Shares of Transcorp have gone from N1.4 to N2.45 per share, gaining 75 per cent return in just under a week. Rhoda Ogunseye writes
TRANSCORP closed its last trading day (Thursday, April 20, 2023) at 2.45 NGN per share on the Nigerian Stock Exchange (NGX), recording a 9.9 per cent gain over its previous closing price of N2.23. The company began the year with a share price of N1.13 and has since gained 117 per cent on that price valuation, ranking it fourth on the NGX in terms of year-to-date performance.
Optimism
Shareholders can be optimistic about TRANSCORP knowing the stock has accrued an outstanding 91 per cent gain over the past fourweek period alone—best on NGX. Transcorp Nigeria is the most traded stock on the Nigerian Stock Exchange over the past three months (Jan 20 – Apr 20, 2023). TRANSCORP traded a total volume of 4.93 billion shares—in 7,583 deals—valued at N7.65 billion over the period, with an average of 78.3 million traded shares per session. A volume high of 1.55 billion was achieved on April 11, and a low of 970,138 on February 15, for the same period.
Financials
Transcorp Hotel Plc has released its unaudited financial results for the first quarter that ended March 31, 2023. The first quarter financials, filed by the company on Thursday, showed that revenue rose significantly to N8.25 billion from N7.04 billion recorded in the 2022 financial year, representing a 17.2 per cent growth. The financial report also showed a 13.2 per cent growth in gross profit from N5.12 billion in 2022 to N5.80 billion in 2023. Transcorp’s profit before tax declined by 21.19 per cent to close Q1’23 at N841 million, from N1.06 billion recorded in 2022. Profit after tax (PAT) declined by 45.92 per cent to N461.6 million in Q1’23, compared to N853.6 million recorded the year before. The company’s revenue grew by 17.2 per cent from N7.04 billion in first quarter 2022 to N8.25 billion in the same period this year. It’s gross profit was up by 14.2 per cent from N5.80 billion 2023 Q1 to N5.12 billion in 2022 Q1. The operating profit was, however, down by 12.7 from N2.10 billion 2022 Q1 to N1.83 billion in 2023 Q1. Transcorp’s Profit before tax dropped to N841.5 million in 2023 Q1 from N1.06 billion in 2022 Q1 showing a 21.19 per cent loss. The company’s Profit after tax fell by 45.92 per cent from N853.6 billion in 2022 Q1 to N461.6 million 2023 Q1.
Forecast
Transnational Corp Of Nigeria traded at 2.45 last Thursday April 20, increasing 0.22 or 9.87 percent since the previous trading session. Looking back, over the last four weeks, Transnational Corp Of Nigeria gained 89.92 per cent. Over the last 12 months, its price rose by 145.00 per cent. Looking ahead, it is forecast thay Transnational Corp Of Nigeria to be priced at N1.51 by the end of this quarter and at N1.41 in one year, according to Trading Economics global macro models projections and analysts expectations.
Strategic move
Transnational Corporation Plc, in a press statement issued on the Nigerian Exchange, said that Nigerian business mogul and billionaire, Femi Otedola, had acquired about 2.245 billion shares of the company. The statement signed by Funmi Olofintuyi, Company Secretary (Ag.), noted that in compliance with Chapter 17, Rule 17.13 of the NGX Issuers Rules, Transnational Corporation Plc announced to the Nigerian Exchange Limited (NGX) and the investing public that Otedola acquired the shares, which represent 5.52 per cent. It said: “As noted in our previous communication, the company welcomes this expression of confidence in its leadership and management as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism. “Rest assured of our commitment to remain resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda and our ability to contribute positively towards building prosperity for all.” Otedola’s acquisition of about 2.245 billion shares in Transnational Corporation Plc makes him the second largest shareholder of the company.
Background
Transnational Corporation of Nigeria Plc, incorporated in November 2004, is a Nigerian group of diverse companies whose core business interest is investment in, and operation of, portfolio companies in the hospitality, power, agriculture and energy sectors. Following a successful initial public offer, Transcorp Nigeria was listed on the NSE in December 2006, gaining a shareholder base of about 300,000 investors, the largest of which is Heirs Holdings Limited, a pan-African proprietary investment company. With subsidiaries and affiliates providing goods and services in several sectors, Transcorp seeks to drive the nation’s economy in a positive direction by investing in catalytic sectors capable of improving lives and transforming the country. Transcorp Nigeria has a large investment portfolio of which the most notable businesses are the award-winning Transcorp Hilton Hotel, Abuja; Transcorp Hotels, Calabar; Teragro Commodities Ltd, operator of Teragro Benfruit Plant; Transcorp Power Ltd which acquired Ughelli Power Plc, owner of the 972MW Ughelli Power Plant; and Transcorp Energy Ltd, operator of OPL 281. In January 2013, Transcorp and General Electric signed an agreement to collaborate to address the infrastructural needs of Nigeria, with emphasis on the power and transportation sectors. Transcorp Nigeria is listed on the Nigerian Stock Exchange (NGX). Transcorp is traded on the NGX under the ticker symbol “TRANSCORP”. The International Securities Identification Number (ISIN) of NGX:TRANSCORP is NGTRANSCORP7. Transcorp Nigeria is currently the 27th most valuable stock on the NGX with a market capitalisation of NGN 99.6 billion, which makes about 0.356 per cent of the Nigerian Stock Exchange equity market.
Last line
As the Corporation continues to upscale on its topline finances, there is no doubt that current developments in the organisation would rather sustain its positive trajectories than otherwise.
