Alerts

   Denise Joaquin

April 28, 2023. We are raising our FV estimate on SSI to Php4.5/sh from Php3.4/sh as a result of the changes in our forecasts following the better-than-expected FY22 results. In particular, we raised our topline forecasts by 6.3% for FY23 and 3.4% for FY24 as we expect SSI to benefit from the full-year impact of looser mobility restrictions and the return of foot traffic to malls. This brought our net income forecasts up by 58.0% and 44.8% for FY23 and FY24, respectively. Despite inflationary headwinds, we think SSI remains wellpositioned 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 3.8x 2023E P/E. As such, we maintain our BUY rating on the stock.

   Denise Joaquin

Maintain BUY rating- April 28, 2023 We currently have a BUY rating on COSCO with an FV estimate of Php12.6/sh. COSCO remains severely undervalued, with the market not valuing its other businesses (apart from PGOLD) like the fast-growing liquor business, in our view.

   Carlos Matthew De Leon

Maintaining BUY rating- April 27, 2023 Hence, we are maintaining our BUY recommendation on PIZZA with a FV estimate of Php10.2/sh. We like PIZZA for its growing core brand portfolio and top-line accretive PC acquisition. Moreover, its menu optimization efforts provide the company with flexibility in managing its costs, allowing margins to stay resilient. At current prices, upside to our FV is significant at 19.0%.

   Richard Lañeda, CFA

Maintain BUY with FV of Php26.00- April 26, 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 7.8X, which is a deep discount to its long-term average of 12X.

   Charles William Ang, CFA

April 25, 2023. We are upgrading our FV estimate to Php149.00/sh (based on 1.55X 2023E P/BV) from Php133.00/sh due to our higher return on equity assumption. 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 recovery of the economy given its liquid balance sheet and wide branch network. Furthermore, with its strong deposit franchise, the bank is well-positioned to capitalize on opportunities in the elevated interest rate environment. Given the limited upside to our FV estimate, we advise accumulating closer to the buy-below price of Php129.50/sh.

   George Ching

April 25, 2023. Maintaining BUY rating. We have a BUY rating on MER with a FV estimate of Php395.3/sh. We continue to like MER as the power demand is expected to continue to expand in line with the country’s GDP growth and as the country fully recovers from the impact of the Covid-19 pandemic. Moreover, MER’s valuation is becoming increasingly attractive after the 16% decline from its peak in March of 2022, underperforming the PSEI’s 13% decline from its peak during the same period. MER’s is currently trading at 14.9X 2023 P/E, below its 10-year historical average of 17.5X. Based on MER’s current market price of Php321.4/sh, upside to our FV estimate is significant at 23%.

   Carlos Matthew De Leon

Consensus currently has a BUY rating on CLI with a FV estimate of Php3.66/sh.

   Charles William Ang, CFA

April 19, 2023. We currently have a BUY rating on EW with an FV estimate of Php10.50/sh, based on 0.35X 2023E P/BV. We maintain our rating on the bank as its lending operations and asset quality have shown signs of improvement since the reopening of the economy. Moving forward, we expect to see continued loan growth as the economy recovers.

   Denise Joaquin

April 18, 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.

   Richard Lañeda, CFA

April 18, 2023. Downgrade to HOLD. We are reducing our fair value estimate for VLL from Php2.97 to Php2.04 as we increase our target discount to NAV from 60% to 70% given the continued lack of visibility in its real estate revenues. Real estate revenues have dropped from Php32.8 Bil in FY19 to Php12.79 Bil in FY22 despite reporting robust take-up sales. We are also downgrading our recommendation on VLL from BUY to HOLD due to concerns over its real estate segment.