KenGen Company Plc (NSE: KEGN) 1H19 Earnings Note
KenGen Ltd (NSE: KEGN) announced flat bottom-line growth (+1.6% y/y) for its 1H19 period (June – December). Electricity revenue grew steadily by 3.2% y/y while steam revenue declined by 6.8% y/y due to a maintenance shutdown of some wellhead plants. Operating earnings declined by 4.5% y/y driven by a 7.1% y/y uptick in operating expenses and muted growth in total revenue (-0.7% y/y). The marginal growth in EPS (1.6% y/y to KES 0.63) was boosted by a 17.4% y/y cut in finance costs.
We maintain our BUY recommendation at a target price of KES 8.92, an upside potential of 37.7% from the current market price.
Genghis Capital is an innovative and customer focused Investment Bank licensed by the Capital Markets Authority (CMA). Founded in 2008, Genghis is one of the leading investment banks in Kenya. Since its establishment, Genghis has achieved tremendous growth to offer a well-diversified portfolio of financial services that includes:
- i. Securities(Equity/Debt) Trading
- ii. Research
- iii. Wealth Management services
- iv. Investment Advisory & Management via the GenCap Unit Trusts
- v. Corporate Finance & Transaction Advisory services
The Kenyan Capital Markets continue to develop in size, scope and sophistication. With this is an increasing demand for more specialized and personalized brokerage service and we at Genghis Capital are glad to be able to offer you this service. Our strength lies in ensuring our clients are up to speed with developments at the stock market and the economy. Research and technology remains our competitive and comparative advantage hence Experience, Expertise and Professionalism are some of the qualities you can expect from our team.
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