CUTIX — Nigerian Cable Maker Eyes Industrial Demand Recovery; Grand Wave II Base Now In

Cutix Plc remains one of Nigeria’s most focused cable and wire manufacturers, supplying the construction, telecoms, and power distribution sectors at a time when infrastructure investment across sub-Saharan Africa is accelerating. Nigeria’s ongoing rural electrification push and the federal government’s renewed commitment to grid expansion provide a structurally supportive demand backdrop for copper and aluminium conductors — the core of Cutix’s product mix. The company has historically maintained lean operations relative to peers, with a manufacturing base in Nnewi that gives it cost advantages in the Southeast corridor. Naira depreciation, which plagued margins through 2024 and into 2025 as imported raw material costs surged, appears to be stabilising at current exchange rate levels, offering Cutix meaningful relief on its cost structure heading into the next reporting cycle. Revenue visibility is improving as large-scale construction projects delayed by the currency crisis begin to resume procurement activity. Valuations remain compelling relative to the broader NGX consumer and industrial space, with the stock having retraced deeply from its 2025 highs, resetting the price-to-earnings multiple to historically attractive territory. Any pickup in contract awards tied to Nigeria’s power sector reform agenda or private real estate activity in Lagos and Abuja would serve as a direct earnings catalyst for Cutix in the near term.

Chart Update — 4H

The intraday chart shows a Channel Up — price is trending within a rising parallel channel, consistent with an impulsive wave sequence advancing in an orderly fashion, with the upper channel boundary representing near-term resistance and the lower boundary providing wave support. On the daily timeframe, Cutix has completed what appears to be a grand corrective wave II, bottoming near the ₦2.00 area after a protracted five-wave decline from the 2025 peak at wave (5). Price has since initiated wave I of the new impulse higher, with an internal structure showing subdivided waves (i) and (ii) already forming within the channel. The current wave (ii) pullback, marked on the projected path into late 2026, is expected to find support at the lower channel boundary before wave (iii) extends sharply toward the ₦3.50–₦4.00 zone. The broader wave III target, projected into mid-2027, points toward a full recovery and potential new highs above ₦5.00 as the multi-year impulsive structure resumes.