1. OVERVIEW:
- CAP Plc is a Nigerian company that evolved from the renowned British multinational, Imperial Chemical Industries PLC (ICI).
- The company operates in the chemical and allied products industry, with a focus on coatings and related products. CAP manufactures and sells a range of paint finishers for the coatings sector in Nigeria. Their products fall under the Dulux and Caplux brand names.
- CAP's registered office is located at 2, Adeniyi Jones Avenue, Ikeja, Lagos.
- Key directors include Mrs. Bolarin Okunowo (Managing Director), Mrs. Awuneba Ajumogobia (Chairperson), and other non-executive directors.
2. FINANCIAL HIGHLIGHTS (For The Year Ended 31 Dec. 2023):
- Revenue: ₦23,890,279 (24% up from 2022)
- Operating Profit: ₦3,253,029 (5% up)
- Gross Profit: ₦9,011,803
- Profit Before Tax: ₦3,778,928(up 10%)
- Total Equity and Liabilities: ₦15,373,521 (up 15%)
- Earnings per Share (Basic): 309 kobo (up 6%)
- Earnings per Share (Diluted): 305 kobo (up 5%)
- Net Asset per Share (Basic): 1,011 kobo (up 21%)
- Dividend: 1.55kobo (paid June 25, 2024)
3. As of now, Chemical and Allied Products Plc (CAP) holds approximately 11% to 12% of the Nigerian paint industry market share. The recent merger with Portland Paints and Products Nigeria Plc is expected to boost CAP's position, aiming for a 25% market share. CAP is listed on the Nigerian Stock Exchange (NGX) under the ticker symbol "CAP" and has a market capitalization of approximately NGN 29.3 billion. CURRENT STOCK PRICE: ₦36.00
4. SWOT ANALYSIS
Strengths:
1. Strong Market Presence: CAP Nigeria is a leading player in the Nigerian paints and coatings industry with a well-established brand and extensive distribution network.
2. Diverse Product Portfolio: The company offers a wide range of products catering to both residential and commercial markets, providing versatility and meeting various customer needs.
3. Strategic Partnerships: CAP Nigeria has strategic alliances with suppliers and distributors, enhancing its market reach and operational efficiency.
4. Strong Financial Performance: Historically, CAP Nigeria has demonstrated robust revenue growth and maintained healthy profit margins, indicating strong financial health.
Weaknesses:
1. Dependency on Raw Materials: Fluctuations in raw material prices could impact production costs and profitability, exposing the company to supply chain risks.
2. Market Concentration: The company's revenue heavily relies on the Nigerian market, which poses risks associated with economic instability and regulatory changes within the country.
3. Limited International Presence: CAP Nigeria's operations are primarily focused on the domestic market, limiting its exposure to potential growth opportunities in global markets.
Opportunities:
1. Expansion into New Markets: There is potential for CAP Nigeria to explore and expand its footprint into neighboring African markets, leveraging its brand reputation and product quality.
2. Growing Construction Sector: With ongoing infrastructure development and urbanization in Nigeria, there is increasing demand for paints and coatings, presenting growth opportunities.
3. Innovation in Product Development: Investing in research and development to introduce eco-friendly and technologically advanced products could capture market share and meet evolving consumer preferences.
Threats:
1. Economic Volatility: Fluctuations in the Nigerian economy, currency depreciation, and inflationary pressures could impact consumer spending and business operations.
2. Intense Competition: CAP Nigeria faces competition from local and international paint manufacturers, which could pressure pricing and market share.
3. Regulatory Challenges: Adherence to stringent regulatory requirements and compliance with environmental standards may pose operational challenges and increase costs.
- CAP Plc is a Nigerian company that evolved from the renowned British multinational, Imperial Chemical Industries PLC (ICI).
- The company operates in the chemical and allied products industry, with a focus on coatings and related products. CAP manufactures and sells a range of paint finishers for the coatings sector in Nigeria. Their products fall under the Dulux and Caplux brand names.
- CAP's registered office is located at 2, Adeniyi Jones Avenue, Ikeja, Lagos.
- Key directors include Mrs. Bolarin Okunowo (Managing Director), Mrs. Awuneba Ajumogobia (Chairperson), and other non-executive directors.
2. FINANCIAL HIGHLIGHTS (For The Year Ended 31 Dec. 2023):
- Revenue: ₦23,890,279 (24% up from 2022)
- Operating Profit: ₦3,253,029 (5% up)
- Gross Profit: ₦9,011,803
- Profit Before Tax: ₦3,778,928(up 10%)
- Total Equity and Liabilities: ₦15,373,521 (up 15%)
- Earnings per Share (Basic): 309 kobo (up 6%)
- Earnings per Share (Diluted): 305 kobo (up 5%)
- Net Asset per Share (Basic): 1,011 kobo (up 21%)
- Dividend: 1.55kobo (paid June 25, 2024)
3. As of now, Chemical and Allied Products Plc (CAP) holds approximately 11% to 12% of the Nigerian paint industry market share. The recent merger with Portland Paints and Products Nigeria Plc is expected to boost CAP's position, aiming for a 25% market share. CAP is listed on the Nigerian Stock Exchange (NGX) under the ticker symbol "CAP" and has a market capitalization of approximately NGN 29.3 billion. CURRENT STOCK PRICE: ₦36.00
4. SWOT ANALYSIS
Strengths:
1. Strong Market Presence: CAP Nigeria is a leading player in the Nigerian paints and coatings industry with a well-established brand and extensive distribution network.
2. Diverse Product Portfolio: The company offers a wide range of products catering to both residential and commercial markets, providing versatility and meeting various customer needs.
3. Strategic Partnerships: CAP Nigeria has strategic alliances with suppliers and distributors, enhancing its market reach and operational efficiency.
4. Strong Financial Performance: Historically, CAP Nigeria has demonstrated robust revenue growth and maintained healthy profit margins, indicating strong financial health.
Weaknesses:
1. Dependency on Raw Materials: Fluctuations in raw material prices could impact production costs and profitability, exposing the company to supply chain risks.
2. Market Concentration: The company's revenue heavily relies on the Nigerian market, which poses risks associated with economic instability and regulatory changes within the country.
3. Limited International Presence: CAP Nigeria's operations are primarily focused on the domestic market, limiting its exposure to potential growth opportunities in global markets.
Opportunities:
1. Expansion into New Markets: There is potential for CAP Nigeria to explore and expand its footprint into neighboring African markets, leveraging its brand reputation and product quality.
2. Growing Construction Sector: With ongoing infrastructure development and urbanization in Nigeria, there is increasing demand for paints and coatings, presenting growth opportunities.
3. Innovation in Product Development: Investing in research and development to introduce eco-friendly and technologically advanced products could capture market share and meet evolving consumer preferences.
Threats:
1. Economic Volatility: Fluctuations in the Nigerian economy, currency depreciation, and inflationary pressures could impact consumer spending and business operations.
2. Intense Competition: CAP Nigeria faces competition from local and international paint manufacturers, which could pressure pricing and market share.
3. Regulatory Challenges: Adherence to stringent regulatory requirements and compliance with environmental standards may pose operational challenges and increase costs.