Alerts

   Frances Rolfa Nicolas

November 16, 2022. Rolling over estimates, upgrading to BUY. Accordingly, we are raising our FV estimate to Php7.8/sh despite the lower estimates as we roll over our assumptions to 2023. 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 Php5.1/sh, upside to our new FV estimate is significant at 53%. Hence, we are upgrading our rating to BUY on IMI.

   Frances Rolfa Nicolas

November 16, 2022. Rolling over estimates, maintain BUY rating. In light of the 3Q22 results, we are reducing our revenues estimate by 7.0% in 2022. Likewise, we are lowering our revenues estimate next year by 3.2%. These decreased our net income estimate by 13.4% to Php6.5Bil in 2022 and by 6.5% to Php6.2Bil in 2023. Despite our lower earnings estimate, we increase our FV estimate to Php14.7/sh as we rolled over our assumptions to 2023. We continue to like GMA7 given its strong financial position and efficient operations. Moreover, the company is in a prime position to capture ad placements for television and radio being the only dominant player in the free-to-air space. At its current price of Php10.2/sh, upside to our FV estimate remains significant at 44%. Hence, we maintain our BUY rating on GMA7.

   George Ching

Maintain BUY rating- November 16, 2022 Following the rolling over of our estimates to FY23, we are raising our FV estimate on FPH by 3.4% to Php154/sh. We are maintaining our BUY rating on FPH. Given FPH’s 68% ownership in FGEN, we view FPH as a cheaper way to own FGEN. FPH is trading at a huge 41% discount to its market based NAV of Php107.5/sh. Based on FPH’s market price of Php62.95/sh, upside to our FV estimate is significant at 145%.

   Denise Joaquin

November 16, 2022. Rolling over estimates to 2023; maintain BUY. We are raising our FV estimate on SSI to Php3.40/sh as we roll over our estimates to 2023 and maintain our BUY rating. We expect SSI to continue to benefit from easing mobility restrictions and from the return of foot traffic to malls. Despite cost headwinds from higher inflation and the weaker peso, SSI remains well-positioned to capture the rebound in discretionary spending given its core customer base in the upper segment and portfolio of established and upscale brands.

   Charles William Ang, CFA

November 15, 2022. Reiterating BUY rating. We are increasing our FV estimate on GTCAP from Php890/sh to Php940/sh as we roll- over our estimates to 2023. We like GTCAP as it stands to benefit from the continued recovery of the local economy. A stabilizing peso should also benefit GTCAP as it allows TMP’s margins to recover. While the removal of GTCAP from the MSCI index (effective Nov 30) could lead to a selling pressure in the near term, we believe that this also provides a good opportunity to accumulate the issue. At its current price of Php401/sh, it is trading at just 5X 2023 earnings, significantly below its historical average P/E of 13X. Current discount to NAV also remains near historical high at 61%.

   Richard Lañeda, CFA

Maintain BUY with new FV estimate of Php4.28- November 15, 2022 We adjust our fair value estimate for MEG from Php4.38 to Php4.28 as we rolled over to FY23 estimates but adjusted the net debt higher and market value of MREIT down, offsetting the impact of the roll over. 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 49.5% below our fair value estimate. Relative valuation is also attractive as its trades below 5X FY23 P/E, 40% discount to the industry median.

   Carlos Matthew De Leon

Adjusting and rolling over estimates; maintain BUY- November 15, 2022 We are revising our estimates in light of CNVRG’s weaker than expected 3Q22 results to account for the lower-thanexpected subscriber take-ups. Although we revised our estimates downward, we also rolled over our estimates to FY23 which raised our new FV estimate to Php25.6/sh from Php24.6/ sh. Despite CNVRG’s disappointing earnings performance, we are maintaining our BUY rating given its cheap valuations. At current prices, the stock is trading at 6.1X 2023E EV/ EBITDA, below its 2-year historical average of 9.8X.

   Denise Joaquin

November 15, 2022. Raising FV estimate to Php154.0/sh. We are raising our FV estimate on URC to Php154.0/sh from Php144.0/sh as a result of the changes in our forecasts and after rolling over our estimates to 2023. We are also fine- tuning our forecasts to account for the faster-than-expected topline growth in 9M22. In particular, we raised our revenue forecasts by 8.8% for FY22 and 7.6% for FY23. This was partly offset by our lower EBIT margin and higher tax rate assumptions. After factoring in our adjustments, our core income forecasts for FY22 and FY23 marginally increased.

   George Ching

November 15, 2022. Maintaining BUY rating. Following the rolling over of our estimates to FY23, we are raising our FV estimate on FGEN by 3.4% to Php31.85/sh. We are maintaining our BUY rating on FGEN. 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 Php18/sh., upside to our FV estimate is at 112%.

   Richard Lañeda, CFA

Maintain BUY- November 14, 2022 We reiterate our BUY rating on SM given its robust earnings growth despite global headwinds. There is strong momentum in consumer spending which will benefit SM Retail and the malls of SMPH. Meanwhile, banks continue to have strong balance sheets and delivered strong core business growth. Meanwhile, the acquisition of PGPC has proved to be accretive to SM’s bottom line and looks to increase value contribution from its five new geothermal areas.