TJH Records Strong Financial Performance for Q1 2024

• TransJamaica Highway Limited recorded a net profit of US$6.91Mn for the first quarter ending March 31, 2024. This represents a 38.8% increase in profitability year-over-year (yoy)  driven by higher revenues and other gains earned.
• Revenue for the quarter was up by 9.9% yoy to US$19.78Mn and other gains moved from a loss of US$140K to a gain of US$1.23Mn, representing a 975.7% increase. However, earnings were partially offset by higher expenses incurred during the quarter.
• The company incurred operating expenses of US$6.02Mn, reflecting a 9.8% (or US$537K) increase, compared to US$5.49Mn reported for the same period in 2023. This increase was primarily due to higher amortisation of the ‘Intangible Asset’, higher insurance renewal cost and increased security cost based on the 2023 court ruling and minimum wage increase. This was slightly tempered by lower consultancy fees and lower greenery and other maintenance costs for the period.
• Additionally, administrative expenses increased by 13.4% (or US$276K) primarily due to the salary changes following the December 2023 completed restructuring exercise and the annual salary increases for the year 2023, which were delayed pending the results of this exercise.
• TJH’s stock price has increased by 22.2% since the start of the calendar year. The stock closed Wednesday’s trading session at $3.30 and a had P/E of 9.7x, which is below the Main Market Energy, Industrial, and Materials Sector Average of 9.8x.

(Sources: Company Financials & NCBCM Research)