Jamaica Producers Group Ltd (JP) Is A BUY – Mayberry

Jamaica Producers Group,  who Mayberry describes as being mainly in the business of juice and food manufacturing, the cultivation, marketing and distribution of fresh produce locally, logistics, land management and the holding of investments is this week’s stock pick.

They are rating the company as a BUY.

Highlights 

• 262% increase in net profit during the nine months to September 2015
• trading at only 0.72 times its book value and at a P/E ratio of 5.21 times relative to a Main Market average P/E of 10.59 times

Their report states

During the nine months to September 2015, JP reported a 262% increase in net profit attributable to shareholders. This occurred as JP reported a 115% increase in share of profit in associated companies, due to its increased ownership stake in Kingston
Wharves (KW) to 42%, as well as an increase in gain on disposal of property. With regards to the gain on disposal of property, JP has indicated that, “the sale proceeds will be deployed in investments to further enhance the Group’s value.”