EXECUTIVE SUMMARY
The release of listed companies¡¦ 2023 annual results took place within a context marked by the visible decline in inflation, an economic growth of almost 3.0% and the confirmation of the end of the tightening monetary cycle through an unchanged key rate at 3% since June 2023.
At the end of this exercise, listed companies contributed to the surge of solidarity following Al-Haouz earthquake which occurred on September 8th 2023 through aggregate donations of more than MAD 1.8 Bn.
Upon our own analysis of the annual results of the Equity market, we emerge with four main messages:
- In 2023, the earning power of the Equity market reached more than MAD 35 Bn, up +10.5% on a recurring basis(1) and +16.2% as reported. Note that most of this growth is driven by the banking sector as anticipated in our report relating to our 2023 annual forecasts (Cf. AGR-30 forecasts 2023E-2024E). Excluding the contribution of banks, the recurring market¡¦s earning power is almost stable at +1.0%;
- For the 3rd consecutive year, the banking sector is positioned as the leading contributor to the evolution of the market¡¦s profits through an increase of MAD +3,177 Mn against MAD +3,363 Mn for the market. An orientation which reinforces our positive opinion on the sector (Cf. AGR House View April 2023);
- The aggregate dividends of the Equity market reached MAD 18.8 Mn, i.e. an increase of +18.5%. The latter correspond to a payout (consolidated basis) of 64% and a D/Y of 3.2%. A level lower than the yield offered by the 5-year TB of 3.4%. The sectors offering the highest dividend yields are: Financing companies, Telecoms and Insurance. Indeed, these display a D/Y above 4.0%;
- Reading the press releases published by listed companies, it is clear that Top-Management speech is globally optimistic. These positive expectations are fueled by the investments an-nounced as part of the organization of CAN 2025, the 2030 World Cup, projects relating to the fight against water stress and the energy transition.
Read More
