Africa Prudential Shares Surge Over 40% Month-to-Date Following Strong Q3 Earnings

Shares of Africa Prudential, a leading registrar, have surged by over 40% month-to-date, boosting its year-to-date performance to more than 90%.

This surge follows the company’s earnings release in late October, which reported a pre-tax profit of N839 million, marking a 22.7% increase from N683 million in 2023.

The company also reported N1 billion in interest income, with more than 80% of this total coming from ‘short-term deposits,’ significantly contributing to its overall profit.

This strong performance has fueled positive market sentiment, driving the share price from N9.60 to N14.30 as of December 12, 2024, with a monthly trading volume of 19.2 million shares.

At the beginning of the year, the stock traded at N7.40 per share, ending January slightly lower at N7.10. February saw a surge in activity, with 28 million shares traded, pushing the price upward. However, the momentum was short-lived, and by May, the stock had retraced to N7.00.

The second quarter marked a turning point, with bullish sentiment taking hold. Between June and September, the stock gained 41%, closing September at N9.90.

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While October and November saw slight declines, the stock displayed notable resilience, surging past N14 in early December and achieving a strong month-to-date performance exceeding 40%.

Several factors contributed to the bullish sentiment surrounding Africa Prudential’s stock between June and the fourth quarter of 2024.

In late Q2 2024, the company announced a 15 kobo per share dividend for the period ending June 30, 2024, payable to shareholders as of August 9, 2024, which likely encouraged investor interest.

For the first half of 2024, Africa Prudential reported a 24% year-on-year increase in net income, rising from N1.6 billion in H1 2023 to N2 billion, alongside an impressive 87% YoY growth in pre-tax profit.

In an investor relations call in August 2024, Managing Director/CEO Catherine Nwosu outlined plans to expand the company’s consultancy services and launch new e-product applications.

In late October 2024, the company reported a 22.7% YoY increase in pre-tax profit for Q3, reaching N839 million compared to N683 million in 2023. This brought the total pre-tax profit for the first nine months of 2024 to N1.9 billion.

In the Q3 investor call, Nwosu provided further details on the company’s strategy, including expanding consultancy and secretariat services in Nigeria and commercializing e-product applications like Invearn, Greenpole, and Apems.

Looking ahead, Nwosu expressed optimism, stating, “We will introduce a range of new and innovative products tailored to meet the diverse needs and expectations of our valued investors.”