Alerts

   Charles William Ang, CFA

We are reiterating our BUY rating on GTCAP as the concerns on Toyota Motor Philippines’ (TMP) margins have started to abate with the recent rebound of the peso. Note that the peso has strengthened by 4.2% from a high of Php59.08/US$ to Php56.70/US$. This, coupled with TMP’s price hikes and reduced promotions should lead to better margins going forward. Meanwhile, Federal Land’s joint ventures with Nomura and SMPH help support the long-term earnings prospects of the group. We believe that any weakness arising from the deletion of GTCAP from the MSCI index (effective close of Nov 29) should be viewed as an opportunity to accumulate the stock. Our FV estimate on GTCAP is Php940/sh.

   Carlos Matthew De Leon

Reiterate HOLD- November 25, 2022 We reiterate our HOLD rating on TEL and our FV estimate of Php1,910/sh. We continue to like TEL for its leadership in the home broadband segment and its strong potential to capitalize on the growing enterprise businesses. However, decelerating growth of the home broadband business, which could be a sign that market is maturing, and the negative impact of high inflation on its mobile business, which still accounts for bulk of revenues, could negatively affect sentiment for the stock.

   Carlos Matthew De Leon

BUY rating - November 25, 2022 We also reiterate our BUY rating on CNVRG and our FV estimate of Php25.6/sh due to its cheap valuations. At its current price, the stock is trading at only 6.8X 2023E EV/ EBITDA. With churn heading in the right direction, net additions could sequentially improve moving forward. Furthermore, plans to enter the prepaid fiber business would allow it to tap a larger market, providing it with additional room for growth. However, macroeconomic headwinds and recent disappointing performance could cloud near- term sentiment for the stock.

   George Ching

   George Ching

   Frances Rolfa Nicolas

Maintain BUY- November 24, 2022 We are pleased with the timely completion of the company’s rate rebasing exercise. We think that its resolution abated a lot of uncertainties that have been looming over the company for years. Moreover, this development has provided better earnings visibility and clarity on the company’s outlook. At its current price, upside to our new FV estimate remains significant at 28%. Hence, we maintain our BUY rating on MWC.

   Denise Joaquin

November 23, 2022. Rolling over estimates to 2023; maintain BUY rating. We are raising our FV estimate on COSCO to Php12.6/sh as we roll over our estimates to 2023 and maintain our BUY rating on the stock. COSCO remains severely undervalued, with the market not valuing its other businesses (apart from PGOLD) like the fast-growing liquor business, in our view.

   Denise Joaquin

Maintain BUY- November 23, 2022 We are raising our FV estimate on PGOLD to Php55.6/sh as we roll over our estimates to 2023 and maintain our BUY rating on the stock. We continue to like PGOLD as it remains well-positioned to capitalize on improving mobility trends despite near term headwinds from high inflation and the weaker peso. Despite near-term headwinds from high inflation and a weaker peso. 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 are also attractive as the stock is trading at 10.1X 2023E P/E, below its historical 5-year average of 15.3X.

   Frances Rolfa Nicolas

November 22, 2022. Rolling over estimates, upgrading to BUY. In light of the 3Q22 results, we are increasing our revenues estimate by 8.5% and operating expenses estimate by 10.6%. Moreover, we are increasing out tax benefit estimate to Php2.5Bil from Php700Mil to account for the increase the company’s deferred tax assets. These slightly widened our 2022 core net loss forecast to Php13.0Bil from Php12.2Bil. Accordingly, we are increasing our FV estimate to Php53.0/sh as we roll over our assumptions to 2023. Given the decline in CEB’s share price, we think that the market has already priced in the various headwinds, such as high jet fuel prices and weak peso, that the company is facing. Moreover, at its current price, upside to our new FV estimate is significant at 47%. Hence, we are upgrading our rating to BUY on CEB.

   Carlos Matthew De Leon

November 22, 2022. Adjusting and rolling over estimates; upgrading to BUY. We are increasing our FV estimate on PIZZA from Php8.7/sh to Php10.0/sh in light of the top-line beat and roll over to FY23. We raised our revenue estimates to account for the favorable effect of holiday spending on consumer companies. Meanwhile, we decreased our margin estimates as we expect cost pressures to temper profitability in the near- term. Nevertheless, a strong top-line and the benefit of operating leverage raised our net income forecasts by 9.7% and 5.9% for 2022E and 2023E, respectively. Thus, we are upgrading our rating on PIZZA to BUY as the upside to our FV estimate is now attractive at 29%. We like PIZZA as it positioned to capitalize on increased spending during 4Q22. Moreover, we believe margins should stay relatively resilient given the benefit of operating leverage and the revenue-accretive acquisition of Potato Corner. Nevertheless, we see key risks with regards to elevated input costs and mobility-related shocks due to the pandemic.