₦airaland Forum

I just confirmed from my relatives into food business in Nigeria that food prices have reduced. It's a good development

JAGABANomics do this one

Agbalowomeri:
Transcorp is not joking with this growth rate. It's a new candidate for N500 in 5 years if this growth rate is sustained

For the very first time, Agba gives pass mark to a stock.

Abi na in the spirit of world women's day? As transcorp CEO na woman

Agbalowomeri:
Transcorp used to have one noncontrolling interest like that. Maybe that's the case although I haven't looked at the results

Thr is something not right in the results. I have done the calculations without the amount for non controlling interest with old and new Os.It does not add up.
Who are these non controlling interest. Is it the government part ownership. I thought it was sold off to investors.
It looks more like the eps was done on old OS which is the closest to 1.45

KarlTom:
Not really (at the bolded)

Even though I'm not a financial analyst, I believe that they have a very competent team.

You can't expect them to make such a blatant mistake though I'm not 100% in alignment with the 'abracadabra'...

I didn't say they are wrong or they made a mistake.
That complex calculation is not just necessary
They are not going to pay dividend based on os of 35b or are they?

Agbalowomeri:
Transcorp is not joking with this growth rate. It's a new candidate for N500 in 5 years if this growth rate is sustained

It is an excellent result but I don't think that kind of growth rate is sustainable for the next five years.

chimex38:
For the full year 2024 result, Transcorp used the fact that the OS for the entire Business year was not always 10.16bn neither was it always 40.64bn(pre-reconstruction).
Hence they used the Weighted Average of the two OS.

how?
The Weighted average between: The Pre-reconstruction OS & the Cancelled OS

Cancelled OS=
Old OS -New OS =
40.64bn -10.16bn=30.48bn

I think they believe the cancelled OS was still part of the business year capitalisation.🤷

Weighted Average=(40.16bn +30.48bn)/2=
70.64bn/2
=35.32bn OS for the year..

It kind of makes sense the weighted average OS used(35.32bn) is skewed closer to the old Pre-construction Os(40.64bn) since for over 9months of the business year-2024, the old OS was still in play..

If one divides the the controlling interest portion of the PAT by the weighted-OS (35.32bn), one will get how are they arrived at the EPS.

The details are in page 97 as @KarlTom has already pointed out.

But this 60kobo will shared on 10B os abi the 35.32 Os.
Tony wan scam us walahi

Mpeace:
For the very first time, Agba gives pass mark to a stock.

Abi na in the spirit of world women's day? As transcorp CEO na woman

Wahala be like in the spirit of solidarity with women Lol

Agbalowomeri:
Transcorp is not joking with this growth rate. It's a new candidate for N500 in 5 years if this growth rate is sustained

This coming from u means to buy more transcorp at dip .You no talk say na candidate of #5-10,lol
I knew i was right on my call on transcorp though this magic calculation on dividend has affected my dividend expectation.i had calculated eps post reconstruction to be nothing less than #5 and minimum of #2 dividend not this yeye .60kobo

BabsO2:
The computed number is a meaningless mathematical exercise. Waste of time for the common shareholder abeg. Maybe they're trying to use the confusion to claim they have a high dividend payout ratio.

Lols.. I get you sha, but not quite meaningless per say.
It will create a false narrative on performance.
An apparent eps of ₦5 is no different from the hype then-when it was widely reported that Transcorp has done over 400% increase=in SP .
They didn't factor the re-construction.

From their 9months UFS
PAT(Q1-Q3)= ₦44.874bn
9month EPS = ₦1.104k


Q4(assumption)
By working backward, in Q4, they probably made (51.524bn -44.874bn)=
PAT =₦6.65bn
OS= 10.162bn
EPS= ₦0.65439k


Add this Q4(assumed) EPS to the 9months UFS Eps =>
₦0.65439k + ₦1.104k
=₦1.75839k
Not far-off from the Audited full year of ₦1.45k.

So, 4th quarter PAT is between₦5-₦7bn
(controlling interest).
It's obvious Transcorp never made up-to ₦1 EPS in any quarter.

If you add all dem quarterly eps together, How do you now explain Eps of over ₦5 for Full year?

Streetinvestor2:
But this 60kobo will shared on 10B os abi the 35.32 Os.
Tony wan scam us walahi

Lol..na 35bn OS.

As i no see Q4,
From my little calculation, Q4 PAT for controlling interest no reach ₦7bn(even ₦6bn sef).
If Tony bin pay 1₦/share as final=₦10.16bn, that one na to give out 100% PAT from Q4 + dip jara from Q3
He sha needs retained earnings to settle debts and liabilities.

I prefer to look at it from PAT rather than the OS.

full year PAT--₦51.52bn
payout--(4.1bn + 6bn)10.16bn
Payout ratio≈≈20%

He should sha do better this year.

Mpeace:
For the very first time, Agba gives pass mark to a stock.

Abi na in the spirit of world women's day? As transcorp CEO na woman

No sir. The calculation is just to arrive at a fair value EPS.
Of course, the DIV will be paid on the 10.16b units...

We definitely didn't need this calculation in FY 2023 and won't have them in FY 2025

pluto09:
I didn't say they are wrong or they made a mistake.
That complex calculation is not just necessary
They are not going to pay dividend based on os of 35b or are they?

It is sustainable.
Remember that TRANSPOWER is planning to ramp up production to cater for 25% of Nigeria's energy needs...

pluto09:
It is an excellent result but I don't think that kind of growth rate is sustainable for the next five years.

KarlTom:
Not really (at the bolded)

Even though I'm not a professional financial analyst, I believe that they have a very competent team.

[b]You can't expect them to make such a blatant mistake [/b]though I'm not 100% in alignment with the 'abracadabra'...

Lol.. They can make blatant mistake Oo..
no one is immune.
I believe they made an error in their Eps computation of their Q3 UFS result.

pluto09:
I didn't say they are wrong or they made a mistake.
That complex calculation is not just necessary
They are not going to pay dividend based on os of 35b or are they?

You are right though Dividend is based on 10.16bn OS.
But the earning isn't.

I guess since they didn't Outrightly cancel the OS but reserved, the earnings attributed to it will also be reserved as well, hence the abracadabra

If the reconstructed shares were cancelled(similar to selling an asset), then probably an Eps of ₦5+ isn't out of place
(similar to sharing a sale-proceed)

chimex38:
Lol..na 35bn OS.

As i no see Q4,
From my little calculation, Q4 PAT for controlling interest no reach ₦7bn(even ₦6bn sef).
If Tony bin pay 1₦/share as final=₦10.16bn, that one na to give out 100% PAT from Q4 + dip jara from Q3
He sha needs retained earnings to settle debts and liabilities.

I prefer to look at it from PAT rather than the OS.

full year PAT--₦51.52bn
payout--(4.1bn + 6bn)10.16bn
Payout ratio≈≈20%

He should sha do better this year.

The truth is what Tony is paying out as dividend from the PAT is small.I hope the 41 billion will not be wasted and be kept back as retained earnings. I hope we don't begin to see exceptional items eating up this cash soon.

Streetinvestor2:
The truth is what Tony is paying out as dividend from the PAT is small.I hope the 41 billion will not be wasted and be kept back as retained earnings. I hope we don't begin to see exceptional items eating up this cash soon.

Exceptional items..

What if Tony wanted to use the money to buy stake in uba to ease meeting recapitalization of the bank..

Tony want use accounting loopholes to run us street ...

Remember, they wanted to increase their stake sometimes last year una no gree, here is the headache.

Game is game in megawealth voice.

It will double from the post reconstruction price this year. The numbers are quite impressive.

Agbalowomeri:
Transcorp is not joking with this growth rate. It's a new candidate for N500 in 5 years if this growth rate is sustained

crownprince2017:
What if Tony wanted to use the money to buy stake in uba to ease meeting recapitalization of the bank..

Tony want use accounting loopholes to run us street ...

Remember, they wanted to increase their stake sometimes last year una no gree, here is the headache.

Game is game in megawealth voice.

The Deed has already started
Page 127

Warning: Scammer Alert!
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Modus Operandi:
King Miller will offer to assist with your investments, but ultimately, his goal is to deceive and steal your money.

Contact Information:
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Protect Yourself:
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AngelSlay:
Warning: Scammer Alert!
Beware of King Miller, a scammer targeting individuals with promises to help with investments or financial services.

Modus Operandi:
King Miller will offer to assist with your investments, but ultimately, his goal is to deceive and steal your money.

Contact Information:
Be cautious of the following number:

+234 912 001 8756

Protect Yourself:
Do not engage with King Miller or provide any personal or financial information.

Report any suspicious activity to the relevant authorities.

Stay vigilant and keep your finances safe!

And you think we are jokers here?

Good evening PuristForest.
Please Is ikeja hotel, a buy recommendations, at what price,?.
I appreciate your response on Guineas insurance PLC.

eziokwunwoko:
Good evening PuristForest.
Please Is ikeja hotel, a buy recommendations, at what price,?.
I appreciate your response on Guineas insurance PLC.

It will be best you go invest via fund managers.You are not ready for this business after all this time.

Please I want to understand something about this 3 Transcorp PLC's is see on the exchange. If Transco Hotel is the Transcorp hotel I know and Transpower is the Ughelli power and of recent Afam power that I know too, now my question is what is now the business of Transcorp PLC?

Valthegreat:
Please I want to understand something about this 3 Transcorp PLC's is see on the exchange. If Transco Hotel is the Transcorp hotel I know and Transpower is the Ughelli power and of recent Afam power that I know too, now my question is what is now the business of Transcorp PLC?

Tony played us game.He spinned off the first two from Transcorp plc sometimes back.The Transcorp power own pain me.
Therefore Transcorp plc is the major shareholder in them making money via dividend in them and engaged in other businesses

Valthegreat:
Please I want to understand something about this 3 Transcorp PLC's is see on the exchange. If Transco Hotel is the Transcorp hotel I know and Transpower is the Ughelli power and of recent Afam power that I know too, now my question is what is now the business of Transcorp PLC?

Transcorp plc is like a holding company. Those once you named are owned wholly or partly by Transcorp plc as subsidiaries.
See a list of companies that are subsidiaries of Transcorp plc and the percentage ownership by Transcorp.

Where's the most up to date source for following the biggest gainers and loosers on the ngx each week?

Mpeace:
Transcorp plc is like a holding company. Those once you named are owned wholly or partly by Transcorp plc as subsidiaries.
See a list of companies that are subsidiaries of Transcorp plc and the percentage ownership by Transcorp.

Oil is on your head 💯

chimex38:
The Deed has already started
Page 127

Transcorp needs lots of money to fund its subsidiaries. Whatever it invests in UBA will be returned back in multiples as capital to fund growth. Non Controlling interest over a decade now have been instrumental in providing capital to fund the growth we are currently seeing. NCI is now about a third of total equity. I don’t see Transcorp paying out much dividends as it needs the retained earnings to fund growth. As there is a limit NCI can be used to fund growth.

Valthegreat:
Please I want to understand something about this 3 Transcorp PLC's is see on the exchange. If Transco Hotel is the Transcorp hotel I know and Transpower is the Ughelli power and of recent Afam power that I know too, now my question is what is now the business of Transcorp PLC?

As @Mpeace has stated and shown and to throw more Light.
Those with 100% ownership-transcorp takes the top level decisions in those, manage staff and daily resources and directly operate the company..

Those between 50-70%, Transcorp probably makes the top level critical board decisions. I don't think they directly manage the staff, resources or day to day running of the company..

A holding company makes major decisions in all of its subsidiaries. By holding at least 50% or majority stake in all its acquisitions, transcorp is a holding company.

Also, there are others not listed on NGX like the Afam Power companies, Transcorp crude oil (OPL 281), Transcorp hotel Portharcourt, etc which they control, manage staff and resources and operate day to day 100%..
These 95-100% ownership can be referred to as the core business of Transcorp PLC.(the company)