Alerts

   Frances Rolfa Nicolas

Accordingly, we are increasing our FV estimate to Php6.35/sh. At its current price of Php5.09/sh, upside potential is significant at 25%. We continue to like GMA7 given its strong financial position and efficient operations. Hence, we are upgrading our rating on GMA7 to BUY.

   John Martin Luciano, CFA

August 17, 2020. Downgrading estimates; Reiterate HOLD rating We are downgrading our earnings forecasts following the weaker than expected second quarter results. We tempered our forecast on store network expansion as well as the pace of recovery of dine-in sales. This was partially offset by our lower operating expense forecast. We expect the company’s revenues and profits to surpass 2019 levels by 2022. In light of the changes in our forecast, we are revising FV estimate downwards to Php129/ sh, but maintain our HOLD rating. We are cautious on JFC as we believe that its delivery and take-out sales will not be able to offset the weaker dine-in sales. We believe consumers will continue to avoid eating out for fear of getting infected with the COVID-19 virus. The restructuring of its business will also likely weigh down earnings in the near-term as well as dampen investor sentiment.

   George Ching

August 17, 2020. Maintaining our BUY rating on FPH. We have a BUY rating on FPH with a FV estimate of Php114.7/sh. Given FPH’s 68% ownership in FGEN, we view FPH as a cheaper way to own FGEN. FPH is trading at a huge 55% discount to its market based NAV of Php132/sh. Based on FPH’s market price of Php54/sh, upside to our FV estimate is significant at 94%

   Kerwin Malcolm Chan

Although the COVID-19 pandemic has drastically changed the way people and businesses operate, we believe the telco sector will remain resilient given the higher demand for data. Hence, we are reiterating our BUY rating on GLO with an FV estimate of Php2,390/ sh and our BUY rating on TEL with an FV estimate of Php1,640/sh. At GLO and TEL’s current prices of Php2,136/sh and Php1,350/sh, capital appreciation potential is attractive at 11.9% and 21.5%, respectively. In addition, GLO and TEL’s dividend yields are appealing at 4.9% and 5.6%, respectively.

   Adrian Alexander Yu

Although the COVID-19 pandemic has drastically changed the way people and businesses operate, we believe the telco sector will remain resilient given the higher demand for data. Hence, we are reiterating our BUY rating on GLO with an FV estimate of Php2,390/ sh and our BUY rating on TEL with an FV estimate of Php1,640/sh. At GLO and TEL’s current prices of Php2,136/sh and Php1,350/sh, capital appreciation potential is attractive at 11.9% and 21.5%, respectively. In addition, GLO and TEL’s dividend yields are appealing at 4.9% and 5.6%, respectively.

   George Ching

August 17, 2020. We have a HOLD rating on FGEN with a FV estimate of Php25.3/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. Finally, the projected power shortage in 2023 improves the feasibility of its LNG regasification project which will enable its gas plants to remain competitive after the depletion of the Malampaya gas field. However, based on FGEN’s market price of Php23.5/sh., upside to our FV estimate is limited at 7.7%.

   Richard Lañeda, CFA

August 14, 2020. In light of the reduction in 2020 and 2021 net income forecast, we reduce our FV estimate for BLOOM to Php8.00 from Php8.80. Despite the downgrade, we are maintaining our BUY rating on BLOOM. Being the leader in the Philippine gaming space, BLOOM is positioned to capitalize on the recovery in demand once quarantine measures are lifted. We still assume that we would see a gradual recovery starting late this year going into 2021

   Richard Lañeda, CFA

August 14, 2020. We are maintaining our HOLD rating on AC as it currently trading at a 2% premium to our fair value estimate of Php739. While first half profit has been disappointing, we expect gradual recovery in all its business segments as we move towards more lenient quarantine measures going forward. Upside to our fair value estimate would come from faster than expected recovery of the economy which could result from the lifting of quarantine restrictions.

   Frances Rolfa Nicolas

August 12, 2020. Accordingly, we are lowering our FV estimate to Php11.7/sh and downgrading our recommendation to a HOLD. While construction activity is expected to gradually improve as the economy restarts, social distancing rules and other regulations will likely remain in place as the government tries to contain the pandemic. Furthermore, EAGLE operates primarily in the Luzon market and the rising cases, particularly in NCR, have led to tighter restrictions. Hence, downside risks remain as construction operations could face delays, and it would take longer for volumes to return to pre-COVID-19 levels.

   George Ching

August 11, 2020. We are maintaining our BUY rating on DMC with a FV estimate of Php8.63/sh. Despite the very poor earnings outlook of the company, we believe that much of the negative news is already priced-in. The stock is trading at only 4.3X 20E P/E based on our earnings forecast. Capital appreciation is also the most significant at 142% based on our revised fair value estimate.