Alerts

   Richard Lañeda, CFA

August 15, 2022. Maintain BUY. We are maintaining our BUY rating on AGI despite 1H22 slightly lagging estimates. We believe AGI shares are very undervalued. AGI’s stake in EMI is already worth more than AGI’s market cap. At EMP’s current price of Php19.06/sh, AGI’s stake is worth more than Php240.6 Bil, versus AGI’s market capitalization of 89.6 Bil. In addition, AGI, through EMI, Travellers, MEG, and Golden Arches, is well positioned to benefit from the improving mobility and recovering demand.

   Richard Lañeda, CFA

FV estimate lowered to Php848, BUY maintained- August 15, 2022 Our fair value estimate for AC is reduced to Php868 from Php848 after factoring in the lower fair value estimate for ALI (from Php42.00 to Php36.80). We maintain our BUY rating on AC as we see the company being one of the beneficiaries of the reopening of the economy through ALI, BPI, and MWC. In addition to that, our fair value estimate still implies a 15.67% upside from the current price of Php733.00.

   Richard Lañeda, CFA

August 12, 2022. Maintain BUY with FV estimate of Php4.38. We maintain our BUY rating on MEG as we view the company to be a beneficiary of the reopening of the economy. Though MEG’s mall business is relatively smaller than that of SMPH and RLC, a recovery in the mall business would still be positive for MEG. Its office leasing segment sustained its strong momentum as the BPO sector continues to grow despite work-from-home setups. Meanwhile, MEG’s residential segment remains robust despite challenges like higher interest rates and slowe economic growth facing the industry. We maintain our fair value esimate of Php4.38 based on a 35% discount to our NAV estimate of Php6.74

   Richard Lañeda, CFA

August 11, 2022. BUY with FV estimate of Php25.60. We maintain our BUY rating on RLC as it will also be a major beneficiary of the ongoing recovery. Greater mobility arising from lower alert level will continue to benefit RLC’s mall business and hotels while its office segment continues to enjoy high occupancy rates. Management notes of robust office demand despite ongoing trend of work-from-home. Meanwhile, RLC maintains a positive outlook on its residential segment, despite high cancellations as of late due to the impact of COVID-19, as its net take-up sales have seen three straight quarters of sequential growth. Lastly, RLC has consistently bought back its shares in the open market since approving its Php3 Bil share buyback program, confirming our view that shares are undervalued. We have a fair value estimate of Php25.60 for RLC, based on 35% discount to our NAV estimate of Php39.48.

   Richard Lañeda, CFA

FV estimate boosted to Php9.50, maintain BUY- August 10, 2022 We raise our fair value estimate from Php8.63 to Php9.50 after factoring in increase in our net income forecast. We like BLOOM for its market-leading position in mass gaming, supported by the growth in its premium mass segment and slots. Meanwhile, the VIP segment is making remarkable recovery as it does so without the contribution from Mainland Chinese players as borders of China remains effectively closed. We believe our new fair value estimate of Php9.50 is still conservative in that it implies a 2023 EV/EBITDA multiple of 9.3X versus the current regional peer average of 12.6X 2023 EV/EBITDA. BLOOM is priced relatively attractive as it is currently trading at 37.3% discount to regional peers based on 2023 EV/EBITDA.

   George Ching

August 10, 2022. Maintaining BUY rating on DMC. In light of the increase in our earnings forecast for DMCI Homes, the construction and nickel mining business, we are raising our 2022E net income forecast for DMC by 6.9% to Php39.6Bil. We are also increasing our FV estimate for DMC by 6.9% to Php13.85/sh. We are maintaining our BUY rating on DMC. DMC is trading at 2022E P/E of 3.3X, below its historical P/E of 11.2X. Based on its actual 2021 cash dividend of Php0.96/sh, this provides a very high dividend yield of 10.4%. Upside to our FV estimate is also very high at 47.4%.

   George Ching

Reiterate HOLD rating- August 10, 2022 We have a HOLD rating on ACEN with a FV estimate of Php5.06/sh. We continue to like ACEN given the rapid growth of its power generation portfolio and its focus on renewable energy. From ~3,942MW currently, the company is on track to grow its attributable capacity to 5,000MW by FY24, and the capital raised from the recent FOO should help the company achieve this goal. However, valuations are no longer attractive as the positives are priced in. At Php8.64/sh, ACEN

   Frances Rolfa Nicolas

Downgrading to HOLD rating- August 9, 2022 We remain optimistic on the construction industry’s recovery and consequently the improvement in cement demand this year. Moreover, we continue to like EAGLE because of its strong balance sheet position, excess capacity, and superior margins compared to its peers. However, at its current price of Php14.4/sh, upside to our FV estimate is limited at 5.6% Hence, we are downgrading our rating to HOLD on EAGLE.

   Frances Rolfa Nicolas

August 09, 2022. Downgrading to HOLD rating. Accordingly, we are reducing our FV estimate to Php7.5/sh on IMI. 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. However, challenges in the short term such as potential global economic slowdown, and rising input costs remain. Moreover, at its current price of Php7.08/sh, upside to our new FV estimate is limited at 5.9%. Hence, we are downgrading our rating to HOLD on IMI.

   Denise Joaquin

Reiterate BUY rating- August 9, 2022 We reiterate our BUY rating on PGOLD with an FV estimate of Php52.8/sh. We continue to like PGOLD as it remains well-positioned to capture growth opportunities in the retail sector. 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. Furthermore, the company’s aggressive store network expansion plan extends its presence into underserved areas, which remain an attractive market for PGOLD. At its current price of Php32.25/sh, the stock is trading at a 9.5x 2022E P/E, while upside to our FV is significant at 63.7%.