Dec 2007 Financial News

Non-Banking Latest Results

Dec 14, 2007

Non-Banking Latest Results
December 14th 2007

National Enterprises Limited
(Half Year Ended September 30th, 2007)

For Half Year Ended September 30th, 2007, National Enterprises Limited (NEL) reported Earnings Per Share (EPS) of $0.64, which was up an outstanding 109.82 per cent on the comparable EPS in fiscal 2006.

The Board has declared an Interim Dividend of 19 cents per share for the financial year ended March 31, 2008 which will be paid on December 19, 2008.

NEL last closed at a price of $7.16 on the local exchange. We are forecasting an EPS of $0.80 for fiscal 2008, which at the current price translates into a multiple of 8.95 times. Also, NEL has the highest historic dividend yield on the local market of 8.31 per cent and a forecasted dividend yield of 9.86 per cent. Additionally, using a multiple of 10 times and the forecasted EPS of $0.80, this share has an expected return of approximately 12 per cent on the current price or a target price of $8.00. Thus based on this analysis we recommend a BUY on this share.


Dehring, Bunting and Golding
(Seven Months Ended October 31, 2007)

All figures quoted in Jamaican Dollars unless otherwise stated

For the Seven Month period Ended October 31, 2007, Dehring, Bunting and Golding Limited (DB&G) reported Earnings Per Share (EPS) of $1.83, while for the Three Months to October 31, 2007, the EPS was $1.35. The Company’s Year End was changed to October 31, 2007 to achieve consistency with the reporting period for its parent company, Scotia Group Jamaica Limited.

The Board has approved a further interim dividend of 22 cents to shareholders on record as at December 4, 2007 to be paid on January 10, 2008.

DB&G last closed at a price of TT$2.00 on the TTSE. We are forecasting an EPS of TT$0.30 for fiscal 2008. At the current price and forecasted EPS of TT$0.30, this share is trading at a price to earnings multiple of 6.67 which is low given that this share usually trades in the band of 7 to 11 times. Additionally, using a multiple of 8 times and the forecasted EPS of $0.30, this share has an expected return of 20 per cent on the current price or a target price of $2.40. Thus we recommend a BUY on this share.


Sagicor Financial Corporation
(Nine Months Ended September 30, 2007)

All figures quoted in Barbados Dollars unless otherwise stated


For the Nine Months Ended September 30, 2007, Sagicor Financial Corporation (SFC) reported Earnings Per Share (EPS) of 37.6 cents, which was up a substantial 24.92 per cent on the corresponding EPS of fiscal 2006. Q307 on Q306, the EPS was up an outstanding 66.07 per cent from 11.2 cents to 18.6 cents.

SFC last closed at a price of TT$15.95 on the local exchange. In light of the Group’s strong performance, we have revised our forecasted EPS upwards to TT$1.90, which at the current price translates into a p/e multiple of 8.39 times. Additionally, using a multiple of 10 times and the forecasted EPS of $0.90, this share has an expected return of approximately 19 per cent or a target price of $19.00. Thus, we continue to recommend a BUY on this share.


Guardian Holdings Limited
(Nine Months Ended September 30, 2007)

For the Nine Months (NM) Ended September 30, 2007, Guardian Holdings Limited (GHL) reported an Operating Profit (before fair value losses) of $259.92 million compared to an Operating Loss (before fair value losses) of $41.55 million for NM06. This represented an increase of $301.47 million in profits. For the third quarter of fiscal 2007, the Group reported an Operating Profit (before fair value gains) of $92.37 million, an improvement of $112.03 million on the comparable period in FY06.

The shares of GHL last closed at a price of $23.50 on the local market. The performance of the Group for the NM07 has indeed been an improvement over the corresponding period of fiscal 2006 and as stated by the Chairman, the Group should return to overall profitability in the near future. Additionally, GHL continues to maintain a healthy Balance Sheet, with a Net Asset Value per share of $17.39 (NM07) which translates into a market to book ratio of 1.35 times at the current price. Thus, we continue to recommend a LONG TERM BUY on this share.


Gia Singh
WISE Equity Research Team