Alerts

   Andy dela Cruz

According to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA), combined vehicle sales increased by 1.2% y/y to 30,998 units in May alone. Sales of commercial vehicles grew 3.4% y/y to 21,945 units, while passenger car sales still declined by 3.7% to 9,053 units in May. Meanwhile, for the first five months of 2019, combined sales stood at 142,185 units, almost at par with the 142,240 units sold in the comparable period last year. According to CAMPI president Rommel Gutierrez, they are seeing positive signs of recovery in vehicle sales, especially coming from the start of the year where there was a huge gap in sales y/y.

   Frances Rolfa Nicolas

EAGLE President and Chief Executive Officer Paul Ang said that the opening of its fourth production line in Cebu will be pushed back to 1H21 from its initial target of end-2020 due delays in securing permits. Recall that the fourth production line is expected to increase capacity by 2Mil MT, bringing total capacity to 10.6Mil MT. Despite this, the company is still targeting to sell cement in the Visayas region by end-2020.

   Frances Rolfa Nicolas

CEB sealed a US$6.8Bil deal to order 31 Airbus planes, which are set to arrive from 2021 through 2026. Included in the order are 16 A330neos, 10 A321XLRs, and 5 A320neos, with an option for 10 additional A320 planes. CEB President and CEO Lance Gokongwei said that the new planes, which are fuel-efficient and have larger capacity, will allow the budget airline to offer low fares to customers.

   Frances Rolfa Nicolas

In a disclosure to the PSE, MWC announced that it has signed and executed a concession agreement with Bulacan Water District (BWD) for the design, construction, and rehabilitation among others of water facilities, and the provision of water and sanitation services in the Municipality of Bulakan for a period of 25 years.

   Adrian Alexander Yu

WLCON targets to grow its store network to 100 stores by 2025 once it hits its target of 65 stores by 2020. According to WLCON Chairman William Belo, the company can reasonably reach 100 stores by 2025 given the pace of its store network expansion since 2017. WLCON is expected to open eight stores in 2019, which already includes the two stores that have been opened so far.

   Andy dela Cruz

Cash remittances from overseas Filipino workers in April amounted to US$2.4Bil 2019, up 4.0% y/y. This is lower than consensus forecast of 4.6%. Growth was attributed to remittances from both land-based and sea-based workers, which rose by 2.2% y/y and 10.6% y/y to US$1.8Bil and US$0.6Bil, respectively. This brought cash remittances for January-April period to US$9.7Bil, higher by 4.1% y/y. By country source, the US registered the highest share of overall remittances at 35.9%. This was followed by Saudi Arabia, Singapore, United Arab Emirates, the UK, Japan, Canada, Hong Kong, Qatar and Germany.

   Adrian Alexander Yu

After securing a deal with Globe Telecom Inc, two common tower providers are set to sign a memorandum of agreement with the Department of Information and Communications Technology (DICT) for the installation of passive telecommunications infrastructure. ISOC Infrastructure, founded by Megawide Co-founder Michael Cosiquien, and Malaysia based Etodco Group Bhd, signed the tripartite agreement with GLO yesterday. GLO will lease 150 shareable cell sites in Cavite, Laguna, Batangas, Rizal, and Quezon, which will allow GLO to use the CAPEX saved from building passive infrastructure to more active infrastructures.

   Richard Lañeda, CFA

MEG is looking to launch six more townships spanning 2,000 h.a. of land by next year as the company increases its footprint outside Metro Manila. In particular, MEG is set to unveil two to three more townships this 2019 after its 24th project called Highland City in Cainta, Rizal last March. Furthermore, the remaining three townships will be developed next year, bringing its total townships to 30.

   Richard Lañeda, CFA

RWM is looking to reopen the second floor of its casino in July, two years after the shooting/fire incident in 2017. Management said the second floor of the casino is expected to take up 7,000 sqm of space and will accommodate 100 gaming tables and 600 slot machines. Furthermore, management expects gross gaming revenues to grow double-digits following the reopening as the company is coming from a low base. The company also said that its average daily foot traffic is seen to improve to 40,000-50,000 next year due to this expansion from its average of 28,500 per day in 2018. (source: RWM)

   George Ching

ICT announced that it has been declared as the preferred bidder for the concession to develop, operate and maintain the Multi-Purpose Terminal of the Port of Kribi in Cameroon, Central Africa. ICT is now engaging in a negotiation. We will be able to determine the impact of the new concession on ICT once the details of the final contract become available. We currently have HOLD rating on ICT with an FV estimate of php117.80/sh as it’s currently trading at an expensive rate.