Alerts

   Justin Richmond Cheng, CFA

Maintain BUY rating- May 18, 2022 We currently have a BUY rating on SSI with an FV estimate of Php3.03/sh. We expect core earnings to return to normal levels as the economy continues to reopen. Although the retailer remains challenged by suppressed margins, the reversion of net earnings to positive territory and the gradual return of sales to pre-pandemic levels should bode well for SSI.

   Justin Richmond Cheng, CFA

Reiterate HOLD rating- May 18, 2022 We reiterate our HOLD rating on MONDE with an FV estimate of Php14.50/sh. We continue to like MONDE for its market leadership in several branded consumer food products and long-term prospects in the alternative meat market. However, the company remains exposed to short-term headwinds including weak demand for meat alternative products and rising commodity prices. At its current price of Php14.60/sh, the stock is already trading above our FV estimate and at a 37.5x 2022E P/E.

   Richard Lañeda, CFA

May 18, 2022. We are raising our FY22 net income forecast by 16.5% to Php1.92 Bil from Php1.65 Bil following BLOOM’s 1Q22 results which showed operating expenses were lower than we anticipated. Our FY23 income forecast is unchanged at Php5.40 Bil. The increase in FY22 income forecast had minimal impact on our fair value as it is maintained at Php9.90. We maintain our BUY rating on BLOOM for Solaire’s improving performance. The faster- than-expected return to profit of BLOOM is a very positive surprise and puts BLOOM in a better financial position as it works its way to a recovery. We continue to view BLOOM as a major beneficiary of better mobility and recovery in economic activity. We expect growth to be primarily driven by the local market as there is little visibility on how the China VIP market will recovery given the lockdown situation and economic slowdown in China.

   Justin Richmond Cheng, CFA

May 17, 2022. We currently have a BUY rating on RRHI with an FV estimate of Php84.5/sh. We continue to like the company given its well-diversified portfolio of retail formats and positive long- term growth prospects. The strengthening of its e-commerce platform also makes RRHI well-positioned to capitalize on future growth opportunities amid increasing digitization. At its current price of Php52.85/sh, potential capital appreciation is also significant at 60%.

   Richard Lañeda, CFA

Maintain BUY with FV estimate of Php4.38- May 17, 2022 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. We could also see an improvement in real estate sales as buyers gain more confidence on a sustained economic recovery. In addition to growing earnings, our fair value esimate also implies significant upside of 61% from its current market price of Php2.72.

   Justin Richmond Cheng, CFA

May 17, 2022. After factoring in our adjustments, we raised our FV estimate by 8.4% to Php2.04/sh from Php1.88/sh. We reiterate our BUY rating on MRSGI as we expect the company to recover core earnings back to normal levels. The retail operator is likewise poised to benefit from improved consumer spending as the economy further reopens.

   George Ching

Maintaining our BUY rating on FPH- May 16, 2022 We have a BUY rating on FPH with a FV estimate of Php145.9/sh. Given FPH’s 68% ownership in FGEN, we view FPH as a cheaper way to own FGEN. FPH is trading at a huge 52% discount to its market based NAV of Php134.8/sh. Based on FPH’s market price of Php65.20/sh, upside to our FV estimate is significant at 123%.

   George Ching

May 16, 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 Php20.65/sh., upside to our FV estimate is at 49/26%.

   Richard Lañeda, CFA

FV estimate lowered to Php868, BUY maintained.- May 16, 2022 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.

   Richard Lañeda, CFA

Maintain BUY- May 13, 2022 We maintain our BUY rating on ALI given the significant upside from the current market price of Php29.15. Earnings growth of ALI remains high despite our reduced forecast due to recovery in malls and hotels businesses and resilient growth of the office segment. The biggest risk for ALI would be the residential segment but we believe 2021 is already a relatively low base for ALI thus downside risk to growth is minimal.