Alerts

   George Ching

August 08, 2023. We have a BUY rating on SCC with a FV estimate of Php51.74/sh. SCC is trading at 3.6X FY23 P/E compared to 11.1X FY23E P/E of domestic peers and its 10 year historical P/E of 11.6X. Based on its projected 2023 cash dividend of Php4/sh, this provides a very high dividend yield of 13.7%. Upside to our FV estimate is also very high at 77%.

   Charles William Ang, CFA

August 07, 2023. We are also adjusting our FV estimate from Php85.8/sh (based on 1.05x 2023E P/BV) to Php86.3/sh (based on 1.10x 2023E P/BV). We maintain our BUY rating on MBT and continue to like the bank on account of its strong and highly liquid balance sheet, substantial low-cost deposits and high capital ratios. The bank’s high CET1 ratio gives it flexibility in giving dividends, while also supporting the bank’s lending business growth as the economy continues to grow.

   Charmaine Co

August 04, 2023. We currently have a HOLD rating on CHP with an FV estimate of Php0.95/sh. We think that the company’s margins will be muted this year amid weak demand and elevated input costs. Furthermore, the company faces intense industry competition, especially with a new entrant in the Visayas region bringing additional capacity.

   Carlos Matthew De Leon

August 04, 2023. We currently have a BUY rating on TEL with a FV estimate of Php1,760/sh. We like TEL for its leadership in the fixed line and enterprise segments. At its current price, TEL is also cheap as it is trading at only 4.9x FY23E EV/EBITDA, a discount to its two-year average of 5.6x. Nonetheless, sentiment on the stock could remain weak given the lack of earnings growth catalysts in the short-term.

   George Ching

August 04, 2023. We have a BUY rating on ACEN with a FV estimate of Php6.45/sh. We continue to like ACEN given the rapid growth of its power generation portfolio and its focus on renewable energy. From ~4,398MW currently, the company aims to increase its capacity to 5,000MW by the end of the year and further increase this with its 2,500MW of projects under construction which are expected to be completed by 2025. At Php5.36/ sh, ACEN is trading at 16X FY23E P/E, still above the 11X average FY23E P/E of local power companies, but still reasonable given the faster growth projection of its renewable energy generation portfolio. At Php5.3/sh, upside to our FV estimate of Php6.45/sh is significant at Php21.8%.

   Denise Joaquin

August 03, 2023. Maintain BUY rating. We reiterate our BUY rating on COSCO with an FV estimate of Php12.6/sh.

   George Ching

August 03, 2023. In light of the changes in our estimates for AP and Pilmico, we are reducing our 2023E net income forecast for AEV by 3.6% to Php29.2Bil. We are also lowering our FV estimate on AEV by 2.4% to Php56.6/sh. We are maintaining our HOLD rating on AEV. We continue to like AEV given the prospects of its power subsidiary AP. AEV is also well positioned to benefit from the country’s growing infrastructure programs owing to its investment in republic cement as well as its strong balance sheet and excellent track record in acquiring businesses. However, based on its current market price of Php52.05/sh, upside to our FV estimate is limited at 8.7%.

   Richard Lañeda, CFA

August 03, 2023. We maintain our BUY rating on ALI as our fair value estimate implies a significant upside of 44.7% from its current price of Php27.65. Earnings growth momentum has so far been sustained despite concerns over the impact of higher interest rates on the residential development segment and the recovery in malls has more than offset the lackluster performance of the office leasing segment. We continue to see great value in Ayala Land as they continue to be the biggest developer of estate projects in the Philippines and continue to create value from their landbank through superior master planning of estate projects. ALI’s vast landbank, expertise in value-creating estates, and growing portfolio of office, malls, and hotels, make the company an attractive investment.

   Charles William Ang, CFA

August 03, 2023. We currently have a HOLD rating on UBP with an FV estimate of Php70.0/sh, based on 1.5x 2023E P/BV ex-goodwill (or 0.95x 2023E P/BV inclusive of goodwill). We expect that the bank will continue to see growth in its lending business as the economy continues to recover and as it unlocks value from cross-sell opportunities to Citi clients. Nevertheless, upside to our target price remains limited.

   Charles William Ang, CFA

August 02, 2023. As a result of higher profitability assumptions, we are upgrading our FV estimate to Php159.0/sh (based on 1.65x 2023E P/BV) from Php149.0/sh (based on 1.55x 2023E P/BV). We maintain our BUY rating on BDO and continue to like the bank as we expect it to be one of the major beneficiaries of the continued growth of the economy with its liquid balance sheet and wide branch network. With its strong deposit franchise, the branch is also well-positioned to capitalize on opportunities in the elevated interest rate environment.