In its Q1:2023 financial statements, released on the 20th of April 2023, Access Holdings Plc posted a 43.68% and 24.46% YoY growth in Gross earnings and Profit before Tax to NGN424.92bn and NGN81.60bn respectively. The performance was supported by impressive returns on both the Interest and Non-Interest Income legs.
Interest Income soared 46.36% YoY to NGN254.22bn while non-Interest revenue grew 39.86% YoY to NGN170.70bn. On the other hand, Operating Expenses rose 28.29% YoY to NGN149.79bn as administrative and regulatory expenses rose sharply in the period. Overall, Net Profit Margin declined by 2.69% to 16.86% in Q1:2023.
We maintain our target price for ACCESSCORP at NGN13.14 for 2023FY. At its current price of NGN10.6 as of 25th April 2023, this translates to an upside prospect of 24%. Thus, we put a “STRONG BUY” rating on the stock
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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