Alerts

   John Martin Luciano, CFA

November 23, 2021. In light of the changes in our forecasts, we downgraded our FV estimate to Php10/sh but maintained our BUY rating on MAXS. Despite the disappointing 9M21 results, we expect sales to improve going forward amidst the improving vaccination rollout, easing government restrictions, and declining COVID-19 cases. Moreover, note that ~88% of Metro Manila’s target population had already been fully vaccinated. This should allow the government to re-open the economy sustainably, leading to a resumption in the recovery of sales. Moreover, higher sales amidst easing quarantine restrictions should also improve margins due to the impact of operating leverage.

   Adrian Alexander Yu

November 23, 2021. We have a HOLD rating on CNVRG with a FV estimate of Php31.0/sh. At its current price of Php30.8/sh, the stock is already fairly valued based on our FV estimate. We recommend investors to wait for pullbacks before buying.

   Adrian Alexander Yu

November 23, 2021. We reiterate our BUY rating on TEL with an FV estimate of Php2,030/sh. At its current price of Php1,670/sh, capital appreciation potential and 2022E dividend yield are attractive at 21.6% and 5.2%, respectively.

   Adrian Alexander Yu

November 23, 2021. We also reiterate our HOLD rating on GLO with an FV estimate of Php3,030/sh. At its current price of Php3,620/sh, we believe that the stock is trading at expensive valuations despite factoring in Mynt’s recent revaluation to double unicorn status.

   John Martin Luciano, CFA

November 19, 2021. Maintain BUY. In light of the minimal change in our earnings forecast, we are maintaining our BUY rating on PIZZA with a FV estimate of Php9.3/sh. Despite the disappointing 9M21 results, we expect sales to improve going forward amidst the improving vaccination rollout, easing government restrictions, and declining COVID-19 cases. Note that ~88% of Metro Manila’s target population had already been fully vaccinated. This should allow the government re-open the economy sustainably, leading to a resumption in the recovery of sales. Moreover, the resumption of dine-in sales should also help margins recover.

   John Martin Luciano, CFA

November 19, 2021- Maintain BUY In light of the changes in our forecast, we are downgrading our FV estimate to Php16.8/sh based on a 0.55X 2022E P/BV. However, we are maintaining our BUY rating mainly due to attractive valuations. We remain cautious over EW’s large exposure in credit cards and auto loans, which represent a total of 50% of its loan portfolio. We continue to believe that these segments are the most at risk in asset quality deterioration amidst the ongoing pandemic. On the positive side, we expect its lending operations and asset quality to slowly improve as the economy gradually recovers amidst the easing quarantine restrictions. At its current price, the bank is only trading at 0.3X 2021E P/BV, below the industry average.

   Justin Richmond Cheng, CFA

November 19, 2021- Reviewing estimates We will be reviewing our estimates in light of the weaker-thanexpected margins. We currently have a BUY rating on MRSGI with a FV estimate of Php2.56/sh

   Justin Richmond Cheng, CFA

November 19, 2021. Maintain BUY rating. We maintain our BUY rating on CIC with a FV estimate of Php32.5/sh. We continue to like CIC for its positive long-term growth prospects given its market leading position in the underpenetrated air-conditioning and refrigerator markets and increasing share in the fast-growing laundry market. Upside to our FV estimate is also significant at 50%.

   Frances Rolfa Nicolas

November 19, 2021- Maintain BUY rating We currently have a BUY rating and FV estimate of Php18.6/sh on EAGLE. We remain optimistic on the construction industry’s recovery and consequently the improvement in cement demand this year and next year. We continue to like EAGLE because of its strong balance sheet position, excess capacity, and superior margins compared to its peers. At its current price, upside potential to our FV estimate remains significant at 30%.

   Frances Rolfa Nicolas

November 19, 2021. Maintain HOLD rating. We currently have a HOLD rating and FV estimate of Php51.0/sh on CEB. We think that the company’s recovery still has a long way to go. While we are hopeful that more people will travel in the last quarter of the year, additional headwinds are mounting such as rising jet fuel prices, and possible re-imposition of travel restrictions domestically and abroad. Moreover, at its current price, the stock is already trading near our FV estimate.