Tsavo Securities Limited.
-1-
HIGH CONVICTION LIST: - CENTUM, KQ & DIAMOND TRUST.
PORTFOLIO RECOMMENDATION FOR THE PERIOD OF 13TH TO 20TH MAY 2011.
• This week the All share index stood (NASI) at 93.68 points from previous points of 94.26
• NSE 20 Index was at 3975.53 points from 4007.86 points of last week.
• Market capitalisation was at Kshs 1,148.85Tn.
SPECULATIVE
No. Company VWAP Financial Information
1 CENTUM 23.75 HY10 -Profit before tax stood at Kshs 926mn compared
to Ksh.114mn 09/10. Profit after tax stood at
High : 26.00 Ksh.846mn compared to Kshs 76mn reported in 09/10,
Investments income increased by 100% to Ksh.705mn
Low 12.00 compared to Kshs 64mn of 09/10, Group’s assets base
increased by 24% from 8.26Bn to Ksh.10.3Bn of 10.
Year ends:31st March P/E ratio; 20.1 x, EPS; 0.57.
2 DIAMOND TRUST 149.00 FY-10-Total asset base for the company grew to Kshs
83.6bn up from 66.7bn in the same period 09,Total
High : 150.00 shareholder’s equity grew to Kshs 8.93bn from Kshs
6.99bn same period 09.Pre tax profit was at Kshs
Low : 70.00 3.46bn from Kshs 1.92bn same period 09, Profit after
tax was at Kshs 2.48bn from Kshs 1.35bn same period
09.AGM to be held on 20th May 11,
Year ends 31st Dec ,P/E ratio; 11.0x,EPS;3.21
3 KQ 40.25 FY-09/10-Total Revenue declined marginally to
Kshs70.7mn from Kshs 71.8mn in 09, Net profit after
High :66.00 tax increased to Ksh 2.67mn from a loss of 5.66mn
09,.the Net profit margin for the same period improved
Low :32.00 from -5.7% to 2.9%. Fuel cost reduced by 23.4% to
kshs 5.7bn.Operating profit declined to Kshs 1.83bn
from Kshs 4.0bn of 09,
Year ends 31st March ,P/E ratio;-4.1x ,EPS; 8.85
Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
Market and Economic Information
It sold off it`s 22% stake in Carbacid and netted a
Kshs 782 Mn profit. The investment firm shares now is
trading on the Uganda Stock Exchange, the expected
listing of another investment company will give
investors a comparison point as there is no other listed
investment company in the market. We`re expecting
it`s end year results soon.
The bank has received a long term financing agreement
of Kshs 2.08bn from the International Finance
Corporation, boosting its trade financing kitty for
SMEs. The Bank is currently pursuing a branch
expansion exercise that is aimed at marshalling cheap
deposits from retail customers. Directors
recommended a bonus issue of 1:5 subject to approval
by the shareholders at the AGM.
It has announced plans to raise capital to finance it`s
future growth and expansion. It has commenced an in-
house an aircraft simulator training for pilots. Being
the second African country to comply with an
International Air Travel Association (IATA), it has
installed an electronic cargo monitor system to reduce
costs, improve transit times, accuracy and
competitiveness of its airfreight.
Tsavo Securities Limited. -2-
4 SAFARICOM 4.00 HY10-Revenues for the group had an increment of
15.9% to Kshs 47.11Bn from Kshs 40.6Bn of
High: 6.15 09/10,mainly due to increase in the number of
subscribers by 15.2% to 16.7Mn , Group profit
Low: 3.60 improved by 14.3% to Kshs 10.40Bn from Kshs
9.10Bn, The company‘s gross profit was at Kshs
47.40Bn from kshs 37.69Bn of 09/10. Group Operating
profit improved by 10.40% to Kshs 10.90Bn from Kshs
9.90Bn of 09/10.
Year ends in 31stMarch,P/E Ratio:19.4x, EPS:0.26
5 BARCLAYS BANK 66.00 FY-10 Asset base increased to Kshs 172bn from 165bn
High :72.00 in the same period 09, Net Non performing loans
Low :47.50 decreased to 248M from 673M same period 09.Net
interest income rose from 14bn to 15.6bn .Pre-tax profit
increased to Kshs 13.5bn from Kshs 9 of FY-09.It
announced a final dividend of Kshs 4.70,
Year ends 31st December P/E ratio;11.0x,EPS;4.50
6 CFC-INSURANCE. 17.75 FY10 Gross revenue to Kshs 4.8bn from Ksh.1.9bn in
High : 17.00 09, Gross profit before tax increased to Kshs 482.9Mn .
The profit after tax increased to Kshs 260Mn, Total
Low : 10.00 assets was up to Kshs 5.2Bn from 639.5Mn,Total
Shareholders funds increased from 639.5Mn in 09 to
Kshs 5.2Bn in 10.
Year ends 31st Dec. P/E ratio; 55.8x EPS; 0.265
7 KCB 24.75 Q1-11 Bank’s Total asset base increased to Kshs
270.9bn compared to Kshs 220.7bn same period-
High : 26.50 11,Total shareholders funds grew to Kshs 40.9bn from
Kshs 24bn in Q1-10, Total interest income went up to
Low: 17.30 Kshs 5.7bn from Kshs 5.1bn in Q1-10,Pre-tax profit
increased to Kshs 2.5bn from Kshs 1.9bn in Q1-
10,Profits for the year increased to Kshs 1.8bn from
1.3bn same period in 2010.
Year ends in 31st Dec, P/E rsatio;10.2x,EPS;1.09
Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
It has partnered with DStv to enable subscribers to
watch programs on their mobile handsets.It entered a
partnership deal with a local IT firm to reduce it`s
reliance on voice business. It`s targeting rural Kenya to
grow its data services to offer high speed internet
connections to key offices in county governments.It
has won a contract to supply high speed Internet for the
cheque truncation system and signed a deal with Kenya
Bankers Association. It has signed a deal with deacons
for its subscribers to shop and pay via m-pesa.
It waived all it`s ATM charges to all its customers.It
also announced a share split in the ration of 4:1,Shares
split available for trading in 13th June 11.It entered a
partnership with Safaricom offering its mobile phone-
based money transfer service M-Pesa to the bank's
clients. The Bank has been paying higher wages which
has been eating into its earnings.
It`s the largest shareholder in S.A-based Liberty
Holdings Ltd which controls 56.8%.It owns The
Heritage Insurance Co. and CFC Life Assurance Ltd
and has other investments in Tz.It aims to grow its
presence in East Africa by offering diversified
insurance products. It`s core business is offering life
and property/ casualty insurance coverage.
It`s set to receive a Shs 8.8bn loan from World Bank to
support it`s regional mortgage business. It launched it`s
agency banking services with a target 2,500 branches
this year. It`s considering to raise a long term debt
through a corporate bond for financing its mortgage
business to support it`s growth. It`s planning to open
it`s Investment banking subsidiary soon. It`s started
providing tailor made mortgage solutions to Kenyans
in the Diaspora.
Tsavo Securities Limited. -3-
8 KENOL KOBIL LTD 9.30 FY10-Net sales went up by 5.2% to Kshs 101.8 bn
from Kshs 96.1 bn in 09. Gross profit went up by 28%
High : 11.50 to Kshs 7.7 bn from Kshs 6.0 bn in 09.Profits from
operations registered were at Kshs 3.7bn from Kshs
Low: 8.90 2.4bn in 09, the company registered a profit before tax
of Kshs 2.7 bn from Kshs 1.9bn of 09 a 65% increase.
Profit after tax was at Kshs 1.8 bn from Kshs 1.3 of 09a
37.2% increase. The directors recommended a final
dividend of Kshs 0.52 subject to approval at the AGM.
Year ends 30th Sept P/E ratio; 5.7x, EPS, -2.93
9 CO-OP BANK 17.50 Q1-11-(Total assets increased to Kshs 169.5Bn from
High: 21.75 Kshs 121.7Bn in the same period 10, Interest income
Low: 9.60 increased to Kshs 3.5Bn compared to Kshs 2.7Bn same
period 10, pre tax profit increased to Kshs 2.0Bn from
1.3Bn in the same period 10, After tax profit went up to
Kshs 1.6Bn from Kshs1.0bn in the same period 10,
LLP stood at Kshs 2.6Bn from Kshs 2.9 Bn 10.The
directors recommended a final dividend of Kshs
0.40,Record date 3rd June 11.
Year ends 31th Dec P/E Ratio;11.76x , EPS;0.85
10 E. A. BREWERIES LTD. 204.00 HY10 -Net revenue increased to Kshs 20.5bn up from
High : 230.00 Kshs18.6bn of the same period in 09, Gross profit
increased to Kshs 10.6bn from Kshs 9.2bn,Profit before
Low : 150.00 tax increased to Kshs 6.2bn from 5.9Bn compared to
same period in 09, net profit for the period stood at
Kshs 4.2bn same as 09, Assets for the company stood at
Kshs 24.5bn
Y ended on 31st Dec,P/E ratio;32.76x ,EPS;4.67
11 EQUITY BANK 24.75 Q1-11 Total Shareholder Funds for the group went up
High: 30.25 to Kshs 126.9Bn from Kshs87.2bn Q1-10, Total Assets
grew to Kshs 153.5bn from Kshs 110.6bn Q1- 10, Total
Low :15.00 Income Interest was at Kshs 4.0bn from Kshs 3.1bn
Q1- 10.Total operating income went up to Kshs 6.5bn
from 4.7bn of Q1-10, Pre tax profit was at Kshs 2.9bn
Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
It Acquired a modern depot complex in TZ from
World oil Ltd on a 25yrs long term lease arrangement
It`s seeking to increase it`s share capital thro` creation
of additional stocks from it`s current employees under
ESOP. It expanded it`s asset base in Burundi by
acquiring a sizeable depot complex in Bujumbura, This
provides a platform for the development of an LPG
storage and filling plant in the country.The oil prices
are still rising due to the unrest in the middle-east and
north african states.
It`s seeking to create an extra 1.3 Billion shares in a
restructuring drive to lay the basis for increasing it`s
capital base of the lender.It has revered the money it
used in the purchase of 15% additional stake in CIC
Insurance. Through the use of ICT, it has broadened
the concept of branchless banking through the Point of
Sale Banking and is currently installing over 3000
points countrywide. It’s expected to roll out agent
banking this year. And they already have experience
through partnerships with Co-ops and SACCOs.
It`s unveiled a new look tusker bottle in a rebranding
compaign.It has increased the prices of selected beer
brands to cover rising raw material cost and grow sales
in a mkt that has a flat consumption. It has done a
major overhaul of top management with the Diageo
having a firm grip of the Kenyan Market. These good
results were mainly from the spirit section which is
less affected by regulations.
It has increased it`s stake in HF by nearly 3% as it
tightens its grip to exert greater influence in it`s
management. Equity has initiated agency banking in
the rural areas and is aiming to recruit 20,000 agents
by the end of the year. The directors recommended a
final dividend of Kshs 0.80.Record date 18th March 11.
Tsavo Securities Limited. -4-
from Kshs 1.7bn of Q1-10, Profit After Tax was at
Kshs 2.3Bn from Kshs 1.2bn of Q1-10.
Year ends 31st Dec, P/E ratio; 12.68x, EPS; 1.23
12 KPLC. 21.50 FY10-Recorded a pre tax income of Kshs 5.6bn
High : 33.25 compared to 4.7bn which was a 19% increase. Revenue
- increased to Kshs 19.30bn from Kshs 18.09bn recorded
Low: 20.00s in the same period last year .Profit after Tax of Kshs
3.7bn compared to Kshs 3.2bn. Directors recommended
an interim dividend of Kshs 5.00 per share. Record Date
is 31st March 11.
Year ends 30th June, P/E ratio;6.30x,EPS;23.6
13 HOUSING FINANCE 25.75 Q1-11 Total shareholders funds for the group grew to
High: 32.25 Kshs 4.4Bn from Kshs 4.1Bn Q1-10,Total Assets grew
Low: 16.00 to Kshs 30.2Bn from Kshs 20.1Bn Q1-10,Net Interest
Income grew from Kshs 328.4Mn in Q1-10 to Kshs
434Bn,Pre tax Profit up to 171.6Mn from 103.5 Mn Q1
in 10.
Year ends 31st Dec ,P/E ratio;20.0x ,EPS;0.40ss
14 SCANGROUP 61.00 FY-10 Billings increased to Kshs 11.4bn from
Kshs5.9bn of 09,Profit before tax rose to KShs836.4mn
High : 76.00 from Kshs544.1mn of 09, Profit attributable to
shareholders improved to 578.6mn from 398.5mn of
Low : 45.00 09, assets base went up to 8.0bn from 3.9bn of 09,
shareholder’s fund went up to Kshs 3.3bn from
Kshs2.4bn of 09.
Year ends 31st Dec, P/E ratio; 14.39x, EPS; 1.79.
15 STANDARD CHARTERED. 250.00 FY-10 Total shareholder’s fund grew to Kshs 142.7bn
from Kshs 123.8bn FY-09.Total operating income was
High : 320.00 up to Kshs 14.15bn from 12.43bn same period 09,Pre-
Low : 172.00 tax Profit rose slightly to Kshs 7.7bn from 6.7bn same
period 09.Net NPLs decreased to Kshs 124.6 Mn from
192.8Mn same period 09.
Year ends 31stS Dec P/E ratio; 10.4x EPS; 1.24
Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
It signed a 20yrs deal with an Israel firm to supply an
extra36mw to the national grid.It plans a Kshs 1.4 Bn
power plant to be commissioned in June this year. The
funds raised from Rights issue are for investment in the
power transmission and distribution network to
improve power quality and connect more customers.
It`s exploring the possibility of establishing a power
transformer manufacturing/assembly plant locally..
It was signed into law by finance minister that HF
offers current accounts to pave ways for it to lend at
lower rates due reduced cost of gathering deposits. The
CMA granted it an approval for the issue and listing of
an additional 5.7mn ordinary shares of Kshs. 5 each to
the Trustees of the company’s(ESOP), and to be issued
to the beneficiaries under the ESOP in accordance with
the terms of the Trust Deed approved by the Authority.
The Directors recommended a final dividend of Kshs
0.70.There is increase in advertisements during this era
of competition. The rebranding of Zain to Airtel
presented significant opportunities in the advertising
industry and they choose to continue using Scan group
as an advertising agency hence, will have an effect on
the top line. In buying Ogilvy Africa, it will tap a long
list of multinational firms. e.g. SAB Miller, Unilever.
It has launched two credit cards, the platinum visa card
which give it`s users minimum shopping limit of Kshs
600.000 with a ceiling of Kshs 2 Mn and Gold card
users will be limited to a maximum of Shs 1Mn. It is
expecting to increase its lending this year to increase
its financial performance. The directors announced a
final dividend of Kshs 8.50.Record date is 5th April 11.
Tsavo Securities Limited. -5-
16 JUBILEE. 206.00 FY10 Gross revenue went up by 39% to Kshs 9.8bn They are on an active strategy of regional expansion,
from Ksh.7.0bn in 09, Gross profit before tax increased Investment in world-class technology to enhance their
High : 220.00 by 84% to Kshs 2.1bn from Kshs1.1mn in 09, The competitive edge in the service delivery & operational
profit after tax went up by 98% to Kshs 1.8bn from efficiency. On a diversification strategy in all sectors in
Low : 100.00 Ksh.913.7mn of 09, paying out a final dividend of Kshs terms of acquisition and product by which it has
4.50 & a bonus issue of 1:10, Record date being 26th acquired a 30% stake in Farmer’s Choice Holdings K
May 2011. Ltd, and have new products, political and PSV
Year ends 31st Dec.P/E ratio; 8.0x EPS; 5.38. insurance.

17 NIC BANK 45.75 Q1-11 -Asset for the company grew to Kshs 63.8bn It introduced a new credit card targeting the rich
from 59.0bn Q1 in 10, Total equity grew to Kshs 8.9bn clients.The Banks` Asset Finance business improved
High : 54.00 from Kshs8.4bn in Q1-10. Pre-tax profit rose to Kshs due to the increased demand for trucks & school buses
803.3Mn from Kshs529.2mn in Q1-10.Net non as a result of good roads & projects. Good sales are
Low : 32.50 performing loans reduced to Kshs 84.7mn from expected during the year on the back of increased
Kshs292.9mn in Q1-10. demand of tractors as farmers anticipate the good rains.
Years ends 31st Dec, P/E ratio;11.07x, EPS:3.25
18 CMC. 10.65 FY-09 Earnings went down 39%, shareholder funds It`s restructuring it`s management team and increasing
were up to Kshs5.2bn from Kshs4.8bn, Sales were up it`s operational efficiencies and reducing costs to
High : 15.00 to Kshs11.7bn from Kshs11.4bn, Gross profits went maximize on it`s current ten stable brands.Very
down to Kshs2.4bn from Kshs2.7bn, profit before tax promising business in Tanzania and there are chances
Low : 09.25 was down to 807mn from 1.3bn that they could possibly acquire additional premises in
Mwanza and Dar-es-Salaam. CMC announced a final
Year ends 30th Sept, P/E ratio; 6.9x, EPS; 0.76. dividend of kshs 0.35.

19 CFC STANBIC HOLDINGS 57.50 FY10-Total assets went up by 10% to Kshs 140bn
from Kshs127.7bn in 09,interest income went up to
High : 94.50 Kshs 4.8Bn from Kshs 4.6Bn of 09, pre tax profit was
at kshs 2.6Bn from Kshs 709Mn of 09,profit for the
Low : 38.00 year stood at kshs 1.78M from KShs 35.9Mn of
09.Directors recommended a dividend of Kshs 0.80
subject to approval by the shareholders at the AGM.
Year ends 31st Dec, P/E ratio; 13.7 xs, EPS: 1.75.
It did a demerger from it`s insurance arm which has
reduce its capital holding. In the recently held Capital
Markets awards, the company won lots of awards
which shows that the market has confidence with that
share. In compliance with CMA regulations for
recapitalising the company has topped up the capital of
its investment bank to Kshs 250 million.

Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
Tsavo Securities Limited. -6-
20 NATION MEDIA GROUP. 181.00 FY-10 -Turnover increased by 17.2% to Kshs 9.6bn, It has hired a research firm to collect consumer trends
High : 190.00 from Kshs 8.1 in 09,Profit before tax increased by data across Africa for use in content improvement.It`s
32.7% to Kshs 2.1bn from Kshs 1.6bn in 09, and assets cross-listed its shares on the DSE after approval by
Low : 117.00 increased to Kshs 5.4bn from Kshs 4.8Bn.Profit CMSA and DSE and currently trading. This will
attributable to shareholders increased from Kshs 1.1bn enhance the company`s profile in TZ. Rwanda capital
in 09 to Kshs 1.5bn.Directors declared a final dividend has approved the cross-listing of nation media group
of Kshs 4.00 pending the submission of final documents.
Year ends 31st December P/Eratio;13.4x,EPS;2.71
21 NATIONAL BANK 36.75 FY-10-Asset base was up to Kshs 60.02Bn from The directors recommended final dividend of Kshs
Kshs51.40Bn in 09, Total shareholder’s funds grew to 0.60.Record date being 8th April 2011.The Government
High: 60.00 Kshs 9.9bn from Kshs7.9bn 09,Pre-tax profit at Kshs has said that it prefers to sell its holdings to a foreign
2.7bn from Ksh2.2bn in 09,After tax profit was at Kshs investor. The sale of a 35% stake held by the NSSF in
Low: 30.00 20.bn from Kshs1.5Bn in 09. the Bank has been held hostage by a power struggle.
Years ends 31st Dec, P/E ratio; 8.1x,EPS:2.660 The shares held are to be converted in the ratio of 1:1.

22 TPS (E.A) 66.50 FY-10 -Turnover improved by 14.7% to Kshs 4.5 bn There is increased tourism in the country. Recently
from Kshs 3.9bn of 09.Profit before tax went up by they arrived in a fleet of ship. This shows some
High :72.00 33.3% to Kshs 693Mn compared to Kshs 520Mn 09, prospects of increased activity. The company is also
the profit for the year stood at Kshs 2.3Bn from planning to hold another rights issue to raise additional
Low : 43.00 445.5mn in 09, the asset base went up to Kshs 10.3bn capital to be used to fund expansion projects in East
from 6.0bn 09. Africa and also upgrade its facilities. Directors
Year ends 31st Dec, P/E ratio;20.1x, EPS;0.67 recommended a final dividend of Kshs 1.25.

23 KENYA-RE 9.75 FY10-Net Income grew to Kshs 6.4bn from Kshs4.9bn It plans to start a microfinsurance line to tap into the
in 09. Gross premiums rose from Kshs 3.8Bn in 09 to growing microinsurance underwriting business.It plans
High:14.80 Kshs4.9bn in 10, while investment income went up to to set up a shariah compliant insurance as this model
Kshs 1.7bn from Kshs 1.1bn 09, Profit before tax went is growing in East Africa. The company is intending to
Low : 9.05 up to 1.7bn from 1.5bn 09, Profit for the period was up partner with other insurance companies to develop
to Kshs 1.5bn from Kshs 1.3bn 09. products that will help them penetrate across the World
to cover for any premium income drop. The directors
Year ends in 31st Dec ,P/E Ratio:5.4x, EPS;0.95 recommended a dividend payout of Kshs 0.35.

Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
Tsavo Securities Limited. -7-
24 KENGEN 15.20 HY10-Total revenue increased to Kshs 6.6bn from
Kshs 5.4bn same period 09., Pre-Tax profit grew to
High : 19.00 Kshs 1.3bn from Kshs1.2bn of HY09, Asset base
improved from Kshs 136.6Bn of HY 09 to Kshs 136.9
Low : 12.80 Bn.
Year ended 30th June.P/E ratio; 34.87x EPS; 0.39
25 PAN AFRICA HOLDINGS 99.00 FY10-Gross premium income was up 27% to
Kshs3.8Bn from 3.0Bn 09, Total assets was up by 39%
High :110.00 to Kshs 10.6Bn from 7.7Bn, surplus before taxation
was at Kshs 665 million from Kshs 173.6 million of
Low : 44.00 09,Total Shareholders funds increased from 1.32Bn in
09 to Kshs 1.83Bn in 10.The Directors recommended a
final dividend of Kshs 3.0 and a bonus issue in the
ration on 1:1 Subject to approval at the AGM.
Year ends 31st December, P/E ratio;-25.5,EPS; 0.37
26 MUMIAS 7.75 HY 10-Net revenue decreased from 7.6bn 09 to 7.3bn
in 10. Profit before Tax decreased from 1.5mn in 09 to
High :15.50 1.2mn. EPS decreased by 2% from Kshs 0.68 to 0.54
per share. The company sold 235,792 tonnes of sugar
Low :7.00 which is 2% higher than the 231,014 achieved in the
same period last year.
Year ends 30th June, P/E ratio; 9.67 x, EPS; 1.03
27 ATHI RIVER MINING 169.00 FY-10 Total Assets rose to 16.5bn from 12.1bn of 09,
Turnover rose by 16% to Kshs 5.96bn from Kshs5.14bn
High : 195.00 of 09.Pre Tax profit rose to Kshs 1.11bn from
Kshs948.7mn of 09, Profit after tax rose by 23% to
Low : 101.00 Kshs 792mn from Kshs646mn of 09,The directors
recommended a dividend payout of Kshs 1.75 subject
to approval at the AGM on 14th June 2011.
Year ends 31st December, P/E ratio; 18.7x.EPS; 3.03.
th
Tsavo Securities Limited. Kimathi House, 6 Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
It`s seeking to tap electricity from solar power as a
means of diversifying it`s generating sources. Received
a loan from European Investment Bank to establish a
280MW geothermal plant, The new plants will be
driven both by thermal and green power. It intends to
relocate the Kipevu plant from MSA to Embakasi. It is
willing to sell a 19% stake to a strategic investor so as
to increase its privatisation.
It`s subsidiary P. A. Securities ltd is to transfer it`s
39.97% shareholding in APA Insurance to Apollo
Investment Ltd after the initial sale agreement with
APA.South Africa`s Liberty Insurance is looking to
buy a stake in the firm. It won the life insurer award of
the year 2010 based on prompt payment of claims and
good management practises. They are also focusing on
their relationship with banks to provide insurance
solutions to their customers.
It has began to export sugar outside COMESA
countries (to Italy) as trading bloc`s safeguards for the
Kenyan sector lapse. It received a favourable credit
rating that it tends to use to woo international
financiers to lend to it as it seeks new product lines that
will prepare it for the competition that will come with
the opening of the of the local market to regional
producers.
It`s expecting to increase sales on cement this
year.The company has a 5yr bond currently running
with maturity set at 2015.The coupon is pegged to
performance of the share on the stock market. NIC
capital, the arrangers of the transaction have created an
avenue for the disposal of the bond through the OTC
market, however most bondholders are expected to
hold the bond till maturity.
Tsavo Securities Limited. -8-
28 BAMBURI 175.00 FY10-Turnover reduced to Kshs.28bn, operating profit The NSSF which has a 14% stake in the firm is to sell
decreased by 5.8% to 7.3Bn, Pre tax reduced to 7.5bn its shares on claims that it has a dim outlook, this has
High:220.00 from 9.5 bn ,profit after tax reduced to Kshs 5.2bn from led to the removal of the pension manager from its
Kshs6.9 of FY09,Directors are recommending a final board. The group is optimistic it will achieve stronger
Low : 161.00 dividend payout of Kshs7.00,Record Date 28th Mar 11. top line growth.

Year ends 31st December ,P/E ratio;8.78x, EPS:18.32

29 BAT 259.00 FY-10-Revenue increased by 22% to Kshs 13.53bn, It`s set to venture into South Sudan to expand it`s
High :300.00 from Kshs 11.0bn FY 09, Pre tax profit went up by export business as the local mkt comes under
29% to Kshs 2.72bn from Kshs 2.1bn FY 09, regulatory pressures.It plans to distribute 600,000 tree
Low : 166.00 Shareholders funds stood at Kshs 5.1bn.The directors seedlings in migori.The amendment on finance bill
recommended a final dividend of Kshs 14.50 per share. introduced retail selling price as the primary basis for
Year ends 31st Dec, P/E ratio;12.9x,EPS;14.78 excise on cigarettes which is a retrogressive step to the
company.
30 ACCESS KENYA 8.35 FY10-Group`s turnover declined to Kshs 1.7bn from It has signed a six million a year training partnership
Kshs2.0bn in 09.Profit after tax fell from Kshs 147.9mn deal with Edge Consult Ltd which will see it`s staff
High : 23.50 to a loss of Kshs7.95mn, total assets stood declined and management trained in customer service and
toKshs 1.6 billion from 1.8 in 09. personal devt. It is facing stiff competition from rivals
Low : 7.50 like Wananchi Online and Mobile service providers
Year ends 31st Dec,P/E ratio; 20.7x, EPS;0.37 who are entering into the data vending industry and are
better capitalized than Access Kenya.

31 CROWN BERGER 30.25 FY-10 Asset base increased to Kshs 1.97 bn from Kshs
1.86bn in 09. Shareholder funds stood at Kshs 1.9 bn
High : 45.00 compared to Kshs 1.8bn 09, Sales grew to Kshs 3.1 bn
compared to Kshs 2.5bn 09. Gross profit grew to Kshs
Low : 22.50 1.2Bn as compared to Kshs 923.8mn of 09,Profit after
taxation stood at Kshs 91.4mn as compared to Kshs
86.3mn of the year 09.
Year ends 31st Dec, P/E ratio;19.6x, EPS;1.75
It has entered into a five year distributorship
partnership deal with a UK company that will see it
supplying home floor materials in an effort to tap into
Kenya`s property boom. The increase in road building
projects in East Africa offers an opportunity to increase
its revenue as it manufactures paints used in the
project.A revolutionary Wood Protection system was
introduced, which slashes the cost of protecting and
decorating new timbers, whilst providing long-term
capability to protect.

Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
Tsavo Securities Limited. -9-
SHORT TERM
32 TOTAL 25.25 Q1-11- Total Assets came down to Kshs 31.8bn from The future effect of the merger with Chevron Kenya
Kshs30.4bn in Dec 10, Shareholder’s equity went up to Limited to be realised in 2010 and the subsequent
High : 33.00 Kshs 9.9bn from Kshs9.7bn end year 10,Turnover went years. If one of its major competitors does not meet the
up to Kshs91.9bn from Kshs 21.0bn end year 10, Pre requirements of ERC, they are the ones to emerge the
Low : 26.50 tax profit stood at Kshs 272.8Bn from Kshs 308.2mn winners. Won the tender to supply 170 tonnes of diesel
end year 10, Net profit increased to Kshs 206.7mn from oil to all emergency power stations under KenGen
Kshs 206.4Mn end year 10. worth Ksh 7.5 Billion. The directors recommended a
dividend of Kshs 1.05 subject to approval at the AGM
Year ends 31st Dec, P/E ratio; 19.44x; EPS; 1.62. by the shareholders.
33 E.A. PORTLAND 90.00 HY-09 (The company revenue increased by 25.65% Egyptian chaos has eased pressure on Kenyan traders,
from kshs 3.865B to Kshs 4.85B to same period last Cheap cement from Egypt has been a threat to the
High : 133.00 year, operating profit slightly down from Kshs 591M to company and now that has reduced until they sort
Kshs 475M HY 09, profit before tax was kshs 434M themselves out. The implementation of coal firing
Low :80.00 from (489.22M) of the year 2008, Total Shareholders project is on course and the company anticipates
funds increased from 6.11B to 6.63B which is an realising savings on energy cost before the end of the
increase of 8.18%. calendar year.
Half Year ends 31st Dec,P/E ratio;12.85x EPS;7.00
34 E. A. CABLES. 13.95 FY-10 Turnover increased by 28% to Kshs 3.6bn from It`s scouting for talent from the International labour
Kshs2.8Bn same period 09. Pre tax profit decreased to market to beef up it`s technical department as it
High : 24.75 Kshs258.6Mn from Kshs526.4mn same period 09, position itself to start manufacturing of cables for the
profit from operations was at Kshs303.5mn from lucrative medium power distribution market which is
Low : 15.00 Kshs545.3mn, Asset base of the company increased to mostly dominated by Egypt and SA. The company
Kshs 3.4bn from Kshs2.08bn. held an investor briefing so as to discuss its strategic
moves for the whole year
Year ends 31st Dec, P/E ratio;13.60x, EPS;1.69
35 SASINI. 9.85 FY10-Total Assets grew from Kshs 9.1bn to Kshs7.9bn The company returned a profit for the second year
for the same period 2010,overall revenue increased running managing an 86% increase in profits after tax,
High : 16.65 from ksh2.1bn 08/09 to Ksh 2.2Bn in 09/10.Pre-tax this was attributed to good tea prices and a favourable
profit increased to stand at Kshs 1.3bn compared to shilling. Going forward the company to maintain the
Low: 7.40 Kshs 759.8mn same period of 2010. Profit increased to same tempo. It announced a final dividend payment of
stand at Kshs 980.1mn from Kshs526.6mn of same 30 cent a share.
period 2010.
Year ends :30th Sept, P/E ratio; 2.0x ,EPS;0.68
Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
Tsavo Securities Limited. - 10 -
36 EVEREADY 2.15 FY10-Total Assets grew from Kshs 997.7mn to The CEO Mr Smith is set to retire in May as he returns
High : 5.60 Kshs1.17bn, turnover decreased to Kshs 1.64bn from to his country. They are banking on a new product line
Low : 1.65 Kshs 1.65mn in 09. Profits before tax was down to of solar panels to survive the cut-throat competition
Kshs 14.7 Mn from 41.7mn in 09.Profit after tax was from substandard & cheap Chinese products. Have
at Kshs 8.7mn from Kshs 28.3Mn in 09.Shareholders diversified into marketing of personal grooming
fund grew from Kshs 997.7M to Kshs 102Bn in 10. products in a new scheme aimed at generating more
Year ends 30th Sept, P/E ratio;31.2x,EPS:0.00 revenue.

37 REA VIPINGO 14.40 HY-09/10 Turnover stood at Kshs660.4mn from Prices for sisal fibres declined though it did not
Kshs638mn in 09, Total Assets went up to Kshs 1.44bn overhaul affect the company‘s profit due to the
High : 23.00 from Kshs1.38bn in 09, Sales revenue increased to currency. Promising market prospects for its products
Kshs 660.4mn from Kshs638.0bn 09.The company in the international market. Remain well sold to other
Low : 15.25 announced a dividend of 0.50. producers due to strong market arrangement and
Year ends 30th Sept, P/E ratio; 5.04x EPS: 2.48. positioning.

38 SAMEER AFRICA 6.10 FY-10-Sales stood at Kshs 3.34bn from kshs3.27bn in It has turned to Thailand for supply of Bridgestone tyre
High : 10.25 09, Pre tax profit decreased to kshs62.2mn from brand after imports from japan were interrupted by an
Low : 4.90 Kshs221.5mn in 09,Shareholders funds stood at earthquake.The Crisis in the Middle East and northern
Kshs2.5bn from 2.3bn in 09,Net assets declined to Kshs Africa and upsurge in oil prices will continue to impact
2.3bn from Kshs2.4bn in 09. negatively on it`s cost of production putting pressure
on margins. It is betting on increasing the price of tyres
Year ends 31st Dec, P/E ratio;11.57x ,EPS;0.57 by 10% so as to boost its earnings as rising input costs
continue to slow down profits.

39 STANDARD GROUP LTD. 36.50 FY10- Group revenue rose by 12% to Ksh3.10bn
compared to Ksh2.76bn in the year 09. Total operating
High : 52.00 costs went up by -11% from 2.4bn to Kshs 2.6Bn, pre-
tax profit was up by 20% to Kshs 453.6mn from Kshs
Low : 35.50 376.4 Mn the previous year. Total assets went up to
Kshs3.3bn from 3.0 bn 09; shareholder equity was up to
Kshs1.53bn from 1.26bn 09.The directors
recommended a final dividend of Kshs 0.50.
Year ends 31st Dec, P/E Ratio;12.61x, EPS;1.24
It has venture into outdoor advertising business as part
of diversification stratergy.It has completed acquisition
of an advertising media company which will be
managed by the group under the trade name of ‘Think
outdoor, Think OMS’. The accelerating depreciation of
the Kenyan shilling against the foreign currencies
could have significant adverse effect on the cost of
production.

Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
Tsavo Securities Limited. - 11 -
40 CARBACID 130.00 HY-11, Profit after tax dropped to Kshs 136.9 mn from Increased the share capital for the company from 60M
155.7mn.Turnover rose to 290.6mn from 323.9mn in to 250M Has sold its 22.6% stake to the centum
HIGH:311.00 HY10.Total assets grew to 1.51bn from 1.39bn for HY investment company, will face competition from a new
LOW: 99.50 10. Directors resolved to give an interim dividend of player coming into the market spectra international.
Kshs 2 per share.
Year Ends: 31st Dec , P/E ratio; 6.4x ,EPS; 8.88
41 UNGA 9.10 HY-10 Turnover remained at per Kshs 6.3 billion from Improvement was due to cost containment through
High :15.00 6.2billion, Pre tax profit went up to Kshs 366.7 million purchase of competitively sourced raw materials,
from 237.9 million same period 09, profit for the year farmer education programs conducted through the
Low : 8.25 went up by 68% to Kshs356.5Mn from Kshs 212.1 media and a continued focus on the production of high
million same period 09. quality animal feed products has enabled the animal
Year ends 31st Dec, P/E ratio: 6.85x EPS; 1.32 nutrition sector to record improved performance.
LONG TERM
42 OLYMPIA CAPITAL LTD 4.90 FY09Turnover dropped from Kshs 1.3 bn to 512mn, The company announced that it will diversify its
pre tax profit went up to kshs 66 mn from Kshs 34mn, Kenyan business to food processing. It operates as
High : 10.80 assets for the company stood at kshs 787mn from Yokota SA and Natwood Africa. Yokota deals in
Kshs1.01bn, shareholder’s equity stood at kshs 463mn distributing curtain tracking manufactured by 3rd
Low : 4.50 from kshs546mn. parties under the Yokota brand while Natwood is a
Year ends 28thFeb P/E Ratio: -5.11 xs, EPS; -1.42. furniture and wooden products manufacturer.

43 KAKUZI 65.50 FY 10 Operating profit decreased to 554.3mn from
High : 104.00 578.3mn 09, Pre tax profit declined to Kshs553.9mn
Low: 70.00 from 558.9mn 09, profit for the company was at
385.3mn from 390.3mn in 09.Directors recommended a
first and final dividend payout of Kshs 2.50.
Year end 31st December, P/E ratio;2.5,EPS;1.19
It has received a claim from an alleged overpayment of
Kshs 109Mn from Delmonte following the discovery
of an alleged error.Its share price soared from a low of
Shs.31 to a high of Shs104 in the last 12 months,
buoyed by high coffee and tea prices that saw tea
farmers’ bonuses rise 52% to Shs.38B.

44 BOC 125.00 FY-10 Turnover dropped by 10% to Kshs 1.16Bn from
High : 160.00 1.28Bn of 09. Pre tax profit dropped by 50% to kshs
Low : 125.00 114.7 million from 231.7 million in 09, recommending
a final dividend of kshs 4.80 per share, total dividend
being 9.40 per share.AGM to be held on 27th April 11.
Year ends:31stDecember ,P/E ratio; 19.67 ,EPS;7.88
There`s growth outlook in the region for 2011,as in the
govt`s infrastructure investments, which should firm
up demand for welding gases, consumables and other
BOC Kenya products. It`s upgrading it`s key
production facilities which will lead to efficiencies and
improved product availability.

Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
Tsavo Securities Limited. - 12 -
45 LIMURU TEA 300.00 FY10 (Assets increased to Kshs 147.1 million, from It`s expecting a good year should the increased level in
High : 350.00 Kshs 67.6 million in 09, Equity increased to Kshs 119.3 rainfall continues.The tea prices is favourable due to
Low : 290.00 million from Kshs 55.9 million 09, turnover increased the wek shilling hence the company’s profitability
by 36% to Kshs 123.9 million from Kshs 91.1 million should improve further in the second half of the year.
09, profit increased to Kshs 74.8 Million from The directors recommended a final dividend of Kshs
Kshs26.9Mn in 09.. 7.50
Year ends 31st Dec, P/E ratio;43.2x, EPS;0.84
46 EAAGADS 50.00 HY-09Turnover increased to Kshs 66.7 mn from 27 mn The share is depreciating since the wrangles started
High : 80.00 , gross profit declined to kshs 74 mn from Kshs 37 mn, stalling the takeoff of the mega real estate project,
Low : 19.00 loss for the period was at Kshs11.1 mn from Kshs Tatu city. One of the shareholders has taken the
13.35, assets declined to kshs 244.57 from Kshs company to court. Waguthu holdings Kenya ltd is
276.79,shareholder’s fund was at kshs 181.5Mfrom in the process of acquiring all the issued shares of
Kshs 192.67 M Socfinaf company ltd which holds 62% of all
issued shares in Eaagads ltd. planted mature coffee
st
Year ends 31 March ,,P/E ratio;108x ,EPS;-0.69 trees in Thika area Directors recommended
dividends of Kshs 0.65
47 WILLIAMSON TEA 180.00 HY09 profit after tax grew from 32M to 211M for the Likely to benefit from the improved tea prices, The
High : 249.00 year, profit before tax for the six-month period was Directors and Management continue to evaluate the
Low : 130.00 Kshs 219 million, compared to profit before tax of Ksh Company’s operations in order to effect every possible
30 million for the same period last year. cost saving measures to mitigate the anticipated losses.
Year ended 31st March ,P/E ratio;-9.1x ,EPS;3.75
48 EXPRESS KENYA 4.50 FY-09 (turnover stood at Kshs 856.5 mn from Kshs It has adopted a four year strategic business plan that
892.9 mn of 09, Profit from operations increased to will cover 2010-2012 to ensure profitability and
High : 12.30 Kshs 85.2Mn from Kshs 79.5Mn 09,Gross profit energize the group into new heights.Plans on
declined to Kshs 371.9 from Kshs 392.3 in 09. diversifying its logistics services by tapping into other
Low : 5.50 Year ends 31st Dec , P/E ratio;-6.5x ,EPS;0.72 profitable opportunities presented by the robust
economic growth and to maintain a sustained growth
pattern.

49 CITY TRUST 188.00 HY-10-Income went up to Kshs 909Mn from 373.8 Relying on one source of revenue stream; I & M
High : 195.00 million,Total Assets went up to Kshs 278.2Mn from However due to the decline in the housing prices, its
Low : 90.00 257.2Mn in HY10, capital and reserve up to kshs 254.7 sole revenue source could be affected. .
million
Year ends 31st July ,P/E ratio;16.7x,EPS;-0.02
Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
Tsavo Securities Limited. - 13 -
50 CAR & GENERAL 35.00 HY-09/10 Turnover increased by 6.4% from 2.15b to The company has installed a Sh.1.5M heat exchanger
2.3b of 09. Pre-tax profit increased by 40.8% from in Nairobi to speed up the testing of its customers’
High : 68.00 135.4m to 190.7m of 09.Profits went up to Kshs engines. The heater will replace a temporary cooling
133.4Mn from Kshs 90.2Mn same period 09. system that wasn’t adequate to meet the growing
Low : 30.00 Year end 30th Sept, P/E ratio; 3.8 6x. EPS; 8.8 demand for engine checks, services and repairs.
51 KAPCHORUA TEA 105.00 HY09 (profit after tax grew to ksh 44M from ksh13M It anticipates further reduction in our sales realizations
High : 177.00 the previous year. Profit before tax grew ksh 63.9M and loses in a very challenging year ahead, due to
Low :90.00 from ksh18.79M, the share holders fund grew ton declining World Tea prices and the continuing strong
ksh724M from ksh632M in the previous year. Kenya shilling, Directors and losses
Year ends 31st March , P/E atio;4.76x,EPS;17.87
52 KENYA ORCHARDS 3.00 FY-10 Turnovers went up to Kshs 23.2 Mn from Competition from the Middle East and Egypt is
High :3.00 22.4Mn in 09.Profit before tax stood at Kshs 620.5Mn flooding the market other cheap products.
Low : 3.00 from Kshs 232.8 Mn in 09.Shareholder’s fund came
down to kshs 726.1thousands from Kshs 1.2 of 09,
asset base went up to kshs 55.5mn from Kshs Kshs 55.
Year ends 31st Dec, P/E ratio; -4.9x,EPS;0.04
53 MARSHALLS 14.15 Announced dividends of KShs 1.00 Boardroom wrangles made the investors to flee from
High : 19.00 Year ends 31st MarchP/E ratio;- 2.7x ,EPS;-8.16 this counter and also due to the poor results as a
Low : 14.00 product of the above reason. A record four managing
directors left the company in the last three years.
SUSPENDED
54 UCHUMI 14.50 HY-10/11 Total net sales dropped to Kshs 5.8Bn from It has strengthened it`s board by appointing two new
Kshs 9.6Bn in June 10.Gross profit came down to directors. The govt is the single largest investor in
Kshs1.7Bn from Kshs 1.0 Bn in June 10, & Profit Uchumi supermarkets with a 13.1% stake after
before tax came down to Kshs 162Mn from Kshs converting it`s debt to shares. Uchumi has been on a
433.1Mn in June 10 while Total Assets grew from Kshs profitability path for the last four years, a recovery that
3.2Bn to Kshs 3.6Bn in June 10.. has seen it being able to consistently meet its financial
P/E ratio:23.77x EPS;0.61 obligations to its debtors and pay its supplies on time.
55 A. BAUMANN 11.10 Year ends 31st March ,P/E ratio; -4.0x ,EPS;-2.75 The Group trades in electrical, agricultural, and
construction equipment & also holds investment
properties & other investments. The shares are illiquid.
56 HUTCHINGS BIEMER 20.25 P/E ratio; -1.10xEPS;-18.34 The industry is facing stiff competition from new
entrants. On the verge of delisting.

Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke
 Disclaimer: “This report is prepared for general information only and as such, the specific needs, investment objectives or financial situations of any particular user have not been taken into consideration. Users are therefore advised to
consult Tsavo Securities Limited for financial advice on the merits of the recommendations for specific circumstances.”

Tsavo Securities Limited. - 14 -

KEY:
Speculative: Capital gain spans approximately 3 months. The current fundamentals provide an opportunity for capital gain.
Short Term: Capital gain spans approximately 6-10 Months. The company has some significant prospects in its industry.
Long Term: Capital gain falls beyond 12 month. The fundamentals are strong and the company has bright future.
HY ( ): Most recent half year results
FY ( ): Most recent full year results. Cd (cum dividend), ca (cum all), xd (ex-dividend), xs (ex-split), xc (ex-coupon), cr (cum-rights)

NAIROBI
6th Floor, Kimathi House, Kimathi Street
P O Box 11987-00100, GPO, Nairobi
TEL +254, 2245042, 2215253,
Fax +254 20 2 245042
E-mail: info@tsavo.co.ke or cliff@tsavo.co.ke
Website www.tsavo.co.ke

Disclaimer: “This report is prepared for general information only and as such, the specific needs, investment objectives or financial situations of any particular
user have not been taken into consideration. Users are therefore advised to consult Tsavo Securities Limited for financial advice on the merits of the
recommendations for specific circumstances.”

Tsavo Securities Limited. Kimathi House, 6th Floor, Kimathi Street. P.O.Box 11987-00100, Nairobi. Tel: 254-20-2245042, 2243954, fax 2243958. Email: info@tsavo.co.ke . website: www.tsavo.co.ke