, with an $80M acquisition of the SEEK brand of notebooks during the 2018FY. This acquisition started bearing fruit for SOS in the 2019FY as the business line became marginally profitable during this period. However, the pandemic has been a major setback to this business arm.
During the 2021FY, the economy began to show signs of recovery, which is reflected in SOS’s revenue generation. SOS has grown revenues to $1.12B, a 15.7% increase over the 2020YE revenues of $972.32M. This improvement in revenue is an indication of the positive recovery of demand for the company’s product offerings, as face to face class resumes and the termination of work from home (WFH) policies for some organizations. Subsequently, SOS reported revenue at $1.3B for the nine-month FY2022, that already outpaced the twelve month 2021FY by 17.4%...Read More
Stationery Office & Supplies Limited (SOS) - Analysis & Recommendation - May 2022
Summary
Stationery and Office Supplies Ltd. (SOS), started operations in 1965. The company specialized in the selling of stationery items and office supplies but since then has expanded its product offerings to office furniture, shelves, partitions and fittings needed for an office space and industrial racks. The company is the sole local distributor for the Fursys and Boss brands of office furniture. Pre-pandemic, SOS was in acquisition and expansion mode, as they entered into the manufacturing space, with an $80M acquisition of the SEEK brand of notebooks during the 2018FY. This acquisition started bearing fruit for SOS in the 2019FY as the business line became marginally profitable during this period. However, the pandemic has been a major setback to this business arm...Read More
Stationery Office & Supplies Limited (SOS) - Analysis & Recommendation - June 2021
Summary
Stationery and Office Supplies Ltd. (SOS), started operations in 1965. The company specialized in the selling of stationery items and office supplies but since then has expanded its product offerings to office furniture, shelves, partitions and fittings needed for an office space. The company is the sole local distributor for the Fursys and Boss brands of office furniture. In May 2018, SOS entered into the manufacturing space, with an $80M acquisition of the SEEK brand of notebooks. This acquisition started bearing fruit for SOS in the 2019FY as the business line became marginally profitable during this period. However, the pandemic has been a major setback to this business arm...Read More
Stationery Office & Supplies Limited (SOS) - Analysis & Recommendation - July 2018
Summary
Stationery Office & Supplies Limited (SOS) began trading as a purveyor of office supplies and stationery items and has since expand its business to include the sale of modular office furniture, partitions, metal products, chairs, cabinets and shelving. SOS’ reported revenues of $906.5M for the 2017FY, a 29.1% or $204.4M increase over the prior year’s result. The company attributed increased economic activity to this performance and noted that its Torch and Image branded lines of furniture saw a 60% increase in sales. SOS’ net profit for 2017 stood at $83.0M, up $36.4M or 78.1% from the $46.6M reported for 2016. The net profit margin stood at 9.2%, up from 6.6% for the previous year...Read More
Supreme Ventures Limited (SVL)
Supreme Ventures Limited (SVL) - Analysis & Recommendation - July 2021
Summary
Supreme Ventures Limited is the leading gaming and entertainment company in the Caribbean. The Group focuses on utilizing the technology of its platforms and extensive retail network to provide non-lottery commercial services to the market. Following acquisitions and the expansion into Guyana, SVL was seemingly on its way to another year of growth, however, the coronavirus pandemic exploded in Jamaica. This led to a ramp up in shelter-in-place protocols by the Government of Jamaica which SVL stated had a negative impact on its businesses in the final month of the first quarter.
As businesses downsize due to the economic slowdown stemming from the Coronavirus pandemic, the disposable income available to SVL’s customers for gambling is likely to be weakened which may translate to lower gaming income for the entity. As such, we are forecasting revenues of $37.27B for the2020 financial year, a 3.2% decline year-over-year. Net profits...Read More
Supreme Ventures Limited (SVL) - Analysis & Recommendation - May 2020
Summary
Supreme Ventures Limited is the leading gaming and entertainment company in the Caribbean. The Group focuses on utilizing the technology of its platforms and extensive retailer network to provide non-lottery commercial services to the market. Following acquisitions and the expansion into Guyana, SVL was seemingly on its way to another year of growth, however, the coronavirus pandemic exploded in Jamaica. This led to a ramp up in shelter-in-place protocols by the Government of Jamaica which SVL stated had a negative impact on its businesses in the final month of the first quarter...Read More
Supreme Ventures Limited (SVL) - Analysis & Recommendation - March 2019
Summary
Supreme Ventures is a leading lottery and gaming provider in the Caribbean, with a diverse portfolio of lottery products. The Company focuses on utilizing the technology of its platforms and extensive retailer network to provide non-lottery commercial services to the market. SVL’s business segments include Lottery – which includes the Top Draw, Money Time, Pick 3, Cash Pot, Lotto and Super Lotto Games; Sports Betting – which includes the JustBet brand that offers wagers on international sporting events; Gaming and hospitality – which offers Video Lottery Terminal (VLT) games at gaming lounges and food and beverage operations; Pin Codes – which sells phone pin codes through the agent’s network; Horseracing – which consists of the operations of Caymanas Track Limited; and Other – which covers all other income....Read More
Supreme Ventures -Analysis & Recommendation- February 2018
Summary
Supreme Ventures is a leading lottery and gaming provider in the Caribbean, with a diverse portfolio of lottery products. The Company focuses on utilizing the technology of its platforms and extensive retailer network to provide non-lottery commercial services to the market. SVL’s business segments include Lottery – which includes the Top Draw, Money Time, Pick 3, Cash Pot, Lotto and Super Lotto Games; Sports Betting – which includes the JustBet brand that offers wagers on international sporting events; Gaming and hospitality – which offers Video Lottery Terminal (VLT) games at gaming lounges and food and beverage operations; Pin Codes – which sells phone pin codes through the agent’s network; Horseracing – which consists of the operations of Caymanas Track Limited; and Other – which covers all other income...Read More
Supreme Ventures Limited – February 2017
Company Background
Supreme Ventures is a leading lottery and gaming provider in the Caribbean, with a diverse portfolio of lottery products.
SVL’s strategic objective is to be the leading provider of innovative and compelling gaming and lottery content through current and emerging mediums. The Company focuses on utilizing the technology of its platforms and extensive retailer network to provide non-lottery commercial services to the market. SVL’s business segments include Lottery – which includes the Top Draw, Money Time, Pick 3, Cash Pot, Lotto and Super Lotto Games; Sports Betting – which includes the JustBet brand that offers wagers on international sporting events; Gaming and hospitality – which offers Video Lottery Terminal (VLT) games at gaming lounges and food and beverage operations; Pin Codes – which sell phone pin codes through the agent’s network; and Other – which covers all other income…Read more
Sygnus Credit Investments Limited (SCI)
Sygnus Credit Investment Limited (SCI) - Cumulative Preference Share Offer - Analysis & Recommendation - November 22 2023
Summary
SCI is the largest publicly listed specialty private credit investment company in the Caribbean, with assets over US$100M. SCI’s mandate is to provide alternative financing to middle-market businesses across the Caribbean. The portfolio companies typically generate between US$5M and US$25M in revenues, and to date, SCI has deployed an estimated US$251M in gross investment commitments.
The Group is in the process of substantially deepening its private credit business in specific English-speaking Caribbean territories. In contrast, the Puerto Rican private credit business is scheduled to launch its most significant financing product during the 2023/24 financial year. SCI has collectively targeted at least $300.0 million in new originations. However, it requires additionalfinancing to meet the demand for its flexible debt financing solutions...Read More
Sygnus Credit Investments Limited (SCI) - Analysis & Recommendation - December 22 2022
Summary
SCI is the largest publicly listed specialty private credit investment (PCI) company in the Caribbean, with assets in excess of US$100M. SCI’s mandate is to provide alternative financing to middle-market businesses across the Caribbean. The portfolio companies typically generate between US$5M to US$25M in revenues and to date, SCI has deployed approximately US$220M in gross investment commitments.
Going forward, we believe SCI’s earnings will be bolstered by the continued positive contribution of the Puerto Rico Credit Fund investment as well as the non-recurrence of the US$3.5M charge-off posted in the 2022 FY. Based on our forecasts, we are projecting total income of US$11.52m and net profits of US$7.08M for the 2023 FY, which corresponds to an EPS of $0.012, an 85.2% increase year-over-year. Our valuation methodologies have yielded fair value estimates of...Read More
Sygnus Credit Investments Limited (SCI) - APO Analysis & Recommendation - December 21 2020
Summary
We recommend the US- and JMD-denominated SCI shares as OUTPERFORM/OVERWEIGHT/BUY. Sygnus offers diversification into a unique asset class that has exposure across various productive sectors, across the Caribbean region and in multiple currencies. This investment is suitable for investors with medium-risk appetite and a medium-term outlook who are primarily interested in income-generation. SCI aims to have a dividend pay-out ratio as high as 85% and to date has paid out US$3.8M in dividends since listing, or 11% of its share capital. The primary risk faced by the company is credit risk and the extent to which the company is exposed to this risk is SCI’s ability to properly assess the credit investments it makes in target companies. This risk has been mitigated by instituting globally-accepted standards for portfolio and risk management with the maintenance of a diversified portfolio of private credit investments...Read More
Sygnus Credit Investments Limited (SCI) - IPO Analysis & Recommendation - May 1 2018
Summary
Sygnus Credit Investments Limited, an international business company incorporated under the International Business Companies Act, 1999 of St. Lucia, is seeking to raise US$10,000,000.01 through the sale of 90,909,091 shares in the company. SCI is a specialty investment firm that targets private credit investments in medium-sized firms across the Caribbean region. The Company offers an alternative to traditional financing by providing more customizable and flexible financing options for target companies. We recommend Sygnus as...Read More
Sygnus Real Estate Finance Limited (SRF)
Sygnus Real Estate Finance Limited IPO - Analysis & Recommendation - August 2021
Summary
Sygnus Real Estate Finance Limited (SRF) is a real estate investment company whose primary goal is to create flexible financing solutions to monetise and unlock value in real estate assets across the Caribbean. SRF is inviting prospective investors to subscribe for 207,608,341 new ordinary shares of the Company, as it seeks to raise approximately J$3.9B. The Company will use the proceeds of this Initial Public Offer (IPO), if successful, to: pay listing fees; repay debt; and invest in real estate investment assets...Read More
TransJamaica Highway (TJH)
TransJamaica Highway - Analysis & Recommendation - December 30 2022
Summary
TransJamaican Highway Limited is the current holder of concession rights to operate and maintain a tolled road network known as Highway 2000 East-West. TJH was granted the rights to operate the Highway in 2001 with the agreement lasting for 35 years. We recommend both the USD and JMD shares of TJH at...Read More
TransJamaica Highway IPO Recommendation - February 2020
Summary
TJH was formed in 2001 and its business is the development, operation and maintenance of a tolled road network in Jamaica known as the “Highway 2000 East-West”. Highway 2000 East-West is a 49.9km tolled motorway with two sections: T1 – 43.5km between Kingston and May Pen and T2 – 6.5k between Portmore and Kingston. TJH, as concessionaire, operates Highway 2000 East-West under a concession agreement dated 21 November 2001 granted by NROCC. The concession is for a period of 35 years, with 16 years remaining.
TJH was formed in 2001 and its business is the development, operation and maintenance of a tolled road network in Jamaica known as the “Highway 2000 East-West”. Highway 2000 East-West is a 49.9km tolled motorway with two sections: T1 – 43.5km between Kingston and May Pen and T2 – 6.5k between Portmore and Kingston. TJH, as concessionaire, operates Highway 2000 East-West under a concession agreement dated 21 November 2001 granted by NROCC. The concession is for a period of 35 years, with 16 years remaining...Read More
tTech Limited (TTECH)
tTech Limited - Analysis & Recommendation - May 2018
Summary
tTech is a provider of managed information technology services to organizations in Jamaica. These services include: the management of core IT infrastructure such as servers and network devices; service or Help Desk support services for end users and the computers and mobile devices which they use; the deployment and management of IT Security systems; cloud migration and support services. In addition to managed services, tTech also provides IT Consultancy services which include the provision of virtual CIO (vCIO) services, project management, disaster recovery planning, and assisting internal IT teams to improve the delivery of their services within their organizations....Read More
Victoria Mutual Investments Limited (VMIL)
Victoria Mutual Investments Limited (VMIL) - Analysis & Recommendation - May 2022
Summary
Victoria Mutual Investments Limited (VMIL) was incorporated in 1984. The Company has a wholly-owned subsidiary Victoria Mutual Wealth Management Limited (VMWM), which was established in 1994. The primary activities of VMWM are investment brokering, advisory services and money market dealing. Meanwhile, VMIL offers margin loans, insurance premium financing, lease financing, underwriting services, and corporate loans. VMIL was listed on the Jamaica Stock Exchange on December 29, 2017.
At the end of the period under review (FY 2017 to FY 2021), Gain from Investment Activities and Net Fees and Commissions income are the primary sources of revenue, accounting for 38.4% and 41.1%, respectively. Meanwhile, Net Revenue and Profits have increased at a CAGR of 20.3% and 13%, respectively.
VMIL currently trades at approximately 16.8x, its trailing 12-months EPS above the 13.8x harmonic mean of the peer group. Meanwhile, VMIL has relatively low liquidity, exchanging an average daily volume of 102.4 thousand units over the past year, valued at approximately $651.4 thousand. Over the past month, VMIL has had an average bid-ask spread of about 3.5%, indicating a relatively high implicit cost to acquire shares...Read More
Victoria Mutual Investments Limited (VMIL) - Analysis & Recommendation - September 2020
Summary
Victoria Mutual Investments Limited (VMIL) was incorporated in 1984. The company has a wholly-owned subsidiary Victoria Mutual Wealth Management Limited (VMWM), which was established in 1994. The primary activities of VMWM are investment brokering, advisory services and money market dealing. Meanwhile, VMIL offers margin loans, insurance premium financing, lease financing, underwriting services, and corporate loans. The company listed on the Jamaica Stock Exchange on December 29, 2017. VMIL has undergone a significant shift in its revenue source for the period under review (FY 2015 to FY 2019). In FY 2015 less than 30% of net revenue was generated from ‘Net Fees & Commissions’ this has shifted to approximately 55% in FY 2019. Furthermore, in FY 2019 VMIL generated $933.13 million in ‘Net Fees and Commission’ income, the primary contributors were...Read More
Victoria Mutual Investments Limited (VMIL) - Analysis & Recommendation - April 2019
Summary
Victoria Mutual Investments Limited (VMIL) was incorporated in 1984. The company has a wholly-owned subsidiary Victoria Mutual Wealth Management Limited (VMWM), which was established in 1994. The primary activities of VMWM are investment brokering, advisory services and money market dealing. Meanwhile VMIL offers margin loans, insurance premium financing, lease financing, underwriting services and corporate loans. VMIL was listed on the Jamaica Stock Exchange on December 29, 2017. VMIL has undergone...Read More
Victoria Mutual Investment Limited IPO Analysis & Recommendation
Summary
Incorporated in 1984 and domiciled in Jamaica, Victoria Mutual Investments Limited (VMIL) is a wholly-owned subsidiary of The Victoria Mutual Building Society. VMIL is the parent company and sole owner of Victoria Mutual Wealth Management Limited (VM Wealth). Driven by an objective to provide competitive credit financing solutions for clients, VMIL’s primary offerings include margin loans and corporate loans. VM-Wealth is a licensed securities dealer offering investment brokering, investment advisory services and securities dealing services to its clients.
In order to provide working capital support to its operations, and to allow the Company to take advantage of new business opportunities, the Company is seeking to raise J$689,261,487.50 by inviting subscriptions for up to 300,005,000 newly issued Ordinary Shares...Read more
Wigton Windfarm Limited (WIG)
Wigton Windfarm Limited - Analysis & Recommendation - May 2022
Summary
WIG was incorporated in April 2000 as a subsidiary of the Petroleum Corporation of Jamaica with the objective of developing and operating wind-powered renewable energy systems in Jamaica and to supply electricity produced by such systems to the Jamaica Public Service Company Limited (JPSCo) System. The Company operates a wind farm in Rose Hill, Manchester consisting of 44 wind turbines. This wind farm was built out in three phases...Read More
Wigton Windfarm Limited - Analysis & Recommendation - May 2020
Summary
WIG was incorporated in April 2000 as a subsidiary of the Petroleum Corporation of Jamaica (PCJ) with the objective to develop and operate wind-powered renewable energy systems in Jamaica and to supply electricity produced by such systems to the Jamaica Public Service Company Limited (JPS) System. The Company listed on the Main Market of the Jamaica Stock Exchange in May 2019...Read More
Wigton Windfarm Limited - Analysis & Recommendation - April 2019
Summary
The Petroleum Corporation of Jamaica (PCJ) is inviting prospective investors to apply for 11,000,000,000 shares in the capital of Wigton Windfarm Limited (WWF) at a price of $0.50 per share, as it seeks to sell 100% of its shareholdings. Of this number, 2,200,000,000 shares are reserved for public sector workers. The PCJ, under the direction of the Jamaican Government is undertaking this Offer for Sale by listing on the Jamaica Stock Exchange to: widen the ownership base of the Company; allow direct equity participation in the economy by encouraging local ownership; and provide funds for PCJ....Read More
Wisynco (WISYNCO)
Wisynco - Analysis & Recommendation - November 2023
Summary
Wisynco Group Limited is a major manufacturer and distributor of beverages, food and packaging products in Jamaica. Wisynco owns,
manufactures and distributes a portfolio of beverage brands that include WATA and BIGGA Soft Drinks. Additionally, Wisynco is the
exclusive bottler for the Coca-Cola Company in Jamaica as well third-party beverage brands Squeezz and Hawaiian Punch. The Company
also distributes Red Bull, Tru Juice, Freshhh, Welch’s, Mott’s and Snapple. The beverage portfolio is complimented by a range of grocery
products from international brands such as Kellogg’s, General Mills, Hershey Company, Butterball, Herr’s, and Nestlé, as well as local
brands such as Kremi. The Company is also the exclusive distributor for Worthy Park Estate spirits and sugar...Read More
Wisynco - Analysis & Recommendation - February 2023
Summary
Wisynco Group Limited is a major manufacturer and distributor of beverages, food and packaging products in Jamaica. Wisynco owns, manufactures
and distributes a portfolio of beverage brands that include WATA and BIGGA Soft Drinks. Additionally, Wisynco is the exclusive bottler for the Coca-Cola Company in Jamaica as well third-party beverage brands Squeezz and Hawaiian Punch. The Company also distributes Red Bull, Tru Juice, Freshhh, Welch’s, Mott’s and Snapple. The beverage portfolio is complimented by a range of grocery products from international brands such as Kellogg’s, General Mills, Hershey Company, Butterball, Herr’s, and Nestlé, as well as local brands such as Kremi. The Company is also the exclusive distributor for Worthy Park Estate spirits and sugar.
Using relative value valuation models, our average estimate of the fair price is $21.99, with a range of $17.03 to $23.98. As such, we recommend Wisynco as...Read More
Wisynco - Analysis & Recommendation - September 8 2022
Summary
Wisynco Group Limited is a major manufacturer and distributor of beverages, food and packaging products in Jamaica. Wisynco owns, manufactures and distributes a portfolio of beverage brands that include WATA and BIGGA Soft Drinks. Additionally, Wisynco is the exclusive bottler for the Coca-Cola Company in Jamaica as well third-party beverage brands Squeezz and Hawaiian Punch. The Company also distributes Red Bull, Tru Juice, Freshhh, Welch’s, Mott’s and Snapple. The beverage portfolio is complimented by a range of grocery products from international brands such as Kellogg’s, General Mills, Hershey Company, Butterball, Herr’s, and Nestlé, as well as local brands such as Kremi.
The Company is also the exclusive distributor for Worthy Park Estate spirits and sugar. Using relative value valuation models, our average estimate of the fair price is $21.57, with a range of $16.43 to $25.64. As such, we recommend Wisynco as MARKETPERFORM / HOLD, as we believe the stock is trading close to its fair value. Wisynco’s future earnings should improve, on the basis that strategies continue to be implemented by management to expand and diversify distribution reach to improve revenue, contain cost and improve profitability margins...Read More
Wisynco - Analysis & Recommendation - September 18 2020
Summary
Wisynco Group Limited is a major manufacturer and distributor of beverages, food and packaging products in Jamaica. Wisynco owns, manufactures and distributes a portfolio of beverage brands that include WATA and BIGGA Soft Drinks. Additionally, Wisynco is the exclusive bottler for the Coca-Cola Company in Jamaica as well third-party beverage brands SqueezZ and Hawaiian Punch. The Company also distributes Red Bull, Tru Juice, Freshhh, Welch’s, Mott’s and Snapple. The beverage portfolio is complimented by a range of grocery products from international brands such as Kellogg’s, General Mills, Hershey Company...Read More
Wisynco - Analysis & Recommendation - September 12 2018
Summary
Wisynco Group Limited is a major manufacturer and distributor of beverages, food and packaging products in Jamaica. Wisynco owns, manufactures and distributes a portfolio of beverage brands which include WATA and BIGGA Soft Drink and also owns and manufactures the SWEET brand range of plastic and foam disposable lunch boxes, plates and cups. Additionally, Wisynco is the exclusive bottler for the Coca-Cola Company in Jamaica as well third-party beverage brands SqueezZ and Hawaiian Punch. The Company also distributes Red Bull, Tru Juice Freshhh, Welch’s, Mott’s and Snapple. The beverage portfolio is complimented by a range of grocery products from international brands such as Kellogg’s, General Mills, Hershey Company, Butterball, Herr’s, and Nestlé, as well as local brands such as Kremi.
Using relative value valuation models our average estimate of the fair price is $12.79, with a range of $12.61 to $12.95. As such, we recommend Wisynco as...Read More
Wisynco's IPO Valuation and Recommendation
Summary
Wisynco Group Limited in its current form was established in 2005 as an amalgamation of several, multi-generational family business created by the four Mahfood brothers: Ferdinand, Sam (Jnr.), Joe and Robin; the first of which was established in 1965. The current iteration is a well-known manufacturer and distributor of beverages, food and packaging products in Jamaica. Wisynco is aiming to raise $6.1B through the sale of 784,500,000 shares with $1.2B representing new capital while the remaining $4.9B represents proceeds to be remitted to the Selling Shareholder...Read more