Alerts

   George Ching

Maintaining HOLD rating- March 4, 2022 After adjusting our EBITDA estimates, we are raising our FY22 net income forecast by 12.2% to US$504Mil. We are also increasing our FV estimate for ICT by 7.8% to Php197.7/ sh. Despite this, we are maintaining our HOLD rating on ICT. We continue like ICT given the success of its greenfield ports in Australia, Congo and Rio as these ports will be the key earnings growth driver for the company in the next few years. Earnings growth will also get a boost from the recovery in global trade and the company’s cost reduction initiatives. However, ICT’s share price has increased by 89% in the past 12 months, outperforming the PSEi’s 6.4% increase during the same period. Based on its current market price of Php228/sh, ICT is already fairly valued.

   Kerwin Malcolm Chan

Reiterate BUY rating- March 4, 2022 We are maintaining our earnings estimates for 2022 as this is within the range of management’s guidance for the year. Thus, we reiterate our BUY rating on TEL with an FV estimate of Php2,030/sh. At its current price of Php1,830/sh, capital appreciation potential is attractive at 10.9% with dividend yield estimated at 4.7% for 2022. The stock is also trading at a 5.6x 2022E EV/EBITDA, much lower than GLO’s multiple of 7.1x and CNVRG’s multiple of 11.7x.

   Richard Lañeda, CFA

March 03, 2022. Raising FV estimate to Php47.40, reiterate BUY rating. We are raising our FV estimate on ALI from Php43.20 to Php47.40 as we increase the valuation of ALI’s landbank (raw land and estate projects) and shopping malls. We also reiterate out BUY rating on Ayala Land. We like Ayala Land for its vast land bank and its strong track record of developing estate projects. We expect ALI to be a major beneficiary of the recovery of the economy.

   George Ching

Maintaining BUY rating on SCC- March 1, 2022 In light of the increase in our earnings forecast for the coal mining business, we are raising our FY22 earnings estimate for SCC by 97% to Php23.5Bil. We are also raising our FV estimate on SCC by 19.8% to Php42.17/sh. We are maintaining our BUY rating on SCC. We like SCC given that we believe that earnings have bottomed out in 2020(with FY21 earnings increasing by 393% y/y following a 66% decline in 2020 due to the impact of the Covid-19 pandemic). Despite the 117% increase in SCC’s share price in the past 12 months, the stock is still extremely cheap. It is trading at 5X FY22 P/E. compared to 17X FY22E P/E of domestic peers and its 10 year historical P/E of 11.6X. Based on its actual 2021 cash dividend of Php3/sh, this provides a very high dividend yield of 12%. Upside to our FV estimate is also very high at 52.2%.

   George Ching

March 01, 2022. We are downgrading our rating on MER to HOLD from BUY, with a FV estimate of Php392.5/sh. We continue to like MER as its earnings is set to return to pre-pandemic level this year as power demand continue to recover with the reopening of the economy . However, MER’s share price is up by 36% in the past 12 months, outperforming the PSEI’s 7.6% gain. MER’s is currently trading at at 18.7X 2022 P/E, above its 10-year historical average of 17.5X. Based on MER’s current market price of Php368/sh, upside to our FV estimate is at 6.7%.

   Kerwin Malcolm Chan

Reiterate HOLD rating- March 1, 2022 Given that the company’s full-year performance ended in line with our estimates, we are maintaining our 2022 earnings forecast and reiterate our HOLD rating on WLCON with an FV estimate of Php24.7/sh. Although we continue to like WLCON as the market leader in the home improvement space, the stock is already trading above our FV estimate at its current price of Php27.9/sh. Valuations likewise remain expensive at 38.3x 2022E P/E. Thus, we recommend investors to wait for pullbacks before buying the stock

   Justin Richmond Cheng, CFA

February 28, 2022. Reviewing estimates. We will be reviewing our estimates in light of the weaker-than-expected 4Q21 results. We currently have a BUY rating on CIC with a FV estimate of Php32.5/sh

   Richard Lañeda, CFA

February 23, 2022 - HOLD We are raising our FV estimate to Php40.60 from Php39.10 as we factor in a faster recovery of the mall segment to pre-pandemic levels. However, even with our higher fair value estimate, the upside from the current price is very minimal at 1.9%. Because of this, we are downgrading our recommendation on SMPH to a HOLD from BUY.

   Frances Rolfa Nicolas

February 22, 2022. Upgrading to BUY. We are slightly increasing our 2022 revenues estimate by 1.7% to Php25.2Bil to factor in higher ad revenues including pol ads. This increased our 2022 net income forecast by 4.2% to Php7.9Bil. Note that we have already factored in higher production costs and general administrative expenses in our model. Accordingly, we are slightly increasing our FV estimate to Php17.3/sh. At its current price, upside potential to our FV estimate is significant at 24%. As such, we are upgrading our rating on GMA7 to BUY.

   John Martin Luciano, CFA

February 21, 2022. Maintain HOLD. We are raising our FV estimate on JFC to Php245/sh. However, we are maintaining our HOLD rating given the limited upside. We expect sales to further recover in 2021 amidst declining COVID-19 cases and increasing vaccination rate. This will be further boosted by increased consumer spending as consumer confidence and business confidence gradually improves. In addition, margins should recover amid higher sales volume and increasing contribution of the international segment. We believe that pullbacks are opportunities to buy the stock.