Alerts

   Frances Rolfa Nicolas

April 19, 2021. We currently have a BUY rating and FV estimate of Php10.9/sh on GMA7. We continue to like GMA7 given its strong financial position and efficient operations. Moreover, the company is in a prime position to capture ad placements for television and radio being the only dominant player in the FTA space. At its current price of Php8.96/sh, upside potential is significant at 22%.

   Adrian Alexander Yu

April 16, 2021. We reiterate our BUY rating on TEL with an FV estimate of Php1,820/sh. At its current price of Php1,228/sh, capital appreciation potential is very attractive at 48.2%. The stock also provides an attractive dividend yield of 6.6%. We continue to like TEL due to its dominant position in the home broadband business and the strong recovery of its mobile data and corporate segments.

   Richard Lañeda, CFA

April 15, 2021. We will be providing more details on MEG’s 4Q20 and FY20 results after their briefing on April 16. The recovery of revenues, especially on the real estate and mall leasing segments have been slower than expected due to the ongoing pandemic. Nevertheless, MEG’s relatively high exposure to the office leasing segment has given the company a large and resilient recurring income base which we believe also supports its valuation. We maintain our BUY rating on MEG with a fair value estimate of Php4.90.

   John Martin Luciano, CFA

April 14, 2021. In light of the minimal change in our earnings forecasts, we will be maintaining our BUY rating on BPI with a FV estimate of Php106/sh based on a 1.60X 2021E P/BV. We like BPI as we expect it to be one of the major beneficiaries of the economic growth after the effect of pandemic eases. As of end 2020, the bank’s CET1 ratio remained high at 16.2%. We believe this is enough to cover for potential adverse scenario of the pandemic. Although net interest margin will be pressured next year as loans gradually re-price, we believe most of the negatives have already been priced-in.

   Justin Richmond Cheng, CFA

April 14, 2021. We currently have a BUY rating on MAXS with a FV estimate of Php11.4/sh. We expect sales to sustain its recovery in 2021, albeit there are several headwinds that could potentially slow the company’s recovery. Nevertheless, we believe sales will gradually recover as consumer confidence improves, particularly after COVID-19 cases starts to flatten and the government accelerates its vaccination program.

   Justin Richmond Cheng, CFA

April 7, 2021. We currently have a HOLD rating on EMP with a FV estimate of Php9.5/sh. EMP’s international segment has done very well despite the pandemic. We expect the whisky business to continue driving EMP’s long term growth amid its strong and fast growing brand portfolio, which has grabbed significant share across global markets. On the other hand, the domestic brandy business could continue to be weighed down by renewed quarantine measures (e.g. liquor bans, limited operating hours) in urban regions. At EMP’s current price, however, there is no more upside to our FV estimate.

   Justin Richmond Cheng, CFA

April 05, 2021. We are maintaining our BUY rating on PGOLD with a FV estimate of Php57/sh. We continue to like PGOLD as the company remains well-positioned to take advantage of the growth opportunities in the retail sector given its differentiated focus of middle-to-low income class consumers as well as the niche market of resellers. Furthermore, the company’s more aggressive expansion plan bodes well for its long-term growth as underserved areas in provincial areas remain an attractive market for PGOLD. At its current price, upside to our FV estimate is also significant at 42%.

   Richard Lañeda, CFA

April 05, 2021. We are reiterating our BUY rating on FLI with a fair value estimate of Php1.51 per share which is based on a 55% discount to NAV of Php3.36 per share. Like other developers, FLI is facing challenging times in its malls and real estate businesses. But the office leasing segment remains resilient with majority of its tenants being BPOs. The size of FLI’s office leasing segments relative to its other businesses should support FLI’s valuation in our view. The proposed listing of its REIT (FILRT) confirms our view that FLI is currently undervalued. Even at 15% discount to the maximum price of Php8.30, the market cap of FILRT will still be 28% higher than FLI’s current market cap.

   John Martin Luciano, CFA

April 14, 2021. In light of the minimal change in our earnings forecasts, we will be maintaining our BUY rating on BPI with a FV estimate of Php106/sh based on a 1.60X 2021E P/BV. We like BPI as we expect it to be one of the major beneficiaries of the economic growth after the effect of pandemic eases. As of end 2020, the bank’s CET1 ratio remained high at 16.2%. We believe this is enough to cover for potential adverse scenario of the pandemic. Although net interest margin will be pressured next year as loans gradually re-price, we believe most of the negatives have already been priced-in.

   Justin Richmond Cheng, CFA

April 12, 2021. We will release a more detailed report after MRSGI’s results briefing. We currently have a BUY rating on MRSGI with a FV estimate of Php3.0/sh.