QWI Reports Improvement in Bottom-Line for FY 2023-24

  • QWI Investments Limited (QWI) reported a net profit of $133.07Mn for its financial year ending September 2024 (FY24), a significant turnaround from the $44.12Mn net loss recorded in FY 2023. The results were spurred by strong performance across both local and overseas portfolios.
  • QWI’s overseas portfolio appreciated 30.9% during the year, generating unrealised gains of $177.64Mn primarily driven by a 41% increase in its US portfolio, which represents most of QWI's overseas investments. Realised gains from its overseas portfolio grew 140.4% year-over-year to $21.26Mn.
  • Similarly, market conditions in Jamaica also improved contributing to unrealised gains of $72.39Mn, a significant recovery from the unrealised losses of $94.44Mn recorded in the prior year.
  • As at September 30, 2024, QWI's top U.S. holdings were Meta and Nvidia valued at US$0.57Mn and US$0.49Mn respectively, while its top Jamaican holdings are Access Financial Services and Dolphin Cove valued at J$184.4Mn and J$150.2Mn respectively.
  • As the portfolio expanded, administrative and selling expenses rose 12.2% largely driven by higher accruals for investment management costs.
  • The performance of its local portfolio could continue to improve over the near term. Of note, the company has undertaken the strategic sale of a poorly performing stock that had previously been difficult to sell. Locally, corporate earnings continue to be mixed. However, the decline in the market bodes well for future gains in the local stock market as investors reallocate funds from fixed-income investments and demand for stocks rises.
  • QWI’s stock price has increased by 27.9% since the start of the calendar year to $0.78 on October 22, 2024, and it currently trades at a 40.9% discount to its net asset value (NAV). The most recent NAV per share was $ 1.32 as at October 11, 2023.
  • This discount to NAV is a long-standing characteristic for other listed funds in QWI’s peer group, which can significantly affect investors' ability to realise the true value of their investments.

(Sources: QWI Financials & NCBCM Research)