Transcorp Hotels Pops 8.91%, Market Value Nears N501bn
Rated strong buy by a slew of equities analysts, Transcorp Hotels Plc maintained an uptrend with 8.91% share price appreciation in the equities market as Alpha seeker boosted their stakes with additional shares buying.
The hospitality company’s shares become not just popular but expensive, gaining more than 680% in 12 months isn’t what value hunters can joke with, analysts said.
The share price inched higher by about 18% in the last seven trading sessions to N48.90 from N41.5. Data from the local bourse showed that the hotelier market valuation jumped to N500.859 billion.
The stock has gained more than 33% in 30 days, according to stock data screened. It has been about a year since the company reported directors dealing in shares. However, the stock market continues to rerate the hotels giant on the back of improved sentiments in the market and healthy earnings performance.
MarketForces Africa reported that the hotels group in July announced in its unaudited financial statement a profit of N2.461 billion, up by about 46% year on year from N1.691 billion in the comparable period in 2022.
The significant profit growth came despite an increase in income tax in the period. The bottom line was aided by moderated growth in its costs of sales in the period.
The hospitality player saw its revenue surge to N18.983 billion in the first six months in 2023, a rise of 26.67% when compared with N14.986 billion the company delivered in the comparable period in 2022.
Its finance cost moderated to N1.987 billion in 12 months from N2.053 billion in the equivalent period in 2022. Its unaudited financial scorecard showed that earnings per share surged to 24 kobo, a stronger delivery when compared with 17 kobo reported in the first half of 2022.
At the end of the first half of the year, Transcorp Hotels’ balance sheet size expanded to about N123 billion, driven by a higher cash balance. The total shareholders fund in the hospitality company was N65.251 billion at the end of the first half of the year.
The group has 100% interest in Transcorp Hotels Calabar Limited and Transcorp Hotels Port Harcourt Limited. It owns 58% in Transcorp Hotels Ikoyi Limited and 60% in Aura by Transcorp Hotels Limited.
Transnational Corporation Plc. and Heirs Holdings Ltd own 20% each of the ordinary shares of Aura by Transcorp Hotels Ltd Ministry of Finance Incorporated owns 11.04% of the ordinary shares of Transcorp Hotels Plc Naira Devaluation Deepens Economic Crisis in Nigeria
