MIL Sees Increase in Bottom-Line But Stock Market Pullback Is Impacting Results

• Mayberry Investment Limited (MIL) recorded a net profit attributable to shareholders of $2.04Bn (+157.2%) for the nine months ending September 30, 2022. 
• This performance was attributable mainly to growth in unrealized gains on investments in associates, which increased by $3.51Bn or 618.5%, dividend income which was higher by 57.9% or $171.62Mn, and consulting fees and commissions, which grew by 22% to $363.53Mn.
• While the performance year to date is positive, supported by strong performance in the first half of the year, there was a net loss recorded in Q3 owing to the slowdown in the local equities market which resulted in $2.30Bn in unrealized losses on financial instruments and investments in associates.
• The company maintains a robust capital base compliant with regulatory benchmarks. Its Q3 2022 capital-to-risk-weighted asset ratio was 20.8% which is well above the minimum of 10% set by the Financial Services Commission (FSC).
• Going forward, MIL will likely continue to record unrealized losses in Q4 as high interest and tight JMD liquidity cause a pullback in the stock market. This could put downward pressure on MIL’s profitability.
• MIL’s stock price has decreased by 1.81% since the start of the calendar year. The stock closed Thursday’s trading session at $7.70 and currently trades at a P/E of 2.8x, below the Main Market Financial Sector Average of 12.8x.

(Sources: Company Financials and NCBCM Research)