₦airaland Forum

olaremint:
Tinubu is an incompetent leader
Fact check
Foreign reserves almost double
Crude oil export has increased about 1million barrels
Debt servicing reduced to 65 percent from 90
Crude for Naira for local refinery and now Nigeria now exports PMS
If u can personally do better, please come up with your facts and figures
I hate too much grammar

designking:
Transcorp: Evaluating HH Capital Limited’s Mandatory Tender Offer and Future Prospects


Transnational Corporation Plc (Transcorp), a diversified conglomerate with interests spanning energy, hospitality, and other sectors, has recently made headlines due to a mandatory tender offer (MTO) from HH Capital Limited. This offer, in compliance with regulatory requirements, pertains to 0.02% of Transcorp’s fully paid ordinary shares, amounting to 2,032,399 shares. HH Capital Limited has proposed a 0.25% premium over the current market price for these shares, which will effectively raise HH Capital’s ownership stake in Transcorp to 35.94%, considering both direct and indirect holdings. This acquisition signals HH Capital’s growing influence in Transcorp and its potential strategic implications for the company moving forward.

In light of this MTO, it is crucial to analyse the company’s recent performance, particularly its impressive growth trajectory in 2024, and assess the outlook for investors. This will provide insight into whether shareholders should hold or sell their shares as the company continues to evolve under its new ownership structure.

Transcorp’s performance in Q3 2024 has been nothing short of remarkable. The company reported a total revenue of N297.664 billion for the nine months ended September 30, 2024, reflecting a staggering 133% year-on-year growth. This surge in revenue was largely driven by the energy segment, which remains the backbone of Transcorp’s operations. Energy revenue alone accounted for 57.6% of the total nine-month revenue, showcasing the sector's critical importance to the company’s overall performance.

Within Q3 2024, Transcorp achieved a record revenue of N122.327 billion, a 166% increase compared to N45.903 billion in Q3 2023. This dramatic rise underscores the company’s ability to capitalise on favourable market conditions, expand its operational footprint, and diversify its revenue streams. Such growth is further reflected in the company’s profit before tax (PBT), which surged by an astonishing 352% year-on-year, totaling N34.5 billion for the quarter. For the full nine-month period, PBT reached N105.4 billion, a remarkable 303% increase compared to the same period last year, and 79% higher than the full-year 2023 PBT.

These figures clearly indicate that Transcorp is not only navigating the challenges of a volatile market but is also emerging as a strong contender in its various business sectors. The company’s diversification strategy, particularly the growth of its energy, hospitality, and other business lines, has placed it in a favourable position to capitalise on future opportunities.

Impact of HH Capital’s Increased Ownership

HH Capital Limited’s mandatory tender offer to acquire additional shares of Transcorp will likely have significant implications for the company’s future. By raising its ownership stake to 35.94%, HH Capital will likely gain a more influential role in the company’s decision-making processes, potentially leading to shifts in governance and strategy. Such increased control also pave the way for more aggressive expansion plans, operational efficiencies, and deeper financial investments.

Given that HH Capital is a major shareholder, investors will need to monitor any changes in corporate governance that will arise from this new holding structure. It is possible that this change will lead to improved operational synergies, especially if HH Capital brings in new strategic partnerships or capital to support Transcorp’s diverse business lines. However, it also raises questions about the balance of power within the company, which have implications for minority shareholders.

Stock Price Surge: Is Now the Right Time to Hold or Sell?

Transcorp’s share price has experienced an extraordinary surge in 2024. Starting the year at N8.66, the stock has surged over 400%, currently trading at N44.00 per share. This impressive rally has been fueled by the company’s stellar financial performance and a favourable market environment. The substantial growth in share price reflects investor optimism surrounding the company’s prospects, particularly as it continues to outperform expectations across revenue and profitability metrics.

However, the rapid rise in share price begs the question: Is this the right time for investors to hold onto their shares or to take profits by selling? While Transcorp’s fundamentals remain strong, the substantial increase in its stock price suggests that much of the good news may already be priced in growing on the backdrop share reconstruction, having multpler effect on the company price. For investors who have seen significant gains in 2024, selling could be an attractive option to lock in profits. On the other hand, those with a longer-term investment horizon may choose to hold, given the company’s robust growth trajectory and potential for further expansion under the leadership of HH Capital.

Recommendation: Hold for Long-Term Growth

Based on Transcorp’s exceptional financial performance in Q3 2024, coupled with the increased ownership stake of HH Capital, the company appears well-positioned for sustained growth in the long term. With strong revenue growth, impressive profitability, and a diversified business model, Transcorp’s prospects are promising.

For investors, the current surge in share price present a temptation to sell, especially for those seeking to take profits after the significant year-to-date increase. However, for those with a long-term outlook, holding onto shares seems to be a more prudent strategy. The growing influence of HH Capital will usher in further operational efficiencies and strategic initiatives that may continue to drive Transcorp’s growth. Given the company’s strong fundamentals and diversified portfolio, it is likely that Transcorp’s value will continue to rise over time, making it a solid hold for investors looking to benefit from future gains.

Thus, the recommendation for shareholders is to hold their Transcorp shares, provided they are willing to adopt a long-term investment perspective and take advantage of potential future gains driven by both operational improvements and strategic investments.

emmanuelewumi:
What are we buying from now till the end of the year?

emmanuelewumi:
What are we buying from now till the end of the year?

PharmAlfred:
We elect leaders to shape our society for good. Agreed we all have a role to play but leadership from the top must consistently show example and provide a road map. Why do we spend billions on elections to end up having charlatans as leaders. Do you know how many Nigerians that are able bodied and willing to work but can't find jobs? The companies that left Nigeria, what forced them to leave? We mustn't all do the the same thing. Using your pepper farming example which is good, I hope you farm your own petrol, raise your own security company to protect while travelling. Pay police xxxxx amount to investigate a case or effect an arrest. Build on your custom so they don't charge you arbitrary duties when you import goods. I can go on and on. Have a blessed day!

Agbalowomeri:
Only people who lose an intellectual engagement and are unable to articulate clear alternatives, resort to personal attacks

Time will vindicate or vilify all policies

emmanuelewumi:
What are we buying from now till the end of the year?

crownprince2017:
It's normal to have a contrary view on a subject matter but personal attacks shows that you are not different from the leaders you claimed are the perpetrators of evil.

I wondered how people can't understand the simple economics, for every economic policy there are weaknesses, it's now the work of policy makers to go for the one they think the upside is more than the downsides.

Even in developed countries, we have seen intelligent people disagree on economic policies and both have fact to support their claims.

I wonder why someone will think his imagined policies is the best, hence the reason for being emotional. If people begin to dissect your imagined policies you will be surprised to see how naive you are on economic policies.

It's only a fool that thinks he/she has superior knowledge without proper confirmations.

You can hate the guy at the asovilla but I can tell you, he is doing a lot right on the economic front, the results will be evident from 2025 upward.

Agba, mercy, street and co, I posted an issue in the earlier pages regarding me, meristem and atlas, no advice, Maka why na.

Konquest:
Nigerian Yuletide: Feast Or Famine?

https://www.youtube.com/watch?v=Tl_7VX-3XZM?si=XrsbPP0ZyvdoJZhH
Channels Television • Dec 24 2024

HesInMe:
So, if by the end of 2025, poverty, inflation, unemployment, and the national debt are still high, will you change your mind about the current economic policies and the man pushing them?

Streetinvestor2:
Buying ke my oga.We don buy finish till new fund enter January

Pls I need your opinion and others on this two brokers
1 stanbic brokers
2 cardinal stone

I want to open a new account so I can move my account from another house.I can not sell because my long time bond is way housed in that account
I want a broker I can be using my account for leverage for investments sometimes
I want a broker who customer service is above average and have good platform for me to trade myself
Thr commission charge should be reasonable but not picking the highest aproved brakect in the industry.
A broker that is equal to the task to make sure they move out my account when I open account with them.

zendi:
(1) Good stocks (traditionally) of early Year-End Result filing.

(2) Good stocks of June/Sept Year-End, expecting Year-End/Q1 Results.

(3) Currently rampaging bulls like Oando, MTN, MRS etc if able to get.

NB/ Just my personal musings. I'm not competent to advise anybody on market moves, let alone Snr Analyst Emma.

zendi:
So when should we start to expect the Notifications, from Wale's Desk, through FirstReg, through the CSCS, of the arrival into our Accounts, of the great Oando redistributables

emmanuelewumi:
I expecting coupons from Sukuk, it will be invested in Presco

Streetinvestor2:
Why don't you say in your personal capacity what you are doing in such regards. Tell us what you are doing no matter how small to improve Nigeria. Thr are alot everyone can do beside noise and complaining..Can you hit your chest and say if I am put in a position I won't be corrupt at any cost.I will always do the right thing with the fear of God in my heart

Streetinvestor2:
I forgot oh.Sukuk will drop on 29th.Presco will continue to be a gradually buy unless fundamentals change. Pls help out with this two brokers. I know you sabi the both or use them based on what I am looking for in any of them...thanks

Streetinvestor2:
Buying ke my oga.We don buy finish till new fund enter January

Pls I need your opinion and others on this two brokers
1 stanbic brokers
2 cardinal stone

I want to open a new account so I can move my account from another house.I can not sell because my long time bond is way housed in that account
I want a broker I can be using my account for leverage for investments sometimes
I want a broker who customer service is above average and have good platform for me to trade myself
Thr commission charge should be reasonable but not picking the highest aproved brakect in the industry.
A broker that is equal to the task to make sure they move out my account when I open account with them.

megawealth01:
After consultations from his fellow cowboys

zendi:

Streetinvestor2:
I forgot oh.Sukuk will drop on 29th.Presco will continue to be a gradually buy unless fundamentals change. Pls help out with this two brokers. I know you sabi the both or use them based on what I am looking for in any of them...thanks

Streetinvestor2:
Buying ke my oga.We don buy finish till new fund enter January

Pls I need your opinion and others on this two brokers
1 stanbic brokers
2 cardinal stone

I want to open a new account so I can move my account from another house.I can not sell because my long time bond is way housed in that account
I want a broker I can be using my account for leverage for investments sometimes
I want a broker who customer service is above average and have good platform for me to trade myself
Thr commission charge should be reasonable but not picking the highest aproved brakect in the industry.
A broker that is equal to the task to make sure they move out my account when I open account with them.

HesInMe:
Is that a yes? Or are you going to keep deflecting when someone asks you a basic question -- when will we know it's working? -- about the performance of a suite of economic policies you support? This hyper-tribalism is going to finish us all.

But to your question: I have never stolen money, and I never will.

swiperthefox:
Good oga! I am newbie in Nigerian stock buys and need advise on the best trading app. Thank you and God bless you.

emmanuelewumi:
I expecting coupons from Sukuk, it will be invested in Presco

faoogoke:
My Stanbic experience is not a good one.
1. Their customer service is terrible. You need information and to ask a question you will have to call customer care numbers and not individuals. And you can be on hold for minutes, and if you finally get someone to take your call, you don't get all the help you need.
I'd you send email the back and forth involved takes time to resolve your issues. With my current broker a chat on WhatsApp answers my inquiry in minutes.
2. I am never successful bidding using limit but market.
3. Seems to me they have high networth customers they pay more attention to or even assign account officers to. The rest of us are unimportant.
I had to open another stock account with Apt securities which to me is excellent.

Owoblowblow:
Incompetent indeed. TP is the best president Nigeria has had since independent. No worry , wait till 2027 to vote him out. What were you expecting when TP got him. As far as I'm concerns he is doing his best to make things better. I van not imagine any of the candidate that contested with him to do better. Nigeria was skeleton when he got him. Can you imagine a country subsidising forex for people to go on pilgrimage etc, no production etc. I beg leave matter.