Access Holdings Plc posted a double-digit growth in its Gross Earnings (+31.42% YoY to NGN591.80bn) in H1:2022. The impressive topline performance rested on the dual rise in Interest Income (+16.46% YoY to NGN372.30bn) and Non-Interest Income (+67.97% YoY to NGN219.38bn). Nonetheless, a spate of soaring Operating Expenses (+35.38% YoY to NGN256.68bn) undermined profitability, as the firm could only muster a marginal increase in Profit After Tax (PAT) which grew 2.22% YoY to NGN88.75bn.
On a balance of factors, we maintain our 1-year target price at NGN12.80 for ACCESSCORP. This is a 54% upside from its current closing price of NGN8.30. Thus, we reiterate our 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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