Alerts

   Charmaine Co

October 18, 2024. Revising estimates, maintain HOLD. We are raising our fair value estimate for the bank to Php128.0/sh, based on 1.60x 2024E P/B, up from Php118.0/sh, based on 1.50x 2024E P/B. Given the limited upside to our new FV, we maintain our HOLD rating on BPI. We remain positive on the bank due to its industry-leading ROE and strong long-term growth prospects. As the central bank begins to implement more expansionary monetary policies, we expect continued portfolio growth, driven by BPI’s agency banking push, aggressive customer acquisition efforts, and its connection with the Ayala and Gokongwei groups. While NIM may come under pressure in the coming year, we believe the reduction in the reserve requirement ratio (RRR), along with changes in the bank’s balance sheet, will help cushion the impact of lower rates.

   Charmaine Co

August 29, 2024. Revising estimates; downgrade to HOLD. Following weaker-than-expected first half results, we are revising estimates for GMA7. We lowered our revenue expectations for 2024 by 14.8% to Php18.6Bil and for 2025 by 13.4% to Php20.3Bil. We are also decreasing OPM assumptions to 17.7% and 24.3% for 2024 and 2025 respectively. This brings our net income forecasts down by 42.2% to Php2.6Bil for 2024 and 28.3% to Php3.8Bil for 2025.

   Richard Lañeda, CFA

August 29, 2024. We maintain our BUY rating on BLOOM as our new fair value estimate still implies significant upside from the current price of Php7.71. We also like BLOOM for being the leading integrated resort operator in the Philippines. Although online bingo and e-casino gaming have grown rapidly in the past few quarters, we believe integrated resorts like Solaire offer a different kind of gaming experience for players, therefore on-site players are unlikely to completely shift to online playing. Nevertheless, BLOOM is developing its online gaming platform to cater to the ever-changing needs of its players

   Denise Joaquin

August 22, 2024. Estimates under review. We will be reviewing our estimates in light of the weaker-than-expected second quarter results. We currently have a HOLD rating on SSI with FV estimate of Php4.60/sh.

   Richard Lañeda, CFA

August 21, 2024. BUY with FV estimate of Php13.73. We reduced our fair value estimate on AGI from Php14.36 to Php13.73 to reflect lower valuation for Travellers and increased number of shares outstanding. Nevertheless, we maintain our BUY rating on AGI given the significant upside to our fair value estimate which is based on a 45% discount to our sum-of-theparts-base NAV estimate of Php24.97.

   Charmaine Co

August 21, 2024. Estimates under review. We currently have a BUY rating on IMI with a FV estimate of Php5.80/sh. However, with the lower-than-expected performance in 2Q24, we will be adjusting our profit estimate for the year

   Charmaine Co

August 20, 2024. We currently have a HOLD rating on PCOR with a FV estimate of Php3.55/sh.

   Richard Lañeda, CFA

August 20, 2024. Upgrade to BUY with FV estimate of Php2.01. We are upgrading our recommendation from HOLD to BUY. We adjust our fair value estimate to Php2.01 from Php2.07 to account for higher net debt. The declining real estate sales was one of the main concerns for VLL. However, since the third quarter of 2023, VLL has registered Y/Y growth in sales. Take-up sales as also been robust, which should support revenues going forward. Interest rates are also expected to come down soon and this will help boost sales of residential projects, especially for the mid to affordable income segments. Meanwhile, leasing revenues are stable for VLL and account for around 45% of revenues. This gives VLL a steady source of income and cashflow to support its property development business. In addition to improved fundamentals, VLL is trading at very low valuations. At Php1.47, VLL is trading at an annualized 2024 P/E of 1.73X.

   Denise Joaquin

August 20, 2024. Reiterate BUY. We maintain our BUY rating on COSCO with FV estimate of Php12.0/sh. We think the stock remains severely undervalued, with the market not valuing its other businesses (apart from PGOLD) like the fast-growing liquor business, in our view.

   Denise Joaquin

August 20, 2024. Reiterate BUY. We reiterate our BUY rating on JFC with a FV estimate of Php296/sh. We expect continued earnings growth for the company to be driven by its resilient domestic business, coupled with improving profitability from its international operations which turned EBIT positive last year.