Alerts

   Denise Joaquin

Maintain HOLD- November 22, 2022 We are lowering our FV estimate on MONDE to Php13.2/sh as a result of the changes in our forecasts and as we rollover our estimates to 2023. In addition, we lowered our valuation multiple for Quorn to 3.7X EV/ Sales to account for the weaker category growth of alternative meat. While we continue to like MONDE for its market leadership in its branded consumer categories, the company remains exposed to several near-term headwinds. At its current price, we believe the stock is already fairly valued.As such, we maintain our HOLD rating on the stock. We continue to like MONDE for its market leadership in several branded consumer food products. However, the company remains exposed to several near-term headwinds such as the slowdown in the alternative meat category and rising food and energy prices in the UK. At its current price, we believe the stock is already fairly valued.

   Richard Lañeda, CFA

November 21, 2022. Reducing FV estimate to Php0.90. We are reducing our fair value estimate for FLI from Php1.06 to Php0.90 as we lower our valuation estimate for its investment properties as the office leasing business continues to be challenged by low occupancy rate and higher expenses, leading to margin contrac- tion. We also reduce our valuation estimates for its residential segment and landbank given the company’s tighter financial situation because of the longer payment terms offered to buyers, and challenges in its office leasing. We believe this will result in slower turnaround times for its landbank, which includes Filinvest New Clark City. We maintain our HOLD rating on FLI given the lack of upside based on our fair value estimate.

   Carlos Matthew De Leon

November 18, 2022. Adjusting and rolling over estimates, maintaining BUY. We are raising our FV estimate on JFC from Php284/sh to Php305/sh as a result of revisions in our estimates and the rollover to FY23E. We adjusted our estimates in light of the seasonal sales boost during 4Q. Meanwhile, the downward revision in gross profits for 2022 and 2023 were offset by improved opex-to-sales and lower-than-expected marketing expenses, which bumped up our net income forecasts for 2022 and 2023. Hence, we maintain our BUY rating on JFC. We believe the uptick in spending this 4Q would provide a boost in operating leverage to offset the impact of elevated costs. We also believe that its strong brand equity provides with pricing power to cushion its margins moving forward. At current prices, JFC is trading at 29.1X 2023E P/E, below its 5-year historical median of 37X. Nevertheless, we see prolonged lockdowns in China, economic slowdowns in major markets, and prolonged raw material inflation as potential downside risks.

   Richard Lañeda, CFA

Maintain BUY- November 18, 2022 We are raising our FV estimate for AC from Php857.00 to Php907.00 as we factor in higher fair value estimate for its subsidiaries as a result of rolling over to FY23 estimates. We also factored in the increase in the net debt balance on the parent level. We maintain our BUY rating on AC as we see the company as a beneficiary of the return of the local economy to a growth trajectory. In addition to that, our fair value estimate still implies a 35.8% upside from the current price of Php687.00.

   Charles William Ang, CFA

November 18, 2022. Rolling over estimates to 2023; Maintain BUY. We are upgrading our FV estimate for PNB to Php33.10/sh (based on 0.30X 2023E P/BV) as we rollover our estimates to 2023. We maintain our BUY rating on PNB, viewing It as a deep value play since the bank is only trading at 0.19X 2022E P/BV. We expect loan growth to improve as the economy continues to recover and as the bank continues to build up its portfolio in the remainder of the year.

   Denise Joaquin

Maintain BUY- November 18, 2022 Despite the cut in our estimates, we maintain our BUY rating on HOME. We continue to like HOME for its long-term store network expansion strategy and initiatives for margin enhancement. At its current price, HOME is trading at a 5.6X 2023E P/E and upside relative to our revised FV estimate is also significant. Note that sentiment on the stock could remain weak as results have repeatedly missed on topline and bottomline expectations. Nonetheless, any improvement in SSSG and overall topline performance would result in operating leverage.

   Denise Joaquin

November 18, 2022. Rolling over estimates to 2023; maintain HOLD rating. We are raising our FV estimate on EMI to Php15.2/sh as we roll over our estimates to 2023 and maintain our HOLD rating on the stock. At its current price, the stock is already trading above our FV estimate and at 25X 2023E P/E, above the median 18.9X of peers.

   Charles William Ang, CFA

November 17, 2022. Rolling over forecasts to 2023; Maintain BUY. We are upgrading our FV estimate for EW to Php10.50/sh (based on 0.35X 2023E P/ BV) as we rollover our estimates to 2023. We maintain our BUY rating on the bank as its lending operations and asset quality have shown signs of improvement since the lifting of mobility restrictions and opening up of the economy. Moving forwards, we expect continued improvement in loan growth as the economy recovers.

   Richard Lañeda, CFA

Maintain BUY with FV estimate of Php20.22.- November 17, 2022 We are adjusting our FV estimate on AGI from Php20.18 to Php20.22 as we roll over to FY23 estimates while adjusting the net debt to parent higher. We maintain our BUY rating on AGI as shares are currently very undervalued. It is trading at a steep 54.7% 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.

   Frances Rolfa Nicolas

Rolling over estimates, upgrading to BUY.- November 17, 2022 In light of the 3Q22 results, we are reducing our revenues estimate by 1.7% in 2022. Moreover, we are lowering our share in net income of associates by 19.5% this year. This reduced our net income estimate by 7.2% to Php4.7Bil in 2022. Factoring these and as we roll over our assumptions to 2023, our new FV estimate now stands at Php22.0/sh.