By Chukwuma Umeorah
An investor who put N1 million into Nigerian Aviation Handling Company (NAHCO) Plc shares 12 years ago would be sitting on about N21.5 million today, excluding all cash dividends received over the years. Between August 20, 2013 and August 20, 2025, the investment’s total value rose by 2,048 per cent on the back of sustained capital appreciation and two bonus share issues, far outpacing the Nigerian Exchange (NGX) benchmark, which advanced by 287.23 per cent over the same period.
At an entry price of N6.30 per share in August 2013, N1 million bought roughly 158,730 shares. NAHCO subsequently issued two scrip bonuses; one-for-10 in 2015 and one-for-five in 2022, lifting the share count to about 209,524 units. Over the 12-year window, the share price climbed from N6.30 to N102.50 as at August 20, 2025, a 1,527 per cent increase. When combined with the additional shares from the two bonuses, the holding’s market value reached about N21.5 million. On a simple average basis, that represents about 170.64 per cent growth per year, and on a cumulative basis, 2,048 per cent over the period.
By comparison, the All-Share Index (ASI) rose from 36,558.50 points on August 20, 2013 to 141,566.31 points on August 20, 2025, a cumulative gain of 287.23 per cent, or an average of 23.94 per cent per year on a simple basis. NAHCO’s return is more than six times that market average, placing it among the topmost performers over the period. For long-term investors, the outcome underscored the core point that quoted equities can retain and grow value across cycles, while select counters can deliver outsized gains when supported by improving fundamentals.
Analysts say NAHCO’s price trend showed a steady build-up in its earnings power. Multi-asset stockbroker and Managing Director, GTI Capital Limited, Kehinde Hassan, linked the result to strong fundamentals. “Fundamentals refer to the core financial health and performance of a company. These include earnings per share (EPS), revenue growth depicting sales trajectory over time, profit margins and return on equity (ROE) which reflects how well the company uses shareholders’ funds and dividend payouts indicating cash returned to shareholders. These metrics help investors estimate a company’s intrinsic value,” he said.
He noted that while the stock market may be influenced temporarily by emotions, speculations and immediate macroeconomic development, solid fundamentals remain the ultimate support base that ensures a company retains value over the years.
The Managing Director, HighCap Securities, David Adonri, was direct about the price-information link. According to him, the capital market is information driven, as all the information available about an issuer or a company, as well as macroeconomic fundamentals and the sociopolitical environment now and into the foreseeable future, are priced into the value of securities.
“The combination of all forces above shape the fundamentals of a company and dictate the direction of price movement of the stock through the market mechanism of supply and demand. A stock like NAHCO has appreciated heavily over the years because of its strong fundamentals, high dividend yield and consistent dividends payout. Over time, there is correlation between a company’s fundamentals and growth in its market value.”
The recent numbers support that reading. In the first half of 2025, NAHCO’s group revenue doubled by 102.06 per cent to N32.33 billion from N16.00 billion in the first half of 2024. Gross profit rose by 117.73 per cent to N19.16 billion, operating profit by 126.9 per cent to N11.64 billion, and profit before tax (PBT) by 148.21 per cent to N11.79 billion. Net profit jumped by 166.7 per cent to N8.88 billion, lifting EPS from N1.71 to N4.55.
Margins improved across the line with gross margin rising to 59.26 per cent (from 55.00 per cent), operating margin to 36.0 per cent (from 32.06 per cent), and pre-tax margin to 36.5 per cent (from 29.7 per cent). Returns also strengthened, with return on assets up to 20.14 per cent and return on equity to 51.09 per cent. These outcomes extend a 2024 full-year performance in which revenue increased by 88.5 per cent to N53.54 billion, profit before tax more than doubled to N18.70 billion, and operating profit rose to N19.84 billion, showing that the uplift came from core operations rather than one-off items.
Shareholder rewards have tracked that growth. NAHCO, noted for regular cash payouts, increased total dividend to N11.58 billion for the 2024 business year (N5.94 per share), up 134 per cent from N4.95 billion for 2023. The earlier bonus issues of one-for-10 (2015) and one-for-five (2022) expanded investors’ share base, which, alongside price appreciation, amplified total portfolio value. Even when excluding cash dividends from the N21.5 million estimate, the capital component alone demonstrated a consistent long-term story.
The company’s operating base has also seen significant improvements. Beyond ground and cargo handling, NAHCO’s subsidiaries now span Mainland Cargo Options, NAHCO Free Trade Zone, NAHCO Power Solutions, NAHCO Management Services, NAHCO Travels & Hospitality, NAHCO Aviation Academy and NAHCO Commodities.
The group, privatized in 2005 and now with more than 72,000 shareholders, has added new lines and contracts while consolidating leadership in core aviation services. It recently secured Federal Government approval, conveyed by the Nigerian Civil Aviation Authority (NCAA) and the Nigerian Nuclear Regulatory Authority (NNRA), to handle shipments with radioactive contents, a first in the industry.
The Group Managing Director, NAHCO, Olumuyiwa Olumekun, said the approval followed thorough assessment of facilities and processes, adding that the company had put in place clear, diligent and thorough protocols to ensure “100 per cent compliance” by trained professionals in executing the specialised function.
The Group Executive Director, Commercial and Business Development, Saheed Lasisi, called it a practical solution to a long-standing logistics gap. “NAHCO is solving all these issues for our clients, especially the big international airlines and international oil companies (IOCs) who require the approval granted by NAHCO to move critical shipments which have radioactive contents in and out of the country,” Lasisi said.
The board tied its recent initiatives to a five-year growth plan that targets N300 billion in revenue by 2029, with successive annual steps of N71.12 billion in 2025, N101.93 billion by 2026, N146.07 billion by 2027 and N209.34 billion by 2028. The company stated that these earnings will come from a mix of its ground handling, cargo, logistics services and contributions from the free zone, travel and hospitality, and the aviation academy.
Chairman, NAHCO, Seinde Fadeni, stated that “The company continues to adapt and push forward, maintaining operational efficiency and striving to uphold its standard of service excellence and increased shareholders’ value. The board understands the important place of technology in modern business and is committing funds into providing the company with next-generation technology to enable it run its processes smoothly and efficiently. The company is currently implementing Oracle ERP and HCM systems, a pivotal initiative designed to enhance NAHCO’s efficiency and digital transformation.
In the last one year, the company has been re-fleeting its equipment. We have a target to replace all aging equipment by December 2025.”