Alerts

   Denise Joaquin

August 17, 2022. Reiterate BUY rating. We reiterate our BUY rating on DNL with an FV estimate of Php9.5/sh. We like DNL since it is in a prime position to capitalize on the recovery of the economy given its diversified portfolio of products catering to different consumer groups.

   Denise Joaquin

Reiterate HOLD rating- August 17, 2022 We reiterate our HOLD rating on MONDE with an FV estimate of Php14.5/sh. We continue to like MONDE for its market leadership in several branded consumer food products and long-term prospects in the alternative meat space. However, the company remains exposed to several headwinds such as the slowdown in the UK alternative meat market and unfavorable FX. At its current price of Php16.48/sh, the stock is already trading above our FV estimate and at a 41.9x 2022E P/E.

   Richard Lañeda, CFA

August 16, 2022. Reducing forecast and FV estimate. We are reducing our net income forecast for FY22 and FY23 by 25% and 22.9%% to Php2.51 Bil and Php3.05 Bil respectively as we factored in the higher-than-expected operating expenses to our forecast. We also reduce our fair value estimate of FLI from Php1.20 to Php1.06 as we raise our target discount to NAV to 60% from 55% given the slow recovery in FLI real estate sales and also weaker-than- industry performance of its office leasing business. We downgrade our recommendation on FLI from BUY to HOLD given as the upside to our FV estimate has dropped below 15%.

   April Lynn L. Tan, CFA

Reiterate HOLD rating- August 16, 2022 We reiterate our HOLD rating on TEL with an FV estimate of Php1,840/sh. We continue to like TEL due to its market leadership in the under penetrated fixed broadband segment and its fast-growing enterprise segment. However, at its current price of Php1,818/sh, the stock is already fairly valued.

   April Lynn L. Tan, CFA

Downgrading to HOLD - August 16, 2022 We reduced our revenue and net income forecasts after factoring in the slower than expected subscriber growth. After reducing our earnings forecast, we cut our FV estimate from Php28.90 to Php24.60. We are also downgrading our recommendation from BUY to HOLD. At CNVRG’s current price of Php20.95, capital appreciation potential is 17.4%. We don’t think the magnitude of the potential increase is compelling enough given the risk that the market for postpaid fiber broadband services is already maturing which could be the reason for CNVRG’s two consecutive quarters of disappointing subscriber additions. This in turn could lead to further earnings disappointments and a derating in CNVRG’s share price.

   George Ching

Maintain BUY rating on FPH- August 16, 2022 We have a BUY rating on FPH with a FV estimate of Php149/sh. Given FPH’s 68% ownership in FGEN, we view FPH as a cheaper way to own FGEN. FPH is trading at a huge 47% discount to its market based NAV of Php122.4/sh. Based on FPH’s market price of Php64.50/sh, upside to our FV estimate is significant at 131%.

   Denise Joaquin

Reiterate BUY rating- August 15, 2022 We currently have a BUY rating on RRHI with an FV estimate of Php85.8/sh. We continue to like RRHI given its well-diversified portfolio of retail formats and positive long-term growth prospects. We think its recovery initiatives, especially the strengthening of its e-commerce platform, makes RRHI well-positioned to capitalize on future growth opportunities amid increasing digital trends.

   Denise Joaquin

August 15, 2022. We are increasing our forecasts to account for the stronger-than-expected 1H22 results relative to our estimates. We raised our topline forecasts slightly by 3.7% for FY22 and 4.0% for FY23. Similarly, we raised our margin assumption for FY22 slightly to factor in our stronger outlook on gross margins. This raised our net income forecast by 3.3% for FY22 and 4.4% for FY23. After factoring in our adjustments, our FV estimate increased by 8.6% from Php22.0/sh to Php23.9/sh. Although we like CNPF for its market leadership in several consumer staple categories and favorable long-term growth prospects for its emerging categories, we maintain our HOLD rating on the stock due to current valuations.

   George Ching

August 15, 2022. Maintaining BUY rating. We have a BUY rating on FGEN with a FV estimate of Php30.8/sh. 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 71%.

   George Ching

August 15, 2022. Maintaining HOLD rating. We have a HOLD rating on JGS with a FV estimate of Php55.2/sh. We like JGS as it is well positioned to capitalize on the favorable long term growth outlook of the Philippine economy given the market leadership position of its operating subsidiaries, the parent company’s strong balance sheet and the excellent track record of its management team. However, it is also sensitive to the ongoing COVID-19 pandemic as well as concerns of rising inflation as vulnerable sectors accounted for 61% of NAV. Moreover, at its current prices of Php55/sh, there is no more upside to our FV estimate.