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EQUITY | INVESTMENT GUIDE | STOCK RECOMMENDATION

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MARKET P REVIEW
For the week commencing January 20, 2014
 Whilst the current market mood can best be described as
calm given the magnitude of gains and losses recorded since
the beginning of the year, the imminent market catalyst will
be expected 2013FY corporate actions.
 In our view, market sentiments will move largely in favour of
stocks with expected attractive dividend yields. Also,
investors’ demand will likely tilt in favour of stocks with
attractive fundamentals.
 Given our considerations above, we expect the market to
close the week on a positive note albeit marginal.
0.27

MARKET REVIEW

For the week ended January 17, 2014
 Equities market remained calm through the previous week as
price movements in either directions stayed marginal. The All-
Share-Index closed the week 0.65%higher.
 JAPAUL, DNMEYER and NSLTECH were the highest gaining
stocks with respective returns of 17.24%, 9.93%and 9.09%.
On the flip side, JBERGER, CILEASING and FO lost 9.95%, 8.33%
and 6.74%respectively WoW.
 The overall market mood in the week was positive with
market breadth at 1.31x (46 advancers against 35 decliners).
Our market mood indicator settled at 0.27.
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Volume [RHS] Index [pts]

















NSEASI & Meristem Research - Sectoral Indices [Return Profile]
WtD MtD QtD YtD
NSEASI 0.65% 1.02% 10.97% 1.02%
MERI-PENNY 20 0.13% -1.05% 20.61% -1.05%
MERI-BNK 3.35% -0.34% 11.37% -0.34%
MERI-INS -1.82% 0.66% 12.90% 0.66%
MERI OILG 1.46% 0.86% 14.02% 0.86%
MERI-CMG 0.59% -0.87% 2.75% -0.87%
MERI-IND -0.08% 4.39% 19.66% 4.39%
MERI-CONG 4.43% 51.40% 4.43% 96.65%
MERI-SERV 0.00% 16.67% -2.40% 33.55%

Cur. Week Prev. Week
NSEASI 41,751.55 41,480.62
Market Cap [NGN'tr] 13.483
Market Cap [USD 'bn] 84.135
Volume Traded [bn] 1.51 1.72
Value Traded [bn] 18.33 22.39
Most Traded Value Most Traded Volume
OANDO 2,173,647,392 TRANSCORP 147,966,544
ZENITHBANK 1,908,683,104 FCMB 99,173,093
WAPCO 1,286,710,573 UNITYBNK 81,746,729
FLOURMILL 1,273,667,036 OANDO 80,992,620
NEM 1,062,219,664 ZENITHBANK 79,211,839
Highest Gainers % Highest Losers %
JAPAULOIL 17.24% JBERGER -9.95%
DNMEYER 9.93% CILEASING -8.33%
ZENITHBANK 8.23% FO -6.74%
UPL 7.77% ASHAKACEM -5.95%
VITAFOAM 6.97% IHS -5.66%

STOCK RECOMMENDATION – JANUARY 21, 2014
THE WEEK THAT WAS (A REVIEW)
EQUITY | INVESTMENT GUIDE | STOCKRECOMMENDATION


Tuesday, 21 January 2014
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Disclosure and Analyst certification on page 10



Tickers 2014 TP
Closing
Price
Up/Down
Potential Wtd % Ytd %
Trailing
P/E
Trailing
P/BV
Trailing
Div.
Yield
Forward
P/E
Forward
P/BV
Forward
Div. Yield Ratings
Financial Services
Banks
ACCESS 9.51 9.57 -0.63% -0.31% 2.92 5.94 x 0.91 x 8.6% 5.84 x 0.96 x 7.2% HOLD
DIAMONDBNK 8.60 7.92 8.59% 2.19% 6.67 -0.12 x 0.95 x 0.0% 4.02 x 0.72 x 2.4% HOLD
ETI 19.76 17.40 13.56% 2.35% 7.16 29.38 x 1.85 x 0.0% 4.25 x 0.83 x 3.6% HOLD
FCMB 5.64 4.00 41.00% 2.83% 8.94 4.23 x 0.53 x 0.0% 4.71 x 0.44 x 0.0% BUY
FIDELITYBK 3.32 2.54 30.71% -3.42% -5.20 3.74 x 0.44 x 8.2% 3.74 x 0.42 x 9.4% BUY
FBNH 19.84 16.10 23.23% 4.21% -3.07 6.00 x 1.21 x 6.3% 4.41 x 1.01 x 10.1% BUY
GUARANTY 34.41 28.50 20.74% 0.71% 4.52 9.28 x 2.82 x 5.5% 7.20 x 2.59 x 6.6% BUY
SKYEBANK 6.06 4.40 37.73% -3.51% 0.00 4.44 x 0.58 x 11.4% 3.19 x 0.60 x 14.3% BUY
STANBIC 17.56 22.00 -20.18% 2.33% 3.14 14.33 x 2.34 x 0.0% 8.80 x 1.34 x 7.0% SELL
STERLNBANK 2.51 2.42 3.72% -1.63% -3.60 3.85 x 0.78 x 8.3% 5.76 x 0.55 x 9.9% HOLD
UBA 8.17 8.93 -8.51% -0.78% 0.34 5.25 x 1.42 x 5.6% 3.50 x 0.90 x 7.3% HOLD
UBN 8.60 10.00 -14.00% -0.99% 8.00 24.88 x 0.86 x 0.0% 6.90 x 0.87 x 0.0% SELL
UNITYBNK 0.72 0.50 44.00% 0.00% 0.00 2.79 x 0.37 x 0.0% 10.00 x 0.50 x 0.0% BUY
WEMABANK 0.52 1.14 -54.39% -5.00% -4.10 -9.48 x 310.98 x 0.0% 19.00 x 1.56 x 0.0% SELL
ZENITHBANK 29.61 25.11 17.92% 8.23% -9.27 7.60 x 1.62 x 6.4% 6.34 x 1.47 x 8.0% HOLD
Insurance


AIICO 0.90 0.87 3.45% -2.25% 2.38 4.57 x 0.52 x 9.3% 4.14 x 0.46 x 5.7% HOLD
CONTINSURE 1.38 1.20 15.00% 0.84% -4.07 7.35 x 0.90 x 8.5% 6.00 x 0.84 x 8.3% HOLD
HMARKINS 0.63 0.50 26.00% 0.00% 0.00 9.40 x 0.70 x 0.0% 5.56 x 0.61 x 6.0% BUY
CUSTODYINS 3.53 2.40 47.08% 1.69% 17.79 17.76 x 1.10 x 5.3% 4.44 x 0.86 x 8.8% BUY
MANSARD 2.50 2.37 5.49% -5.20% -3.27 13.50 x 1.60 x 4.6% 10.77 x 1.56 x 5.9% HOLD
UNITYKAP 0.80 0.50 60.00% 0.00% 0.00 4.29 x 0.74 x 4.0% 5.00 x 0.69 x 20.0% BUY
Consumer Goods
Brewery


GUINNESS 283.79 237.80 19.34% 0.34% -0.21 27.45 x 8.55 x 3.0% 22.25 x 7.39 x 2.9% HOLD
INTBREW 17.38 29.00 -40.08% -1.69% 4.53 48.33 x 9.54 x 0.0% -36.25 x 38.67 x 0.0% SELL
NB 171.52 165.20 3.83% 0.12% -1.01 31.77 x 78.59 x 1.8% 20.15 x 6.99 x 2.7% HOLD
EQUITY | INVESTMENT GUIDE | STOCKRECOMMENDATION


Tuesday, 21 January 2014
www.meristemng.com
Disclosure and Analyst certification on page 10


Tickers 2014 TP
Closing
Price
Up/Down
Potential Wtd % Ytd %
Trailing
P/E
Trailing
P/BV
Trailing
Div.
Yield
Forward
P/E
Forward
P/BV
Forward
Div. Yield Ratings
Food and Beverages


7UP 68.11 71.40 -4.61% 0.00% 0.00 12.66 x 3.26 x 3.1% 11.89 x 4.44 x 3.1% HOLD
CADBURY 41.44 59.01 -29.77% 0.00% -1.25 26.51 x 8.80 x 0.9% 184.41 x 7.96 x 1.6% SELL
DANGSUGAR 8.45 12.23 -30.89% 0.91% 2.56 11.74 x 3.04 x 4.2% 9.78 x 2.57 x 8.3% SELL
HONYFLOUR 3.62 3.94 -8.23% 1.29% 4.90 10.99 x 1.68 x 0.0% 8.21 x 1.52 x 4.1% HOLD
FLOURMILL 101.77 88.00 15.64% -1.19% 1.15 26.59 x 2.35 x 2.3% 20.95 x 2.36 x 2.3% HOLD
NASCON 7.34 14.00 -47.55% 0.00% -6.60 13.27 x 5.11 x 6.4% 43.75 x 4.85 x 5.9% SELL
NESTLE 1,182.52 1,165.00 1.50% 0.43% -3.75 41.11 x 30.07 x 1.7% 32.26 x 19.85 x 2.9% HOLD
Personal / Household Products


PZ 27.16 38.15 -28.80% 3.11% 1.49 28.47 x 3.26 x 1.5% 71.98 x 3.53 x 2.2% SELL
UNILEVER 44.45 53.58 -17.04% 1.09% 0.37 36.36 x 27.07 x 2.6% 35.48 x 20.22 x 2.6% SELL
VITAFOAM 6.53 5.22 25.00% 6.97% 10.41 7.32 x 1.28 x 0.0% 6.96 x 1.13 x 6.7% BUY
Conglomerates
AGLEVENT 1.78 1.73 2.89% 1.76% 4.71 -37.85 x 0.37 x 0.0% 7.52 x 0.42 x 8.1% HOLD
UACN 39.66 70.00 -43.34% 4.48% 2.99 10.85 x 1.80 x 1.9% 25.00 x 1.85 x 4.0% SELL
Healthcare
MAYBAKER 2.43 2.25 8.00% -5.06% -4.08 50.85 x 0.69 x 0.0% 16.92 x 0.68 x 1.3% HOLD
FIDSON 3.53 2.80 26.07% -0.36% -3.58 20.42 x 0.79 x 4.5% 7.53 x 0.86 x 7.9% BUY
GLAXOSMITH 70.45 68.05 3.53% 0.07% 0.00 22.17 x 6.00 x 1.9% 18.53 x 4.60 x 2.1% HOLD
Construction/Real Estate
JBERGER 59.03 65.10 -9.32% -9.95% -9.95 9.37 x 5.49 x 0.0% 964.44 x 359.47 x 0.0% HOLD
Industrial Goods
Cement


ASHAKACEM 21.32 19.91 7.08% -5.95% -4.72 18.89 x 0.88 x 2.1% 9.62 x 0.82 x 0.9% HOLD
CCNN 11.64 10.87 7.08% -1.09% -8.77 9.73 x 1.61 x 0.0% 7.99 x 1.36 x 3.0% HOLD
DANGCEM 262.63 230.00 14.19% 0.00% 2.75 20.76 x 8.25 x 1.3% 16.37 x 5.57 x 2.4% HOLD
WAPCO 128.91 115.00 12.10% 0.00% 0.00 16.95 x 4.35 x 1.0% 10.99 x 2.96 x 2.2% HOLD
EQUITY | INVESTMENT GUIDE | STOCKRECOMMENDATION


Tuesday, 21 January 2014
www.meristemng.com
Disclosure and Analyst certification on page 10


Tickers 2014 TP
Closing
Price
Up/Down
Potential Wtd % Ytd %
Trailing
P/E
Trailing
P/BV
Trailing
Div.
Yield
Forward
P/E
Forward
P/BV
Forward
Div. Yield Ratings
Chemical and Paints


CAP 57.90 48.00 20.63% -1.80% -0.93 23.25 x 19.98 x 5.2% 16.33 x 13.56 x 4.1% BUY
BERGER 9.84 8.65 13.76% 2.37% 8.13 9.50 x 1.09 x 8.1% 8.16 x 0.98 x 7.6% HOLD
Oil andGas
MRS 56.83 54.44 4.39% 10.00% 75.88 52.38 x 0.72 x 0.0% 20.37 x 0.74 x 1.0% HOLD
CONOIL 55.84 52.40 6.56% 0.00% -22.86 19.51 x 2.19 x 2.0% 11.99 x 2.16 x 4.3% HOLD
ETERNA 5.40 5.23 3.25% 0.58% 15.96 7.49 x 0.96 x 0.0% 581.11 x 85.74 x 0.0% HOLD
FO 66.77 83.00 -19.55% -6.74% -15.59 58.06 x 9.71 x 0.0% 22.12 x 7.08 x 1.1% SELL
MOBIL 148.96 120.21 23.92% 2.48% 1.38 10.08 x 6.72 x 4.2% 11.12 x 4.61 x 5.0% BUY
OANDO 18.61 25.60 -27.30% -2.77% 10.10 20.67 x 1.08 x 2.8% 16.39 x 1.82 x 2.1% SELL
TOTAL 200.79 180.00 11.55% 2.59% 5.88 13.95 x 4.46 x 5.6% 11.46 x 4.88 x 6.2% HOLD
Services
NAHCO 6.81 6.05 12.56% 0.00% -2.42 14.13 x 1.55 x 4.1% 12.60 x 1.61 x 4.1% HOLD
AIRSERVICE 4.24 3.55 19.44% 5.97% 10.94 5.91 x 1.16 x 7.0% 4.93 x 0.84 x 7.9% HOLD
Agriculture
OKOMUOIL 33.35 44.25 -24.63% 0.57% 0.89 14.61 x 1.62 x 7.9% 12.36 x 1.57 x 5.9% SELL
PRESCO 37.26 41.06 -9.25% 2.65% 6.65 16.33 x 2.39 x 2.4% 11.73 x 1.97 x 2.4% HOLD

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Analyst’s Certification and Disclaimer

This research report has been prepared by the research analyst(s), whose name(s) appear(s) on the cover of this report.
Each research analyst hereby certifies, with respect to each security or issuer covers in this research that:
(1) all of the views expressed in this report accurately reflect his or her personal views about any and all of the subject
securities or issuers (the Issuer); and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific
recommendations or views expressed by the research analyst(s) in this report. Research analysts’ compensation is
determined based upon activities and services intended to benefit the investor clients of Meristem Securities Limited (the
Firm). Like all of the Firm’s employees, research analysts receive compensation that is impacted by overall Firm
profitability, which includes revenues from other business units within the Firm.
(3) each research analyst and/or persons connected with any research analyst may have interacted with sales and trading
personnel, or similar, for the purpose of gathering, synthesizing and interpreting non-material non-public or material
public market information.

As at the date of this report, any ratings, forecasts, estimates, opinions or views herein constitute a judgment, and are not
connected to research analysts’ compensations. In the case of non-currency of the date of this report, the views and
contents may not reflect the research analysts’ current thinking. This document has been produced independently of the
Issuer. While all reasonable care has been taken to ensure that the facts stated herein are accurate and that the ratings,
forecasts, estimates, opinions and views contained herein are fair and reasonable, neither the research analysts, the Issuer,
nor any of its directors, officers or employees, shall be in any way responsible for the contents hereof, and no reliance
should be placed on the accuracy, fairness or completeness of the information contained in this document. No person
accepts any liability whatsoever for any loss howsoever arising from any use of this document or its contents or
otherwise arising in connection therewith.

Important Disclosure

Analysts’ Compensation: The equity research analysts responsible for the preparation of this report receive
compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive
factors, and overall firm revenues, which include revenues from, among other business units, Investment Banking.
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Investment Ratings

Fair Value Estimate
We estimate stock’s fair value by computing a weighted average of projected prices derived from discounted cash flow
and relative valuation methodologies. The choice of relative valuation methodology (ies) usually depends on the firm’s
peculiar business model and what in the opinion of our analyst is considered as a key driver of the stock’s value from a
firm specific as well as an industry perspective. However, we attach the most weight to discounted cash flow valuation
methodology.

Ratings Specification

BUY: Fair value of the stock is above the current market price by at least 20 percent

HOLD: Fair value of the stock ranges between -10 percent and 20percent from the current market price.

SELL: Fair value of the stock is more than 10 percent below the current market price.


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