Tanzania Portland Cement (TPCC: TZS4,080.0) loses TZS50 billion ($20 million) (6.4%) in MCap, steepest heavyweight fall in Tanzania Share Index; -TZS280 [-6.4%] Vol Index 17.7 [1 is avg] 16 January 2024

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Tanzania Portland Cement Company Limited's (DSE: TPCC TZS4,080.0) stock price tumbled TZS280.0 (6.4%) from its previous trading session to close at TZS4,080.0.

Compared with the Tanzania Share Index which fell 20.7 points (0.5%) in the day, the relative price change was -5.9%.

Tanzania Portland Cement Company Limited is Tanzania's largest Cement & Concrete Manufacturing company by market cap.

It posted the steepest fall in MCap of TZS50.4 billion ($20.1 million) with the most influence on the Tanzania Share Index. Its MCap is TZS734.1 billion ($292.2 million).

Today its volatility (highest price minus lowest price/lowest price) of 6.4% was 2.1 times its average daily volatility of 3.0%. Today the stock traded at its 26-day low of TZS4,080.0. The last time the price hit that low level was on Thursday, Dec 21, 2023. The high for the day was TZS4,340.0.

There were 47,250 shares worth TZS192.8 million ($76,726) traded today. The fall was exacerbated by spectacular volume of 17.7 times the average daily volume of 2,670 shares.

TANZANIA PORTLAND CEMENT (TPCC) Stock Dashboard [traded in Tanzanian Shilling, TZS] End-of-Day Tue, Jan 16

http://www.heidelbergcement.com/africa/en/twigacement/home.htm

P/E7.5Market CapTZS734 billion [US$292 million]
EPS (FY2023)TZS541.0ExchangeTANZANIAN [Dar es Salaam]
Shares Outstanding179,923,100SectorCement & Concrete Manufacturing [of 2 stocks]
LastTZS4,080.0VI17.7
TPCC in IndicesTanzania Share [of 8 stocks]Currency1.000 USD = 2,512.56 Tanzanian Shilling (TZS)
EPS Growth (FY2023 vs FY2022)10%PV$1000 (1 yr)TZS1,127
US$1,048
Today's Volume47,250
Ave Daily Volume2,670 shares
52-Week Price Range3,620.00 - 4,400.00

A year ago the exchange rate was USD 1 = 2,336.04 TZS. USD1000 would have bought TZS2,336,041. A year ago the Tanzania Portland Cement share price was TZS3,620.0. TZS2,336,041 would have bought 645.3 Tanzania Portland Cement shares on that day. Those 645.3 shares would be worth TZS2,632,886 at today's share price of TZS4,080.0. At today's exchange rate of USD1=2,514.93 TZS this is equivalent to USD1,047. PV$1000= $1,048.

Price Volume Snapshot past 2 months (TZS)

In the past month there were 7 days untraded out of 18 trading days in the month. Days Untraded decreased from 8 days in December to 7 days in January.

Past month to HighLowVWAPVolume Index *Days Untraded
16 Jan 20244,400.04,060.04,207.83.57
15 Dec 20234,400.04,220.04,256.52.58

[*Volume Index of 3.5 means volume for the month was 3.5 times its 12-month average]

[VWAP is defined as the Volume Weighted Average Price]

INDEX

SECTION 1 TODAY'S BEARISH SIGNALS

SECTION 2 ONGOING BEARISH PARAMETERS

SECTION 3 TODAY'S BULLISH SIGNALS

SECTION 4 ONGOING BULLISH PARAMETERS

SECTION 5 CORPORATE PROFILE

SECTION 6 FINANCIALS FY 2023, H1/2023

SECTION 7 TOP MANAGEMENT

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

APPENDIX II STOCK IDENTIFIERS

GLOSSARY

SECTION 1 TODAY'S BEARISH SIGNALS

1.1 PAST WEEK: STRONG MOMENTUM DOWN

TPCC Falls 6.4% on extraordinary volume 4.5 times average. Compared with the Tanzania Share Index which fell 29.9 points (or 0.7%) in the week, the relative price change was -5.7%.

The price ranged between a low of TZS4,080.0 on Tuesday Jan 16 and a high of TZS4,360.0 on Monday Jan 15.

JanTanzania Portland CementClose [TZS]Change %Comment
Tue 16Loses TZS50 billion ($20 million) (6.4%) in MCap, steepest heavyweight fall in Tanzania Share Index4,080-6.4Steepest Fall; VI*=17.7
Mon 15Offers earnings yield of 12.4%4,3600
Wed 10Offers earnings yield of 12.4%4,3600
Tue 09Adds TZS22 billion ($9 million) (2.8%) in MCap, top heavyweight rise in Tanzania Share Index4,3602.8Top Rise; VI*=3.01; RPC=2.6%
Mon 08Loses TZS22 billion ($9 million) (2.8%) in MCap, steepest heavyweight fall in Tanzania Share Index4,240-2.8VI*=19.2

* RPC - Relative Price Change is % price change of stock less % change of the Tanzania Share Index.

[Volume Index (VI); 1 is average]

1.2 Rank in the bottom 24% by Relative Valuation in the Tanzanian market

DescriptionValueRank
Price/Earnings/Growth0.76In Bottom 24%
Price to Book Value2.5In Bottom 12%
Price to Sales1.5In Bottom 1%

1.3 Rank in the bottom 13% by Price Performance in the Tanzanian market

DescriptionValueRank
1-month Price Change %-3.3In Bottom 13%

1.4 Downtrend

The stock traded at a one-month low of TZS4,080.0 today.

SECTION 2 ONGOING BEARISH PARAMETERS

2.1 Rank in the bottom 20% by Liquidity in the Tanzanian market

DescriptionValueRank
Days untraded in the past quarter17
Ave daily turnoverTZS41 million ($16,354)In bottom 20%

2.2 Declining Volume, down 11% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 11.3% to 2,670 shares.

Avg. Daily Volume Traded 12 months ended Jan 16, thousand shares

YearADVT
20242.7
202311.6
20227.1
202111.3
20203.0

2.3 Thinly traded stock: Days Untraded

Past five years, 12 months ended Jan 16

YearDays Untraded
2024147
202340
202251
202175
202063

The stock is thinly traded. Liquidity has deteriorated from 63 Days Untraded five years ago to 147 days in the past year.

2.4 Satisfies 4 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

- Improvement in current ratio from 2.6 to 2.7.

- Total shares on issue unchanged.

But does not meet the following 5 criteria of Joseph Piotroski:

- Return on Assets improvement.

- Good quality of earnings [operating cashflow exceeds net income].

- Improvement in long-term debt to total assets.

- Improvement in gross margin.

- Improvement in asset turnover.

SECTION 3 TODAY'S BULLISH SIGNALS

Price/Earnings:

Tanzania Portland Cement stock is trading at the third lowest P/E multiple in the Tanzania Share Index.

Price/Earnings of 7.5 < Cement & Concrete Manufacturing sector (of 2 stocks) avg of 10.7:

- The price-to-earnings ratio of 7.5 indicates undervaluation compared with sector average of 10.7.

3.1 Other Bullish Signals

- Return on Equity of 32.5% versus sector average of 19.6% and market average of 22.2%.

- Total Liabilities/EBITDA of 0.9 is less than 5, this compares favourably with the Joseph Piotroski benchmark of 5.

- Return on Assets of 23.2% versus sector average of 9.8% and market average of 4.2%.

- Return on Capital Employed of 43.7% versus sector average of 18.4% and market average of 20.9%.

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 1.8. Compared with the rest of the market the stock is undervalued.

- The company is cash rich with Cash to Market Capitalisation at 14.5%.

- Net profit margin has averaged 19.7% in the last 3 years. This is considered superior and suggests a high margin of safety.

- As per the Du Pont analysis, Return on Equity is high at 32.5%. This is computed as net profit margin of 19.7% times asset turnover [sales/assets] of 1.2 times leverage factor [total assets/shareholders' equity] of 1.4.

SECTION 4 ONGOING BULLISH PARAMETERS

4.1 Past four-years

- Tanzania Portland Cement rose for a fourth consecutive year. In the past four years it has risen TZS2,266.60 (125.0%).

4.2 Rank in the top 18% by Productivity in the Tanzanian market

DescriptionValueRank
Return on Capital Employed [ROCE] %43.7In Top 18%

4.3 Stock vs Index (Annual Percentage Change)

December 31Last price in TZS Annual ReturnReturn of Tanzania Share Index
20234,360.017.810.7
20223,700.020.09.1
20213,082.836.02.3
20202,266.725.01.6
20191,813.412.6-7.1
20181,609.9--

Over 6 years Tanzania Portland Cement is up a total 170.8% at an annualized rate of 22.1% compared to the Index being up 16.6% at an annualized rate of 3.1%.

Tanzania Portland Cement has outperformed the Tanzania Share Index in 5 of the past 6

years: 2023, 2022, 2021, 2020, 2019.

4.4 Created Market Value [CMV] past 4 yrs of TZS306 billion ($121.8 million)

- Market Capitalization has increased by TZS374.2 billion from TZS359.8 billion to TZS734.1 billion in the last 4 years. This increase comprises cumulative retained earnings (RETE) of TZS68.3 billion and Created Market Value of TZS306 billion. The Created Market Value multiple, defined by the change in MCap for every Sh1 of retained earnings is exemplary at TZS5.48.

4.5 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 11.1%

TSR %1 yr3 yrs5 yrs10 yrs
TPCC.DSE12.725.426.411.2

4.6 P/E/G < 1

The price earnings ratio of 7.5 divided by trailing twelve months eps growth of 10.0% corresponds to an attractive P/E/G of 0.8 times; being less than the value benchmark of 1.0.

EPS Growth (%)9.96
P/E/G0.76
P/E7.54

4.7 Low Debt to Equity (%)

The debt to equity ratio of 1.2% is under a safe benchmark figure of 50%. However, it has deteriorated from 0.4% a year ago.

YearsDebt to Equity (%)
Jun 20231.15
Jun 20220.38
Dec 20210.38
Dec 20201.46
Dec 20192.15

4.8 Increased VWAP, up 134% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 133.8% to TZS4,093.77. Based on a dynamic start date of five years ago, there has been no decline in VWAP over the last 5 years.

Past five years, 12 months ended Jan 16 (TZS)

YearHigh PriceVWAPLow Price
20244400.04093.773620.0
20234100.03776.443082.78
20223590.533154.072266.75
20212411.822164.021795.26
20202012.871750.781484.83

4.9 Increased share turnover, up 82% in 5 years

In the past five years, average daily share turnover has increased 81.6% to TZS6.7 million ($2,682). This suggests increased liquidity.

Past five years, 12 months ended Jan 16 (TZS million)

YearAverage Daily Turnover
20246.7
202332.4
202217.1
202116.3
20203.7

4.10 Satisfies two criteria of Benjamin Graham

- The P/E of 7.5 multiplied by the P/NTA of 2.5 is 18.8. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

-"Total debt less than tangible book value"; total debt of TZS3.5 billion (US$1.4 million) is less than tangible book value of TZS294.6 billion (US$122 million).-"Current ratio of two or more"; current assets are 2.7 times current liabilities.

SECTION 5 CORPORATE PROFILE

5.1 Activities

Tanzania Portland Cement manufactures, sells, and distributes cement products in Tanzia. It is Tanzania's largest Cement & Concrete Manufacturing company by market capitalisation.

5.2 Contact Details

Websitehttp://www.heidelbergcement.com/africa/en/twigacement/home.htm
Physical AddressWazo Hill, Bagamoyo Road
Phone+255 (0) 22 2630130 / 5 2630713
Fax+255 (0) 22 2630139
Emailinfo@twigacement.com

5.3 Industry & Sector [of 2 stocks]

Classification LevelName of Sector
Economic SectorBasic Materials
Business SectorMineral Resources
Industry GroupConstruction Materials
IndustryConstruction Materials
ActivityCement & Concrete Manufacturing

SECTION 6 FINANCIALS FY 2023, H1/2023

6.1 Financials, FY 2023 [year-ended 30 June 2023 ]

Tanzania Portland Cement Net Profit up 12%

Release Date: October 05, 2023

Tanzania Portland Cement (DSE:TPCC) reported net profit for the year-ended 30 June 2023 [FY2023] of TZS97.7b ($40.5m), up 12% from TZS87.4b ($37.5m) in the previous year [FY2022]. Earnings per share (EPS) were up 859% from TZS492.0 (US21.11c) in FY2021 to TZS541.0 (US22.41c) in FY2022.

6.2 Annual growth in Revenue, Net Profit and EPS

Year-ended30 June [FY/2023]30 June [FY/2022]
Revenue, TZS Billion495450
Revenue, $ Million205186
Growth in Revenue %10.1-
Net Profit, TZS Billion97.787.4
Net Profit, $ Million40.536.2
Growth in Net Profit %11.7-
EPS, TZS541.0492.0
Growth in EPS %10.0-

Major changes compared with previous year (FY2023 vs FY2022):

Favourable Changes:

- Net profit up 11.7% from TZS87.4b ($37.5m) to TZS97.7b ($40.5m)

- Total revenue up 10.1% from TZS449.5b ($192.8m) to TZS494.7b ($204.9m)

- EPS up 10% from TZS492.0 (US21.11c) to TZS541.0 (US22.41c)

- Administration expenses to Revenues down from 5.2% to 5.1%

- Sales and marketing expenses to Revenues down from 0.7% to 0.6%

Unfavourable Changes:

- Total non-current assets to Total Assets down from 39.2% to 35.6%

- Cash to Total Assets down from 30.1% to 25.2%

Year-on-year comparison of Performance Ratios [FY2023 vs FY2022]

June 30FY2023FY2022Change (%)
Return on Equity (%) (Steady % from 32.5 to 32.5)32.532.5Steady
Return on Assets (%)23.223.3Down 0.4
Common Size Ratios by Assets %
Cash to Total Assets 25.2 30.1 Down 16.4
Current Debtors to Total Assets 18.6 16.6 Up 12.2
Long-term investments to Total Assets 0.1 0.2 Down 52.3

Currency Conversion (June 30, 2023): $1 = TZS2414.23

Currency Conversion (June 30, 2022): $1 = TZS2331.15

6.3 Half-Yearly Financials

Tanzania Portland Cement reports 6.3% rise in Half-Yearly Net Profit

Release Date: September 26, 2023

Tanzania Portland Cement (DSE:TPCC), announced net profit of TZS50.0b ($20.7m) for the half year-ended 30 June 2023, up 6.3% from the previous corresponding period.

Half-Yearly Report (H1 2023)

Compared with the Previous Corresponding Period [PCP; H/30 Jun 2022], year-over-year [y.o.y.] Revenue was up 8.3% and Net Profit was up 6.3%.

Half year-ended30 Jun 202330 Jun 2022
Revenue, TZS billion246228
Revenue, $ million10294.2
PCP growth in Revenue %8.37.9
Net Profit, TZS billion50.047.1
Net Profit, $ million20.719.5
PCP growth in Net Profit %6.32.1

Currency Conversion (June 30, 2023): $1 = TZS2414.23

Currency Conversion (June 30, 2022): $1 = TZS2331.15

SECTION 7 TOP MANAGEMENT

7.1 Top Management

NameDesignation
Jean-Marc JunonChairman
Pascal LesoinneManaging Director

+ ANNEXURE

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

TPCC: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:

+ PRICE VOLUME - 5-YEAR HISTORY

TPCC: LINKS IN HTML TO FURTHER INFORMATION:

+ PRICE VOLUME CHARTS IN HTML

+ BOARD OF DIRECTORS

APPENDIX II STOCK IDENTIFIERS

ISIN: TZ1996100024

PermID: 5000452506

RIC: TPCC.TZ

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Cash/MCap: Cash plus Liquids/Market Capitalisation (times)

Current Ratio: Current Assets/Current Liabilities (times)

Debt/Equity: Net Debt/Net Assets %

Earnings Yield: Earnings Per Share/Share Price (%)

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Price/Sales: Share Price/Sales Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.

Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.

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