Alerts

   Richard Lañeda, CFA

May 23, 2022. We reduced our FV estimate for VLL from Php4.81 to Php3.44 following the disappointing FY21 results. Apart from lowering our revenue forecast, we also raised our target discount to NAV from 50% to 60% as its weaker-than-industry real estate segment raises concerns over the company’s future earnings and return on equity.

   Richard Lañeda, CFA

May 16, 2022. FV estimate lowered to Php868, BUY maintained. Our fair value estimate for AC is reduced to Php868 from Php906 after factoring in the lower fair value estimate for ALI (from Php45.70 to Php42.00) and IMI (from Php8.60 to Php8.20). 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. AC also gives investors a huge potential upside of 33.3% based on our adjusted fair value.

   April Lynn L. Tan, CFA

May 20, 2022. Maintaining estimates and reiterating HOLD rating. Despite the disappointing 1Q22 results, we are maintaining our earnings estimates due to management’s favorable guidance on subscriber additions in the next few quarters. As such, CNVRG may still be able to meet our year end subscriber and revenue forecasts. Nevertheless, we reiterate our HOLD rating on CNVRG and our FV estimate of Php29.40/ sh. We continue to like CNVRG given the company’s attractive growth prospects being a pure play on the fast-growing underpenetrated fixed broadband industry in the Philippines. The company also has a strong balance sheet and a large growing operating cash flow. However, at Php27.80/sh, the stock is already fairly valued. Wait for pullbacks to buy the stock.

   Frances Rolfa Nicolas

Upgrading to BUY- May 19, 2022 We are upgrading our recommendation on GMA7 from HOLD to BUY following the recent selloff in the stock. Note that in the last 3 weeks, GMA7’s share price declined by 28.9% from Php14.5 to Php10.3. This has made the stock attractively priced now that the upside to our FV estimate of Php15.0/sh is at 44%. 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.

   Richard Lañeda, CFA

May 19, 2022. FV estimate downgraded to Php1.20. Following the reduction in leasing revenues and real estate revenues, our fair value estimate for FLI is reduced to Php1.20 from Php1.28. Our fair value estimate is still based on a 55% discount to our NAV estimate of Php2.66 per share. Despite the downgrade in forecast and fair value estimate, we maintain our BUY rating on FLI as share are undervalued in our opinion. Not only is FLI trading at a 62% discount to NAV, but FLI’s stake is FLIRT alone already accounts for 93.6% of FLI’s market capitalization.

   Kerwin Malcolm Chan

Reiterate BUY rating- May 19, 2022 We currently have a BUY rating on HOME with an FV estimate of Php9.8/sh.

   Frances Rolfa Nicolas

May 18, 2022. Maintain BUY rating. In light of the 1Q22 results, we are lowering our income tax rate estimate to 21% from 25% in 2022. Note that the company has income tax holiday until end of April. This increased our 2022 net income forecast by 5.3% to Php5.8Bil. Accordingly, we are maintaining our BUY rating on EAGLE with an FV estimate on Php15.2/sh. We remain optimistic on the construction industry’s recovery and consequently the improvement in cement demand this year. We continue to like EAGLE because of its strong balance sheet position, excess capacity, and superior margins compared to its peers.

   Frances Rolfa Nicolas

May 18, 2022. Maintain BUY rating. We currently have a BUY rating and FV estimate of Php6.17/sh on EEI. We reiterate our favorable view on EEI’s long term prospects given its a) dominant position in the construction industry, b) advantage in winning new projects from the government, and c) the company’s healthy construction backlog.

   Frances Rolfa Nicolas

May 18, 2022. Maintain HOLD rating. We currently have a HOLD rating and FV estimate of Php22.0/sh on MWC. We await for the details of the East Zone’s revised concession agreement and the next round of rate rebasing, which should take effect in 2023, as these will determine the outlook of the company.

   Charles William Ang, CFA

May 18, 2022. Maintaining BUY rating. We currently have a BUY rating on GTCAP with and FV estimate of Php890/sh. At its current price of Php512, it is trading at 7.3X 2022E earnings, significantly below its historical average P/E of 14X. Current discount to NAV also remains near its historical high at 48%.