Alerts

   Richard Lañeda, CFA

August 14, 2023. We have a BUY rating on AC with a fair value estimate of Php904.00, Our fair value estimate implies a huge 49.7% upside from the current price of Php604. AC shares are currently under some selling pressure as its weight in the MSCI Philippines Standard Index was reduced by 1.32 percentage points but we view this as a buying opportunity.

   Richard Lañeda, CFA

August 14, 2023. We maintain our BUY rating on MEG given its robust residential segment and recovering malls and hotels. Its office segment remains a steady source of income and a strong an- chor of the company’s value. Shares of MEG are attractively valued, it being 52.1% below our fair value estimate. Relative valuation is also attractive as its trades around 4.97X FY22 P/E, 32% discount to the industry median.

   George Ching

August 14, 2023. We have a BUY rating on FPH with a FV estimate of Php154/sh. We are maintaining our BUY rating on FPH. Given FPH’s 68% ownership in FGEN, we view FPH as a cheaper way to own FGEN. FPH is trading at a huge 48% discount to its market based NAV of Php131/sh. Based on FPH’s market price of Php63.2/sh, upside to our FV estimate is significant at 146%.

   George Ching

August 14, 2023. We have a HOLD rating on JGS with a FV estimate of Php52.8/sh. We like JGS as it is well positioned to capitalize on the favorable long term growth outlook of the Philippine economy given the market leadership position of its operating subsidiaries, the parent company’s strong balance sheet and the excellent track record of its management team. However, it is also sensitive to higher interest rate and rising inflation environment as vulnerable sectors accounted for 60% of NAV.

   Denise Joaquin

August 11, 2023. We reiterate our BUY rating on CNPF with an FV estimate of Php28.0/ sh. However, given the limited upside to our FV estimate, we recommend accumulating closer to our buy below price of Php24.3/sh. We continue to like CNPF for its strong brand equity and track record of revenue and earnings growth. Amid the current inflationary environment, CNPF continues to benefit from its broad portfolio of products positioned across multiple price tiers. At its current price, we estimate that CNPF is trading at 17.7x 2023E P/E, a discount to the industry median of 20.0x.

   Carlos Matthew De Leon

August 11, 2023. We currently have a BUY rating on IMI with a FV estimate of Php6.50/sh. IMI remains in a position to benefit from the growing EV and renewable energy spaces despite current supply chain headwinds. The normalization of such component shortages should improve the efficiency of operations and boost profitability.

   George Ching

August 11, 2023. We have a BUY rating on DMC with a FV estimate of Php15.2/sh. We are maintaining our BUY rating on DMC. DMC is trading at FY23 P/E of 4.2X, below its historical P/E of 11.2X. Based on its projected 2023 cash dividend of Php0.80/sh, this provides a very high dividend yield of 8.4%. Upside to our FV estimate is also very high at 59.4%.

   Richard Lañeda, CFA

August 11, 2023. We reiterate our BUY rating on SM given its robust earnings growth despite global headwinds. There is strong momentum in consumer spending which will benefit SM Retail and the malls of SMPH. Meanwhile, banks continue to have strong balance sheets and delivered strong core business growth. Meanwhile, its portfolio investments continue to improve and are generating meaningful income to the company. Its most recent acquisition, PGPC, account for around 6.4% of SM’s profits.

   Denise Joaquin

August 11, 2023. We reiterate our BUY rating on MONDE with an FV estimate of Php10.6/sh. We continue to like the company for its strong core APAC BFB business, where it continues to hold its market leadership position across several consumer food categories (such as noodles, biscuits, oyster sauce, and yogurt drinks). At its current price, upside to our FV estimate is also significant at 37.7%.

   Charmaine Co

August 8, 2023. Maintain BUY. We currently have a BUY rating on CHIB with a FV estimate of Php40.20/sh, based on 0.70x 2023E P/BV.