Alerts

   Frances Rolfa Nicolas

October 15, 2021. Maintain BUY rating. Accordingly, we are reducing our FV estimate to Php1.70/sh. Despite rising costs, we remain optimistic on the construction industry’s recovery as the government ramps up infrastructure building and as property firms resume their deferred projects this year. At its current price of Php1.27/sh, upside potential to our FV estimate remains significant at 34%. As such, we maintain our BUY rating on CHP.

   Frances Rolfa Nicolas

October 15, 2021. Maintain BUY rating. We remain optimistic on the construction industry’s recovery and consequently the improvement in cement demand this year. Moreover, we think that the company’s SNMC acquisition should help temper the expected decline in margins from rising fuel and power costs. Furthermore, we continue to like EAGLE because of its strong balance sheet position, excess capacity, and superior margins compared to its peers. Note that we have already factored in lower margins for our forecasts next year. As such, we are maintaining our FV estimate of Php18.6/sh and BUY rating on EAGLE. At its current price, upside potential to our FV estimate remains significant at 29%.

   Adrian Alexander Yu

October 28, 2021. earnings estimates on WLCON to account for the lower-than-expected revenues and higher-than-anticipated gross profit margin. Nonetheless, we are maintaining our bottomline forecast as their performance was in line with our estimates. Thus, we are maintaining our FV estimate of Php25.2/sh, while reiterating our HOLD rating on the company. At its current price of Php31.65/sh, WLCON is still expensive, trading above our FV estimate and at 41.1x 2022E P/E, much higher than the 23.9x 2022E median P/E of other retailers. We recommend investors to wait for prices to correct to more attractive levels before taking a position in the stock.

   George Ching

October 26, 2021. We are maintaining our BUY rating on MER with a FV estimate of Php392.5/sh. We continue to like MER despite the temporary impact on earnings primarily brought about by the Covid pandemic. MER’s share price is up by 0.5% in the YTD period, underperforming the PSEI’s 1% gain. MER’s valuation has also become increasingly attractive with the stock trading at 14.4X 2022 P/E, below its 10-year historical average of 17.5X. Based on MER’s current market price of Php293.4/sh, upside to our FV estimate is at 33.8%.

   John Martin Luciano, CFA

October 26, 2021. We are maintaining our BUY rating and slightly increasing our FV estimate to Php170/sh based on a 1.60X 2022E P/BV. We continue to like BDO as we expect it to be one of the major beneficiaries of the recovery of economic growth with its strong deposit franchise and liquid balance sheet. Overall, outlook for its intermediation has improved as loan growth is expected to continue recovering following the increasing vaccination rate and declining COVID-19 cases. Moreover, net interest margin is also expected to increase next year as loan growth recovers which should result to better asset mix.

   George Ching

   Adrian Alexander Yu

October 13, 2021. Valuations. At its current price of Php6.64/sh, MWIDE is trading at a 23.7x 2019 P/E. Based on consensus forecast, MWIDE’s earnings performance for 2021 is expected to be better compared to 2020 with the construction segment poised to show a strong recovery. The risk of rising infections and the speed of the vaccination process remains an overhang for the recovery of air travel and MWIDE’s airport segment. However, the healthy debt level of the parent company, recent debt restructuring, and long-term growth projects will help MWIDE pay both its interest payments and preferred share dividends.

   Adrian Alexander Yu

October 13, 2021. Valuations. At its current price of Php6.64/sh, MWIDE is trading at a 23.7x 2019 P/E. Based on consensus forecast, MWIDE’s earnings performance for 2021 is expected to be better compared to 2020 with the construction segment poised to show a strong recovery. The risk of rising infections and the speed of the vaccination process remains an overhang for the recovery of air travel and MWIDE’s airport segment. However, the healthy debt level of the parent company, recent debt restructuring, and long-term growth projects will help MWIDE pay both its interest payments and preferred share dividends.

   Richard Lañeda, CFA

October 20, 2021. Increasing FV estimate to Php26.44. We are raising our fair value estimate to Php26.44 from Php20.50 after raising our NAV estimate, partly offset by a slight increase in our discount to NAV. Our NAV estimate increased from Php29.27 per share to Php40.67 per share after factoring in the changes mentioned above. Meanwhile, we raised our discount to NAV from 30% to 35% given that a significant portion of RLC’s office leasing portfolio is now listed separately through RCR.

   Frances Rolfa Nicolas

October 15, 2021. Maintain BUY rating. We remain optimistic on the construction industry’s recovery and consequently the improvement in cement demand this year. Moreover, we think that the company’s SNMC acquisition should help temper the expected decline in margins from rising fuel and power costs. Furthermore, we continue to like EAGLE because of its strong balance sheet position, excess capacity, and superior margins compared to its peers. Note that we have already factored in lower margins for our forecasts next year. As such, we are maintaining our FV estimate of Php18.6/sh and BUY rating on EAGLE. At its current price, upside potential to our FV estimate remains significant at 29%.