July 14, 2023
QWI Investments Limited (QWI), for the nine months ended June 30, 2023, reported total income of $110.92 million relative to total income of $93.88 million booked in the corresponding period last year. Total income for the quarter amounted to $173.49 million relative to a loss of $132.27 million a year prior.
QWI recorded gains from investment activities of $84.07 million for the period ended June 2023 relative to gains from investment activities of $31.43 million for the comparable period in 2022. Also, for the quarter, gains from investment activities amounted to $161.11 million versus losses of $152.57 million in the prior comparable quarter. Management noted, “ The increase in QWI’S Net Asset Value (NAV) from a net profit of 115.7 million is reflective of the strong positions taken in specific JSE Junior Market companies and the best performing companies listed on the NASDAQ market in the USA. The Net Asset Value (NAV) of the Company’s shares increased by 7.4 percent to $1.31 for the June 2023 quarter, whereas a 3.1% increase was recorded for June 2023 year to date. JSE combined index declined 1.8% in the quarter and 8% for the nine months to June 2023, however, these declines were offset in part by gains in our overseas portfolio totalling over 50% for the nine months. QWI Jamaican investments recorded $64.8 million of realised and unrealised losses year to date, which were more than offset by $148.9 million of unrealised gains in the overseas portfolio”.
In addition, dividend and interest income grew 14% to amount to $32.06 million as at June 2023 (2022: $28.14 million). As for the quarter, this amounted to $10.97 million (2022: $10.01 million), up 10% year over year.
Unrealized currency loss amounted to $5.22 million compared to a gain of $34.31 million last year.
Administrative expenses for the period amounted to $66.58 million (2022: $63.89 million), while interest expense amounted to $26.72 million (2022: $23.07 million).
As such, QWI ended the period with a profit before taxation of $17.61 million, reflecting a 154% increase relative to the $6.93 million booked for the nine months ended June 30, 2022.
Consequently, following an 828% leap in tax credit to $38.95 million (2022: $4.20 million), net profit for the period amounted to $56.56 million relative to net profit of $11.12 million booked for the nine months ended June 30, 2022. For the third quarter, a net profit of $115.68 million was recorded versus a net loss of $110.60 million documented in the same period last quarter.
Earnings per share for the period amounted to $0.04 for the nine months ended June 30, 2023, relative to an earnings per share of $0.01 for the comparable period in 2022. The EPS for the third quarter was $0.08 (2022 LPS: $0.08). The trailing LPS amounted to $0.0034. The total shares outstanding used for this calculation was 1,365,000,015. Additionally, QWI closed the trading the period July 13, 2023 at a price of $0.63.
Balance Sheet at a Glance:
As at June 30, 2023, total assets closed at $2.11 billion (2022: $2.23 billion), a 5% decrease. This was mainly attributable to ‘Due from brokers and receivables’ which contracted by 95% closing at $6.64 million (2022: $131.51 million). ‘Quoted Investments- local’ also contributed to the fall in total assets, declining 8% to $1.58 billion from $1.71 billion in the prior year, a $131.26 million change year over year. However, this tempered was by ‘Quoted Investments- overseas’ which increased 45% by $161.93 million to $523.06 million (2022: $361.13 million).
The total equity as at June 30, 2023 amounted to $1.786 billion (2022: $1.790 billion). This resulted in a net asset value per share of $1.31 (2022: $1.31).
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.