Safaricom at a glance: D&B

Bloomberg Ticker: SAFCOM KN
Target Price: KES 18.67
Current Price: KES 16.00
Upside: 17%
52 week Range: 11.75 - 17.90
Market Cap (KES Mns): 641,040
Market Cap (USD Mns): 6,412
YTD Return: 13.9%
Free Float: 25%
Issued Shares (Mns): 40,065
PE: 20.11x
Forward PE: 19.72x
Dividend Yield: 0.04x
RoE: 30.6%

BAMBURI ....................BUY...................Kshs 154.00
The decline in global fuel prices and lower electricity tariffs in Kenya will reduce costs for Bamburi on a forward basis. Additionally, further cost savings is expected from the reduction in imports
(clinker) and increased use of heavy fuel oil with petcoke, a substance derived from the petroleum refinery process to fire its Kasese plant in Uganda as part of its cost-cutting initiatives , at Hima Cement. Sales are expected to continue to benefit from the infrastructure projects in the region which is a key revenue driver for
the cement company. China Road and Bridge Corporation (CRBC), the contractor for the Standard Gauge Railway revealed that it bought more than 150,000 tonnes of local cement, with more than 100,000 tonnes from Bamburi Cement.

CENTUM .....................BUY..................... Kshs 50.50
The company posted a 162% increase in financial year 2015 Profit after tax to Kshs 7.9bn up from Kshs 3 billion in 2014. This was largely driven by a 130% increase in investment income driven by the sale of a 13.6% stake in UAP for Kshs 5.2 billion, as well as an
improvement in the performance of associate companies. The company also recorded a Kshs 9 billion increase in net assets, representing a NAV growth of 39% to Kshs 31.9bn. It’s zero dividend policy will be maintained over the next 5 years in order to finance growth. Real estate project Two Rivers and Pearl Marina on course. Phase 1 construction of Two Rivers in progress. The
shopping mall at Two Rivers is estimated to be worth Kshs 15.5 billion while the whole project is valued at Kshs 25.2 billion and is expected to be implemented in October 2015.
Centum’s recent bond offer was oversubscribed by 138% with the attracting Kshs 8.31 billion compared to the Kshs 6 billion that was initially targeted. The proceeds will go towards real estate, energy, financial services, education, health, ICT, agribusiness and FMCG, the 8 sectors the firm will focus on over the next 5 years.