Taking a closer look at Unilever Ghana Limited (UNIL)

Today, I want us to focus on Unilever Ghana Limited (UNIL) and it's performance in 2011 and in the year so far. In my earlier post about the 1st Quarter of the Manufacturing sector, I wrote on the current standing of the company on the exchange. 

UNIL: 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 

We would look at more figures and how investors are reacting. UNIL as we know, manufactures and markets consumer goods throughout Ghana some of which includes toilet soaps, personal products, detergents, and consumable food products.

This year, UNIL began trading at GHS 6.64 (03.01.12) per share on the exchange. UNIL has issued about 62.50 million ordinary shares on the Ghana Stock Exchange (GSE) with market capitalization of GHS 509.38 million. As released by the exchange, UNIL records a dividend yield (%) of 5.89. It was also recorded a price per book value from the most recent quarter as reported by Bloomberg as 8.6373. 

Investors reaction to the stock on the exchange has not changed so much. The shares are trading from time to time and most of the time as odd lots. As at today, the price remains at it's year high of GHS 8.15.

UNIL reported in March 2012 that it has made a revenue of GHS 239,005 for the 2011 financial year. In a press release to the Ghana Stock Exchange, it reports a profit after tax for the year as GHS 30,115, an increased of the one for 2010 which was GHS 17,947. Shareholders equity increase from GHS 41,340 to GHS 48,893.(NB: all figures are expressed in thousands of GH cedis unless otherwise stated)

UNIL would be having its Annual General Meeting on 27th April 2012 at the National Theatre. Shareholders are advised to go and contribute to the discussions and also vote on issues. Moreover, the company has proposed a dividend per share of 0.4800 pesewas which has a qualifying date as 25th April, 2012.

We hope to keep our eyes on UNIL and it's affairs in the household & consumer products sector.

1st Quarter Analysis of the Manufacturing sector on the Ghana Stock Exchange

The Manufacturing sector on the Ghana Stock Exchange (GSE) include stocks like that of Unilever Ghana Ltd. (UNIL), PZ Cussons Ghana Ltd. (PZC), Aluworks Limited (ALW) and the Pioneer Kitchen Limited (PKL). PKL is no more listed on the GSE with effect from 26^th March 2012 due to a sanction from the exchange for refusing to observe the continuing listing obligation including failure to hold annual general meetings. This move by the GSE reduces the market capitalization and that of the manufacturing sector by about GHS 2 million (about $1.25 million).

This sector on the exchange is dominated by Unilever Ghana Ltd; with a market capitalization of GHS 509.37 million (about $312.50 million), making it the most capitalized in the manufacturing sector.

UNIL

Unilever Ghana Limited (UNIL) manufactures and markets consumer goods throughout Ghana some of which includes toilet soaps, personal products, detergents, and consumable food products.

UNIL: 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 

This year, UNIL began trading at GHS 6.64 (03.01.12) per share on the exchange and saw price hikes to close at GHS 8.15 as at today with a Year-High of GHS 8.15 and a Year-Low of GHS 6.63. An investment made in UNIL exactly one year ago would yield 31.34% profit.  UNIL records a Price/Book value of 8.0428 in the most recent Quarter with Earning per share and Price/Earnings ratio of 0.5081 and 16.0388 (trailing 12 months) respectively.

PZC

PZC 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 

PZ Cussons Ghana Ltd. (PZC) is another company in the manufacturing sector on the GSE. This company is the manufacturer of over-the-counter pharmaceutical preparations, cosmetics and beauty products. PZC began trading on the exchange in 2012 with a share price of 0.24p (03.01.12) and since then, there was no price change. The 1^st quarter did not favour PZC in terms of price change although it traded some volumes of share in the quarter. With a market capitalization of GHS 40.32 million, PZC recorded a dividend yield (trailing 12 months) of GHS 1.5694 and as reported by Bloomberg, an enterprise value of GHS 38.54 million.

ALW

ALW: 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 

Aluworks Ghana Limited as the name implies works with aluminum. It is an aluminum rolling mill with produces semi-finished and finished aluminum sheet in coil, circles, flat sheet and corrugated roofing sheets. This company was incorporated on February 24, 1978 and currently has a market capitalization of GHS 6.44 million making it the lowest in the manufacturing sector on the exchange since PKL has been suspended. ALW began the quarter and the year with a 0.13p share price (03.01.12)  and later dropped to 0.12p to 0.9p and now closed at 0.07p per share. With an obvious Year-High of 0.13p and a Year-low of 0.07p/share, ALW has a Price/Book of 0.2355, Earning per share (trailing 12 months) of -0.0977 and an Enterprise value of GHS 28.04 million.

The Manufacturing Sector as a whole did not performed so well despite the driving and dominating strength of UNIL in the sector. Investors should follow closely activities in this particular sector and look for the opportunities.