• Jamaica Producers Group Limited announced that it has entered into an agreement with Wisynco Group Limited to transfer 30% of the shares in its subsidiary JP Snacks Caribbean Limited. JP Snacks Caribbean Limited is a holding company that will own the “JP St. Mary’s” brand and JP’s tropical snack manufacturing operations. JP will hold the remaining 70 % percent of JP Snacks.
• The goal of the partnership is to bring to consumers a wide range of innovative Caribbean snacks and tropical foods. WISYNCO will bring to the partnership, their expertise in marketing, manufacturing and its distribution network. The transaction values JP Snacks at J$2.4Bn and sees WISYNCO investing J$720Mn for a 30 percent interest.
• Jamaica Producers Group will seek to strengthen distribution in existing markets in the USA, Canada, the Caribbean, the UK, and Central America, in addition to seeking new markets.

(Source: Release to the JSE)

• For the three-month period ended March 31, 2019, Mayberry Jamaican Equities reported an unaudited net loss of $157.8Mn (EPS: -$0.13) which represents a considerable loss relative to the $157.2Mn profit recorded in the corresponding period of 2018.
• The primary contributor to the outcome over the period was a loss experienced in Net Interest Income and Other Revenues, which moved from $235.11Mn in 2018 to -$43.32Mn in 2019.  In particular, this was caused by a significant unrealized loss on investment revaluation of $71.8Mn for the period, down from a $176Mn gain recorded one year prior.
• There was also a significant increase in operating expenses, which was up 31.6% year-on-year to $116.1Mn. 
• The stock has fallen 5.40% since the start of the calendar year, closing yesterday’s trading session at $8.76 per share.  At this price MJEL currently trades at a P/B of 0.64x earnings which is below the Main Market Financial Sector average of 1.98x.

(Source: MJE Financial Statements)

• Moody's Investors Service (Moody's) assigned a Ba3 Corporate Family Rating (CFR) and a b2 Baseline Credit Assessment (BCA) to Trinidad Petroleum Holdings Limited (Trinidad Holdings).
• Simultaneously, Moody's assigned a Ba3 rating to Trinidad Holding's proposed up to $425 million in guaranteed senior secured notes and a Ba3 rating to the company's proposed senior secured term loan.
• Both the proposed notes and term loan will be guaranteed by Heritage Petroleum Company Limited (Heritage) and other smaller subsidiaries of Trinidad Holdings.
• Proceeds from the transactions will be used primarily to repay Petroleum Co. of Trinidad & Tobago (Petrotrin)'s 2019 and 2022 senior notes. The outlook on the ratings is stable. This is the first time that Moody's assigns ratings to Trinidad Holdings.

(Source: Moody’s Investor Service)

• The government has narrowed its $185m revenue gap, the deputy prime minister has revealed, as it “keeps a close eye” on its agencies’ spending as the 2018-2019 fiscal year-end looms.
• KP Turnquest told Tribune Business that the traditionally revenue-rich first quarter of the calendar year had helped “tighten” the difference between the government’s actual and projected revenue collection ahead of the upcoming 2019-2020 budget.
• Suggesting this had further boosted confidence that the year-end $237.6m deficit target will be achieved, Mr Turnquest said the Ministry of Finance was closely scrutinizing all ministries, departments, and agencies to ensure there are no last-minute spending binges “where there is no legitimate need”.

(Source: Tribune 242)

• Chinese gross domestic product rose 6.4% in the first quarter from a year earlier, beating economist estimates.
• The better-than-expected number was driven by March data, with retail sales growth for the month at 8.7% and factory output recording a surprise 8.5% jump. 
• The data comes after authorities in Beijing introduced a string of economic measures to counter the headwind of the trade war. 
• Underscoring how the government and ruling party remain active shepherds of the credit cycle, an incentive program offers cheap loans to borrowers who study President Xi Jinping’s thoughts and help promote the Communist Party.

(Source: Bloomberg)

• The European Union published its preliminary list of U.S. goods being targeted in a $12 billion plan for retaliatory tariffs over subsidies to Boeing Co., with a focus on farm products from areas that help from President Donald Trump’s political base.
• The World Trade Organization will ultimately decide the level of damages the EU can seek, with a verdict possible toward the end of this year or in early 2020.
• The EU retaliation plan follows a U.S. threat to seek $11 billion in damages through duties on European goods ranging from helicopters to cheeses to counter state aid to Airbus SE. Both moves stem from parallel, 14-year-old, disputes at the WTO over market-distorting support for aircraft makers.

(Source: Bloomberg)

• Fitch maintains its view that the Jamaican dollar will depreciate over the coming months, amid rising inflation and dovish monetary policy. 
• Volatility will remain elevated, as the Bank of Jamaica (BoJ) takes a less active role in moderating the FX market. 
• Fitch Solutions forecast the Jamaican dollar to average JMD132.1/USD in 2019 and JMD138.0/USD in 2020, from a spot level of JMD128.9/USD.

(Source: Fitch)

• Knutsford Express reported a net profit of $157.93Mn (EPS: $0.32) for the nine months ended February 28, 2019, which translates to a 23.1% increase over the $128.31Mn (EPS: $0.26) earned in the prior year.
• This came on the back of revenues that amounted to $841.92Mn which represents a 45.9% increase over the $577.13Mn generated in 2018. The growth was attributed to increased patronage of overseas visitors traveling between its various destinations, in particular to and from Negril where the number of departures doubled in the quarter.
• The stock has declined by -5.46% YTD and currently trades at a P/E of 29.26x earnings which is above the junior market average of 20.91x earnings.

 (Source: KEX Financials)

• For the nine-month period ended February 28, 2019, Paramount Trading Limited reported an unaudited net profit of $45.5Mn (EPS: $0.03) which represents a 31.6% decrease relative to the corresponding period in 2018
• The decline in profit was primarily driven by an increase in administrative expenses (+25%), from $215.5Mn in 2018 to $270.1Mn in 2019 coupled with an increase in selling & distribution expense (+18.9%) and the application of a $2.03Mn tax on the company. Notably, the company is now in the 6^th year of trading and therefore income tax is now calculated on the profit.
• The stock has fallen 25.9% since the start of the calendar year closing at $2.15 yesterday. At this price, PTL currently trades at a P/B of 4.6x which is above the Junior Market Distribution Sector average of 3.5x.

(Source: PTL Financials)

• Trinidad Petroleum Holdings Ltd is offering an exchange for all outstanding notes due in 2019 and 2022 for new USD-denominated notes and, if applicable, cash, according to a company statement. New senior secured notes with 9.75% coupon would mature 2026
• Trinidad Petroleum conducting consent solicitations from bondholders for amendments that would “eliminate substantially all of the restrictive covenants, certain events of default and release of guarantees upon the sale of certain subsidiaries and other related provisions contained in the Existing Indentures”
• The exchange offer and consent solicitation will expire May 10, unless an extension is granted or offer is terminated earlier. Early tender deadline is set for April 26. The company says it has $850m outstanding on notes due 2019; ~$219m outstanding on notes due 2022.

(Source: Bloomberg)