Alerts

   Charles William Ang, CFA

Rolling over estimates to 2023; Maintain BUY- November 8, 2022 We are upgrading our FV estimate for CHIB to Php40.20/sh (based on 0.70X 2023E P/ BV) as we rollover estimates to 2023. We maintain our BUY rating on CHIB as we expect its lending business and core fee income to continue expanding as economic growth rebounds this year. Moreover, we believe that its asset quality will remain healthy as businesses continue to operate at higher capacities. Expected hikes in BSP policy rates will also lead to opportunities to expand the bank’s net interest margins. At its current price of Php26.60/sh, there is a 51% upside to our FV estimate.

   Charles William Ang, CFA

November 08, 2022. Rolling over estimates to 2023; Maintain BUY. We are upgrading our FV estimate for MBT to Php85.8/sh, based on 1.05X 2023E P/BV, as we rollover estimates to 2023. We maintain our BUY rating on MBT and continue to like the bank for its strong and highly liquid balance sheet, substantial low-cost deposits and significantly high capital ratios. The bank’s high CET1 ratio gives it flexibility in giving dividends, while also supporting the bank’s growth objectives as the economy recovers from the pandemic. At yesterday’s closing price of Php52.20/sh, there is an upside of 64.4% to our FV estimate.

   Richard Lañeda, CFA

Rolling over to 2023 estimates and upgrading to BUY- November 8,2022 We are raising our fair value estimate from Php37.80 to Php40.50 as we roll over to 2023 estimates. Following our upgrade to our fair value estimate, we are also upgrading our recommendation to BUY from HOLD. Our FY23 fair value estimate implies an upside of 19.11% from the current price of Php34.00. And although the relative valuation of SMPH is not historically cheap at 26.8X forward P/E, it is also not demanding as it is trading close to its long-term average of 26.11X.

   Charles William Ang, CFA

November 08, 2022. Rolling over estimates to 2023; Maintain HOLD. We are upgrading our FV estimate on UBP to Php72.8/sh (based on 1.00X 2023E P/BV) as we rollover our estimates to 2023. We are maintaining our HOLD rating on UBP. We expect loan demand and asset quality to continue recovering amid the reopening of the economy. Furthermore, we expect the acquisition of Citibank’s consumer business in the Philippines to complement the bank’s existing consumer portfolio and accelerate the bank’s growth in the credit card space. The acquisition will also widen its client base and enable the bank to cross-sell its products. Nonetheless, upside potential to our FV estimate remains limited.

   Denise Joaquin

November 08, 2022. Raising FV estimate to Php28.0/sh; upgrading to BUY. We are raising our FV estimate on CNPF to Php28.0/sh from Php23.9/sh as a result of the changes in our forecasts and after rolling over our estimates to 2023. We are also upgrading our rating to BUY from HOLD given our more favorable outlook on CNPF’s medium-term profitability. We continue to like CNPF for its strong brand equity and strong track record of revenue and earnings growth. Amid the current inflationary environment, CNPF continues to benefit from its broad portfolio of products positioned across multiple price tiers. At its current price of Php24.2/sh, CNPF is trading at 15.4X 2023E P/E, a discount relative to the median 18.8X 2023E P/E of its peers. Upside relative to our FV estimate is also significant at 16%.

   George Ching

Maintain HOLD rating- November 8, 2022 Following the rolling over of our estimates to FY23, we are raising our FV estimate on ICT by 5.5% to 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 declined by only 5% in the YTD period, outperforming the PSEi’s 11.6% decline during the same period. Based on its current market price of Php190/sh, upside is limited at 11.5%.

   April Lynn L. Tan, CFA

November 07, 2022. Revising and rolling over estimates to 2023; maintaining HOLD rating.After factoring in the said changes, our FV estimate increased by 3.2% from Php1,850/sh to Php1,910/sh. We are maintaining our HOLD rating on TEL. 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.

   George Ching

Maintain HOLD rating- November 7, 2022 Following the rolling over of our estimates to FY23, we are raising our FV estimate on AEV by 6.4% to Php56.5/sh. We are maintaining our HOLD rating on AEV. We continue to like AEV given the expansion plans 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, AEV’s share price has increased by 5% in the YTD period, outperforming the PSEI’s 13.2% declined. Based on its current market price of Php57.2/ sh, there is no more upside to our FV estimate.

   George Ching

Maintain BUY rating- November 7, 2022 Following the rolling over of our estimates to FY23, we are raising our FV estimate on AP by 7.9% to Php45.2/sh. We are maintaining our BUY rating on AP. We like AP as we believe that the earnings recovery from the impact of the Covid-19 pandemic in 2021 can be sustained in 2022 with overall power demand expected to exceed pre-pandemic level. Furthermore, valuation is also cheap, trading at 11.2X FY22 P/E, compared to 17X FY22 P/E of domestic peers and AP’s 10 year historical P/E of 13.7X. Based on its 2022 cash dividend of Php1.45/sh, this provides a decent dividend yield of 4.5%. The upside to our FV estimate is significant at 39.7%.

   Charles William Ang, CFA

November 07, 2022. Rolling over estimates to 2023; Maintain BUY. We are upgrading our FV estimate on BDO to Php160.00/sh (based on 1.35X 2023E P/BV) as we rollover our estimates to 2023. We maintain our BUY rating and 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 interest rate environment, given its strong deposit franchise and liquid balance sheet. As of yesterday’s close at Php127/sh, there is an upside of 26.18% to our FV estimate.