Tanzania Portland Cement (TPCC: TZS3,920.0) offers earnings yield of 12.6% 09 February 2023

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Tanzania Portland Cement Company Limited (DSE:TPCC), Tanzania's largest Cement & Concrete Manufacturing company by market cap, ranks 2 in the Top 20 by earnings yield stocks in the Tanzania Share Index of 8 stocks.

Note: Earnings yield is the inverse of the P/E ratio.

Rank 2 by earnings yield in Tanzania Share Index. Rank 1 is highest.

Last price: TZS3,920.0;

FY 2021 EPS: TZS492.0;

TANZANIA PORTLAND CEMENT Stock Dashboard [traded in Tanzanian Shilling, TZS]

Exchange	TANZANIAN	Sector	Cement & Concrete Manufacturing
Currency	1.000 USD = 2,341.92 Tanzanian Shilling (TZS)	Market Cap	TZS705 billion [$301 million]
Feb 09, 2023	TZS3,920.0	Shares Outstanding	179,923,100
P/E (FY2021)	8	TPCC in Indices	Tanzania Share
EPS (FY2021)	TZS492.0	Independent Sector comparison by Dividend Yield % (TTM)	Stock: 9.95; Sector: 9.08. 8.7% Discount to sector av. Attractive dividend yield compared to sector av
Dividend Yield (TTM)	9.9%	Independent Sector comparison by P/E	Stock: 7.97; Sector: 8.5. 6.2% Discount to sector av. Good value compared with sector av
EPS Growth (FY2021 vs FY2020)	18.6%	Days Untraded in Past Month	5/20; Stock is not Liquid
Ave Daily Volume	9,492 shares	PV$1000 (1 yr)	TZS1,386
52-Week Range	3,082.78 - 4,100.00

Stock vs Index (Annual Percentage Change)

December 31	Last price in TZS	Annual Return	Index return of Tanzania Share Index
2022	TZS3,700.0	20.0	9.1
2021	TZS3,082.78	36.0	2.3
2020	TZS2,266.75	25.0	1.6
2019	TZS1,813.40	12.6	-7.1
2018	TZS1,609.86	50.9	-5.8
2017	TZS1,066.88	-	-

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

years: 2022, 2021, 2020, 2019, 2018.

INDEX

SECTION 1 THE PAST QUARTER: FINANCIALS

SECTION 2 TODAY'S BULLISH SIGNALS

SECTION 3 ONGOING BULLISH PARAMETERS

SECTION 4 TODAY'S BEARISH SIGNALS

SECTION 5 ONGOING BEARISH PARAMETERS

SECTION 6 CORPORATE PROFILE

SECTION 7 DIVIDEND

SECTION 8 FINANCIALS AS REPORTED H1/2022, FY 2021

SECTION 9 PEER COMPARISON & RANKING OF TPCC

SECTION 10 STOCK IDENTIFIERS

ANNEXURE I FINANCIALS H1/2022, FY 2021

GLOSSARY

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TPCC: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:

+ PRICE VOLUME - 5-YEAR HISTORY

+ PEER COMPARISON - STOCK IN TANZANIA SHARE INDEX

TPCC: LINKS IN HTML TO FURTHER INFORMATION:

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SECTION 1 THE PAST QUARTER: FINANCIALS

1.1 TPCC Financials Summary: EPS up 18.6% to TZS492.0 in FY2021 [ y.e. 31 Dec 2021]

+ Net profit was up 15.5% from $32.4 million in FY2020 to $37.4 million in FY2021.

+ Earnings Per Share (EPS) was up 18.6% from TZS415.0 in FY2020 to TZS492.0 in FY2021.

Year ended Dec	FY2021	FY2020	FY2019
Sales ($ M)	192.4	168.5	149.3
Pretax ($ M)	54.8	46	36.8
Net ($ M)	37.4	32.4	25.1
EPS (TZS)	492	415	332

SECTION 2 TODAY'S BULLISH SIGNALS

2.1 PAST WEEK: MODERATE MOMENTUM UP - TPCC increases 3.2% on volume 1.4 times average

The price ranged between a low of TZS3,800.0 on Thursday Feb 02 and a high of TZS3,920.0 on Thursday Feb 09.

Feb	Tanzania Portland Cement	Close [TZS]	Change %	RPC % *	Comment
Thu 02	Offers dividend yield of 10.3%, hits 191-day high	3,800	0	-0.9	Week-low of 3,800
Tue 07	Offers dividend yield of 10.3%	3,800	0	-0.1	Price rise on rising relative strength
Wed 08	Offers earnings yield of 12.9%	3,800	0	-0.1	Price/MAP50 above 1 and rising
Thu 09	Adds TZS22 billion ($9 million) (3.2%) in MCap, top heavyweight rise in Tanzania Share Index	3,920	3.2	2.9	Week-high of 3,920; Top Rise; VI*=5.5

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

[Volume Index (VI); 1 is average]

2.2 Rank in the top 21% by Price Performance in the Tanzanian market

Description	Value	Rank
1-month Price Change %	8.9	In Top 12%
PV1000 [1 yr] $	1,386	In Top 21%

2.3 Uptrend

Price/Moving Average Price of 1.09:

- The Price/MAP 200 for Tanzania Portland Cement is 1.09. Being higher than 1 is a bullish indicator. It is higher than the Price/MAP 200 for the Tanzania Share Index of 1.03, a second bullish indicator. The stock is trading above both its MAPs and the 50-day MAP of TZS3,728.02 is higher than the 200-day MAP of TZS3,589.49, a third bullish indicator. The 200-day MAP has increased to TZS3,589.49, a fourth bullish indicator.

Past Month:

- Rises to Falls: In the past month the number of rises outnumbered falls 4:1.

Past Quarter:

- The shares had their best quarter in six quarters since the quarter ended August 09, 2021.

In the last three months the stock has hit a new 52-week high thrice.

2.4 Undervaluation

Price/Earnings:

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

Dividend Yield:

Tanzania Portland Cement stock is the highest dividend yielding stock in the Tanzania Share Index.

The Dividend Yield of 9.9% is better than the Index average of 3.1%

- The relative yield of the stock, defined by its yield of 9.9%, divided by average yield of dividend yielding stocks in the Tanzania Share Index of 3.1% is 318.9%. This suggests the stock is undervalued in dividend yield terms.

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 1.9. Compared with the rest of the market the stock is undervalued.

2.5 Other Bullish Signals

- Return on Equity of 32.5% versus sector average of 22.3% and market average of 22.7%.

- Total Liabilities/EBITDA of 0.8 is less than 5, this compares favourably with the Joseph Piotroski benchmark of 5.

- Return on Assets of 23.3% versus sector average of 11.6% and market average of 1.8%.

- Return on Capital Employed of 43.9% versus sector average of 20.9% and market average of 4.2%.

- Net profit margin has averaged 18.6% 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.Also, this has improved from 29.3% last year.

	ROE (%)	Profit Margin (%)	Asset Turnover	Leverage factor
Current Year	32.5	19.7	1.2	1.4
Previous Year	29.3	19.0	1.1	1.4

SECTION 3 ONGOING BULLISH PARAMETERS

3.1 Rule of 40

The stock scores a favorable score exceeding 40 when using the Rule of 40 (Revenue Growth plus EBITDA margin). Y.o.y revenue growth of 14%, EBITDA margin is 28.5% and the sum of the two 42.6% needs to exceed 40%.

3.2 Past four-years

- Tanzania Portland Cement rose for a fourth consecutive year. In the past four years it has risen TZS2,310.14 (143.5%).

3.3 Rank in the top 14% by Productivity in the Tanzanian market

Description	Value	Rank
Return on Capital Employed [ROCE] %	43.9	In Top 14%

3.4 Present Value of Sh1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVSh1000 > 1,088

PVSh1,000	3 mo ago	1 yr ago	3 yrs ago
TPCC.DSE	TZS1,089	TZS1,402	TZS2,384
Cement & Concrete Manufacturing sector	TZS1,069	TZS1,133	TZS1,941
Tanzania Share Index	TZS1,047	TZS1,076	TZS1,154

3.5 The Best Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % > 8.8

3-Year price change of 116.2% for Tanzania Portland Cement outperformed the change of 15.4% in the Tanzania Share Index for a relative price change of 100.7%.

Price Change %	Quarter	Year	3 Years
Tanzania Portland Cement	8.9	27.2	116.2
Cement & Concrete Manufacturing sector	6.9	13.3	94.1
Tanzania Share Index	4.6	7.4	15.4

3.6 Moving Annual Return of 39.8% in the past year:

Moving Annual Return was 39.8% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 37.9%. The Moving Annual Return has consistently exceeded 25%.

TPCC	Close (TZS)	Dividends (TZS)	Capital Gain %	% Yield	Annual Return %
Feb 09	3,920	390	27.2	12.7	39.8
1 Yr ago	3,082.78	-	36	-	36.0
2 Yrs ago	2,266.75	-	25	-	25.0
3 Yrs ago	1,813.4	290	12.6	18	30.7
4 Yrs ago	1,609.86	100	48.9	9.2	58.1

Close 5 years ago TZS1,081.50

3.7 Created Market Value [CMV] past 2 yrs of TZS214.7 billion ($91.7 million)

- Market Capitalization has increased by TZS255.5 billion from TZS449.8 billion to TZS705.3 billion in the last 2 years. This increase comprises cumulative retained earnings (RETE) of TZS40.8 billion and Created Market Value of TZS214.7 billion. The Created Market Value multiple, defined by the change in MCap for every Sh1 of retained earnings is exemplary at TZS6.27.

3.8 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 33.1%

TSR %	1 yr	3 yrs	5 yrs
TPCC.DSE	40.2	33.2	38.1

3.9 P/E/G < 1

The price earnings ratio of 8.0 divided by trailing twelve months eps growth of 18.6% corresponds to an attractive P/E/G of 0.4 times; being less than the value benchmark of 1.0.

EPS Growth (%)	18.55
P/E/G	0.43
P/E	7.97

3.10 Improved EBIT Margins:

EBIT margin is positive and has seen consecutive rises in the last 3 years.

FY	EBIT Margins (%)
2021	28.5
2020	27.3
2019	24.6
2013	23.7
2012	37.3

3.11 Low Debt to Equity (%) and Reducing

The debt to equity ratio of 0.4% is under a safe benchmark figure of 50%. Moreover, it has improved in the past two years.

Years	Debt to Equity (%)
Dec 2021	0.38
Dec 2020	1.46
Dec 2019	2.15

3.12 Increased VWAP, up 212% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 211.9% to TZS3,788.48. 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 Feb 09 (TZS)

Year	High Price	VWAP	Low Price
2023	4100.0	3788.48	3082.78
2022	3590.53	3162.15	2266.75
2021	2429.95	2170.14	1795.26
2020	2012.87	1756.35	1484.83
2019	1703.64	1214.6	1081.5

3.13 Increased share turnover, up 282% in 5 years

In the past five years, average daily share turnover has increased 281.8% to TZS34.2 million ($14,592). This suggests increased liquidity.

Past five years, 12 months ended Feb 09 (TZS million)

Year	Average Daily Turnover
2023	34.2
2022	17.3
2021	16.2
2020	3.9
2019	9.0

3.14 Declining Days Untraded

Past five years, 12 months ended Feb 09

Year	Days Untraded
2023	41
2022	53
2021	69
2020	68
2019	65

The stock is thinly traded. Liquidity has improved from 65 Days Untraded five years ago to 41 days in the past year.

3.15 Satisfies two criteria of Benjamin Graham

- The P/E of 8 multiplied by the P/NTA of 2.6 is 20.8. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

-"Total debt less than tangible book value"; total debt of TZS1 billion (US$453,272) is less than tangible book value of TZS270.2 billion (US$117.3 million).-"Current ratio of two or more"; current assets are 2.6 times current liabilities.

SECTION 4 TODAY'S BEARISH SIGNALS

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

Description	Value	Rank
Price to Sales	1.6	In Bottom 24%

SECTION 5 ONGOING BEARISH PARAMETERS

5.1 Declining Volume, down 11% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 11.4% to 9,492 shares.

Avg. Daily Volume Traded 12 months ended Feb 09, thousand shares

Year	ADVT
2023	9.5
2022	7.3
2021	10.8
2020	3.2
2019	10.7

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

- Return on Assets improvement [from 21.1% to 23.3%].

- Total shares on issue unchanged.

- Improvement in gross margin [from 33.6% to 34.8%].

- Improvement in asset turnover [growth in revenue of 14.2 exceeded growth in assets of 7.4%].

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

- Improvement in long-term debt to total assets.

- Improvement in current ratio.

SECTION 6 CORPORATE PROFILE

6.1 Activities

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

6.2 Contact Details

Website	http://www.heidelbergcement.com/africa/en/twigacement/home.htm
Physical Address	Wazo Hill, Bagamoyo Road
Phone	+255 (0) 22 2630130 / 5 2630713
Fax	+255 (0) 22 2630139
Email	info@twigacement.com

6.3 Industry & Sector

Classification Level	Name of Sector
Industry Group	Construction Materials
Industry	Construction Materials
Activity	Cement & Concrete Manufacturing
Economic Sector	Basic Materials
Business Sector	Mineral Resources

SECTION 7 DIVIDEND

7.1 Dividends

In the past 1 year, there have been no change in annual dividends of TZS390.0 per share.

Date Paid	Value (TZS)	Type
09 May 2022	390	Final
Tr 12 Months	390

SECTION 8 FINANCIALS AS REPORTED H1/2022, FY 2021

8.1 Financials as reported (Half Year)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

(In TZS Thousand, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED

Description	TZS Thousand	TZS Thousand
Jun 30	2022	2021	Change %
Revenue	227,512,642	210,825,663	Up 7.9
Cost of sales	-139,272,410	-126,277,122	Deterioration 10.3
Gross profit	88,240,232	84,548,541	Up 4.4
Other operating income	212,412	821,403	Down 74.1
Selling and administrative expenses	-1,413,469	-1,552,643	Improved 9.0
Administrative expenses	-10,468,251	-9,314,386	Deterioration 12.4
Depreciation and amortisation	-10,442,081	-8,681,096	Deterioration 20.3
Other operating expenses	-958,201	-1,091,706	Improved 12.2
Operating profit	65,170,642	64,730,113	Up 0.7
Financial items	2,131,055	1,298,145	Up 64.2
Profit before tax	67,301,697	66,028,258	Up 1.9
Taxes on income	-20,248,978	-19,937,458	Deterioration 1.6
Profit for the year	47,052,719	46,090,800	Up 2.1

BALANCE SHEET AS REPORTED

Description	TZS Thousand	TZS Thousand
Jun 30	2022	2021	Change %
ASSETS
Intangible fixed assets	909,928	797,216	Up 14.1
Tangible fixed assets	141,397,837	130,771,416	Up 8.1
Other non-current assets	7,232,854	4,286,500	Up 68.7
Non. current assets	149,540,619	135,855,132	Up 10.1
Inventories	86,107,493	69,747,539	Up 23.5
Trade and other receivables	70,387,157	60,811,816	Up 15.7
Cash and cash equivalents	58,774,862	73,260,020	Down 19.8
Current assets	215,269,512	203,819,375	Up 5.6
TOTAL ASSETS	364,810,131	339,674,507	Up 7.4
EQUITY 8. LIABILITIES
Equity	249,118,402	230,868,930	Up 7.9
	249,118,402	230,868,930	Up 7.9
Lease liabilities	6,145,443	3,196,726	Up 92.2
Long term provisions	9,324,932	6,621,779	Up 40.8
Provision for deferred taxes	10,435,603	12,940,597	Down 19.4
Non-current liabilities	25,905,978	22,759,102	Up 13.8
Lease liabilities
Current income tax payable	769,868	3,447,885	Down 77.7
Trade ana other payables	86,247,190	79,801,715	Up 8.1
Dividend payable	2,768,693	2,796,875	Down 1.0
Current liabilities	89,785,751	86,046,475	Up 4.3
TOTAL EQUITY & LIABILITIES	364,810,131	339,674,507	Up 7.4

8.2 Financials as reported (FY 2021 [year-ended 31 December 2021 ])

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

(In TZS Thousand, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED (FY 2021 [year-ended 31 December 2021 ])

Description	TZS Thousand	TZS Thousand
Dec 31	2021	2020	Change %
Revenue from contracts with customers	449,509,301	393,739,558	Up 14.2
Cost of sales	-293,185,036	-261,389,401	Deterioration 12.2
Gross profit	156,324,265	132,350,157	Up 18.1
Other operating income	1,205,920	2,250,391	Down 46.4
Sellingand marketingexpenses	-3,010,835	-2,942,285	Deterioration 2.3
Administrative expenses	-23,514,168	-23,003,381	Deterioration 2.2
Other operating expenses	-5,423,601	-3,709,781	Deterioration 46.2
Operating profit	125,581,581	104,945,101	Up 19.7
Finance income	3,258,481	1,819,274	Up 79.1
Finance costs	-611,279	-1,292,507	Improved 52.7
Net (loss)/gain on foreign currency translation	-191,595	1,957,366	Deterioration
Profit before tax	128,037,188	107,429,234	Up 19.2
Income tax expense	-39,555,603	-32,752,864	Deterioration 20.8
Profit for the year	88,481,585	74,676,370	Up 18.5
Other comprehensive income
Other comprehensive income not to be reclassified to profit
or loss in subsequent periods:
Re-measurement (losses)/gains on defined benefit plan	-1,538,346	1,469,714	Deterioration
Incometaxeffect	461,504	-440,914	Recovery
Other comprehensive (loss)/income for the year net of tax	-1,076,842	1,028,800	Deterioration
Total comprehensive income for the year net of tax	87,404,743	75,705,170	Up 15.5
Earnings per share
Basic and diluted earnings per share (TZS)	TZS492.0	TZS415.0	Up 18.6
NO OF SHARES	179,923,100	179,923,100	Steady

BALANCE SHEET AS REPORTED (FY 2021 [year-ended 31 December 2021 ])

Description	TZS Thousand	TZS Thousand
Dec 31	2021	2020	Change %
ASSETS
Non-current assets
Property plant and equipment	144,842,101	133,393,148	Up 8.6
Intangible assets	1,006,537	797,216	Up 26.3
Leasehold land	1,008,775	1,036,621	Down 2.7
Right of Use assets	982,483	4,198,644	Down 76.6
Otherfinancial assets	796,000	1,346,000	Down 40.9
	148,635,896	140,771,629	Up 5.6
Current assets
Inventories	52,935,487	52,404,781	Up 1.0
Trade receivables	46,277,317	41,090,916	Up 12.6
Other short-term operating receivables	16,586,869	14,481,057	Up 14.5
Otherfinancial assets	600,000	600,000	Steady
Cash and cash equivalent	114,278,364	103,855,770	Up 10.0
	230,678,037	212,432,524	Up 8.6
TOTAL ASSETS	379,313,933	353,204,153	Up 7.4
EQUITY AND LIABILITIES
Equity
Authorised issued and fully paid-up sharecapital	3,598,462	3,598,462	Steady
Retained earnings	268,637,039	251,402,305	Up 6.9
TOTAL EQUITY	272,235,501	255,000,767	Up 6.8
Non-current liabilities
Lease liabilities	186,758	1,231,231	Down 84.8
Employment benefit liabilities	5,306,943	4,062,080	Up 30.6
Provision for quarry site restoration	2,432,541	2,275,022	Up 6.9
Deferred income tax liability	11,618,859	14,273,690	Down 18.6
	19,545,101	21,842,023	Down 10.5
Current liabilities
Lease liabilities	1,044,405	3,725,915	Down 72.0
Current income tax payable	28,859	1,013,768	Down 97.2
Trade and other payables	83,611,599	68,760,196	Up 21.6
Interest-bearing loan		5,021
Dividend payable	2,848,468	2,856,463	Down 0.3
	87,533,331	76,361,363	Up 14.6
TOTAL LIABILITIES	107,078,432	98,203,386	Up 9.0
TOTAL EQUITY AND LIABILITIES	379,313,933	353,204,153	Up 7.4

CASH FLOW AS REPORTED (FY 2021 [year-ended 31 December 2021 ])

Description	TZS Thousand	TZS Thousand
Dec 31	2021	2020	Change %
Operating activities
Profit before tax	128,037,188	107,429,234	Up 19.2
Adjustment to reconcile profit before tax to net cash flows:
Depreciation and amortisation	18,666,314	17,296,680	Up 7.9
Interest expense	611,279	1,292,507	Down 52.7
Interest income	-3,258,481	-1,819,274	Deterioration 79.1
Net unrealised exchange loss	1,089,777	-1,200,760	Recovery
Net provision for slow moving and obsolete inventories	2,058,943	3,308,933	Down 37.8
Increase in site restoration provision	157,519	146,645	Up 7.4
Post-employment benefit provision	656,575	769,788	Down 14.7
Expected credit losses for trade receivables	-421,078	-1,040,996	Improved 59.6
Gain on disposal of property plant and equipment	-46,610	-71,063	Improved 34.4
Cash flows before changes in working capital items	147,551,426	126,111,694	Up 17.0
Working capital adjustments:
(lncrease)/decrease in inventories (excluding provisions).	-2,589,649	7,257,558	Deterioration
Increase/(decrease) in trade receivables	-4,765,323	1,256,948	Deterioration
Increase in other short-term operating receivables	-2,105,812	-3,781,485	Improved 44.3
Decrease in other financial assets	550,000	8,680,640	Down 93.7
lncrease/(decrease) in trade and other payables	14,851,403	-4,542,354	Recovery
Corporation tax paid	-42,733,839	-36,507,255	Deterioration 17.1
Payment to post-employment benefit - Benefit payments	-950,058	-729,625	Deterioration 30.2
Interest received	3,258,481	1,819,274	Up 79.1
Interest paid -other		-53,386
Net cash inflows from operating activities	113,066,629	99,512,009	Up 13.6
Investing activities
Proceeds from disposal of property plant and equipment	46,610	71,063	Down 34.4
Payment for capital works-in-progress	-27,820,338	-12,158,651	Deterioration 128.8
Purchase of capital items in stock	-7,929	-186,890	Improved 95.8
Net cash flows used in investing activities	-27,781,657	-12,274,478	Deterioration 126.3
Financing activities
Dividends paid	-70,178,005	-52,538,738	Deterioration 33.6
Payment of liabilities - principal and interest	-4,337,262	-4,337,193	Deterioration
Net cash flows used in financing activities	-74,515,267	-56,875,931	Deterioration 31.0
Net increase in cash and cash equivalents	10,769,705	30,361,600	Down 64.5
Net foreign exchange difference	-347,111	809,476	Deterioration
Cash and cash equivalents at 01 January	103,855,770	72,684,694	Up 42.9
Cash and cash equivalent at 31 December	114,278,364	103,855,770	Up 10.0

SECTION 9 PEER COMPARISON & RANKING OF TPCC

9.1 GLOBAL PEER COMPARISON: TPCC - SIZE (all figures in $)

In its Global Peer Group of 9 companies TPCC is ranked TPCC is ranked fourth (4) by Net Profit, fifth (5) by MCap, eighth (8) by Revenue and ninth (9) by Total Assets.

Name (Code)	MCap	Revenue	Net Profit	Total Assets
Rank of TPCC	5	8	4	9
Tanzania Portland Cement (TPCC)	301.2M	191.9M	37.3M	162M
Sagar Cements (SAGCEM)	337.8M	194.4M	8.3M	406.1M
Shanghai Phoenix Enterprise - A Share (600679)	305.7M	303.1M	15.3M	513.2M
Orient Cement (ORIENTCEM)	302.4M	330.1M	31.8M	319.8M
Hail Cement (3001)	301.3M	38.1M	11.3M	319.4M
Hai Phong Thermal Power JSC (HND)	292.4M	468.7M	63.2M	482.1M
Bestway Cement (BWCL)	291.4M	262.8M	37.2M	484.7M
Quang Ninh Thermal Power JSC (QTP)	290.2M	394.8M	56.1M	451.8M
Tata Steel (TSTH)	279.1M	968.9M	77.5M	460.6M

GLOBAL PEER COMPARISON: TPCC - RELATIVE VALUE INDICATORS

In value terms, comparing relative value of its shares, TPCC is ranked

+ 3 out of 9 by Dividend Yield (%) [10.3]

+ 1 out of 9 by Price/Earnings per share [7.7]

+ 5 out of 9 by Price/Sales per share [1.5]

+ 8 out of 9 by Price/Book value per share [2.5]

Name (Code)	Currency Code	Last Price	Div Yld (%)	P/E	P/S	P/Book
Rank of TPCC by value			3	1	5	8
Tanzania Portland Cement (TPCC)	TZS	3,920	10.3	7.7	1.5	2.5
Sagar Cements (SAGCEM)	INR	213.7	0.3	43.1	1.8	2.4
Shanghai Phoenix Enterprise - A Share (600679)	CNY	9	0.7	44.6	1.0	1.3
Orient Cement (ORIENTCEM)	INR	122	2.0	9.7	0.9	1.8
Hail Cement (3001)	SAR	11.5	4.3		4.8	1.0
Hai Phong Thermal Power JSC (HND)	VND	13,600	5.9
Bestway Cement (BWCL)	PKR	135	14.8	7.9	1.1	1.5
Quang Ninh Thermal Power JSC (QTP)	VND	15,000	10.7			1.1
Tata Steel (TSTH)	THB	1.1	4.5	7.9	0.4	1.1

USD 1=

2339.254907 Tanzanian Shilling (TZS)ChartPath:Global Peer Group - Price Performance:/home/jboss/jboss-3.2.7/server/default/deploy/BuySellSignals.war/report/Tanzania/Stock/PDF/Daily/chart/new/7_GlobalPeerGroup.svg

9.2 BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING:

Tanzania Portland Cement vs Tanzanian Market

Out of 6 stocks in the Tanzanian Market, Tanzania Portland Cement is ranked first(1) by Yield, second(2) by P/Earnings, second(2) by Total Debt/Equity and second(2) by Market Cap in $.

	Tanzanian Avg	TPCC	TPCC Rank
Yield (%)	1.9	9.9	1
P/Earnings	12.5x	7.97x	2
Total Debt/Equity (the lower the better)	1.8x	0.004x	2
Market Cap $	626.7 M		2
ROA (%)	1.8	23.3	2
P/Earnings/ Growth	-	0.4x	3
P/Sales	2.2x	1.6x	3
Revenue $	210.7 M	191.9 M	4
ROE (%)	22.7	32.5	4
EBITDA Margin%	9.1	28.5	5
Net Profit $	9.9 M	37.3 M	6
Price/Net Tangible Assets	2.4x	2.6x	6
Premium to 52-Wk Low (%)	310.9	27.2	6
Total Assets $	608.8 M	162 M	6
Discount to 52-Wk High (%)	0.8	4.4	8
EPS Growth YOY (%)	-	18.6	9

Negative values are shown in brackets.

9.3 Stock in Index and Stock in Sector

Description	TPCC	Tanzania Share Index	% of Tanzania Share Index	Cement & Concrete Manufacturing sector	% of Cement & Concrete Manufacturing sector
Net Profit $	37.3 M	270.6 M	13.8	38.8 M	96.1
Revenue $	191.9 M	796 M	24.1	290.5 M	66.1
Total Assets $	162 M	7.2 B	2.2	335.1 M	48.3
MCap $	301.2 M	2.3 B	13.2	330 M	91.3

9.4 Relative Valuation Indicators: Stock vs Index and Stock vs Sector

Description	TPCC	Tanzania Share Index Avg.	Cement & Concrete Manufacturing sector Avg.
Price/Earnings	8.0	8.6	8.5
P/Earnings/Growth	0.43	0.16	0.36
Yield (%)	9.95	3.12	9.08
Price/Net Tangible Assets	2.61	1.91	1.91

9.5 MARKET SHARE

Tanzania Portland Cement has a position of market dominance in the Cement & Concrete Manufacturing sector.

Tanzania Portland Cement vs Cement & Concrete Manufacturing sector [Cement & Concrete Manufacturing sector Total in Brackets]

Revenue of TZS449.5 billion ($191.9 million)[66.1% of aggregate sector revenue of TZS680.3 billion; up from 64.9% in the previous year.]

9.6 GLOBAL RANK [out of 47,505 stocks] AND RANK OF TANZANIA PORTLAND CEMENT IN THE MIDDLE EAST & AFRICA REGION [out of 2,105 stocks]

Description	Value	Global Rank	In MEA Region
MCap ($)	301.2M	17,000	698
Total Assets ($)	162M	22,926	904
Revenue ($)	191.9M	15,507	445
Net Profit ($)	37.3M	10,068	389
Return on Equity %	32.5	1,900	107
Net Profit Margin %	19.7	6,782	532
Price to Book	2.5	23,603	1,105
Price/Earnings	7.7	5,591	247
Yield %	10.3	1,476	119
PV1000 (1Year) $*	1,386	4,307	234
$* Change (1Year) %	21.8	5,654	290

* 1 year ago $1 = TZS 2,314.81

Feb 09, 2023: $ 1 equals TZS 2,341.92

9.7 RANK OF TANZANIA PORTLAND CEMENT IN THE TANZANIA SHARE INDEX [out of 7 stocks] AND IN THE TANZANIAN MARKET [out of 11 stocks]

Description	Value	In Tanzania Share Index	In Tanzanian Market
MCap (Sh)	705.3B	4	5
Total Assets (Sh)	379.3B	3	5
Revenue (Sh)	449.5B	2	3
Net Profit (Sh)	87.4B	3	4
Return on Equity %	32.5	2	2
Net Profit Margin %	19.7	3	3
Price to Book	2.6	6	9
Price/Earnings	8.0	2	2
Yield %	9.9	1	1
PV1000 (1Year) TZS	1,402	2	2

9.8 LONG-TERM FUNDAMENTAL RANKING: 3 OUT OF 5 [5 is best]

Tanzania Portland Cement is ranked number 1 out of 2 listed cement & concrete manufacturing companies in the Tanzania with a market capitalization of TZS705.3 billion ($301.2 million).

Within its sector it has a relatively moderate P/E of 8 and moderate P/E/G of 0.43.

It has a moderate relative ROE of 32.5% and ROA of 23.3%. Finally, its earnings growth in the past 12 months has been a comparatively moderate 18.6%.

Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 10 STOCK IDENTIFIERS

ISIN: TZ1996100024

PermID: 5000452506

RIC: TPCC.TZ

ANNEXURE I FINANCIALS H1/2022, FY 2021

I.I Half-Yearly Financials

Tanzania Portland Cement reports 2.1% rise in Half-Yearly Net Profit

Release Date: December 16, 2022

Tanzania Portland Cement (DSE:TPCC), announced net profit of TZS47.1b ($20.2m) for the half year-ended 30 June 2022, up 2.1% from the previous corresponding period.

Half-Yearly Report (H1 2022)

Compared with the Previous Corresponding Period [PCP; H/30 Jun 2021], year-over-year [y.o.y.] Revenue was up 7.9% and Net Profit was up 2.1%.

Half year-ended	30 Jun 2022	30 Jun 2021
Revenue, TZS billion	228	211
Revenue, $ million	97.6	90.4
PCP growth in Revenue %	7.9	16.2
Net Profit, TZS billion	47.1	46.1
Net Profit, $ million	20.2	19.8
PCP growth in Net Profit %	2.1	31.9

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

Currency Conversion (June 30, 2021): $1 = TZS2319.15

I.II Financials, FY 2021 [year-ended 31 December 2021 ]

Tanzania Portland Cement EPS Growth slows to 19%

Release Date: December 08, 2022

Tanzania Portland Cement (DSE:TPCC), announced EPS of TZS492.0 (US21.35c) for the year-ended 31 December 2021 [FY2021], up 19% from TZS415.0 (US17.89c) in the previous year-ended 31 December 2020 [FY2020]. EPS growth from the year-ended 31 December 2019 [FY2019] to the year-ended 31 December 2020 [FY2020] was 25%.

I.III Annual growth in Revenue, Net Profit and EPS

Year-ended	31 December [FY/2021]	31 December [FY/2020]
Revenue, TZS Billion	450	394
Revenue, $ Million	195	171
Growth in Revenue %	14.2	12.9
Net Profit, TZS Billion	87.4	75.7
Net Profit, $ Million	37.9	32.8
Growth in Net Profit %	15.5	28.9
EPS, TZS	492.0	415.0
Growth in EPS %	18.6	25.0

Major changes compared with previous year (FY2021 vs FY2020):

Favourable Changes:

- Net profit up 15.5% from TZS75.7b ($32.6m) to TZS87.4b ($37.9m)

- Total revenue up 14.2% from TZS393.7b ($169.7m) to TZS449.5b ($195.0m)

- EPS up 18.6% from TZS415.0 (US17.89c) to TZS492.0 (US21.35c)

- EBIT Margin up from 27.3% to 28.5%

- EBIT to total assets up from 30.4% to 33.8%

Unfavourable Changes:

- Current ratio down 5% from 2.8 to 2.6

- Working capital to total assets down from 38.5% to 37.7%

Year-on-year comparison of Performance Ratios [FY2021 vs FY2020]

December 31	FY2021	FY2020	Change (%)
Return on Equity (%)	32.5	29.3	Up 10.9
Return on Assets (%)	23.3	21.1	Up 10.4
Total debt to net tangible assets (%)	0.4	1.5	Down 73.3
Common Size Ratios by Assets %
Current Debtors to Total Assets	16.6	15.7	Up 5.5
Long-term investments to Total Assets	0.2	0.4	Down 47.5

Currency Conversion (December 31, 2021): $1 = TZS2304.72

Currency Conversion (December 31, 2020): $1 = TZS2320.19

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 (%)

Current Ratio: Current Assets/Current Liabilities (times)

Debt/Equity: Net Debt/Net Assets %

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

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

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

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

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

Price Close/Moving Avg Price: Latest Price/Moving Average Price

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

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

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

TTM: Trailing 12 Months

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

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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