Genghis Capital - Safaricom Ltd (SCOM) Safaricom Plc (NSE: SCOM) Pre-earnings Note FY20

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Genghis Capital

Safaricom Plc (NSE: SCOM) Pre-earnings Note FY20

FY20 Earnings Expectations
Safaricom Plc (NSE: SCOM) is expected to release FY20 results next week (on Wednesday) and we expect earnings per share (EPS) growth of 11.8% y/y to KES 1.75. We also expect a dividend per share (DPS) of KES 1.40 from KES 1.25 in FY19. We maintain our HOLD recommendation at a fair value estimate of KES 33.25. We are currently a month (April) inside its 2021 financial year under the currently fluid Covid-19 environment which is expected to have an adverse impact on the business depending on the length and severity of additional containment measures. Consequently, we are closely monitoring the environment and impact on the business and will be reviewing our FY21 estimates in an upcoming valuation update.

24/04/2020 4 EN

Underlying

Safaricom Ltd

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KE1000001402 Nairobi Securities Exchange Kenya

Provider

Genghis Capital

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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Safaricom Plc (NSE: SCOM) Pre-earnings Note FY20

Sub-Saharan African Telecoms Solid top line, decent overall performance given the macro environment; Q1 24 review

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East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

KenGen Company Plc (NSE: KEGN) FY20 Earnings Note

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