Improved fundamentals could inch up BOPP share price


Benso Oil Palm Plantation [BOPP] achieved quite a significant revenue growth during the first half of 2016.

Revenue grew by 40.81% to GHS43,097,000 in HY2016. Operating Profit also grew by 68.22% to GHS6,700,000 in HY2016. BOPP managed to churn out impressive financials in the first half of 2016 mainly because of the operational efficiencies achieved by the company. Total comprehensive income for the period increased by 54.8% to GHS4,360,000 in HY2016. Earnings per share attributable to shareholders increased by approximately 55% to GHS0.1939 in HY2016. The agro-processing company also saw increment in trade receivables over the period under review. Trade receivables due to the company increased by 188.9% to GHS9,190,000 in HY2016. Net Cash generated from operating activities increased by 10.44% over the 52-weeks period.

GN Analysts estimate that the improved fundamentals of BOPP could help to improve share performance on the bourse. The equity is liquid and therefore very attractive to retail investors. BOPP could see its profits go up significantly on the back of rising dollar rates against the local currency. The equity is a BUY for investors who seek to earn periodic capital gains and dividends. Therefore, the GHS 0.20 loss yesterday is due to dynamics of demand and supply, investors need not to panic, the fundamental of the company has improved for the better and any price appreciation on BOPP can be supported.

Trading activity on the bourse ended with 1 gainer [ETI] and 4 losers [BOPP, CAL, GCB & TOTAL] yesterday. UTB topped trading chart as 153,800 shares worth GHS 6,220.00 changed hands. Returns on the Composite and Financial Stock Index pegged at -10.03% and -11.41% respectively.

Activity on the Ghana Alternative Market (GAX) saw 1,000 shares of ILL worth GHS 90.00 change hands yesterday.

HORDS currently lead record capital gains on the GAX, appreciating by 25% from year open.

The Cedi LOST marginally to all the major currencies yesterday.

The local currency exchanged at a mid-rate of GHS 3.9470 to the USD, GHS 5.2920 to the GBP and GHS 4.4307 to the EURO yesterday.

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 3.18%.



Source: Ghana/ Research

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