₦airaland Forum

emmanuelewumi:
Until then.

We never knew Union Bank, Intercontinental Bank and Oceanic Bank could fail stress test. Those were the big banks in those days

SonofElElyonRet:
Unity bank should hurry up and list.. any update?

SonofElElyonRet:
Unity bank should hurry up and list.. any update?

mikeapollo:
Hmmm. That's money talking, finger itching.
God dey. He go hear my prayer one day.

emmanuelewumi:
I have Zenith, GTB, Stanbic IBTC and UBA.



Access Bank will definitely need to raise additional capital after the stress test

SohSoh:
A New Buy Recommendation :
Company : IMG [ Industrial & Medical Gases ]

Details Coming Soon

jckgroup1:
Provide update on your Japaul recommendation before IMG...

KarlTom:
This makes for a good read (14years later).
Sadly, we're still facing same issues...

https://www.knightofdelta.com/p/corporate-misgovernance-and-management

@emmanuelewumi

SohSoh:
DATE : 15 MARCH 2026

BUY RECOMMENDATION : INDUSTRIAL & MEDICAL GASES NIGERIA PLC.

Ticker: IMG  |  NGX Listed  |  Sector: Industrials / Healthcare.
CURRENT PRICE : ₦36.00 | Hold Period : LONG TERM.

Industrial & Medical Gases Nigeria Plc (IMG) is Nigeria's dominant industrial gas company and the only quoted industrial gas player on the NGX.

BUY RECOMMENDATION and a long-term hold from the current price of ₦36.00.




Business Model — B2B (Business To Business)

IMG operates exclusively as a Business-to-Business (B2B) entity — zero retail or consumer exposure. Every naira earned comes from institutional, commercial, or industrial clients, creating a revenue profile that is structurally predictable, and recurring.


Why the B2B Model Creates Durable Competitive Advantage

1: Long-term supply contracts: Hospitals, refineries, and breweries sign multi-year agreements — revenue is locked in.
2: Infrastructure dependency: When IMG installs a Medical Gas Pipeline System (MGPS) or bulk cryogenic tank, the customer is captive for the life of that infrastructure.
3: Switching costs: Replacing IMG requires physical infrastructure change, equipment revalidation, and regulatory re-approval.
4: Regulatory moat: ISO 9001:2015 and FSSC22000v.5.1 certifications create barriers that new entrants need years to obtain.

CUSTOMER BASE & SECTOR ANALYSIS : SEE IMAGE BELOW

IMG's customer base spans Nigeria's most critical industrial and institutional sectors. The diversity of its clientele, from multinational oil majors to federal teaching hospitals to multinational beverage companies, provides exceptional revenue stability and cross-cycle resilience.


SECTOR:

1 : Oil & Gas : N₂ inerting, welding gases, specialty gases
2 : Food & Beverage (FMCG) : CO₂ carbonation, N₂ packaging
3 : Healthcare : Medical O₂, MGPS installation
4 : Manufacturing & Cement : Welding gases, O₂ for kilns
5 : Power & Energy : H₂, N₂ for turbine cooling/insulation
6 : Engineering Services : MGPS, customer engineering


COMPETITIVE LANDSCAPE

NGX-Listed Peers : IMG occupies a singular competitive position on the NGX. There are no directly comparable listed industrial gas companies in Nigeria.


PRODUCTS & SERVICES :

PRODUCTS : SEE IMAGE TABLE BELOW



Services : Engineering & Value-Added Services

• Medical Gas Pipeline Systems (MGPS): Design, installation, and commissioning of piped medical gas infrastructure — high-margin, sticky service with enormous growth potential given Nigeria's PHC upgrade mandate.

• Customer Engineering Services: Bespoke gas application optimisation — cited by Dangote Group's Director of Manufacturing as delivering significant production efficiency gains.

• Safety & Risk Management (SHEQ): Gas hazard assessments and risk frameworks — confirmed by Nigerian Breweries' Head of Safety as mission-critical.

• After-Sales Support & Installation: Ongoing maintenance of cylinders, cryogenic vessels, pipeline systems, and bulk tank installations.

Government Catalyst — February 2026

₦98bn Disbursed to Nigeria's PHCs :: President Tinubu confirmed over ₦98 billion disbursed to support operational expenses for over 8,300 Primary Healthcare Centres in 2025, with plans to expand to 13,500 PHCs nationwide. A further 2,565 centres have already been upgraded, with 1,456 currently undergoing renovation.

Why This Directly Benefits IMG

1 : Every upgraded or new PHC requires medical oxygen cylinders and ongoing supply.
2 : Fully equipped PHCs need Medical Gas Pipeline Systems (MGPS) — IMG's highest-margin service.
3 : 13,500 PHC target = thousands of new long-term institutional customers.
4 : ₦2.56 trillion healthcare budget allocation in 2025 signals a decade-long demand pipeline.
5 : IMG holds dominant market share in MGPS installation — no credible domestic competitor

Financial Performance & Analysis : (SEE IMAGE BELOW)

IMG's FY2025 financials tell a story of structural improvement at the operating level. Revenue was ₦8.38 billion while gross profit grew to ₦4.08 billion, a gross margin of 48.7%, up 220 basis points from 46.5% in FY2024.

• Cost of sales was reduced by 4.1% and selling and distribution expenses were cut by 19.6%, reflecting meaningful operational discipline.

These improvements demonstrate that the core business is becoming more efficient and more profitable on a per-naira basis with every passing year.

On the balance sheet, the transformation has been nothing short of extraordinary. Total equity has more than doubled to ₦11.78 billion, the company has moved from a net debt position to holding ₦2.16 billion in net cash, and book value per share has grown to ₦16.12. The ₦3.2 billion invested in property, plant and equipment in FY2025 — with a further ₦7.57 billion in the capital investment pipeline — positions the company for meaningful revenue growth as new capacity is commissioned through FY2026 and beyond.

Corporate Actions & Governance

Rights Issue (2025) — The Defining Transaction
In 2025, IMG executed a rights issue of 199,797,458 new shares at ₦32 per share .
The issue was 90.9% subscribed, raising approximately ₦5.8 billion net after expenses.
• Increased total equity by 99.2% from ₦5.91bn to ₦11.78bn
• Reduced borrowings by 97.5% from ₦5.33bn to ₦135.7m
• Eliminated annual finance costs of ~₦700m+
• Increased shares outstanding by 46.4%
• Positioned the company for debt-free growth financing.



Bonus Issue & Dividend History : SEE TABLE BELOW


INVESTMENT RECOMMENDATION — BUY
CURRENT MARKET PRICE: ₦36.00 (LONG TERM)

IMG is not merely an industrial company — it is a critical national infrastructure asset wearing the clothes of a mid-cap stock.

1: It provides the oxygen that keeps Nigerian patients alive.

2: the CO₂ that carbonates the drinks Nigerians consume daily.

3: the nitrogen that protects oil pipelines from combustion.

4: the argon that welds the steel structures of Nigeria's industrial economy.

This essential utility company, combined with a 65-year operational moat, zero debt, ₦7.6 billion in committed capital investment, and powerful government-driven healthcare tailwinds, makes IMG one of the most compelling risk-adjusted opportunities on the NGX today.


The (4) Four Pillars of Our BUY RECOMMENDATION

• PILLAR 1 — DEBT ELIMINATION: Finance costs that consumed ~₦700m annually have been permanently removed. FY2026 earnings will benefit directly.

• PILLAR 2 — CAPEX PAYOFF: ₦3.2bn invested in FY2025, with ₦7.57bn in WIP assets. As this capacity is commissioned in FY2026, it will drive revenue growth on a near-zero marginal cost basis.

• PILLAR 3 — HEALTHCARE MEGATREND: 13,500+ PHC upgrades mandated by the Tinubu administration create a decade-long demand pipeline for medical oxygen, MGPS installation, and gas supply that IMG is uniquely equipped to serve.


• PILLAR 4 — MONOPOLY MOAT: As the only NGX-listed industrial gas company with national production infrastructure, IMG has no domestic listed competitor.  — built over 65 years.

lostinHeaven:
The story of Oando, sadly the management has refused to change - The more you look, the more you are confused

InvestorHalal:
Thank you for the detailed analysis.

Please, what do you say about its current liquidity form?

SohSoh:
IMG's liquidity position is strong and purposefully structured. The company holds ₦2.16 billion in net cash with current assets of ₦4.99 billion comfortably covering current liabilities of ₦2.54 billion — a current ratio of approximately 1.96x. For an industrial company of this scale, that is a robust buffer.

Equally important, IMG is virtually debt-free. Following the 2025 rights issue, borrowings stand at just ₦135.7 million, meaning there are no meaningful debt obligations weighing on the business. Every naira generated from operations is free to be reinvested or returned to shareholders (dividends)

The reduction in cash from the prior year reflects exactly what good capital allocation looks like — ₦3.2 billion deliberately converted from cash into productive fixed assets, with a further ₦7.57 billion in the capital investment pipeline. This is not cash leaving the business; it is cash being transformed into long-lived infrastructure that will generate revenue and earnings for years to come.

In short, IMG carries no debt burden, holds strong short-term coverage, and has proactively deployed its capital into growth assets. The balance sheet is not just liquid, it is positioned for expansion and growth.

newreality:
I checked the stock price history, it has been in red for a while

SohSoh:
DATE : 15 MARCH 2026

BUY RECOMMENDATION : INDUSTRIAL & MEDICAL GASES NIGERIA PLC.

• PILLAR 3 — HEALTHCARE MEGATREND: 13,500+ PHC upgrades mandated by the Tinubu administration create a decade-long demand pipeline for medical oxygen, MGPS installation, and gas supply that IMG is uniquely equipped to

Panadee:
Thank you for your detailed analysis.
This third pillar won’t make any significant difference because primary health centres (PHCs) are not designed to have hi-tech oxygen delivery systems; they could buy a few cylinders and that’s about it. It’s mainly teaching hospitals and big secondary health centres that may need such oxygen delivery systems. And not many new ones (of such hospitals) are coming on stream anytime soon.
Other pillars duly noted. Cheers.

SohSoh:
Thank you for the insight.
1 : (PHC) Primary Healthcare Centres cylinder volume.

2 : Teaching hospital MGPS installation,

3 : The expanding private healthcare sector.

all of which IMG is uniquely positioned to serve nationwide.

SohSoh:
Thank you for the insight.

You are right that (PHCs) Primary Healthcare Centres are primarily a cylinder supply and replenishment opportunity for IMG rather than full pipeline installations.

With 13,500 facilities nationwide, even modest recurring cylinder contracts represent significant volume at scale.

The higher-value Medical Gas Pipeline System (MGPS) installation opportunity however extends well beyond teaching hospitals.

Nigeria's fast-growing private healthcare sector, including Reddington Hospital, St. Nicholas Hospital, Eko Hospital, Lagoon Hospital, Evercare Hospital, Medbury Medical Services, Doyen Mediclinic, and Alliance Hospital.

Alongside hundreds of mid-sized private clinics and diagnostic centres nationwide, all require medical oxygen supply and gas infrastructure.

This private sector pipeline is substantial and growing.

The third pillar therefore operates on three levels —

1 : (PHC) Primary Healthcare Centres cylinder volume.

2 : Teaching hospital MGPS installation,

3 : The expanding private healthcare sector.

all of which IMG is uniquely positioned to serve nationwide.

Itzlinda:
Bua cement full bid!

Itzlinda:
Bua cement full bid!

Itzlinda:
Bua cement full bid!

Agbalowomeri:
Have you jumped back inside or you are still regretting your exit?

You don chop over 200% na

Mpeace:
We are aiming for dangcem price

Itzlinda:
Recommendation? 😅