Alerts

   George Ching

Reiterate HOLD rating- March 10, 2023 We have a HOLD rating on ACEN with a FV estimate of Php6.22/ sh. We continue to like ACEN given the rapid growth of its power generation portfolio and its focus on renewable energy. From ~4,000MW currently, the company aims to increase its capacity by 62% with its 2,480MW of projects under construction which are expected to be completed by 2025. However, valuations are still not attractive at current market price. At Php6.30/sh, ACEN is trading at 19.1X FY23E P/E, which is significantly above the 11X average 23E P/E of local power companies.

   Charles William Ang, CFA

March 10, 2023. Maintain BUY. We currently have a BUY rating on CHIB with a FV estimate of Php40.20/sh, based on 0.70X 2023 P/BV. We expect the bank’s lending business and core fee income to continue expanding as the economy continues to recover this year. We also believe that its asset quality will remain healthy as businesses continue to operate at higher capacities.

   George Ching

Maintaining BUY rating- March 9, 2023 We have a BUY rating on DMC with a FV estimate of PHp14.55/sh. We are maintaining our BUY rating on DMC. DMC is trading at FY23 P/E of 5.6X, below its historical P/E of 11.2X. Based on its actual 2022 cash dividend of Php1.20/sh, this provides a very high dividend yield of 10.7%. Upside to our FV estimate is also very high at 29.90%.

   George Ching

March 09, 2023. Maintaining HOLD rating. We have a HOLD rating on AEV with a FV estimate of Php56.50/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 Php52.60/sh, upside to our FV estimate is limited at 7.4%.

   George Ching

March 09, 2023. Maintaining BUY rating on MPI. We have a BUY rating on MPI with a FV estimate of Php8.79/sh. We are maintaining our BUY rating on MPI. We believe that investor sentiment should improve with the completion of Maynilad’s rate rebasing exercise as this raises Maynilad’s earnings visibility going forward and eases regulatory concerns. Based on MPI’s current market price of Php4.19/sh, the company is trading at a 58% discount to its NAV which implies that Maynilad and its toll road business are already worthless. MPI is also trading below its 47.5% stake in MER(equivalent to 143% of MPI’s current market capitalization).

   George Ching

Maintaining BUY rating- March 9, 2023 We have a BUY rating on AP with a FV estimate of Php45.2/sh. We are maintaining our BUY rating on AP. We like AP as we believe that the earnings recovery from 2021 to 2022 can be sustained this year with overall power demand expected to remain strong. Furthermore, valuation is also cheap, trading at 11.7X FY23 P/E, compared to AP’s 10 year historical P/E of 13.7X. Based on its 2022 cash dividend of Php1.87/sh, this provides a decent dividend yield of 4.9%. The upside to our FV estimate is significant at 18.8%.

   Denise Joaquin

March 07, 2023. Maintain HOLD rating. We maintain our HOLD rating on WLCON with an FV estimate of Php31.7/sh. Although we like WLCON for its aggressive long-term expansion strategy and its market leadership in the home improvement space, upside potential relative to our FV estimate remains limited.

   George Ching

Maintaning HOLD rating- March 7, 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 3.5% in the YTD period, outperforming the PSEi’s 1.6% increase during the same period. Based on its current market price of Php207/sh, upside is limited at 3.15%.

   Richard Lañeda, CFA

March 06, 2023. Maintain BUY with new FV estimate of Php4.28. 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 anchor of the company’s value. Share of MEG are attractively valued, it being 53.3% below our fair value estimate. Relative valuation is also attractive as its trades around 4.6X FY22 P/E, 40% discount to the industry median.

   Charles William Ang, CFA

Maintain BUY- March 6, 2023 We currently have a BUY rating on BDO with a FV estimate of Php133.00/sh, based on 1.35X 2023E P/BV. We continue to like BDO as we expect it to be one of the major beneficiaries of the continued recovery of the economy and the rising rate environment, given the bank’s strong deposit franchise and liquid balance sheet.