Alerts

   John Martin Luciano, CFA

April 12, 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.

   George Ching

April 6, 2021. We have a HOLD rating on FGEN with a FV estimate of Php32.3/sh. We continue like FGEN given its relatively stable cash flow since bulk of its capacity is contracted. FGEN is also the only clean energy play in the PSE after its subsidiary EDC was delisted. Furthermore, with the Department of Energy’s moratorium on new coal power plants, this could potentially push forward the projected power shortage beginning in 2023, 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. However, based on FGEN’s market price of Php30.1/sh., upside to our FV estimate is limited at 7.3%.

   Justin Richmond Cheng, CFA

April 6, 2021. We currently have a BUY rating on PIZZA with a FV estimate of Php10.3/sh. Despite PIZZA’s underperformance, the company continued exhibiting some healthy sequential trends in the quarter. These included a) a sequential recovery in system-wide sales (+34% q/q); and b) an improvement in efficiency (EBIT margin of -0.2% in 4Q20 vs -8.7% in 3Q20) as the company’s restructuring efforts in prior quarters started to pay-off. This increases our confidence that PIZZA will survive the crisis. We expect sales to sustain its recovery in 2021, albeit several headwinds could slow the pace. 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.

   John Martin Luciano, CFA

March 26, 2021. We currently have a BUY rating with a FV estimate of Php16.6/sh based on a 0.60X 2021E P/BV primarily on valuation. 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. At its current price, the bank is only trading at 0.34X 2021E P/BV, below its historical average.

   Justin Richmond Cheng, CFA

March 25, 2021. We are reiterating our BUY rating on CNPF with a FV estimate of Php23.3/sh. We continue to like CNPF given its strong brand equity, successful new product launches, and proven track record of growing revenues and profits. It is also one of the most resilient companies amidst the COVID-19 pandemic due to its basic, shelf-stable food products, which have enjoyed steady demand despite the more challenging economic backdrop. We are also confident in the long-term growth potential of PMCI given CNPF’s proven track record in growing businesses.

   Justin Richmond Cheng, CFA

March 25, 2021. More details to follow after the results briefing on March 29. We currently have a BUY rating on PGOLD with a FV estimate of Php57/sh.

   Justin Richmond Cheng, CFA

March 25, 2021. We are reiterating our BUY rating on CNPF with a FV estimate of Php23.3/sh. We continue to like CNPF given its strong brand equity, successful new product launches, and proven track record of growing revenues and profits. It is also one of the most resilient companies amidst the COVID-19 pandemic due to its basic, shelfstable food products, which have enjoyed steady demand despite the more challenging economic backdrop. We are also confident in the long-term growth potential of PMCI given CNPF’s proven track record in growing businesses.

   Frances Rolfa Nicolas

Consensus currently has a BUY rating and FV estimate of Php16.13/sh on LTG

   George Ching

March 22, 2021. We have a HOLD rating on FGEN with a FV estimate of Php32.3/sh. We continue like FGEN given its relatively stable cash flow since bulk of its capacity is contracted. FGEN is also the only clean energy play in the PSE after its subsidiary EDC was delisted. 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. However, based on FGEN’s market price of Php29.50/sh., upside to our FV estimate is limited at 9.5%.