On TRANSCORP 2022 FY...

Performance was indeed a mixed one. ...above par on some key metrics and below par on others.
But for the excessive ETR (effective tax rate), the company could have delivered a positive YoY NPM. ...an equivalent ETR to that in 2021 would've seen them book an approx 9.6% growth in NPM despite the obvious negative impact from input cost.

Total ETR witnessed an over 193% jump from previous yr guide (ref: 44% vs 15% in 2021)
Aside the 30% statutory income tax rate, the additional 14% was driven by pegs on excess dividend tax and deferred tax of approx N4.73B and over N7B respectively.

On the former, it's clear that the company's past negative EBIT/lower net income compared to gross dividend payout occasioned an additional tax burden on her total dividend amount... as against the customary charge on EBIT alone, if the situation were to be reversed.
The Gov't claims it uses this rationale (from the finance act under CITA) to prevent tax evasion and to ensure an equitable/fair taxing policy for both profitable and non-profitable coys, but I believe it's just a way of double taxing cooperations.
...Nigeria is indeed a funny place!

That's how TRANSCORP have now paid out near N4.73B to the FG... an amount that would've translated to no less than 11 kobo additional dividend were it distributed among her shareholders.

On the former (deferred tax), it's logical to believe that the group decided to allocate that N7B+ as expense to cover up for some future tax liability based on its estimated taxable income.
Though that N7B+ figure was a 681% increase from previous yr expense, the company's total deferred tax which is skewed on the side of liability suggest that it will likely not be redeemable. (part or whole)

Suffice to say that cost-related pressure (ref: Adm Exp & input cost) occasioned by the hightened harsh operating environment as well as the booked loss on impairment to near N673M, (an over 268% increase from that in 2021) also added to the strain on PAT margin.
While many of these cost pressure were expected, management should've been more proactive at optimizing a few of them.

That said, I love the coys BS position and it's SCF. (best to look beyond their SPL)
Overall, it's a mixed report for me.
Though they ended the financial yr with less NCPS, the coys FVE still prints an appreciable premium ahead of the combination of CMP + inherent risk. (ref: N2.47)

On a side note; part of the NTS reads that a total cash dividend of N214 per share will be dolled out to the shareholders of its subsidiary (TRANSCORP POWER LTD) in 2022... a near 70% increase from what was declared in 2021.
Reminds me of the statement; monkey dey work...

However, it appears that management might be communicating high confidence in the future prospect of the company following it's decision to convert its YE, 2021 dividend proceeds (near N2.3B) due the aforementioned subsidiary to equity, hence increasing her stake to 51.02% (previous: 50.89%)

Talking about dividend, the company has proposed a 5k payout for 2022 FY... a 150% improvement from it's comparable peg in 2021.

We'll see how the mkt reacts to their report.
It is well.

BullBearMkt:

Oh no! @leparj, you've brought back memories of BankPHB. To this day, I still hold onto their certificate. It really cost me a fortune back then. I wrote this poem below & kept it in its envelope till date:

In the land of green and white,
BankPHB stood tall with all its might,
But alas, it met a fateful night,
When Atuche's greed took flight.

With Dr. Utomi by his side,
My trust in him, I couldn't hide,
But lo and behold, to my surprise,
He disappointed me, before my eyes.

Sanusi Lamido, the final blow,
Sent BankPHB to the depths below,
Oh, what a tale of woe and loss,
A lesson learned, at a great cost.

So, here's a toast to BankPHB's ghost,
And the money that vanished like a roast,
We'll laugh it off and carry on,
For in the end, it's all but gone.

lol!

This made me laugh so hard. Imagine you chopping shege so much you gats write poetry

SFSREIT Dividends
https://doclib.ngxgroup.com/Financial_NewsDocs/37943_SFS_REAL_ESTATE_INVESTMENT_TRUST-CORPORATE_ACTIONS_CORPORATE_ACTIONS_MARCH_2023.pdf

yinkaoke:
Imagine investing at 20%, a note issued by a holding finance house, information is truly key. Follow this person on Twitter for more info on UpTo date commercial papers and notes. @okemakinde2003

I tried to DM @okemakinde2003 on Twitter but there was no DM button for the account.

onegentleguy:
On TRANSCORP...

Performance was indeed a mixed one. Above par on some key metrics and below par on others.
But for the excessive ETR (effective tax rate), the company could have delivered a positive YoY NPM. ...an equivalent ETR to that in 2021 would've seen them book an approx 9.6% growth in NPM despite the obvious negative impact from input cost.

Total ETR witnessed an over 193% jump from previous yr guide (ref: 44% vs 15% in 2021)
Aside the 30% statutory income tax rate, the additional 14% was driven by pegs on excess dividend tax and deferred tax of approx N4.73B and over N7B respectively.

On the former, it's clear that the company's
past negative OP/EBIT or lower net income compared to gross dividend payout occasioned an additional tax burden on her total dividend amount... as against the customary charge on EBIT alone, if the situation were to be reversed.
The Gov't claims that it uses this rationale (from the finance act under CITA) to prevent tax evasion and to ensure an equitable/fair taxing policy for both profitable and non-profitable coys within any given financial yr, but I believe it's just a way of double taxing cooperations.
...Nigeria is indeed a funny place!

That's how TRANSCORP has paid out near N4.73B to the FG... an amount that would've translated to no less than 11 kobo additional dividend were it distributed among her shareholders.

On the former (deferred tax), it's logical to believe that the group decided to allocate that N7B+ as expense to cover up for some future tax liability based on its estimated taxable income.
Though that N7B+ figure was a 681% increase from previous yr expense, the company's total deferred tax which is skewed on the side of liability suggest that it will likely not be redeemable. (part or whole)

Suffice to say that cost-related pressure (ref: Ad Exp & input cost) occasioned by the hightened harsh operating environment as well as the booked loss on impairment to near N673M, (an over 268% increase from that in 2021) also added to the strain on PAT margin.
While many of these cost pressure were expected, management should've been more proactive at optimizing a few of them.

That said, I love the coys BS position and it's SCF. (best to look beyond their SPL)
...it's a mixed report for me.
Though they ended the financial yr with less NCPS, the coys FVE still prints an appreciable premium ahead of the combination of CMP + inherent risk. (ref: N2.47)

On a side note; part of the NTS reads that a total cash dividend of N214 will be dolled out to the shareholders of its subsidiary (TRANSCORP POWER LTD) in 2022... a near 70% increase from what was declared in 2021.
Reminds me of the statement; monkey dey work...

However, it appears that management might be communicating high confidence in the future prospect of the company following it's decision to convert its YE, 2021 dividend proceeds (near N2.3B) due the aforementioned subsidiary to equity, hence increasing her stake to 51.02% (previous: 50.89%)

Talking about dividend, the company has proposed a 5k payout for 2022 FY... a 150% improvement from it's comparable peg in 2021.

We'll see how the mkt reacts to their report.
It is well.

very bad result to me

yMcy56:

50% ke!!
Are you saying it will then reverse to 13 ex-dividend?
Not possible sir. No be war nah.

Sorry ma, 50% may be too high but not impossible.

The point is that the share price will lose more than 10.44% in the long run.

The best time to buy is not now but september period.

48 hrs after. Yet to get my UCAP dividend.
Has anyone using Access Bank received?
Hope all is well with Access Bank?

Dum20:


Sorry ma, 50% may be too high but not impossible.

The point is that the share price will lose more than 10.44% in the long run.

The best time to buy is not now but september period.

I am placing a wager for both ZENITH & GTCo to move above 30 by July. Anyone?

When are we expecting the big elephant result...FBNH? hopefully #1+dividend.

beejay1:
It haff landed o

https://doclib.ngxgroup.com/Financial_NewsDocs/37945_TRANSNATIONAL_CORPORATION_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2022_FINANCIAL_STATEMENTS_MARCH_2023.pdf

...This is a good Q4 financial report.
-With a growth of total revenue by 21% (YoY) to N135 billion
-Profit before tax grew by 8% (YoY) to N30 billion
-Cash &cash equivalents standing at N443 billion

I think this is not a very bad results, if the company keeps the growth momentum.

BullBearMkt:

...This is a good Q4 financial report.
-With a growth of total revenue by 21% (YoY) to N135 billion
-Profit before tax grew by 8% (YoY) to N30 billion
-Cash &cash equivalents standing at N443 billion

I think this is not a very bad results, if the company keeps the growth momentum.

No be transcorp again? TOE and his financial engineering

Agbalowomeri:


I am placing a wager for both ZENITH & GTCo to move above 30 by July. Anyone?

oga i doubt this both are going south after the dividends

YoungBuffet:


oga i doubt this both are going south after the dividends

I stand with you..

Princkez:
I stand with you..

Even with the volume pushed out yesterday i dont need a seer to tell me it will fall after the dividends

Princkez:
When are we expecting the big elephant result...FBNH? hopefully #1+dividend.

they may likely come to the market last.

Agbalowomeri:


No be transcorp again? TOE and his financial engineering

Agba, I don't understand what you mean. pls expatiate. Thanks.

YoungBuffet:


oga i doubt this both are going south after the dividends

The code is Q2

leparj:
48 hrs after. Yet to get my UCAP dividend.
Has anyone using Access Bank received?
Hope all is well with Access Bank?

I do not know if its access bank or something else. But all my dividends that come through access bank always develop k-leg. I am yet to recieve my Totalenergies interim dividend since December.
Registrar says their record shows they paid me since 9th december. Access bank says that cannot be true. My account statement does not have a record of such payment. Note that I have had to call before getting most of my dividends from UBA and Ucap last year.

Agbalowomeri:


The code is Q2

will they do double of what they have been doing before

YoungBuffet:



will they do double of what they have been doing before

Last arm of the ASI bull

Disclosure: If you buy based on my talk na OYO be your case o

Agbalowomeri:
I am placing a wager for both ZENITH & GTCo to move above 30 by July. Anyone?

When Agba make predictions like this one, think I don't always doubt him........but remember it may also depend on many factors including unseen.
......but let me stand with you on this one.......I fit commot anytime again o.

Btw, what's in it for those on your side?

yMcy56:

When Agba make predictions like this one, think I don't always doubt him........but remember it may also depend on many factors including unseen.
......but let me stand with you on this one.......I fit commot anytime again o.

Oya let's go there
Tomorrow is Friday

onegentleguy:
[b] That's how TRANSCORP has paid out near N4.73B to the FG... an amount that would've translated to no less than 11 kobo additional dividend were it distributed among her shareholders.

On the former (deferred tax), it's logical to believe that the group decided to allocate that N7B+ as expense to cover up for some future tax liability based on its estimated taxable income.

Suffice to say that cost-related pressure (ref: Adm Exp & input cost) occasioned by the hightened harsh operating environment as well as the booked loss on impairment to near N673M, (an over 268% increase from that in 2021) also added to the strain on PAT margin.

On a side note; part of the NTS reads that a total cash dividend of N214 per share will be dolled out to the shareholders of its subsidiary (TRANSCORP POWER LTD) in 2022... a near 70% increase from what was declared in 2021.
Reminds me of the statement; monkey dey work...

Talking about dividend, the company has proposed a 5k payout for 2022 FY... a 150% improvement from it's comparable peg in 2021.

Thanks so much for this detailed Analysis.

When I first opened the result I was disappointed at the PAT, which is much lower than previous fye 2021.......but with your analysis and that of Nairametrics, it shows there are some expenses which affected the overall PAT.......but the result wasn't bad.

Why will they allocate 7B+ to cover for some future tax liabilities?
Isn't this indirectly saying that someone somewhere made some extra provision for himself?

Total cash dividend of N2.14 per share to Transcorp power??
Is this meant to pursue the course of Transcorp power? If it is, then it's a good step in right direction.

On the dividend per share to shareholder, I think that's a good improvement from previous dividend.

Well, let's see how Mr. Market will react to the result sha.

Mpeace:
Registrar says their record shows they paid me since 9th december. Access bank says that cannot be true. My account statement does not have a record of such payment. Note that I have had to call before getting most of my dividends from UBA and Ucap last year.

With this kind of situation, why not request for KYC document and change the bank with which you'll be receiving your Dividends long before now??
Maybe you're comfortable going thru all these stress yearly sha.

yMcy56:

With this kind of situation, why not request for KYC document and change the bank with which you'll be receiving your Dividends long before now??
Maybe you're comfortable going thru all these stress yearly sha.

The stress of having to fill forms from one registrar to the other and their various requirements is so discouraging. But I need to be sure its the bank first so I dont do a wasteful venture.

Mpeace:
I do not know if its access bank or something else. But all my dividends that come through access bank always develop k-leg. I am yet to recieve my Totalenergies interim dividend since December.
Registrar says their record shows they paid me since 9th december. Access bank says that cannot be true. My account statement does not have a record of such payment. Note that I have had to call before getting most of my dividends from UBA and Ucap last year.

Hmmmmmm.
I have always gotten my dividends paid into my Access Bank account on time till now.
Always received on the payment dates and a few times the next morning.
Never had any delays in the past.

PETERiCHY:
Some are still busy calculating UNREALISTIC dividend yield when major GLOBAL BANKS are closing shops here.

Those that are used to making losses should continue fighting with Mr Market.

While those that want to make real MONEY should PATIENTLY wait till NOVEMBER/DECEMBER to cherry pick.

Meanwhile some of us have being on the SIDELINES for the past 10mths SHARPENIG our CUTLASS for the GREAT SPOIL.
BARGAIN HUNTERS TAKE NOTE!
*ThE OcToPuS*

E Ku waiting on sideline o.

Waiting for the past 10mths, added with another 8mths till November, that's one and half years.
November again, you'll still shift it to January.
Well done sir. If you're big, you're big.

Bargain hunters, The OcToPuS says make you take note ooo.

TRANSCORP
Seems Tony and his allies are in market to defend the stock......

OANDO and Transcorp still moving in opposite direction, maybe one will drag another along, let's wait and see.

Quite a lot of activities upandan in Transcorp..........
The battle is not for the faint hearted.....

beejay1:
It haff landed o

https://doclib.ngxgroup.com/Financial_NewsDocs/37945_TRANSNATIONAL_CORPORATION_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2022_FINANCIAL_STATEMENTS_MARCH_2023.pdf

Please, I need very urgent advise on transcorp shares. I bought about 145,550units at 1.42 over 5years ago and I have been holding this, funds tied in there with no growth and no reasonable dividends. Though, I have no need for the funds now but I am thinking to sell off and look for a better stock with good appreciation to buy or buy back into transcorp with higher quantities if the price drops again as it has been doing? Kindly advise urgently please 🙏

@Mpeace
@PETERiCHY
@yMcy56
@BullBearMkt
@Agbalowomeri

leparj:
48 hrs after. Yet to get my UCAP dividend.
Has anyone using Access Bank received?
Hope all is well with Access Bank?

Same here. Nothing yet

leparj:


Hmmmmmm.
I have always gotten my dividends paid into my Access Bank account on time till now.
Always received on the payment dates and a few times the next morning.
Never had any delays in the past.

Your story is same with me..
I have been receiving all my dividend using Access bank.
Don't understand what is going on

kenmaro:


Please, I need very urgent advise on transcorp shares. I bought about 145,550units at 1.42 over 5years ago and I have been holding this, funds tied in there with no growth and no reasonable dividends. Though, I have no need for the funds now but I am thinking to sell off and look for a better stock with good appreciation to buy or buy back into transcorp with higher quantities if the price drops again as it has been doing? Kindly advise urgently please 🙏

@Mpeace
@PETERiCHY
@yMcy56
@BullBearMkt
@Agbalowomeri

Write it off
You already waited for 5 years and the value of the stock has been decimated already by inflation.
Who knows thunder might strike twice on the same spot and you may be able to sell above 4.
It's a lesson to learn more about the market