Alerts

   Charles William Ang, CFA

August 18, 2023. We currently have a BUY rating on SECB with an FV estimate of Php141/sh, based on 0.75x 2023E P/BV. Moving forward, we expect SECB to benefit from the country’s continued economic growth. We also believe its high capital ratios and liquid balance sheet will allow it to pursue opportunities to further grow its intermediation business.

   Denise Joaquin

August 18, 2023. We maintain our BUY rating on SSI and expect the company to benefit from resilient consumer spending and the return of foot traffic to malls. Despite headwinds from high inflation, we think SSI remains well-positioned to capture the rebound in discretionary spending given its core customer base in the upper-income segment and its portfolio of established and upscale brands. At its current price, we estimate that the stock is trading at only 5.2x 2023E P/E, below the 15.1x median P/E of regional peers.

   Denise Joaquin

August 16, 2023. We currently have a HOLD rating on EMI with an FV estimate of Php14.3/sh. While we like EMI for its strong track record and its prospects in its fast-growing whisky space, we think the stock is already fairly valued at its current price.

   Charles William Ang, CFA

August 16, 2023. We currently have a BUY rating on PNB with a FV estimate of Php33.10/sh, based on 0.30x 2023E P/BV. We view PNB as a deep value play since the bank is only trading at 0.2x 2023E P/BV. We expect loan growth to improve as the economy continues to recover and as the bank continues to build up its portfolio.

   Carlos Matthew De Leon

August 15, 2023. Reiterate BUY rating. We currently have a BUY rating on CNVRG with a FV estimate of Php19.00/sh.

   Richard Lañeda, CFA

August 15, 2023. We maintain our BUY rating on AGI as shares are currently very undervalued. It is trading at a steep 31.65% discount to our FV estimate, which is based on a 25% discount to our NAV estimate of Php26.96. In addition to cheap valuations, AGI, through all its subsidiaries, is positioned capitalize on the increased economic activity.

   Carlos Matthew De Leon

August 15, 2023. We are maintaining our BUY rating on MWC with a FV estimate of Php25.5/sh. We think the recent completion of the rate rebasing exercise should provide greater visibility on the company’s earnings and outlook. At current prices, upside to our FV is significant at 35%.

   George Ching

August 15, 2023. We have a HOLD rating on ICT with a FV estimate of Php211.9/sh. We are maintaining our HOLD rating on ICT. We continue to like ICT given the success of its greenfield ports in Australia, Congo and Rio as these ports will be the key earnings growth driver for the company in the next few years. Earnings growth will also get a boost the company’s increase in throughput volume as well as its cost reduction initiatives. However, ICT’s share price has appreciated by 0.5% in the YTD period, outperforming the PSEi’s 3.6% decline during the same period. Based on its current market price of Php201/sh, upside is limited at 5.9%.

   Denise Joaquin

August 15, 2023. Despite the cut in our estimates, we maintain our BUY rating on URC. We continue to like the company for its strong core branded businesses where it has continued to hold its market leadership position in several consumer goods categories. Moreover, we expect bottomline growth to be supported by margin recovery given softer lock-in costs for key inputs (e.g. wheat, palm oil) and structural cost improvements undertaken by URC. Nonetheless, we also expect that the potential tax on snack foods and higher taxes on sugar-sweetened drinks being proposed by the DoF could cause some overhang on the stock in the near-term.

   Richard Lañeda, CFA

August 15, 2023. We maintain our BUY rating on RLC as as robust consumer spending should benefit the second biggest mall operator in the Philippines. Meanwhile, RLC maintains a positive outlook on its residential segment, despite interest rates as its net take-up sales have seen eight straight quarters of Y/Y growth. Lastly, RLC has consistently bought back its shares in the open market since approving its Php6 Bil share buyback program and even increased it to Php9 Bil, also confirming our view that shares are undervalued. Our fair value estimate of Php26.00 for RLC is based on a 35% discount to our NAV estimate of Php40.00. Aside from being undervalued compared to our fair values estimate, RLC is also cheap on a relative basis. RLC is currently trading at a FY23 P/E of 7.17X, which is a deep discount to its long-term average of 12X.