JMMB Research
Company Insights
Company Insights provide an analysis of the periodic performance of locally traded companies, These reports will be based on the companies' half-year results. Investors can use these publications as guidelines to make more informed investment decisions within the local landscape.
2020 Investor Review and Outlook
Most stocks listed on the local exchanges retreated in 2020. The Trinidad & Tobago Composite Index (TTCI) posted negative returns of -9.9% for the period. This was driven by declines across the board as the market was rattled by the COVID-19 prevention measures which was implemented by the government. The All Trinidad & Tobago Index (TTALL) declined by -5.2% for HY2020. This was driven by declines across the board, as only 4 stocks have posted positive price returns for the period.
2020-2021 Budget Review
On October 5, 2020 the Finance Minister Colm Imbert presented the 2020/21 Budget to the Parliament of Trinidad and Tobago. The Budget took action on the difficult decisions that was a long time in coming, resulting from the impact of the Covid-19 pandemic and its detrimental effects on both the revenue and expenditure side of Government affairs. The Minister of Finance projected a fiscal deficit of $8.2 billion on the back of $41.4 billion in revenue, while stating that last year’s deficit was $16.8 billion, in excess of the $5.3 billion projected in the 2019/20 Budget presentation.
Angostura Holdings Limited Q2 2020 - Revenue Up but Profits Down (August 2020)
Angostura Holdings Limited (AHL) recorded Revenue for the six months ended June 30th, 2020 (2Q-2020) of $358.5 million, a 3.5% ($12.1m) improvement over the comparative period in 2019. According to the Chairman's report, the growth in revenue was due to an increase in local rum sales, up 11%, and Bitters sales to the North American Market, up 8.4% when compared to 2Q-2019.
Angostura Holdings Limited Q3 2020 Update - (November 2020)
Angostura Holdings Limited (AHL) recorded Revenue for the nine months ended September 30, 2020 (3Q-2020) of $574.1 million, a 7.1% ($37.9m) improvement over the comparative period in 2019. According to the Chairman's report, the growth in revenue was driven by an increase in local rum sales, up 17.4%, and Bitters sales up 4.6% when compared to 3Q-2020. Revenue from LLB, Bulk and the "Other" segments declined by 18.9%, 22.7% and 6.6% respectively.
Angostura Holdings Limited Investor Update
In 2020, JMMB Investments commenced coverage of Angostura Holdings Limited (AHL). As part of JMMB Investments valuation process, JMMB Investments Analyst David Paul reached out to AHL’s investor relations department requesting answers, clarifications and management's take on the direction of the company.
Angostura Holdings Limited Valuation Report
Angostura Holdings Limited (AHL) is a limited liability Group incorporated and domiciled in the Republic of Trinidad and Tobago. The Group has its primary listing on the Trinidad and Tobago Stock Exchange. It is a holding Group whose subsidiaries are engaged in the manufacture and sale of rum, ANGOSTURA® aromatic bitters and other spirits, and the bottling of beverage alcohol and other beverages on a contract basis.
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The Calypso Macro-Index Fund Report (October 2020)
CALYP is a closed-end mutual fund, denominated in TT dollars, which was launched on January 8, 2016 and is scheduled to terminate on November 30, 2025. Twenty million (20,000,000) units were offered to the public at an offer price of TT$25.00 per unit.
Unilever Caribbean Limited Valuation Report 2021
Unilever Caribbean Limited (UCL) is a subsidiary of Unilever Overseas Holdings AG. The local subsidiary operates in three segments: Personal Care, Home Care and Food.
Massy Update- January 2021
For the Year Ended September 30th 2020, MASSY realized profit attributable to equity holders of $408.5MM, a decrease of 12% or $55.4MM when compared to the prior year. This captures only the results of MASSY's continuing operations, as MASSY exited its Information Technology and Communication (ITC) businesses prior to their financial year-end. This move further streamlines the Group around its core portfolios, namely Integrated Retail (IR), Motors
and Machines (M&M) and Gas Products (GP). It should be noted that all 3 portfolios saw increases in operating profits year on year despite major disruptions to their operations during the course of the year due to covid 19 induced lockdowns.
Investor Review and Outlook- January 2021
Most stocks listed on the local exchanges retreated in 2020. The Trinidad & Tobago Composite Index (TTCI) posted negative returns of -9.9% for the period. This was driven by declines across the board as the market was rattled by the COVID-19 prevention measures which was implemented by the government. The All Trinidad & Tobago Index (TTALL) declined by -5.2% for HY2020. This was driven by declines across the board, as only 4 stocks have posted positive price returns for the period. National Flour Mills Limited (NFM) was the best performing stock for the period, advancing by 59.3%.
Republic Financial Holdings Limited (RFHL)- Valuation Report- January 2021
At the end of financial year (FY) 2020 interest from loans and advances accounted for 60% of the Group’s revenue, fees and commissions accounted for 19.2%, exchange earnings added 7.3%, interest from investment securities contributed 6.4%, while interest from liquid assets and other income comprised the remaining 7.1%.
Trinidad and Tobago NFM Limited (NFM) - Valuation Report- January 2021
NFM’s revenue has been gradually falling over the past 5 years as its “Feed” and “Other” segments saw average annual declines of approximately 8% each. Specifically, declines in the company’s revenue from its Feedmill and Soya sales weighed heaviest on revenue.
Trinidad and Tobago NGL Limited (NGL) - Quarter3 Update- November 2020
While volumes were down 17.3% due to reduced demand from Point Lisas, TTNGL's underlying holdings, Phoenix Park Gas Processors Limited (PPGPL) received gas with 10.4% higher Natural Gas Liquids (NGL) content. PPGPL was also able to generate a 19.6% higher price differential. The company noted that demand has remained relatively steady since the onset of the pandemic. The company also mentioned Phoenix Park Energy Holdings (PPEH) contributed positively to the company's overall performance, though the size of the contribution is likely minimal at this time.
Angostura Holdings Limited (AHL) Update- November 2020
Angostura Holdings Limited (AHL) recorded Revenue for the nine months ended September 30, 2020 (3Q-2020) of $574.1 million, a 7.1% ($37.9m) improvement over the comparative period in 2019. According to the Chairman's report, the growth in revenue was driven by an increase in local rum sales, up 17.4%, and Bitters sales up 4.6% when compared to 3Q-2020
Guardian Holdings Limited (GHL) Update- November 2020
For the Quarter ended September 30, 2020, GHL saw its EPS grow by 72.5% year on year from $0.80 to $1.38. This was largely credited to the group's insurance activities. Gross Written Premiums increased by 2%, the Property and Casualty (P&C) segment saw increases in all major markets, while Life, Health & Pension (LH&P) segment suffered reduced premiums in T&T.
The Calypso Macro Index Fund (CALYP)- November 2020
CALYP is a closed-end mutual fund, denominated in TT dollars, which was launched on January 8, 2016 and is scheduled to terminate on November 30, 2025. Twenty million (20,000,000) units were offered to the public at an offer price of TT$25.00 per unit.
Budget Highlights: Resetting the Economy for Growth- October 2020
Finance Minister Colm Imbert presented the 2020/21 Budget on October 5, 2020. During the presentation, it was highlighted that difficult decisions were a long time coming, but finally taken due to the Covid-19 pandemic and its detrimental effects on both the revenue and expenditure side of Government affairs.
Scotiabank Trinidad & Tobago Limited (SBTT)- Quarter 3 Update- September 2020
For the nine months ended July 31st 2020, Scotiabank Trinidad & Tobago Limited (SBTT) realized profit attributable to equity holders of $366.1 million, a decline of 30.1% or $157.5 million when compared to the prior year. This translates into a basic EPS of $2.08 (Trailing EPS --$ at the end of the period. SBTT’s quarter and year to date performance have been impacted by reduced economic activity, which has resulted in reduced revenues.
First Caribbean International Bank Limited (FCI)- Quarter 3 Update- August 2020
For the nine months ended July 31st, 2020 (Q3 2020)2020), FirstCaribbean International Bank (FCI) realized a loss attributable to equity holders of US$43.1 million, a decrease of 135.2% when compared to Q3 2019. This translates into a basic EPS of US$ 0.028 at the end of the period. The decrease in profit was as a result of US$127 million provision for credit losses and a non-cash goodwill impairment charge of US$51 million.
Telecommunications Services of Trinidad and Tobago (TSTT)- Quarter 2 Update- August 2020
For quarter ended June 30th, 2020 (1Q21), TSTT reported a LAT of TT$83 million, a 1,080% decline from 1Q20 when it reported a PAT of TT$8 million. Revenue for TSTT declined by 16.6% or TT$105 million. The decline in revenue was driven by a 41% decline in revenue from residential copper services, a 4% decline in revenue from wireless services and a 25% decline in revenue from enterprise services. Residential fiber services was the only revenue line to record growth in the quarter (24%).
Trinidad and Tobago NGL Limited (NGL) - Quarter 2 Update- August 2020
For the three month period ended June 30th 2020, TTNGL realized profit attributable to equity holders of $7.6 million, a decrease of 72.5% when compared to the prior year. This drop is largely attributable to already depressed natural gas liquid prices experiencing a further shock due to COVID 19, which depressed earnings for TTNGL's underlying holdings, namely Phoenix Park Gas Processors Limited (PPGPL).
Questions with Executives-Angostura
On June 25th, 2020, JMMB Investments issued a Market Perform rating for AHL with a price target of $15.93. The rationale for the rating was the expectation that after the completion of the water treatment plant project, AHL’s profit margins would improve as a result of expense reduction.
Massy Update- August 2020
For the Quarter ended June 30th 2020, MASSY realized profit attributable to equity holders of $101.5MM, a decrease of 12% or $13.8MM when compared to the prior year.
Unilever Caribbean Limited (UCL) Update- August 2020
For the six months ended June 30th 2020, Unilever Caribbean Limited (UCL) realized profit attributable to equity holders of $5.9 million, an increase of $5.6 million over the comparable period in 2019. This translates into a basic EPS of $0.23 at the end of the Total assets stood at $424.1 million as at June 30, 2020, a decrease of 17% when compared to June 2019.
Angostura Holdings Limited (AHL) Update- August 2020
Angostura Holdings Limited (AHL) recorded Revenue for the six months ended June 30th, 2020 (2Q 2020) of $358.5 million, a 3.5% ($12.1m) improvement over the comparative period in 2019.
First Citizens Bank (FIRST) Update- August 2020
The decrease in the target price is based on the cut in dividend (which we expect will be temporary) and a decline in earnings expectations as a result of a threat of a second lockdown due to community spread in Trinidad and Tobago. EPS forecast for year ending September 2020 is revised downward to $2.57.
Guardian Holdings Limited (GHL) Update- August 2020
For the Quarter ended June 30th 2020, GHL saw its EPS rise by 52.6% year on year from $0.57 to $0.87. This wiped out the $0.16 per share loss in Q1 and can largely be credited to the groups insurance activities. While Net Written Premiums saw a decline of 4.2% owing to difficulties associated with collection due to the pandemic, the group managed to bring down underwriting expenses by 29.3% or $307.6K.
Republic Financial Holdings Limited (RFHL)- August 2020
For the nine months ended June 30th 2020, Republic Financial Holdings Limited (RFHL) realized profit attributable to equity holders of $854 million, a decrease of 35.7% or $474 million when compared to the prior year.
Clico Investment Fund (CIF) Update- August 2020
In Clico Investment Fund (CIF) Quarterly Financial Statements for period ended March 31st 2020, Republic Financial holdings (RFHL) shares accounted for ~90% of total assets in the fund, the GORTT 2037 Bond accounted for ~9% and the remainder of assets in the fund comprise interest receivables and liquid assets.
West Indian Tobacco Company (WCO) Half Year Update- July 2020
Due to COVID 19 prevention measures implemented by the Government, WCO's factory operations were closed for the month of April. The closure negatively affected its exports to Jamaica, Guyana and other Caribbean Islands. According to the Chairman's Review, the distribution of products in the domestic market was severely disrupted by the "stay at home" measures and the closure of the entertainment channels.
Investor Half Year Review and Outlook- July 2020
Most stocks retreated in the first half of 2020 (HY2020). The Trinidad & Tobago Composite Index (TTCI) posted negative returns of -10.7% for the period. This was driven by declines across the board as the market was rattled by the COVID-19 prevention measures which were implemented by the government.
Guardian Holdings Limited (GHL)- July 2020
GHL’s revenue has been relatively stable over the past 5 years, climbing from $2.2B in FY 2015 to 2.5B in FY 2019. This represents a CAGR of just 2.95% over the 5-year period.
Scotiabank Trinidad & Tobago Limited (SBTT)- July 2020
Since 2015, SBTT’s Total Assets has grown by approximately TT$ 2.8 billion at a CAGR of 3.8%. The main driver of the increase in Total Assets has been the increase in SBTT’s loan portfolio. Total Loans which is SBTT’s main revenue driver (Accounting for 60% of the Group’s Total Assets on average over the last 5 years) increased at a CAGR of 2.1%. For FY 2019, Total loans increased by 11.3% to TT$ 16.1 billion, the highest it has ever been.
Angostura Holdings Limited (AHL) Update- July 2020
In our report released on the 26th June, 2020, we indicated that we expected revenue for AHL to fall by -12% in 2020 due to the impact of COVID-19 prevention measures. We now know that the measures shifted demand for AHL products rather than reducing demand.
Angostura Holdings Limited (AHL)- June 2020
AHL’s revenue increased by 8.1% to $847.2 million from $783.7 million in the prior year. Its revenue has increased by 36.5% since 2016. According to the CEO’s report, revenue increased in the local and export markets, particularly in the USA market for the bitters brand. Significant growth was also recorded in the UK, Canada and Europe markets.
Questions with Executives-Unilever
After the release of UCL’s Q1 2020 financial statements JMMB Investments changed its rating on UCL from a Market Perform to an OutPerform rating and maintained the price target at $19.67.
Massy Update- Quarter 2 - May 2020
For the Quarter ended March 31st 2020, MASSY realized profit attributable to equity holders of $81.5MM, a decrease of 35.6% or $45MM when compared to the prior year.
Unilever Caribbean Limited (UCL) - May 2020
For the quarter ended March 31st 2020, Unilever Caribbean Limited (UCL) realized profit attributable to equity holders of $4.6 million, an increase of 215.8%. This translates into a basic EPS of $0.17 at the end of the quarter. Total assets stood at $443.6 million as at March 31, 2020, a decrease of 24.2% over March 2019.
Trinidad and Tobago NGL Limited (NGL) - Quarter 1 Update- May 2020
For the three month period ended March 31st 2020, TTNGL realized profit attributable to equity holders of $6.9 million, a decrease of almost 85% when compared to the prior year. This drop is largely attributable to already depressed natural gas liquid prices experiencing a further shock due to COVID-19, which depressed earnings for TTNGL's underlying holdings, namely Phoenix Park Gas Processors Limited.
Trinidad and Tobago NGL Limited (NGL) - May 2020
For the Financial Year 2019, TTNGL realized profit attributable to equity holders of $129.5 million, a decrease of almost 50% when compared to the prior year.
First Citizens Bank Limited (FIRST)- May 2020
For the half year ended March 31st 2020, First Citizens Bank (FIRST) realized profit attributable to equity holders of $404.4 million, an increase of 2.4% or $9.4 million when compared to the prior year.
West Indian Tobacco Company (WCO) Quarterly Update- April 2020
For the quarter ended March 31st 2020, West Indian Tobacco Company (WCO) realized profit attributable to equity holders of $104.9 million, an increase of 4.9%.
Clico Investment Fund (CIF) - April 2020
CIF utilises the dividend it receives from RFHL and the coupon payments it receives from the GORTT 2037 Bond to pay dividend to its unit holders. Hence, a cut in RFHL's Dividend will likely affect distributions to CIF unitholders.
Republic Financial Holdings Limited (RFHL) - April 2020
The Board of Directors of RFHL has declared a reduced interim dividend of $0.60 (2019: $1.25) per share payable on June 5, 2020.
Telecommunications Services of Trinidad and Tobago (TSTT) COVID-19 Update- April 2020
The Telecommunications industry is an industry which has been in the spotlight more than others due to the impact of COVID-19 prevention measures.
First Caribbean International Bank Limited (FCI)- April 2020
For the quarter ended January 2020 (Q1-2020), FCI realized profit attributable to equity holders of US$51.4 million, an increase of 128.4% when compared to Q1-2019.
Market Update- Bank of Jamaica Notice - April 2020
“Bank of Jamaica (BOJ) has been closely monitoring the current impact of the novel COVID-19 virus pandemic on the global and domestic financial system.
The West Indian Tobacco Company Limited (WCO) Review - April 2020
For the Financial Year ended December 2019, WCO realized profit attributable to equity holders of $418.2 million, an increase of 3.2%.
COVID-19 Fixed Income Impact - April 2020
In our 2020 outlook earlier this year, we made mention of the US yield curve inversion in 2019, and how its occurrence has preceded each of the last 7 recessions in the US dating back to 1950.
Unilever Caribbean Limited (UCL) - April 2020
Revenue for all three segments declined significantly over the 5-year period. The Food and Refreshments segment, the second largest contributor to revenue, declined by the largest margin, falling by 62% over the period but this was mainly due to the divestment of the spreads business.
COVID-19 Impact on Equity Valuations- March 2020
In this uncertain time, you may witness stocks, bonds or other assets being sold and purchased at below its intrinsic value. Intrinsic value means the inherent worth of an asset in dollars and cents and may differ from price.
COVID-19 Stimulus Package- March 2020
The Trinidad and Tobago Government has acted early by announcing their own sweeping stimulus package to deal with the impact of COVID-19.
COVID-19 Portfolio Impact- March 2020
With the recent official announcements of the imported cases of the Coronavirus (COVID-19) to Trinidad & Tobago, many are asking about the impact to their savings and investments, and what opportunities may lie ahead.
FIRST Update- Quarter 1 - February 2020
For the Quarter ended December 2019, FIRST realized profit attributable to equity holders of $222.6 million, an increase of 3.8% or $8.1 million when compared to the prior year.
Massy Update- Quarter 1 - February 2020
For the Quarter ended December 2019, realized profit attributable to equity holders profit attributable to equity $153.8MM, an increase of 15.1% when compared to the prior year.
NGL Limited Investor Update- February 2020
On February 1st, 2020 Phoenix Park Gas Processors Limited [PPGPL] through its US subsidiary Phoenix Park Energy Marketing LLC [PPEM] completed the acquisition of Twin Eagle Liquids Marketing LLC [Twin Eagles]. Twin Eagle is a company based in Houston, Texas, USA and is engaged in the business of marketing, trading and transportation of natural gas liquids in Canada, USA and Mexico via rail.
Republic Financial Holdings Limited (RFHL) Quarter 1 Update- January 2020
For the quarter ended December 2019, RFHL realized profit attributable to equity profit to equity holders of $373.9 million, an increase 6.7% or 23.3 million when compared to the of $373.9 million, $373.9 million, an increase 6.7% or 23.3 million when compared to the prior year. This translates into a basic EPS of $2.30 prior year.
First Citizens Bank Limited (FIRST)- January 2020
The First Citizens Group (FIRST) is one of the leading financial services groups in Trinidad & Tobago. It offers a full range of retail, corporate and merchant banking services as well as asset management, trustee and brokerage services. The Group is headquartered in Trinidad & Tobago.
Sagicor Financial Corporation- January 2020
Sagicor Investor Update in November 2019, shareholders who opted for some portion of share consideration should have started receiving their Direct Registration System [DRS] statement detailing the number of Toronto Stock Exchange (TSX) listed shares owned in “New Sagicor”
Investor review and outlook for 2019/2020- January 2020
Stocks rallied on the local market in 2019. The Trinidad & Tobago Composite Index (TTComp.) posted returns of 12.7% in 2019.
MASSY Holdings LTD (MASSY) - January 2020
The Massy Group, which has been in operation since 1923, is a diversified regional conglomerate with operations throughout the Caribbean basin, Colombia and South Florida. The Group’s main segments are automotive and industrial equipment, retail and distribution, energy, financial services and ICT.
JMMBITT Year-End Review- December 2019
In final quarter of final quarter of2019, JMMB Investments released BUY or SELL recommendations on 6 securities; 4 BUYS and 2 SELLS. Five out of the six calls ma2019, JMMB Investments released BUY or SELL recommendations on 6 securities; 4 BUYS and 2 SELLS.
Five out of the six calls ma2019, JMMB Investments released BUY or SELL recommendations on 6 securities; 4 BUYS and 2 SELLS.
Sagicor Financial Corporation and Alignvest Acquisition II Corporation- November 2019
On 27TH, November, 2018, Sagicor Financial Corporation Limited (SFC), announced that it entered into an agreement with Alignvest Acquisition II Corporation (Alignvest) to acquire all its shares at a price of US $1.75
Trinidad and Tobago NGL Limited (NGL) -November 2019
On Friday November 29th, 2019 members of TTNGL and Phoenix Park Gas Processors Limited [PPGPL] hosted a meeting of the local brokers in order to provide an update on the company’s year to date performance as well as give some insight into the company’s plans going forward.
FirstCaribbean International Bank Limited (FCI)-November 2019
Since 2014, FCI’s Total Assets have increased by 6.9% at an annualized rate of approximately 1.6%. The increase in total assets over that period was as a result of increases in Cash and Investment Securities which was partly due to a 3.7% increase in Customer Deposits over that period.
The West Indian Tobacco Company Limited (WCO)-November 2019
WCO’s gross revenue has seen a downward trend since 2015 with a 9.7% decline in dollar value sales; equivalent to annualized decline of 3.1%, this was accompanied by tobacco inflation of 3.1% annually for that period.
RFHL Quarterly Update-November 2019
For the year ended September 2019, RFHL realized profit attributable to equity holders of $1.58 billion
NGL Quarterly Update-November 2019
Summary
.In their recently released financial results, NGL continued its run of poor performance in 2019, recording a 9M EPS figure of $0.52. Based on our updated valuation model, full-year EPS is projected at $0.85. While NGL now trades at an exorbitant multiple, at the current price its dividend yield is 6.52% per share, well above the market average of 3.52%.
Endeavour Holdings Limited (EHL)-November 2019
Summary
Endeavour Holdings Limited proposes to issue 1,439,744 common shares valued at $12.50 per share payable in full on application. Although 1,439,744 common shares will be offered to the public pursuant to the IPO, 33,442,944 common shares will be listed and registered on the SME.
Trinidad and Tobago NGL Limited (NGL)- October 2019
Summary
Trinidad and Tobago NGL Limited Company act as an investment holding company for 39% of the share capital of Phoenix Park Gas Processors Limited, a company involved in the processing and fractionation of natural gas.
CIF Vs RFHL: Where can investors get more value?- October 2019
Summary
CIF’s traded price of $24.07 represents a 11.8% discount to its published NAV of $27.28. YTD the CIF’s NAV has increased by 9.8% while the price of CIF has increased by 20.2%; this indicates a continued conversion of the NAV and the price, as the discount at the start of the year was 19.4%.
Telecommunications Services of Trinidad and Tobago (TSTT)- October 2019
Summary
TSTT is the market leader in the fixed-line services segment with a market share based on the revenue that has averaged approximately 80% over the period from December 31, 2014, to December 31, 2018, and which was approximately 80% as at March 31, 2019, based on TATT data.
Republic Financial Holdings Limited (RFHL)- September 2019
Summary
Since 2014, total assets of RFHL has increased by 45% at an annualized rate of approximately 7.8%. RFHL has experienced its most significant increase in total assets in the current financial year (21.3%). This increase was mainly due to the acquisition of Cayman National Corporation (CNC). Read More...
Trinidad and Tobago NGL Limited (TTNGL) - June 2017
Summary
As part of the Sale of Assets Programme to support the National Budget, the Government has highlighted in the
May 10th mid-year review, its intention to further divest the TTNGL shares held by National Gas Company
(NGC). The proposed sale of 40,248,000 Class B shares to the public is expected to generate approximately $800
million in revenues, approximately $700 million less than the original proposal of $1.5 billion. Read More...
Scotiabank Trinidad and Tobago Limited Update- March 2016
Summary
Scotiabank Trinidad and Tobago Limited continue to grow organically despite challenging economic conditions. During the quarter, growth was primarily generated by increases in the loan portfolio and supported by continued credit risk management; which is key in the current environment. Read more...
Calypso Macro Index Fund Introduction- October 2015
Summary
The Calypso Macro Index Fund seeks to mimic the performance of the All T&T Index as well as the Global Energy Index with an overall goal of providing investors with exposure to a cross-section of local shares as well as the global energy sector. Read More...
MASSY Holdings Limited Update- February 2015
Summary
We believe that Massy’s business units operate in territories that have low economic growth and therefore headwinds to Massy’s growth. There is also significant exposure to the current energy market in both the largest contributing territory (Trinidad and Tobago), but also one of the largest business units Read more...