EQUITY RESEARCH NOTES: MTNN EARNINGS REVIEW H1-2020

Attached is our preliminary view on MTNN performance for H1-2020 and forecast.

Key highlights of the note:

H1 2020: Revenue sustains uptrend but leverage concerns crystallize.
-- Revenue growth: 12.5% y/y.
-- H1 2020 EBITDA: Climbed 8.2% y/y despite devaluation pressure.
-- Profit before tax: Declined 2.0% y/y, slowed by high finance costs.
-- Net Income: Below forecast on higher effective tax rate/finance cost.
-- Interim Dividend: N3.50/s, implying annualized div. yield 5.9% to Friday’s closing price.
Target Price: N173.25/s.
Current Price: N119.0/s.
Potential gain: 31.3%
Stock Rating: BUY

SOURCE (abridged): FSDHGroup Research

CAVEAT (by me): This is NOT a solicitation for purchase of shares. Public securities are not risk-free and you are advised to exercise caution / due diligence before making any investment decision.