BUA Cement Stock Performance

BUA Cement Stock Performance: To Buy or Not To Buy?

Last updated on January 29th, 2024 at 04:16 am

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The BUA Cement stock price rose by 151.56% from January 26, 2022, when it was at N71.4 per share, to N179.65. on January 26, 2024.

Suppose an individual invested N500,000 in BUA Cement stocks in 2022, purchasing 7,002 units at the rate of N71.4 per share. With the stock price having increased to N179.65 as of January 26, 2024, the investment is now valued at N1,257,909.3, resulting in a gain of N757,909.

Background

On January 9, 2020, BUA Cement Plc was listed on the Nigerian Exchange Group (NGX). The company’s foray into cement manufacturing began as an importing firm.

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After being listed, BUA Cement Plc quickly rose to become the second-largest producer of cement in Nigeria.

Its impressive stock performance has attracted more investors to come on board. Interestingly, another firm under the BUA Group umbrella, BUA Foods Plc, was listed on NGX in January 2022.

Company Profile

  • Company Name: BUA Cement Plc
  • Date Listed: January 09, 2020
  • Date of Incorporation: May 30, 2014
  • Trading Ticker: BUACEMENT
  • Market Classification: Main Board
  • Sector: Industrial Goods
  • Sub Sector: Building Materials
  • Nature of Business: Cement Manufacturing & Marketing
  • Email: info@buacement.com
  • Company Secretary: Ahmed Aliyu
  • Registrars: Africa Prudential
  • Auditor: PricewaterhouseCoopers
  • Financial year-end: December 31 of every year
  • Registered Address: 5th Floor, BUA Towers, PC 32, Churchgate Street, Victoria Island, Lagos, Nigeria
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Board of Directors:

  • Abdul Samad Rabiu: Chairman/Founder
  • Yusuf Haliru Binji: MD/CEO
  • Jacques Piekarski: Chief Financial Office
  • Hauwa Garba-Satomi: Company Secretary
  • Khairat Abdulrazaq- Gwadabe: Independent Director
  • Finn Arnoldsen: Non-Executive Director
  • Shehu Abubakar: Independent Director
  • Kabiru Isyaku Rabiu: Non-Executive Director
  • Kenneth Chimaobi Madukwe: Non-Executive Director

Its Journey Into a Trillionaire Company

The journey of the company, which has grown to become a major competitor of Dangote Cement in both production and sales in the market, began in 2008—the same year it was incorporated. At that time, the Nigerian government granted it permits to import cement into the country.

It began as a clicker production and cement re-bagging operation. By 2009, under the leadership of its Chairman and billionaire, Alhaji Abdul Samad Rabiu, the parent body acquired the majority stake in the Edo Cement plant.

The group subsequently proceeded to commission the Obu Cement Plant, situated just a few kilometers from Okpella.

The Edo Cement Plant, located in Okpella, Edo State, was on the brink of collapse. BUA Group intervened, injecting billions of Naira to revive it and resume active production.

By 2019, an additional production line had been introduced. In the Edo plants (situated at Km 164 Benin-Okene Expressway, Okpella, Edo State), the company boasts a production capacity of 6 million tonnes.

In the same year that BUA Group acquired the Edo Cement Plant (2009), the company expanded its investment reach to the Northern part of Nigeria by acquiring the Cement Company of Northern Nigeria in Sokoto state (located at Km 10 Kalambaina Road, Sokoto State).

This company, founded by the Northern Nigeria Development Company in 1962, became part of BUA Group’s growing portfolio.

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By 2018, it brings on board the Kalambaina plant to supply power for the cement plant and coal mining to fuel the production line.

Its entry into the Nigerian Stock Exchange

Before the impending collapse of the Edo plant, it operated under the name Bendel Cement. The name was later removed when it was listed on the Nigeria Exchange Limited (NGX).

By 2020, BUA Group streamlined its cement operations and listed BUA Cement Plc on the NGX with the trading ticker BUACEMENT.

On January 9, 2020, the day of its listing, BUA Cement Plc boasted a market capitalization of N1.18 trillion and a combined installed capacity of 8 million metric tons per annum (mtpa), positioning it as the second-largest cement producer in the Nigerian market and one of the largest in Africa

BUA Cement Dividend Payout from 2022-Present

It’s important to track a company’s revenue, market capitalization, and dividend payouts to make informed decisions when considering investments in existing companies on the stock exchange.

  • 2019: N1.75
  • 2020: N2.067
  • 2021: N2.60K
  • 2022: N2.80K

Qualification Condition:

Shareholders’ names must appear in the Register of Members

Qualifying shareholders must complete an e-dividend registration form

Must mandate BUA cement Registrar, Africa Prudential, to pay their dividends directly into their bank accounts.

How to apply for the company’s Dividend eShare

If you’re on the list of  unclaimed dividends of BUA Cement, there are two ways to get this done: 1) Via the investors’ section, 2) Via the portal of registrars of BUA Cement

Here is how to begin the process of claiming it:

  • Visit the investor relations section at buacement.com/shareholderservices/
  • Scroll down and click BUACEMENT eShare Registration Form to download
  • Fill out the form, scan it, and send it via email to cxc (at) africaprudential.com
  • Alternatively, you can fill out the e-dividend mandate form online right on the registrar’s portal.
  • Agree to the declaration
  • And hit submit
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Note: The service cost NGN150, according to the registrars

How To Buy BUA Cement Share:

Talk to one of the accredited stockbrokers in Nigeria and you will be guided on the process.

Is it a good stock to buy?

By the year-to-date performance of BUACement in 2020, the company’s stock is a good buy. Going by its performance since trading opened in 2024, it’s one of the best-performing stocks you can buy in Nigeria.

As of May 10, 2022, the company’s market capitalization was N2.5 Trillion, it reached N6.083 Trillion on January 26, 2024, making it one of the top most capitalized Nigerian companies.

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