₦airaland Forum

BullBearMkt:

Raider76:
NCC Debunked reported tariff hike in Telecoms

https://leadership.ng/ncc-debunks-reports-of-planned-tariff-hike-on-telecoms-services/

Sunrisepebble:
From now till the end of the year, I’m still looking for a good entry into Nahco, might buy some more Transcorp and if MTNN trades @ 190 or below again, I’ll look to add more.

These are my stocks for 2025 though:
UGAZ
Presco
MTNN
Seplat (on LSE)
Transcorp
Vitafoam
NAHCO
Nigerian Breweries
Aradel (@ attractive entry)

On the radar/ More research to be done on: Nipco, Okitipupa, Maybaker, UACN and Unilever

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.

Streetinvestor2:
Two stocks expected to hit the 100 soon.which will be the first Mr time will decide. And I think it will be WAPCO & OANDO lol

Sunrisepebble:
What exactly is going on there ? It would be nice to know

tobby20:
Did it fill u up
B honest a bit

Raider76:
Same way, that some people keep erroneously saying Transcorp gained 400%

Agbalowomeri:
Many cup-and-handle breakouts...

Enjoy the ride

Locotrader:
Remember Transcorp returned more than 600% to investors last year.same with chams and Japaul.
Some stocks that are moving now were not touched by the bull last time.
I believe stocks like Transcorp,chams,Japaul will have another significant move very soon

One thing I have observed in this market is you sell Transcorp to join Aiico bull,you miss it and then come back to Transcorp,you miss both.You end up enriching broker.

Stay calm and patient.You are going to make plenty money with Transcorp.At least 100%

Locotrader:
At this time other stocks are going up,it is better you exercise patience.All these stocks trading around 300+ are not better than Trans power.

Just that it's painful when you see other stocks going up and you feel village people are on top your case.

Stay calm

Ginalex:
My Wacc Kon big pass 324 ... Chukwu biko

Ginalex:
make I follow your footsteps. I can't make Transpower mistake twice

Sunrisepebble:
The focus is on the refinery. China have come to play on his turf also. The merger might be off for a while

Any idea if Dangote rice is now operational ?

Sunrisepebble:
Tbh I really do want to know the shareholding structure.
I was told they have the majority though, and they also have a 40% stake in NDwestern who are also a party in the consortium.

Panadee:
About 35 billion (or more)

yMcy56:
JAIZBANK
* JAIZBANK completes Private Placement of N10.04bn
* Successfully listed it on NGX
* Meets CBN Capital Requirements ahead of 2026

KarlTom:
Beloved ARADEL.

We need a 100k order to cement this FB

Streetinvestor2:
Golden beer has moved from 7.17 to 8.64 today.How many % be that now @ X moniker. It will still touch #10.You don't know the power of manipulation in a company with small OS

ositadima1:
Dangcem may reach 915 by next year or early 2026, particularly when they increase their dividend to about 35 naira. It is a strong contender for a 100% return. This projection is purely based on technical valuation; I will conduct the FA later to see if both align. Feel free to challenge me (shoot me down) if this prediction fails, but if it does come true, remember it was me—the "oversabi" guy—who first brought it to your attention.

Locotrader:
Don't try it now unless you want the bone to block your oesophagus.

Though #10 is possible but don't enter now because of one way ticket.

Streetinvestor2:
Golden in umuahia. Very small OS and easy to manipulate