Shares of Africa Prudential, a top registrar, have surged by over 40% month-to-date, bringing its year-to-date performance to over 90%.
The surge follows the company’s late October earnings release, which reported a pre-tax profit of N839 million, a 22.7% increase from N683 million in 2023.
Reporting N1 billion in interest income, the company highlighted that ‘short-term deposits’ made up over 80% of the total, significantly boosting overall profit.
This strong performance likely heightened positive sentiment around the company, driving the share price from N9.60 to N14.30 as of the market opening on December 12, 2024, with a monthly trading volume of 19.2 million shares.
Market trends
The company began the year trading at N7.40 per share but ended January slightly lower at N7.10, closing in the red.
- February saw a surge of bullish activity, with a market volume of 28 million shares driving the price upward. However, this momentum was short-lived as the stock experienced a gradual retracement, dipping to N7.00 by May.
- The tide turned toward the end of the second quarter when bullish sentiment began to build. From June through September, the stock gained significant traction, climbing 41% to close September at N9.90.
- While October and November saw slight declines, the stock has shown remarkable resilience in early December.
- As of the market opening on December 12, it has surged past N14, delivering a strong month-to-date performance above 40%.
Likely drivers of bullish price action
Several events appear to have driven the bullish sentiment surrounding Africa Prudential’s stock between June and the fourth quarter of 2024.
- In late Q2 2024, the company proposed a 15 kobo per share dividend for the period ending June 30, 2024, payable to shareholders on record as of August 9, 2024, offering an incentive for investor interest.
- For the first half of 2024, Africa Prudential reported financial growth, with net income rising 24% year-on-year (YoY) to N2 billion from N1.6 billion in H1 2023, amid an impressive 87% YoY surge in pre-tax profit.
- In an investor relations call held in August 2024, the company’s Managing Director/CEO, Catherine Nwosu, shared strategic plans for expanding consultancy services, emphasizing the launch of new e-product applications.
- In late October 2024, the company reported third-quarter results with a pre-tax profit of N839 million, a 22.7% YoY increase from N683 million in 2023, raising the nine-month total to N1.9 billion.
Comments by the MD/CEO
In an investor relations call during the third quarter of 2024, Managing Director/Chief Executive Officer Catherine Nwosu shared insights into the company’s strategic direction, emphasizing plans to broaden its service offerings and enhance value for stakeholders.
“We plan to expand into consultancy and secretariat services within Nigeria while commercializing our e-product applications, including Invearn, Greenpole, and Apems,” Nwosu revealed.
She further expressed optimism about the company’s future, stating, “We will introduce a range of new and innovative products tailored to meet the diverse needs and expectations of our valued investors.”