On the Ghana Stock Exchange (GSE,) Starwin Products Limited [SPL] exceeded stakeholders’ expectation in 2016FY where the listed-pharmaceutical and drug manufacturing company turned around the company’s gloomy outlook by recovering from losses in 2015FY to record a 59.19% rise in revenue.
Revenue from SPL increased from GHS 5,762,183 in 2015FY to GHS 9,172,862 in 2016FY. Profit after tax also increased significantly by approximately 3000% from losses of GHS 115,865 in 2015FY to a positive bottom-line of GHS 3,360,406 in 2016FY. Earnings per share to shareholders also went up from a loss of GHS 0.004 in 2015 to GHS 0.013 in 2016. Total Asset value for the period equally went up by 52.21%; from GHS 10,612,537 in 2015 to GHS 16,154,185 in 2016. Retained earnings for the period increased by 324.92%. Dividend payable for 2016FY was a 3,853.10% increment from its 2015 figure. Dividend payable increased from GHS 6,743 in 2015FY to GHS 266,558 in 2016FY.
The significant improvement in SPL fundamentals is a positive boost for its share performance this year. SPL stocks, already an attractive option for short term investments [i.e. retail investors] is set to become more attractive. One of the key highlights of improvement in the equity is the increment in dividend per share. GN Analysts estimate that the equity will see significant improvement in the share performance coupled with periodic capital gains as Earnings and dividend yield remain attractive features on the equity. SPL is a BUY.
Trading activity on the bourse ended with 2 gainers [GCB and UNIL] and 1 loser [SIC] yesterday. EGL topped trading chart in terms of volume as 723,600 shares worth GHS 1,736,640.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 6.98% and 9.50% respectively.
Trading activity on the Ghana Alternative Market [GAX] was hushed yesterday as no shares changed hands.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
The Cedi LOST marginally to the Dollar and British pound but GAINED to the Euro yesterday.
The local currency exchanged at a mid-rate of GHS 4.3730 to the USD, GHS 5.4645 to the GBP and GHS 4.6368 to the EURO.
The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 4.42%.
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