Alerts

   Frances Rolfa Nicolas

PCOR registered a net loss during the 4th quarter due to inventory holding losses that resulted from a steep drop in crude oil prices. Accounting this, 2018 core net income went down by 102.2%, falling behind COL but above the consensus estimates. We expect refining margins for middle distillates (e.g. diesel) to improve by 2nd half of the year. We currently have a BUY rating with an FV estimate of Php9.6/sh. Valuations remain attractive and we continue to like PCOR given the improvement in its yields.

   Frances Rolfa Nicolas

IMI’s 2018 net income grew by 23.7% mainly due to the China property sale and mark-to-market losses. Their full year revenue performed below COL and consensus expectations. Excluding one-offs, core net income fell by 21% from last year mainly brought about by the sharp increase in input cost during the 4th quarter. We’ll release a more detailed report following IMI’s briefing on Monday. We currently have a BUY rating on IMI with an FV estimate of Php15.10/sh.

   Andy dela Cruz

IMI’s 2018 net income grew by 23.7% mainly due to the China property sale and mark-to-market losses. Their full year revenue performed below COL and consensus expectations. Excluding one-offs, core net income fell by 21% from last year mainly brought about by the sharp increase in input cost during the 4th quarter. We’ll release a more detailed report following IMI’s briefing on Monday. We currently have a BUY rating on IMI with an FV estimate of Php15.10/sh.

   Frances Rolfa Nicolas

GMA7’s earnings for the 4th quarter grew due to improved airtime revenues and lower production costs during the period. This ended in line with COL estimates and brought full year 2018 earnings to Php2.3 Billion, down 9.4%. Airtime revenues grew as a result of increased on-line advertising and presence of political advocacy ads. While, production costs dropped mainly due to lower talent fees during the period. We are maintaining a BUY rating and FV estimate of Php6.3/sh as valuations remain attractive.

   Adrian Alexander Yu

Profits of EEI slipped below estimates due to its international business recording a net loss of Php127 Million in 2018 caused by the underperformance of Al Rushaid Construction Company, LTD. in Saudi Arabia. However, domestic operations brought revenues up, exceeding COL’s forecast as several right of way issues were resolved. Construction revenues grew as well, largely attributed to ongoing domestic projects. We are maintaining our FV estimate of Php11/sh but, downgrading our recommendation from BUY to HOLD due to the uncertainty on EEI’s international business.

   Frances Rolfa Nicolas

EAGLE’s full-year 2018 core net income were up by 3.9%, in line with COL but below consensus estimates. This was brought by higher net interest income and revenues due to strong growth of volumes and ASP during the year. Moving forward, we expect volumes to grow as the company opens its line 3 production which will increase its capacity by 39%. However, the expansion of its Bulacan grinding facilities would be delayed to 2020 instead of this year due to delays in securing necessary permits. Even though we like the company because of its superior margins and excess capacity, we currently have a HOLD rating with FV estimate of Php15.9/sh as it is relatively expensive in terms of valuation.

   Frances Rolfa Nicolas

CHP’s plan to raise its capital stock to Php18.3 Billion brought its shares to fall by 15.04% yesterday. One of the reasons why shares plummeted was because rights shares are typically offered at a discount to a stock’s market price which means, when companies announce rights offering, shares usually go down. This was also coupled by their plans to sell shares even at depressed valuations which is expected to further damage investor sentiment towards the stock. As such, we are downgrading our recommendation to a HOLD and removing it from our COLing the Shots stock picks list.

   Frances Rolfa Nicolas

CEB reported a decrease of 50.7% on their 2018 net income attributable to the high fuel prices, volatile Philippine peso, rising interest rates and increased competition. Revenues, on the other hand, is in line with both COL and consensus. We currently have a BUY rating with an FV estimate of Php99/sh. More details after the briefing.

   Frances Rolfa Nicolas

4th quarter UBP earnings was both below COL and consensus forecasts as it fell by 39% due to lower net interest income. The decline in net interest income brought the bank’s lending income to continue to perform sluggishly. But still, full-year net interest income ended in line with our target. We are revising our 2019 and 2020 earnings forecasts downwards brought by the increase in operating expense centered in technology spending for its mobile app and business banking. Still, given the minimal change in our earnings forecasts, we are maintaining our BUY rating with a FV estimate of Php75.5/sh.

   Charles William Ang, CFA

SECB’s recorded 2018 earnings decreased by 16.2% mainly due to higher than expected effective tax rate. This resulted to an underperformance from both our estimate and the consensus’. Full year earnings translate to a ROE of 8%. We still have a BUY rating on the company with a target price of Php205/sh. The company is in a good position to take advantage of the favorable economic prospects; loan repricing should drive margin improvement and lastly, valuations are currently at an attractive level.