On Thursday, the 9th of January 2019, Cement Company of Northern Nigeria plc completed merger with BUA group owned subsidiary Kalambaina cement.
The merger is said to further boost efficiency, productivity, output and better returns of CCNN according to Abdul Samad Rabiu, Chairman of CCNN.
Abdul Samad Rabiu, on Wednesday rang the closing gong on the floor of The Nigeria Stock Exchange (NSE) to mark the end of trading and listing of the shares of the expanded CCNN entity which is now one of Nigeria’s 12 most capitalized companies on the exchange as ranked by the Nigerian Stock Exchange Market (NSE).
As at end of trading session on Wednesday, shares of CCNN remained flat at N18.55 however, 2019 YTD analysis of company’s stock performance shows prices are down -4.38.
In 2018, CCNN delivered impressive results both in its books and on the stock market. Amongst peers in the industrial index of the NSE, shares of CCNN topped the index movers table with an index percentage change of 113.93 percent according to data pooled from the Bloomberg terminal.
CCNN share price appreciated by 104.2 percent from N9.50 in January 2018 to close at N19.40 as at the 31st of December 2018.
Stock performance of CCNN was largely driven by investor’s positive reaction to companies fundamental and growth prospects.
BusinessDay analysis of financial performance of CCNN during the period 9 months 2018 revealed that the company grew its earnings by 97 percent to N4.01 billion against N2.036 billion in the previous year.
Profit margin of CCNN in the first nine months of 2018 grew by about 6 percent to 20.5 percent of N19.57 billion in revenue against 15 percent profit margin of N13.628 billion in revenue as at 2017.
According to Abdul Samad, “The opportunities within CCNN’s key markets and its export potential are almost endless. Situated just about 100km from Niger Republic and as the nearest cement plant to key markets in Northern Nigeria, the enlarged CCNN is now poised to compete effectively and serve those markets better at a lower cost with more energy efficiency through our use of coal. We expect to remain the Number one player in that regional market for the considerable future whilst building capacity for future demand”.
As at Thursday, CCNN market capitalization stood at N23.3 billion with a share outstanding of 1.26 billion ordinary shares and a P/E ratio of 4.49x.
The CCNN has also listed 11.887 billion ordinary shares of 50 kobo each on the Daily Official List of the Exchange, raising the cement company’s total issued and fully paid up shares from 1.257 billion ordinary shares of 50 kobo each to 13.143 billion ordinary shares of 50 kobo each.
BUA Group’s current cement assets in Sokoto State includes the 2million MTPA CCNN plants with over 90% stake and is widely acclaimed for its high capacity utilization, efficiency and quality of its products.
