Alerts

AGI rating changed to BUY

   Richard Lañeda, CFA

April 17, 2023. Maintain BUY with FV estimate of Php20.22. We maintain our BUY rating on AGI as shares are currently very undervalued. It is trading at a steep 39.8% 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, will capitalize on the resumption of economic growth.

AGI  Rating   2 years ago

MONDE rating changed to BUY

   Denise Joaquin

April 12, 2023. Lowering FV estimate to Php10.8/sh; upgrading to BUY. In light of the weaker-than-expected FY22 results, we are reducing our earnings forecasts on MONDE. In particular, we trimmed our topline projections by 0.9% for FY23 and 1.5% for FY24. We also reduced our GPM assumptions by 2.4ppts and 1.0ppt, respectively. Furthermore, we adjusted our valuation multiple for Quorn to reflect the brand’s reduced investments in the US amid subdued growth prospects from the category in the near term. We valued the MAB based on 1.7x EV/Sales, in line with global peers in the food and beverage manufacturing industry. As such, we are lowering our FV estimate on MONDE to Php10.8/sh from Php13.2/sh previously. Despite the cut in our forecasts, we are upgrading our recommendation to a BUY on current valuations. We continue to like MONDE 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 revised FV estimate is significant at 15.3%.

MONDE  Rating   2 years ago

FLI rating changed to HOLD

   Richard Lañeda, CFA

April 11, 2023. HOLD with FV estimate to Php0.90. We maintain our HOLD rating and FV estimate of Php0.90 on FLI given the challenging operating environment of both residential and office leasing sector. Demand for residential projects is expected to be pressured by higher interest rates and risks on economic growth. Meanwhile, FLI continues to underperform in the office leasing segment with a higher-than-industry vacancy rate because of its previous exposure to the POGO segment. While economic activity has improved, the hybrid work-from-home set-ups has reduced overall demand for office space, making it harder to FLI to increase occupancy rate of its offices.

FLI  Rating   2 years ago

FGEN rating changed to BUY

   George Ching

Maintaining BUY rating- April 11, 2023 We have a BUY rating on FGEN with a FV estimate of Php31.85/sh. We continue like FGEN given its relatively stable cash flow since bulk of its capacity is contracted. Furthermore, with the Department of Energy’s moratorium on new coal power plants, this could potentially push forward the projected power shortage beginning in 2024, increase in the competitiveness of FGEN’s gas and renewables plants, and improve the feasibility of FGEN’s LNG regasification project which will enable its gas plants to remain viable after the depletion of the Malampaya gas field. At FGEN’s market price of Php16.54/sh., upside to our FV estimate is at 93%.

FGEN  Rating   2 years ago

CEB rating changed to BUY

   Carlos Matthew De Leon

Maintain BUY rating- April 5, 2023 We currently have a BUY rating on CEB with a FV estimate of Php53.0/ sh. We think that the reopening of international borders of neighboring countries should boost international flights and average fares. Meanwhile, elevated jet fuel costs and a weak peso are expected to drag margins. Nevertheless, we think these have been priced in by the current share price, which implies a 27.2% upside to our FV estimate.

CEB  Rating   2 years ago

IMI rating changed to BUY

   Carlos Matthew De Leon

April 05, 2023. Maintaining BUY. In light of the results, we are maintaining our BUY recommendation. We continue to like the company for its long-term recovery prospects and opportunities to capitalize on the fast-growing EV and renewable energy space. At its current price of Php5.22/sh, upside to our new FV estimate is significant at 49%.

IMI  Rating   2 years ago

DNL rating changed to BUY

   Denise Joaquin

April 05, 2023. Maintain BUY. We have a BUY rating on DNL with an FV estimate of Php11.4/sh. We like DNL since it is in a prime position to capitalize on the reopening of the economy given its diversified portfolio of products catering to different consumer groups. We also expect that the significant capacity expansion from its upcoming Batangas plant will enable DNL to capitalize on the growing export demand for its products. The recovery of overall business activity should also result in a more favorable sales mix for DNL and drive margin expansion over the long-term.

DNL  Rating   2 years ago

PGOLD rating changed to BUY

   Denise Joaquin

Maintain BUY- April 3, 2023 We maintain our BUY rating on PGOLD with an FV estimate of Php55.7/sh. We continue to like PGOLD as it remains well-positioned to capitalize on improving mobility trends despite near term inflationary headwinds. We also like PGOLD for its differentiated focus of middle to low-income class consumers through Puregold while it competes in the premium segment through S&R. Valuations also remain attractive as the stock is trading at 9.6X 2023E P/E, below its historical 5-year average of 14.4X.

PGOLD  Rating   2 years ago

JGS rating changed to HOLD

   George Ching

Maintaining HOLD rating- March 30, 2023 We have a HOLD rating on JGS with a FV estimate of Php55.7/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 the ongoing rising interest rate and rising inflation environment as vulnerable sectors accounted for 61% of NAV. At its current price of Php52.50/sh, upside to our FV estimate is limited at 6.1%.

JGS  Rating   2 years ago

EMP rating changed to HOLD

   Denise Joaquin

March 30, 2023. Lowering FV estimate to Php14.3/sh; maintain HOLD. We are reducing our FV estimate on EMI to Php14.3/sh from Php15.2/sh previously to account for the weaker-than-expected 9M22 results. In particular, we trimmed our FY22 topline estimate by 1.6% and reduced our gross profit margin forecast by 2.7ppts for FY22 and 2.6ppts for FY23. Additionally, we increased our financing cost assumptions going forward, partly offset by gains from non-core items in FY22. As a result, our net income forecasts for FY22 and FY23 declined by 9.1% and 16.1%, respectively. While we like EMI for its prospects in its fast-growing whisky space, we think the stock is already fairly valued at its current price.

EMP  Rating   2 years ago