TJH Records 25.9% Increase in Bottom-line YTD 

• Bolstered by strong quarterly topline performances, TransJamaican Highway Limited (TJH) recorded net profit of US$21.99Mn for the nine months ended September 30, 2024, a 25.9% YoY increase. Revenue for the nine-month period grew by 9.2% or (US$5.07Mn) to US$60.4Mn, aided by higher traffic volumes and movements in the toll tariff, which was increased after its annual review.
• TJH incurred a marginal 0.5% increase in operating expenses to US$16.67Mn. Higher intangible amortisation expenses were partly offset by a reduction in repairs and maintenance activities throughout the period.
• However, administrative expenses rose more briskly by 16.6% (or US$1.00Mn), primarily due to salary changes following the JIO acquisition and restructuring exercise and the usual annual inflationary increments.
• In Q3, earnings increased by 24.9% (or US$1.61Mn), continuing the strong growth trend from Q1 and Q2. The Q3 performance was largely driven by a 8.5% (US$1.63Mn) increase in revenues. Additionally, a 5.8% reduction in operating expenses and a 3.4% decrease in finance costs due to ongoing quarterly debt principal repayments further supported the overall growth.
• TJH's stock price has increased by 33.6% since the start of the calendar year. The stock closed Monday’s trading session at $3.62 and currently trades at a P/E of 6.5x, which is below the Main Market Energy, Industrial, and Materials Sector Average of 10.4x.
• During the quarter, TJH completed negotiations with National Road Operating and Constructing Company Limited (NROCC) regarding the concession to operate and maintain Phase 1C of the Highway 2000 toll roads until November 20th, 2036. The addition of this new concession should enhance the company's portfolio by introducing a fourth toll road. Management anticipates this will provide a boost to TJH’s revenues by a further US$9Mn per annum, which should also result in higher earnings.

(Sources: TJH Financials & NCBCM Research)