Alerts

   Charmaine Co

August 20, 2024. We currently have a BUY rating on SECB with a FV estimate of Php104.0/sh, based on 0.55x 2024E P/B. we expect SECB to be one of the beneficiaries of the country’s economic growth as it continues to grow its intermediation business. The bank’s high capital ratios and liquid balance sheet will allow it to pursue such opportunities for growth in the medium term. Furthermore, investments that the bank is currently making in people and technology are expected to come online within the next few years, potentially leading to improved profitability.

   Charmaine Co

August 20, 2024. Maintain BUY. We currently have a BUY rating on EW with a FV estimate of Php11.20/sh, based on 0.35x 2024E P/B. We continue to view EW as a value play, given that the stock is trading at just 0.3x 2024E P/B (with an estimated ROE of ~10%). At its current price, EW is also a potential dividend play. Assuming it sustains its current payout ratio of ~20%, our earnings forecast would translate into a dividend yield of 6%. Going forward, we are optimistic on the future of the bank’s lending business as the consumer segment continues to drive loan growth and net interest margin expansion. As the economy reopened, lending and business transactions have also picked up, leading to a recovery in the bank’s fee income closer to prepandemic levels.

   Denise Joaquin

August 20, 2024. Reiterate BUY rating. We reiterate our BUY rating on PGOLD with FV estimate of Php53.4/sh. We continue to like PGOLD as it remains well-positioned to capture the recovery of consumer spending despite near term inflationary headwinds. Moreover, we see medium-term growth being supported by PGOLD’s continued store network expansion initiatives as it ramps up new store openings for its two retail brands. Valuations for PGOLD are attractive at 7.63X 2024E P/E, compared to its 5-year historical average of 12.3X.

   Charles William Ang, CFA

August 20, 2024. Reiterating BUY rating. We currently have a BUY rating on GTCAP with an FV estimate of Php955/sh. We continue to like GTCAP as its portfolio of assets (banking, automotive, property, infrastructure, etc.) allows it to participate in the continued growth of the country. At its current price of Php626/sh, it is trading at just 5.1X 2024 earnings. Despite GTCAP’s recent outperformance, discount to NAV also remains high at 47%.

   Paolo Miguel Manansala

August 20, 2024. We currently have a BUY rating on TEL with an FV estimate of Php1,720/sh. We continue to like TEL for its leadership in the fixed line and enterprise segments as well as its consistent dividend policy. Moreover, its continued expansion efforts across all segments could help deliver more growth moving forward. At its current price, dividend yield is very attractive at 6.6%.

   Denise Joaquin

August 20, 2024. Estimates under review. We will be reviewing our estimates in light of the weaker-than-anticipated 1H24 results. We currently have a BUY rating on HOME with FV estimate of Php2.0/sh.

   Paolo Miguel Manansala

August 20, 2024. Reiterate BUY rating. We currently have a BUY rating on CNVRG with an FV estimate of Php19.2/sh. We continue to like CNVRG for its growing subscriber base and potential expansion of new services. At current prices, capital appreciation is still significant at 56.1%

   Denise Joaquin

August 20, 2024. Reiterate BUY. We maintain our BUY rating on DNL with FV estimate of Php8.80/sh. We expect earnings recovery for DNL to be sustained amid peaking inflation and recovery in household spending. We also like the stock given the improving outlook for Chemrez in light of the energy department’s renewed push to hike the minimum biodiesel blend requirement. Furthermore, DNL’s long-term growth prospects remain attractive as we expect the significant capacity expansion from its new Batangas facility will allow DNL to scale its export business over the next few years.

   Richard Lañeda, CFA

August 15, 2024. Shares undervalued, BUY with FV estimate of Php916. We have a BUY rating on AC with a fair value estimate of Php916.00, Our fair value estimate implies a 48.2% upside from the current price of Php618. AC’s earnings have exceeded pre-pandemic levels and the company is targeting to grow is earnings at an average rate of 16.6% to reach Php65 Bil by 2026. Meanwhile, AC’s share price is still 18.1% below 2019 closing price and 28% below 2018 closing price. We view the disconnect in share price performance and earnings performance as an opportunity for investors.

   Denise Joaquin

August 15, 2024. Maintain BUY rating. We currently have a BUY rating on MAXS with a FV estimate of Php8.80/sh as we continue to like the company for its portfolio of strong brands in the Philippine casual dining space. Based on our estimates, MAXS is trading at 4.0X 2024E P/E, lower than its five-year historical average of 14.7X and our target multiple of 10.6X.