May 17, 2021

PanJam Investments Limited (PJAM) for the three months ended March 31, 2021, reported a total income of $784.85 million relative to a total loss of $202.60 million booked for the prior year’s corresponding period. Of total income:

• • Other income fell 90% to $34.72 million relative to $363.10 million in 2020 due to a “non-recurring gain on the sale of our Bamboo Avenue property in Kingston in 2020”, as per Management.
  • Gain on investments amounted to $225 million compared to a loss on investments of $1.08 billion for the three months ended March 31, 2020. PJAM mentioned that this, “reflected a level of improvement in the Jamaican equities market.”
  • Property income inched up 1% to $525.13 million (2020: $518.16 million).

Operating expenses amounted to $422.37 million for the three months ended March 31, 2021 (2020: $442.08 million), 4% less than its total a year prior.

Impairment recovery for the three months amounted to $8.93 million relative to an impairment loss of $10.08 million booked for the comparable period last year.

Consequently, operating profit closed the three months ended March 31, 2021 at $371.41 million relative to an operating loss of $654.76 million recorded in the prior corresponding period.

Finance costs for the period rose by 54%, amounting to $224.34 million compared to the $145.82 million for the comparable period in 2020 due to “as a result of higher effective interest rates and increased borrowing levels,” according to PJAM.

Share of results of associated companies rose to close the quarter at $902.65 million (2020: $584.11 million). Management highlighted that, “The results of associated companies consist principally of our 30.2 per cent investment in Sagicor Group Jamaica. We also hold minority positions in a number of diverse private entities across the adventure tourism, business process outsourcing, hospitality, consumer products, microlending and office rental sectors. Our share of results of associated companies for the first three months of 2021 increased by $318.5 million, or 54.5 per cent, driven principally by Sagicor’s results, but also positively influenced by strong results from our investment in Walkerswood.”

Profit before taxation closed the period at $1.05 billion relative to loss before taxation of $216.48 million booked in the same quarter last year. Following a taxation charge of $33.36 million relative to a taxation credit of $228.48 million, net profit amounted to $1.02 billion (2020: $12 million).

Net profit attributable to shareholders for the period amounted to $1.01 billion from the $4.91 million recorded in the prior comparable period.

Total comprehensive income closed the first quarter at $2.83 million versus total comprehensive loss of $1.95 billion in the same period last year.

Consequently, earnings per share for the period amounted to $0.949 (2020: $0.005). The twelve month trailing earnings per share is $4.23. The number of shares used in the calculation is 1,066,159,890 units. Notably, PJAM’s stock price closed the trading period on May 14, 2021 at a price of $67.52 with a corresponding P/E of 15.96 times.

Balance Sheet at a glance:

As at March 31, 2021, PanJam Investments Limited (PJAM) had assets totalling $62.44 billion, a 11% increase relative to $56.24 billion a year prior. The growth was attributed to an increase in ‘Financial assets at amortised’ which amounted to $2.26 billion (2020: $168.12 million). ‘Investment in associated companies’ also contributed to the increase amounting to $35.22 billion (2020: $29.88 billion).

Shareholders Equity amounted to $47.09 billion (2020: $40.51 billion) with a book value per share of $44.16 (2020: $38).

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.