QWI Reports Significant Improvement in Bottom-Line

• For the 6 months ending March 2021, QWI reported a net profit of $170.72Mn (EPS: $0.13) relative to a net loss of -$576.41Mn (EPS: -$0.42) in the prior year. The improvement reflects unrealized and realized gains on its local and overseas investments, which resulted in a total gain from investments of $259.28Mn, as well as dividend income, which grew by 13.8% to $17.54Mn.
• Improved performance in both the local and U.S stock markets over the last six months when compared to the COVID-19 induced sell-off that took placed in March 2020 would have accounted for the gains on its investments.
• Net asset value per share rose by 12.0% over its half-year period, faster than the pace of growth in the JSE combined index, which grew 4.7%. Nevertheless, its performance lags its benchmark index (MSCI ACWI), which returned 19.1% from September to March 2021.
• The Jamaican stock market (74.0% of QWI’s portfolio) is expected to fare better in 2021, given the projected recovery in economic activity in H2 2021, which should result in higher corporate earnings, improved investor sentiment, and a recovery in the stock market. The U.S stock market performance should also be bolstered by the accelerated pace of economic recovery owing to its successful vaccination program and government stimulus.
• The stock has appreciated by 32.6% since the start of the year and currently trades at $1.00 per share, which is 32.0% below the company’s net asset value per share (NAPS) of $1.32 as of April 30, 2020.  

(Source: Company Financials)