₦airaland Forum

emmanuelewumi:
Revenue of less than N150 million in 17 months, admin expenses of N1.2 billion. Admin expenses is higher than revenue.

Operating loss of about N1.8 billion

Agbalowomeri, what's the fair price of ellahlakes?

Wema Bank 24.95

Access bank 22.75


Once wema bank breaks above 25, 30 naira is the next target.

Some people on this thread just hate money or they pretend to. 😒

How will someone invest his hard earned money and be comfortable with no capital appreciation after many years in the market 🤔

Stockpromoter:
Why Royal Exchange Plc should NOT be sold at current panic prices
1. This price already discounts bad news
At ₦2 and below, the market has over-punished Royalex. The FY 2025 result is not a loss, yet price action behaves as if the company collapsed. That’s classic panic mispricing.
2. Shareholders’ funds are STRONG and rising
Shareholders’ funds ≈ ₦7.2bn, up about 15% YoY.
Markets may panic short-term, but balance sheet strength always wins long-term, especially in insurance.
3. Royalex is NOT insolvent
Total assets ≈ ₦12.16bn.
No liquidity crisis. No balance sheet hole. Selling now is selling a surviving company as if it’s dying.
4. Earnings slowed, but didn’t collapse
PAT ≈ ₦924m.
Yes, down YoY — but still profitable. Panic selling profitable insurers at book-value territory is historically a mistake.
5. Recapitalization favors balance sheets, not emotions
Insurance recapitalization will reward companies with existing capital base.
Royalex is not starting from zero, so dilution risk is lower than weaker peers.
6. New chairman = strategic reset, not coincidence
Board changes at this timing usually signal:
Balance sheet defense
Capital strategy
Corporate cleanup
You don’t sell before strategy shows — you sell after execution.
7. Panic sellers are giving smart money entry
Volume drops + weak hands exiting = accumulation phase.
Institutions and patient traders buy fear, they don’t join it.
8. Insurance stocks reprice suddenly, not gradually
This sector doesn’t trend slowly.
It sleeps, then reprices violently on:
Q1/Q2 earnings
Recap clarity
Sector rotation
Selling now risks missing the entire move.
9. Book value vs market value gap is wide
At these prices, Royalex is trading close to or below fair balance sheet value.
That’s not where you sell an insurer — that’s where you accumulate quietly.
10. Nothing fundamental justifies “rush exit”
No loss.
No regulatory breach.
No going-concern warning.
No capital wipe-out.

Market must react to the result.

There are better bargains in the market right now.

I will start buying when it gets to 1.8

crownprince2017:
Na access no allow am move it's just a matter of time...once access releases their results, everyone will know where they belongs to.

If access releases a better result both will move but if otherwise, wema will just over take just like she does to fcmb last year.

Any either ways, wema will benefit.

I think it's just market sentiment.
Wema is not a popular bank.

I am sure many have not even looked at wema bank's result.

mohbadliveson:
Wemabank 23.65
Accessbank 22.55

How can one explain this economics abracadabra?

Wema Bank is not getting its deserved attention.

That stock should be on full bid.


Excellent result from Wema Bank.

ppogba:
Make you no spoil market for our major distributor on Nairaland hawking ROYALEX oo.


Which kain thing be dis nao?

The stock deserves some beating


We can always buy lower.

If you have Royalex, there is still room to exit before it goes into full offer.

Stockpromoter:
Your observation is good but let's look at the summary of the result first 👇
Royal Exchange Plc – What to say about the latest result (with conviction)
1️⃣ Royalex did NOT record a loss
The company remained profitable. There was no loss, no capital wipe-out, and no negative shock in the numbers.
2️⃣ Profit softened, but capital was protected
Earnings were lower than peak expectations, but shareholders’ funds improved. Management prioritised balance-sheet strength over headline profit.
3️⃣ This was a capital-preservation result
No aggressive underwriting, no risky income booking, no cosmetic profits. The focus was stability, not show.
4️⃣ EPS looks weak mainly because of large share count
With 8bn+ shares outstanding, EPS will always look small. That does not mean the business collapsed.
5️⃣ The result keeps recapitalisation optional
Nothing in the numbers forces:
emergency capital raising
distressed pricing
regulatory panic
Management still has time and flexibility before the July 2026 deadline.
6️⃣ This result is recap-aware
The numbers were prepared to satisfy regulators and auditors, not to excite short-term traders. That is typical when recap decisions are ahead.
7️⃣ It sets a clean base for Q1 and Q2 2026
With a stable base, any improvement in Q1/Q2 will show clearly and strongly, which supports rerating.
8️⃣ No dividend talk is deliberate
Avoiding dividend pressure helps retain earnings, strengthen capital, and improve recap positioning.
9️⃣ The market is unlikely to punish the stock
There was:
no loss surprise
no balance-sheet damage
no forced dilution
Flat or mixed trading is normal digestion, not rejection.
🔟 Silence after the result is strategic
Boards planning recap usually fix the numbers first, then communicate strategy. February–March is the key window for direction.
1️⃣1️⃣ Bottom-line summary
This is not a sell result.
It is a hold-and-watch result that preserves upside and reduces downside risk.
1️⃣2️⃣ Why conviction holders are calm
Capital protected
Recap options open
No dilution forced
Upside still intact

How do you think they will raise the required capital needed for recapitalisation?

I noticed the strategic investment in low risk ventures like real estate, treasury bills, commercial papers and full divestment from stocks.
2026 q1 financial report will make things clearer.

The market may react negatively to this result.

essentialone:
In Account metrics, what is the implications of this?

I can't really say.

Are you loaded in Royalex?

essentialone:
Perhaps Royalex also used Weighed Average Outstanding Shares in their EPS calculations?

Yes

essentialone:
Please, how is the EPS of Royalex 0.22, when it's Profit is 924 Million and it's Outstanding shares is 8.27 Billion units?

0.22 is the weighted average. The fully diluted eps should be 0.11.
4.13 billion shares was used for the calculation.
The outstanding shares increased to 8.27 billion after the right issues.

I don't really understand why they used the previous outstanding shares even though right issue was in 2024.

essentialone:
What is the present EPS of Royalex Plc. N0.22 or N0.11 ?

0.22

Last year was 0.30



Overall, the company made significant improvements in key areas like

Free cash

Retained earnings from 939 million deficit to 4.8 million surplus

Investments eg real estate, treasurybills and corporate papers with full divestment from equity

Share of profits from associates

Assets

Total equity

No significant borrowing

Aggressive loan write-off of 229.4 million reducing impairment significantly

Administrative expenses reduced by 4.5%

PropTrader:
Well, the figures are in and RoyalExchage underperformed. Although it chose to report only year to date figures, if you compare the 12 months PBT of N924m to the nine months figure, you wil deduce that it made a loss of N561 in Q4 2025 which is no where near the N1 billion you projected.

I am not sure of what will push prices up in the short run the way you expect as the NIIRA act effect seems to have cooled and the uptrend in NGX also seems to be selective for now.

With current shareholder funds of only N7.6billion, the company will need to look for new capital within the next 5 months to re-capitalise the following subsidiaries

- Royal Exchange General Insurance: Minimum capital specified by NIIRA is 2025 N15 billion
- Royal Exchange Prudential Life: minimum capital specified by NIIRA is 2025 N10 billion
- Royal Exchange Microfinance Bank: CBN minimum capital for different categories of MFBs range from N50m to N5 billion

This company is prime candidate for merger, or acquisition or massive RI/PO/PP to raise at least N17 billion before July 31, 2025.

17 billion is quite large.

The best bet should be merger or acquisition.

Royalex has take the route of Ci leasing. This has been my fear with these turn around stocks.
What could be responsible for the loss in 2025 q4?

Cc: Stockpromoter

leo1234:
I hope their q4 result will not disappoint us like Ci leasing 2025 q1 result?

Stockpromoter:
MUTUAL BENEFIT, AIICO & ROYALEX – INSURANCE WINNERS TO WATCH
🔵 Mutual Benefit Assurance Plc
Mutual Benefit is no longer just an insurance company.
Invested $64 million (₦96bn) in a producing oil asset
This gives the company dollar income and protection against naira weakness
Already exceeded recapitalisation requirements long before the June deadline
No need for emergency fund raising or dilution
The company is now focusing on:
Retail insurance, which is still largely untapped in Nigeria
Regional growth, with Niger Republic subsidiary now the 2nd largest insurer
📈 Bottom line:
Mutual Benefit is strong, diversified, and undervalued.
It has clear potential for major price re-rating going forward.
🟢 AIICO Insurance
AIICO remains one of the most stable insurance stocks on the NGX.
Strong position in Life insurance
Improved earnings and balance sheet
Better governance and consistency
📈 Bottom line:
AIICO is a solid long-term insurance play and should benefit from sector re-rating after recapitalisation.
🔴 Royal Exchange (ROYALEX)
Royalex is the turnaround stock.
Ongoing restructuring
Strategic investor interest
Improving balance sheet
Very cheap price gives high upside
📈 Bottom line:
Royalex is a patience stock with strong speculative upside.
Once restructuring is fully priced in, it can surprise positively.

What about recapitalisation requirement for Royalex?

chimex38:
Be calming down on 8naira biko.

Mbenefit has fundamentals. Currently at x5--->x6 of EPS.

OS advantage, yes.
But I dont think OS alone is enough for royalex to double the share price.

Royalex is a a growth stock.
So, anything is possible.

Stockpromoter:
Update.

Insurance stocks are entering a recovery phase driven by recapitalization and consolidation.
Penny insurance stocks offer high upside as the sector re-rates.
Fortis Global Insurance is in turnaround mode with new investors, fresh capital, debt conversion, and a return to profitability.
Royalex (Royal Exchange) stands out as a cleaner, faster-moving play with strong re-rating potential.
Bottom line:
Insurance is rotating, Fortis is recovering, and Royalex is loading for acceleration

If MBEBEFIT can 4 naira with outstanding shares of 20 billion, Royalex can do 8 naira.

yMcy56:
Something is happening in CHAMS, what could it possibly be?

Election is around the corner.

Maybe they got the contract to produce voter's cards and other deals.

zendi:
But his username says it all, stockpromoter.

Do you even know if he is Loco, or senior staff of Loco's Hyping Company ?

Multiple monikers are real.

I remember when Locotrader was singing buy Charms and then champion brewery.

Today, the rest is history.
I see opportunity in Royalex though with high risk.

Stockpromoter:
AFTERNOON MARKET UPDATE – ROYALEX INSURANCE
Smart investors, this is the moment to position early.
While NEM has just released its unaudited FY 2025 result, the smart money is already shifting attention to stocks that are still undervalued but showing real financial turnaround — and ROYALEX is one of the strongest candidates.
Royalex Q3 result already confirmed that the company has entered a new growth phase, and expectations for the full year are even more powerful.
What has significantly improved in Royalex over the last one year?
✅ Gross Premium Income (GPI) Royalex has recorded strong growth in premium income, showing that business activities are expanding and market penetration is improving.
✅ Underwriting Performance The company has tightened risk management and improved underwriting discipline. This means better quality business and higher future profitability.
✅ Operating Efficiency Operating costs have reduced significantly, leading to improved margins and stronger bottom-line performance.
✅ Balance Sheet Strength Royalex has continued internal restructuring to meet recapitalisation requirements without diluting shareholders — a big advantage over competitors that are raising funds and issuing new shares.
✅ Profit Recovery From losses, Royalex has moved firmly into profit territory. Q3 already showed a clear turnaround, and Q4 is expected to be even stronger.
✅ Institutional Confidence A strategic investor recently increased stake to 21%, confirming that insiders and institutions are positioning early.

Why Royalex is positioned to outperform
✓Very low outstanding shares
✓Small free float
✓Insurance sector recapitalisation theme
✓No dilution pressure
✓Strong turnaround story
✓Heavy accumulation ongoing

This is how big money is made — before the crowd arrives.

Investment Call
Royalex is no longer a sleeping stock.
The financials are improving quarter after quarter.
The sector rotation into insurance stocks is real.
And smart investors are already accumulating.
This is a BUY and HOLD stock.
Not for traders, but for wealth builders.
Those who buy now and hold patiently will be rewarded massively.
Royalex is building a new price level.
Position early. Hold strong. Let compounding do the rest. 🚀📈

I hope their q4 result will not disappoint us like Ci leasing 2025 q1 result?

Panadee:
Bros no be you I carry for mind for the post. You have a right to be upset if you believe you’ve been labelled as ‘irresponsible’.

I was referring to the series of posts with many acerbic rebuttals prior to yours. Anyone who wants to emphasise a point can be do so in a more amicable tone so as to maintain civility and decorum on this thread.

No worries 👍

Remain blessed.

Panadee:
Dem no dey play with person for this thread again o! Everything na gbas gbos

Use of the word "irresponsible" is not play.

I asked an honest question.
The person the question was directed to probably misunderstood me and ignored only for one faceless individual to label someone irresponsible.

Maybe they want everyone to leave the thread for them. They will soon achieve their aim.

.

essentialone:
Very irrelevant and irresponsible question.

Was the question directed to you?

What's wrong with asking someone if he is a full time day trader?
What's wrong with someone sitting in front of his lap top throughout the trading session? Incase you don't know, that's what full time day traders do.

This thread is now filled with angry, jealous, shallow minded and irrelevant individuals.

awesomeJ:
Today, market dipped for the first time this year.

If I made a loss, I would have posted it so at least some people can find joy in that 😁😁😁


But as it turned out, I did not.

Later, I will post a screenshot of my session. It's another ATH for volumes. Third ATH for me this week.

Week has been my best, thank God!!!

Do you sit in front of your lap top throughout trading session?

Hamachi:
Good morning, fellow investors,

I currently have N400k available and am looking to invest in a stock (or a small basket of stocks) that could deliver reasonable gains within the next 12 months.

I’d really appreciate insights from experienced investors on:

Sectors or stocks you believe have solid upside over the next year

Whether it makes sense to deploy capital now or wait for a potential bear market / pullback before buying

Any risk-management strategies you’d recommend for a 1-year time horizon

I understand there are no guarantees and I’m doing my own research—just looking to hear different perspectives.

Thanks in advance for your thoughts and guidance.

If you want a stock that will multiply your money fast buy TANTALIZER.

If you are interested in dividend buy Aradel, Presco or okomu.

CWG and Charms still have room for capital appreciation.

Please do your own research.


Good luck 👍

awesomeJ:
I'm used to it.

It's foolhardy to try catching absolute tops or bottoms.

I take what I can and stay contented 😁.

That's why my portfolio has a better performance than Agba's. He's still waiting for absolute bottoms.

Agbalowomeri has retired from stock trading.

He visits this thread just for fun.

Agbalowomeri:
E be like O&G wan repent this year
Oando no follow join o
Somebody dey talk PE ratio and Oando in the same sentence

Oando belongs to the streets.

yMcy56:
Meanwhile, ACCESS now has a new mate..

WEMA: 23
ACCESS: 23

Access is for patient investors.

Cc: EDUECO

yMcy56:
ARADEL @792.60!!
Up with +41.60
The aggressive accumulations/trading no be here...
** Also activities of profit takers observed

It will be child's play when OANDO starts....

Wale, try and deploy the bullion vans biko...

ARADEL is going to N1500.


Bargain hunters take note.

EDUECO:
Go and buy banking stocks!

Once 'Oteololo' moves First Bank to ₦100 ,then ACCESSCORP will move to ₦50!

Don't underestimate banking stocks. Banks make excellent revenue and profit and they are well regulated.

So you now believe in stock manipulation movement.