Alerts

   George Ching

Maintain BUY rating We have a BUY rating on SCC with a FV estimate of Php31.2/sh. While near term sentiment may not improve in the near term due to the weakness in coal price, we believe that much of the negative news is already priced-in, as SCC’s share price has declined by 9.6% in the past 12 months, underperforming the PSEi’s 16.1% rise. The stock is also the cheapest among all power companies, trading at only 9.4X 2019E P/E based on our revised earnings forecast and capital appreciation potential remains significant at 32.5%, also based on our revised fair value estimate.

   George Ching

Maintain BUY rating We have a BUY rating on SCC with a FV estimate of Php31.2/sh. While near term sentiment may not improve in the near term due to the weakness in coal price, we believe that much of the negative news is already priced-in, as SCC’s share price has declined by 9.6% in the past 12 months, underperforming the PSEi’s 16.1% rise. The stock is also the cheapest among all power companies, trading at only 9.4X 2019E P/E based on our revised earnings forecast and capital appreciation potential remains significant at 32.5%, also based on our revised fair value estimate.

   George Ching

Maintain BUY rating We have a BUY rating on SCC with a FV estimate of Php31.2/sh. While near term sentiment may not improve in the near term due to the weakness in coal price, we believe that much of the negative news is already priced-in, as SCC’s share price has declined by 9.6% in the past 12 months, underperforming the PSEi’s 16.1% rise. The stock is also the cheapest among all power companies, trading at only 9.4X 2019E P/E based on our revised earnings forecast and capital appreciation potential remains significant at 32.5%, also based on our revised fair value estimate.

   George Ching

Maintain BUY rating We have a BUY rating on SCC with a FV estimate of Php31.2/sh. While near term sentiment may not improve in the near term due to the weakness in coal price, we believe that much of the negative news is already priced-in, as SCC’s share price has declined by 9.6% in the past 12 months, underperforming the PSEi’s 16.1% rise. The stock is also the cheapest among all power companies, trading at only 9.4X 2019E P/E based on our revised earnings forecast and capital appreciation potential remains significant at 32.5%, also based on our revised fair value estimate.

   George Ching

Maintain BUY rating We have a BUY rating on SCC with a FV estimate of Php31.2/sh. While near term sentiment may not improve in the near term due to the weakness in coal price, we believe that much of the negative news is already priced-in, as SCC’s share price has declined by 9.6% in the past 12 months, underperforming the PSEi’s 16.1% rise. The stock is also the cheapest among all power companies, trading at only 9.4X 2019E P/E based on our revised earnings forecast and capital appreciation potential remains significant at 32.5%, also based on our revised fair value estimate.

   Adrian Alexander Yu

According to TEL President and CEO Manny Pangilinan, TEL’s Voyager Innovations Inc. is expected to be profitable in the next five years as its financial technology arm PayMaya continues to grow. PayMaya is eyeing to post a yearly transaction volume of Php1Tril by 2023 from Php200Bil annually at present. Pangilinan mentioned that Voyager is trying to raise funding which could finance the next three to five years of their operations. Voyager also announced last August that former American Express Executive and VISA Director Shailesh Baidwan was appointed as its new president and will help shape the company’s strategy and business direction

   George Ching

ICTSI received a notice from the Philippine Ports Authority (PPA) that its Php8.7Bil proposal to develop Iloilo ports will now undergo the 60-day period evaluation. Last year, ICTSI submitted an unsolicited proposal to modernize, operate, and maintain the two Iloilo ports: Iloilo Commercial Port Complex and Port of Dumangas. At that time, PPA could not begin evaluation of ICTSI’s project because it still lacked some details in the proposal.

   Richard Lañeda, CFA

The PCC is currently reviewing the voluntary commitments offered by SMC and HLCM to address competition concerns in relation to the former’s acquisition of the latter. However, the antitrust body declined to say what commitments were offered by the parties. Note that initial findings on the deal showed that it may affect market concentration of relevant products in many parts of Luzon, as well as Northern and Southern Mindanao. Should the voluntary commitments be seen to be insufficient, the PCC would resume its Phase 2 review.

   George Ching

Metro Pacific Investments Corp. (MPI) and Megawide Construction Corp. (MWIDE) are looking for partners as they compete in the Sangley Point International Airport Construction bid. MPI is assessing potential conflicts they might have with its existing proposal to rehabilitate, operate, and expand NAIA. Meanwhile, MWIDE is still studying the terms of the Sangley project. Parties that purchased the bid documents are given until November 25 to submit their proposals. The winning bidder will be awarded before the year ends as the project is expected to break ground by January 15, 2020.

   Charles William Ang, CFA

According to GTCAP President Carmelo Bautista, they do not expect Thailand to limit auto exports to the Philippines even with the possible imposition of tariffs. Management added that the Philippine auto market is the strongest in the region; hence, it is a lucrative market for Thailand’s exports. Note that GTCAP said around 15% of its auto imports come from Toyota’s operations in Thailand. However, GT Capital Auto Dealership Holdings, Inc. thinks otherwise and sees the bid to impose quantitative restrictions on Thai imports would likely affect their business and other manufacturers importing from Thailand.