Alerts

   George Ching

Maintain BUY rating- April 8, 2022 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 Php26/sh., upside to our FV estimate is at 19%.

   John Martin Luciano, CFA

Maintain BUY- April 4, 2022 We are downgrading our FV estimate by 7% to Php15.6/sh on a 0.55X 2022E P/BV, but maintain our BUY recommendation. Our BUY rating is largely due to attractive valuations as the bank is only trading at 0.3X 2021E P/BV. We remain cautious over EW’s large exposure in credit cards and auto loans, which represent a total of 50% of its loan portfolio. Note that its asset quality and lending operations were one of the most severely impacted among all banks. Nevertheless, we expect these to slowly improve as the economy gradually recovers amidst the easing quarantine restrictions.

   John Martin Luciano, CFA

Maintain BUY- April 4, 2022 We currently have a BUY rating on PNB with a FV estimate of Php52.5/sh based on 0.55X 2021E P/BV. We view PNB as a deep value play as the bank is only trading at 0.2X 2022E P/BV, significantly below the industry average of 0.9X. We expect PNB’s asset quality, which was severely impacted by the COVID-19 pandemic, to slowly improve as the economy gradually recovers amid the easing of restrictions in Metro Manila as well as increasing inoculation rate in the country.

   Kerwin Malcolm Chan

Reiterate BUY rating.- April 4, 2022 We reiterate our BUY rating on HOME with an FV estimate of Php11.30/sh. At its current price of Php7.67/sh, the stock is trading at only 15.7x 2022E P/E, and potential capital appreciation is attractive at 47.3%. We continue to like HOME because of its sustainable store network expansion plan and initiatives for continued margin expansion.

   Kerwin Malcolm Chan

Reiterate BUY rating- April 1, 2022 We are reiterating our BUY rating on IMI with an FV of Php10/sh. At its current price of Php8.10/sh, potential capital appreciation is significant at 23.5%. We continue to like IMI due to its pipeline of EV and autonomous driving projects. Furthermore, the recovery of its core business segments is expected as the global economy continues to reopen and as supply chain constraints are seen to relax by 2H22.

   Justin Richmond Cheng, CFA

April 01, 2022. Maintain BUY rating. We are maintaining our BUY rating on DNL with a FV estimate of Php10.5/sh. We like DNL since it is in prime position to capitalize on the recovery of the economy given its diversified portfolio of products catering to different consumer groups. The company is relatively resilient to rising input costs thanks to its large portfolio of high margin specialty products. DNL is also a beneficiary of the growing popularity of health, wellness, and sanitation trends brought about by the pandemic.

   Richard Lañeda, CFA

Maintain BUY with FV estimate of Php1.39.- April 1, 2022 We currently have a BUY rating on FLI with a fair value estimate of Php1.39. While the weaker-than-expected rental revenue will have a negative impact on our forecast, we still believe shares of FLI are undervalued even after the adjustment. The successful listing of FLI’s REIT has unlocked a significant portion of its NAV and the market price for the assets under the REIT are significantly higher than our estimate. There is also a huge disparity in the valuation of FLI and its REIT FILRT. FLI’s stake in FILRT alone is worth Php23.2 Bil compared to FLI’s current market capitalization of Php24.2 Bil.

   George Ching

Maintaining HOLD rating- April 1, 2022 We have a HOLD rating on JGS with a FV estimate of Php61.2/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 Php61.3/sh, there is no more upside to our FV estimate.

   Charles William Ang, CFA

March 31,2022. Maintaining BUY rating. We currently have a BUY rating on GTCAP with and FV estimate of Php1110/sh. We continue to like GTCAP as it stands to benefit from the expected recovery of the Philippine economy. At its current price of Php527, it is trading at 10.9X 2021E earnings, significantly below its historical average P/E of 15X. Current discount to NAV also remains near its historical high at 55%.

   Frances Rolfa Nicolas

Maintain HOLD rating- March 31, 2022 We think that pent-up demand for travelling will start to manifest this year. However, headwinds are mounting such as rising jet fuel prices, weakening of the peso and other inflationary pressures. Moreover, potential COVID surges, similar to other countries, remain a concern. As such, we expect short term earnings to remain weak. At its current price, CEB is already trading near our FV estimate. Hence, we will be maintaining our HOLD rating on CEB.