PZC sees an improvement in its quarterly earnings

On the Ghana Stock Exchange

PZC in its financial year ending May 2018 has reported a rise in its earnings in all 3 quarterly reports released so far. The company has been successful at being profitable having reported losses in the previous quarters. Its profit after tax increased from GHS 1.08 million in Q1-Aug 2017 (Q1-Aug 2016: -1.38m) to GHS 3.01 million in Q3-Feb 2018 [Q3-Feb 2017: -9.53m].

The increase in revenues contributed in part to the rise in profits reported for the period. Return on equity increased to 16.3% in Q3-Feb 2018 (Q3-Feb 2017: -36.2%) from 6.5% in Q1-Aug 2017 (Q1-Aug 2016: -9%).

The company’s inventory turnover ratio, which indicates the number of times, it sold and replaced its stock improved over the period rising from 1.13x in Q1-Aug 2017 (Q1-Aug 2016: 0.99x) to 3.75x in Q3-Feb 2018 (Q3-Feb 2017: 2.97x). Its total asset turnover ratio also improved increasing from 0.25x in Q1-Aug 2017 [Q1-Aug 2016: 0.23x] to 0.93x in Q3-Feb 2018 (Q3-2017: 0.58x). Its ability to cover obligations on debt improved with its times-interest-earned ratio increasing from 21.35x in Q1-Aug 2017 (Q1-Aug 2016: 5.68x) to 36.40x in Q3-Feb 2018 (Q3-Feb 2018: -12.92).

PZC’s YTD return as at the end of yesterday’s trade stood at 125%. It gained GHS 0.08 in Q2-2018 in a period where investors were taking profits with many stocks witnessing a consistent decline in their share prices.  It is anticipated that PZC will maintain a positive YTD return in the second half of the year, which is expected to be influenced in part by its Q4-May 2018 earnings report.

The Composite index and the Financial stocks index declined by 36.67 points and 49.08 points to peg at a YTD return of 10.26% and 9.24% respectively. There were 2 gainers (RBGH & SCB) and 3 losers (EGH, GCB & EGL) at the end of yesterday’s trade. CAL topped the charts in terms of volumes as 754,700 shares worth 981,110 changed hands.

On the Ghana Alternative Market

Trading on the Ghana alternative Market ended with 9,200 shares of DIGICUT worth GHS 828 changing hands.

On the Currency market

The Cedi depreciated marginally against the Euro and the British Pound at the end of yesterday’s trade. The Cedi to Dollar exchange rate remained stable. The local currency exchanged at a mid-rate of GHS4.5265 to the USD, GHS5.9897 to the GBP and GHS5.2691 to the EURO. The GCFM Cedi index, a measure of the holistic performance of the Cedi on the interbank market now records a year-to-date depreciation of 1.19%.

 

Story: GN Research

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