Philippine Stock Market and Cryptocurrency Review

Start your Crypto hustle!!!

noreply@blogger.com (Investorsavvy) — Tue, 11 May 2021 13:29:00 +0000

Click on the link to kickstart your crypto portfolio.

https://accounts.binance.com/en/register?ref=117226968

February's crypto exchange volumes made up nearly half the volumes on NYSE Group's stock markets

noreply@blogger.com (Investorsavvy) — Sun, 25 Apr 2021 08:40:00 +0000

Crypto exchange volumes have surged over the last few months, and are getting closer to rivaling volumes being clocked in by the world's largest equities exchange.

Exchange volumes tracked by The Block across legitimate venues hit their highest level ever this month. Thus far in April, crypto exchanges saw more than $1.26 trillion, slightly higher than the previous month's $1.17 trillion in volumes.

For more details visit:

https://www.theblockcrypto.com/post/102740/februarys-crypto-exchange-volumes-made-up-nearly-half-the-volumes-on-nyse-groups-stock-markets?utm_source=coinbase&utm_medium=rss

Dogecoin directory

noreply@blogger.com (Investorsavvy) — Tue, 20 Apr 2021 05:53:00 +0000

Where you can spend your DOGE coins https://cryptwerk.com/pay-with/doge/

Newegg Shoppers Can Now Pay with Dogecoin

noreply@blogger.com (Investorsavvy) — Tue, 20 Apr 2021 05:29:00 +0000

LOS ANGELES--(BUSINESS WIRE)--Newegg, one of the leading tech-focused e-retailers in North America, today celebrates #DogeDay by announcing that the company now accepts Dogecoin as an official payment method on Newegg.com. Reference Link: https://www.businesswire.com/news/home/20210419005997/en/Newegg-Shoppers-Can-Now-Pay-with-Dogecoin

Time Magazine now accepts bitcoin and other cryptocurrencies for digital subscriptions

noreply@blogger.com (Investorsavvy) — Tue, 20 Apr 2021 04:11:00 +0000

The news magazine TIME has partnered with Crypto.com and is now accepting cryptocurrency as a payment method for subscriptions. An announcement on their website revealed that now users could pay for digital subscriptions in cryptocurrency. A one-time purchase grants subscribers unlimited access to TIME’s content for 18 months. Plus invitations to events and other exclusives. Reference Link: https://finance.yahoo.com/news/time-magazine-now-accepting-crypto-123433608.html

Papa Securities Corp. (Morning Huddle - Daily News) - August 17, 2017

noreply@blogger.com (Investorsavvy) — Mon, 21 Aug 2017 00:00:00 +0000

August 17, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks close higher on gains from Home Depot and United Technologies.

DOW 22,024.87 +25.88 +0.12%

EPHE 35.95 +0.49% +1.38%

PHI 34.34 +0.31 +0.91%

Peso 51.35

TEL Par 1,763 vs 1,740 TEL

Economic News

DOF says without tax reform, the government can only fund half of PhP9tn Build Build Build program. According to Finance Secretary Carlos Dominguez, the Senate version of the tax reform proposal (Senate Bill 1408) is expected to generate PhP169bn in the first year of implementation. Expected loss of PhP126bn from personal income tax cuts will be offset by a larger VAT base, adjustment of excise taxes on fuel, automobiles and sugar-sweetened beverages. The Senate has been deliberating on the package since July 24.

Corporate News

SCC to construct 50MW coal plant. This will be in Antique and will provide power for the baseload requirements of Semirara Island and surrounding off-grid provinces. The plant will likely take 3yrs to complete. DOE will be constructing the delivery cables costing over PhP1.0bn alongside the plant.

Comment:

Using DMC's off-grid generators as benchmark, the 50MW could yield an additional ~PhP2.0bn in revenues (+4.6%) and ~PhP240mn in income (+1.5%).Last 176.0

MWC, IFC eye Asian projects. Manila Water Asia Pacific, a subsidiary of MWC, signed a memorandum of understanding with International Finance Corp. to explore opportunities in providing water, used water, and environmental services in Asia Pacific. Last 31.60.

Papa Securities Corp. (Morning Huddle - Daily News) - August 18, 2017

noreply@blogger.com (Investorsavvy) — Fri, 18 Aug 2017 00:00:00 +0000

August 18, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks drop on speculation that Gary Cohn, business friendly advisor to the president, may resign.

DOW 21,750.73 -274.14 -1.24%

EPHE 35.49 -0.46 -1.28%

PHI 34.01 -0.33 -0.96%

Peso 51.35

TEL Par 1,746 vs 1,760 TEL

Economic News

FDI net inflows of US$206.0mn in July. Foreign portfolio investments or ‘hot money’ posted a net inflow of $206 million in July, an improvement from the $72-million net inflow in June, as investors kept their exposure in the local stock market.

PH GDP grew 6.5% in 2Q17. This is slightly above consensus' 6.4% and within the government's 6.5-7.5% target. 1H17 GDP growth now stands at 6.4%. The services sector (+6.1%) grew slower YoY due to relatively relaxed growth in transport and communication. The industry sector, meanwhile, expanded by 7.3% on robust demand of fuel, metal, electronics, and furniture. Agricultural output rose as well by 6.3% on strong production.

Corporate News

SCC looks into entering the RES market. Through its RES arm SCRC, SCC is looking to penetrate the contestable consumer market with a total demand of 3,830MW. This may be in response to its increasing spot exposure, which now accounts for 43% of SLPGC's total volume sales from just 18% last year. Sourcing capacity contracts from the RES market is not a new strategy; EDC and AP have been targeting this space since late last year. SCC last 174.70.

RECENT REPORTS

MER: BUY; TP at PhP319.00

Upside from generation imminent

CLC: Head in the CloudsExpensive valuations and steep targets

MBT: BUY; TP at PhP99.0

Immaterial impact on MBT from possible full provisioning of fraudulent loans.

EAGLE: BUY; TP at PhP17.15

EAGLE continues to enjoy a home court advantage vs. imports

MPI: Paving the way; BUY with 12-month TP of Php8.1

Robust project pipeline supported by strong balance sheet and asset tactical maneuvering

EW: Under review

Speculation of interest from foreign banks shore up share price

Papa Securities Corp. (Morning Huddle - Daily News) - August 16, 2017

noreply@blogger.com (Investorsavvy) — Wed, 16 Aug 2017 00:00:00 +0000

August 16, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks end slightly higher after retail sales in July exceeded expectations (0.6% vs 0.4%).

DOW 21,998.99 +5.28 +0.02%

EPHE 35.46 -0.06 -0.17%

PHI 34.03 +0.27 +0.80%

Peso 51.08

TEL Par 1,738 vs 1,740 TEL

Economic News

Cash remittances in June up 5.7%. The figure for the first half now amounts to US$6.9mn, higher by 1.9% YoY but below the 4% growth target set by BSP. During the period, the number of OFWs rose by 1.14mn.

Corporate News

SHLPH 2Q17 net income dropped 55.1% YoY to Php1.3bn, bringing down 1H17 net income by 17.4% YoY to Php4.2bn, above the consensus estimate of Php7.0bn (60.0%). The planned refinery shut down and lower benefit from inventory gains due to falling crude oil prices drove the double-digit decline in net income. Last 65.25.

DD's 1H17 net income jumped 161% to PhP376mn as revenue soared 131% to PhP1.6bn. An increase in rental revenues drove topline as DD continued to grow its retail portfolio and acquired Hotel of Asia (HOA). HOA is now growing its 2 hotel brands Hotel101 and Jinjiang Inn to 5,000 rooms by 2020. Meanwhile, it has 20 operational malls, 18 of which are under the CityMalls brand. DD will be opening another 12 CityMalls by yearend. In time with the announcement of a follow-on offering, the company upgraded its 2020 net income target to PhP5.5bn from PhP4.8bn as it grew its leasable portfolio target to 1.2mn sqm from 1mn sqm. Last 45.00.

MPI unit starts Harbor Link construction. NLEX Corp. broke ground for the building of the R-10 section of the NLEX Harbor Link Segment 10. The Valenzuela to C3 section of the Harbor Link is expected to finish by 1Q18 while the R-10 section is scheduled to be completed by 4Q18. Last 6.58.

Papa Securities Corp. (Morning Huddle - Daily News) - August 15, 2017

noreply@blogger.com (Investorsavvy) — Tue, 15 Aug 2017 00:00:00 +0000

August 15, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks rise after Pentagon says it is working towards a diplomatic solution with N.Korea.

DOW 21,993.71 +135.39 +0.62%

EPHE 35.52 +0.13 +0.37%

PHI 33.76 +0.30 +0.90%

Peso 51.08

TEL Par 1,724 vs 1,730 TEL

Economic News

Tax collections inch towards target. BIR's tax collections rose 14.1% to PhP134.2bn last month, just 0.4% lower than that period's target. This was in part helped by partial payment worth PhP3.4bn of Mighty Corp.'s tax deficiency. 7M17 collections now amount to PhP987.8bn, 9.3% higher YoY and 4.9% below government target.

The Investment Coordination Committee (ICC) has approved six projects worth PhP57bn involving roads, bridges, procurement of equipment, and other programs. These projects will now be elevated to the NEDA Board before they can be implemented. Since June 2016, the NEDA Board has approved 18 infrastructure projects worth a combined PhP463bn that are ready for implementation.

Corporate News

EDC 1H17 core income at PhP5.2bn, up 11% YoY. This is in line with PAPA (52%) but higher than consensus forecast (54%). Revenue rose by 4.1% from higher sales volume from Unified Leyte and better ASP from Bacman. Net margin now stands at 29.4%, 174bps higher YoY. We suspect EDC's organizational restructuring, which led to a 206bps improvement in operating margins last quarter, was the main driver. Growth in the second half will likely be much slower due to the Leyte quake. Provided repairs go according to schedule, we are looking at revenue declining by 3.6% by year-end. More details to follow on the earnings call this afternoon. Last 6.82.

FLI's 1H17 net income rose 7% to Php2.6bn, behind the PhP5.9bn consensus forecast (44%). The drag came from a 17% decline in real estate revenue in 2Q17 to PhP2.81bn, despite 1H17 being up 8% to Php7.5bn. Rentals surged 25% to PhP2bn on the back of new capacity of office spaces. Last 1.81.

VLL's 1H17 net income hit PhP4.5bn (+15% YoY), in line with the consensus forecast of PhP8.8bn (51%). 16% topline growth (to PhP18.2bn) drove earnings, as recurring revenue jumped 37% (to PhP2.9bn) while real estate sales rose (PhP14.4bn). VLL now has 951k sqm in recurring GFA and will add 50k more by yearend to 1mn sqm. This will grow 30% in 2018 to 1.3mn sqm. Current mix is 80% malls/retail with the balance in office. Last 5.81.

WLCON's 1H17 net income hit PhP763mn, beating our PhP710mn estimate. This comes on the back of strong same store sales growth at 5.7%, helping bring 1H17 revenue 11% higher to PhP8.5bn. GP margin remained consistent at 30%. Last 8.33.

RRHI core income +9.6% to PhP1.15bn in 2Q17. This brings 1H17 earnings to PhP1.99bn (+14.1%) in-line with PhP5.34bn full year consensus’ estimate (%). 2Q17 net income rose 4% YoY, while revenues up 8% YoY. Consolidated SSSG decelerated during the quarter (+2.2%) vs 1Q17 (+3.2%) bringing 1H17 SSSG to 2.7%. Meanwhile, RRHI opened 91 stores QoQ bringing their total store count to 1,619 plus 1,954 The Generics Pharmacy stores. Note that 1H numbers of RRHI historically accounted for ~41% of full-year results. Last 86.50.

PGOLD net income +9.8% YoY to PhP2.49bn in 1H17. This is in line with both PAPA and consensus estimate (40%). In 2Q17 alone, net income up 9% YoY to PhP1.21bn. The improvement came from the 10.8% YoY increase in revenues to PhP56.6bn and strong SSSG for the quarter (PGOLD 4%; S&R 10%). Meanwhile, operating margin and the net margin remained flattish at 6.0% and 4.2%, respectively. Note that 1H numbers of PGOLD historically accounted for ~41% of full-year results. Last 47.00.

SSI 1H17 net income up 13.7% to PhP274mn, below 2017 consensus estimate of PhP609.8mn (44.9%). Revenues were down -1.91% to PhP8.42bn driven by the rationalization program and slower sales from casual, footwear, accessories, and luggage segment. Meanwhile, profit and operating margin expanded 50bps to 3.3% and 7.8%, respectively, driven by a 6.2% decrease in opex. Last 4.12.

PIZZA 1H17 recurring income up 10% YoY to PhP386mn, in-line with full-year consensus forecast of PhP750.50mn (51.4%). Revenues rose 20% YoY to PhP3.4bn, due to 8% SSSG and expansion on local store network. Meanwhile, GP and operating margins jumped 120bps to 30.1% and 180bps to 17.6%, respectively. However, net income margin saw a decline of 100 bps to 11.4% primarily due to interest expense incurred beginning mid-2016. As of end-June, PIZZA opened a total of 11 stores, in-line with 2017 guidance of 20 stores. Last 12.62.

JFC profit up 18.1% to PhP1.96bn in 2Q17. For 1H17, net income +14.2% YoY to PhP3.49bn in 1H17 in line with both PAPA (47%) and consensus estimates (51%). Strong profit over the quarter was driven by the 13.6% YoY rise in revenues to PhP61.84bn, store network expansion, and SSSG of 6%. Systemwide sales grew by 13.5% while the foreign business grew by 25.6%. Last 222.00.

Papa Securities Corp. (Morning Huddle - Daily News) - August 14, 2017

noreply@blogger.com (Investorsavvy) — Mon, 14 Aug 2017 00:00:00 +0000

August 14, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks closed flat with the focus still on threats from N.Korea.

DOW 21,858.32 +14.31 +0.07%

EPHE 35.39 +0.17 +0.48%

PHI 33.46 +0.45 +1.36%

Peso 50.98

TEL Par 1,706 vs 1,740 TEL

Economic News

BSP reassures market of strength of Peso. After breaching 51PHP/USD last Friday, BSP Governor Espenilla says the BSP is ready to use its "huge pile of foreign currency reserves" to stabilize the peso in case of excessive volatility.

Industry News

PH records first avian flu outbreak. Around 37,000 fowls have died of the Avian Influenza Type A Subtype H5 in San Luis, Pampanga. Pampanga Gov. Lilia Pineda has declared a state of calamity in the province. A 1km radius quarantine area within San Luis town will be implemented, while another 7km radius controlled area has been declared. According to Sec. Pinol, ~400,000 chickens would be slaughtered but upon actual inspection, 200,000 birds will be culled within the next 3 days to control the virus. Fowls and eggs from the controlled area are not allowed to be brought out.

Comment:

Given PF’s climate control technology and strict sanitary inspection for poultry farms, PF confirmed that no poultry farms were affected by the avian flu in Pampanga.

Corporate News

AC 1H17 rose 9% to PhP15.1bn, ahead of consensus at 58% of PhP26.1bn, led by ALI and AC Energy. In 2Q17, net income inched up 2% to PhP8.1bn. BPI was down 8% due to the absence of one-off gains, GLO fell 9.8% on equity losses and spectrum amortization of VTI assets, while MWC inched up 2.3% on higher billed volume. ALI rose 18%, led by property development and commercial leasing, while AC Energy surged 64% on a favorable wind regime, improved efficiencies of coal plants, and earnings from solar plant. AC likewise said it is looking at more unsolicited proposals, same with the C3 elevated expressway project with SM. Last 882.

JGS 1H17 core income after tax was flat at PhP15.9bn, in-line with PhP29.96bn consensus estimate (53%). For 2Q, core income -0.2% to PhP7.76bn.1H’s soft earnings was primarily due to lower net income of CEB as a result of the rise in fuel prices and hedging losses incurred for the period. The 9% and 13.7% decline in net income of RLC and URC, also contributed to the consolidated net income decline.

1H17 net income segment performance:

- CEB (-43.6% to PhP4.3bn): Higher aviation fuel expense

- RLC (-9% to PhP2.92bn): Decline in residential revenue

- URC (-13.7% to PhP6.4): Decline in volumes in BCF Philippines and additional investments in Vietnam

- Robinsons Bank (+20.3% to PhP161.33mn): Higher interest income, commission income and trading gains

- JGS Petrochem (+31.5% to PhP3.20bn): Increase in the volume of polymers

JGS Earnings Summary
PhP in mn	2Q16	2Q17	YoY	1H16	1H17	YoY
Revenue	58,787	66,966	13.9%	119,378.0	134,473	12.6%
Gross Profit	24,590	25,664	4.4%	49,900.1	51,572	3.4%
Operating Profit	13,778	13,392	-2.8%	28,417.0	27,079	-4.7%
Core Income After Tax	7,773	7,756	-0.2%	15,947.0	15,990	0.3%
Net income attributable to parent	7,904	7,132	-9.8%	17,534.0	14,644	-16.5%
GPM	41.8%	38.3%	(350bps)	41.8%	38.4%	(340bps)
OPM	23.4%	20.0%	(340bps)	23.8%	20.1%	(370bps)
CIATM	13.2%	11.6%	(160bps)	13.4%	11.9%	(150bps)
NIM	13.4%	10.7%	(270bps)	14.7%	10.9%	(380bps)
Source: JGS

LTG posted a flat net income of PhP4.53bn last 1H17, below 2017 consensus estimate of PhP10.2bn. In 2Q17, profit declined 2.1% PhP1.7bn. Contributions from the liquor and banking units were disappointing due to lower ethanol volume and disappointing non-interest income, respectively.

1H17 net income segment performance:

- Tobacco (+28% to PhP1.86bn): Higher selling prices

- Liquor (-13.7% to PhP105.0mn): Lower ethanol volume and higher alcohol costs

- Bank (-38% to PhP2.75bn): Non-interest income plunged 46.7% to PhP3.4bn

- Beverage (-44% to PhP401.0mn): Higher opex

- Property (+31% to PhP174mn): Higher lease rates at its BPO office buildings

In a press release, RWM disclosed gross gaming revenues in 1H17 reached PhP9.2bn, down 26.4% YoY as its casino had been non-operational for 27 days due to the shooting incident last June 2. Non-gaming revenues inched up 3.9% to PhP2bn. EBITDA amounted to PhP2.2bn, a decline of 37.1% YoY. Detailed financials have yet to be disclosed but we think the plunge in net earnings follows that of EBITDA. Last 3.40.

DMC secures PhP11.7bn worth of contracts in 1H17. This is 2.6x more than the value of contracts during the same period last year. Total order book, however, is slightly down by 4% YoY at PhP26.8bn. Some of DMC's largest projects include CALAX (18km), Sec.1&2 of Skyway 3, ALI's Citygate, and Ortigas & Co.'s The Royalton and Imperium luxury condominiums. DMC says construction projects are so far still being driven by the private sector with only slightly growth from government infra projects. Last 15.68.

Toyota Philippines, a subsidiary of GTCAP, said it is likely to surpass its sales target of 175,000 units this year, or 10% growth. In 1H17, Toyota has sold 85,728 vehicles, translating to 18% growth YoY. Last 1,145.

Papa Securities Corp. (Morning Huddle - Daily News) - August 11, 2017

noreply@blogger.com (Investorsavvy) — Fri, 11 Aug 2017 00:00:00 +0000

August 11, 2017

Morning Huddle

Daily Summary

US Tracker

In a broad-based sell-off, US stocks fell below 22,000 after US-North Korea tensions escalated.

DOW 21,844.01 -204.69 -0.93%

EPHE 35.22 -0.87 -2.41%

PHI 33.01 +0.62 1.91%

Peso 50.795

TEL Par 1,677 vs 1,712 TEL

Corporate News

MEG 1H17 net income rose 11% to P6.7bn, beating the consensus forecast of P12.4bn. This also beat Papa's P11.5bn estimate. The 20% surge in rental income to P5.8bn drove earnings after it hit the 1mn sqm mark. Residential revenue, meanwhile, was flat at P16.8bn.

TEL 1H17 core income up 1.0% YoY to Php11.9bn, in-line with our estimate of Php25.4bn(47%) and consensus estimate of Php22.76bn(53.0%). Recurring income increased by 1.0% as expense management and reduction in subsidies lead to a 10.0% decline in operating expenses, offsetting the 7.0% decline in service revenues. The decline in total mobile subscribers (-14.0% YoY) and blended ARPU (-2.8% YoY) drove the 7.0% decline in service revenues.

RCB 1H17 fell 9.9% to PhP2.4bn, in line with consensus at 52.6% of PhP4.5bn. In 2Q17, net earnings jumped 67% to PhP1.3bn, driven by steady core lending, fees, and managed opex. Loans went up 16%, driven by corporate loans (+15%), SME loans (+26%), and consumer (+14%). NIM improved to 4.26% from 4.06% in end-2016, resulting in net interest income of PhP8.6bn, up 6.7%. However, non-interest income fell 6.9%, thus driving down gross income growth to just 2% to PhP12.4bn. Opex was subdued as it grew just 5% to PhP8.7bn. Capital ratios remained ample with CET 1 of 12.13% and CAR of 15.2%, while asset quality is still solid with NPL ratio of 1.35% and NPL cover at 79.82%.

DMC 2Q17 profit rises 17.94% to PhP4.0bn. This brought 1H17 earnings to PhP7.6bn (+20.8%), in line with consensus estimates (50%). DMC's earnings in the first half were driven by DMCI Homes (+78%), SCC (+24%), and the construction arm (+25%). The remaining segments posted flat to negative income growth. DMC expects a more modest second half as SCC's coal mine is faced with a higher strip ratio. The segments performed as follows:

>The property business was boosted by higher sales and reservations and the switch in accounting method to % of completion.

>DMC's construction arm benefited from higher completion of ongoing projects and lower construction costs.

>SCC's contribution rose 24% from a strong 1Q despite posting flat growth in the second quarter.

>Off grid power fell 5% due to the expiration of Masbate’s ITH.

>Nickel mining was down 5% as well due to lower output despite higher nickel prices.

>Maynilad’s contribution dropped 31% on the delay of implementing the tariff rate rebasing.

PNB 1H17 dropped 37% to PhP2.7bn, largely behind consensus at 38% of PhP7.1bn. Excluding the one-time gain of PhP2.7bn in 1H16, net earnings would have been up 29.7%. 2Q17 alone is down 11% to PhP1.5bn. Loans went up 16%, while deposits rose 17%, thus net interest income gained 8% to PhP10.3bn. Non-interest income plunged 46.7% to PhP3.4bn in the absence of one-time gains last year. Meanwhile opex grew just 6%. Net NPL ratio remained low at 0.25%, while NPL cover was ample at 130%.

SMC core profit rose 21% in 1H17. Income rose on higher sales volume from its beer and foods business, better production yields from oil, and sustained growth from toll roads. Meanwhile, the power segment saw income drop 15% due to the maintenance shutdown of Ilijan and Malampaya. Last 101.60.

GTCAP posted 1H17 net income to common shareholders fell 20.5% to PhP7.2bn, in line at 48% of consensus of PhP14.97bn. Excluding discontinued operations, core net income is up 19% to PhP7.4bn. Revenues grew 18% to PhP108.2bn, driven by Toyota, Federal Land, Pro-friends, and higher equity contributions from associates. Last 1,168

• MBT gained 5% to PhP9.5bn on 21% loan growth with NIM improvement.

• Toyota net income fell 7% to PhP6.8bn despite strong car sales growth of 18% to 85,728 units. Unfavorable FX rates, increased sales of low margin models, and rise in opex cut net margin to 7.8% from 9.7%.

• Federal Land and Profriends net earnings was flat at PhP1.5bn as booked sales grew 18% for FedLand and 14% for Profriends.

• AXA posted net income of PhP854mn, up 13% on 28% growth in annualized premium equivalent to PhP3bn.

• MPI reported core net income rose 12% to PhP6.98bn due to an expanded power portfolio, robust traffic growth, and sustained growth in healthcare segment

MWIDE 1H17 net income at Php927.0bn (-6.0% YoY), in-line with consensus estimate of Php1.6bn (57.0%).

Papa Securities Corp. (Morning Huddle - Daily News) - August 10, 2017

noreply@blogger.com (Investorsavvy) — Thu, 10 Aug 2017 00:00:00 +0000

August 10, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks closed lower after Trump threatens N.Korea.

DOW 22,048.70 -36.64 -0.17%

EPHE 36.09 -0.35 -0.96%

PHI 32.39 -0.58 -1.76%

Peso 50.575

TEL Par 1,638 vs 1,635 TEL

Corporate News

PF 1H17 net income +24% YoY to PhP3.1bn, in-line with our estimate of PhP6.44bn (48.1%), and ahead of consensus’ (57.9%). In 2Q17 alone, net income up 27.6% YoY to PhP1.6bn. Strong profit performance was mainly attributed to its Branded Value-Added businesses (+4% YoY), improved operational efficiencies, and lower raw material costs. Meanwhile, revenues grew 5% YoY to PhP56.0bn. However, milling business declined 2% to PhP4.6bn due to soft global wheat prices and intense competition. Last 311.0

1H17 segment sales performance
Segment	% ch YoY	in PhPbn
Branded Value-Added	4%	12.6	Better sales mix, increased volumes from the processed meats segments
Agro-industrial (Feeds, Poultry, and Monterey)	6%	39.5	Higher volumes and favorable selling prices
Milling	-2%	4.6	Soft global wheat prices and intense competition

MRSGI 1H17 net income up 53.1% YoY to PhP401.1mn, ahead of consensus full-year forecast of PhP961.50mn (41.7%). In 2Q17 alone, profit up 45.9% YoY to PhP305.2mn. Revenues were slightly up 1.9% to PhP8.6bn in 2Q17. This is a result of the opening of a new store during the 2H16 and additional two new stores during 1H17. Excluding the impact of newly opened stores, SSSG was 1% 1H17 vs 1H16’s 5%.

Comment:
Note that 1H results historically account for ~30% of MRSGI’s full-year performance thus we reckon 1H17’s performance was ahead of consensus FY forecast. As of end-June, MRSGI operated a total of 52 stores.

Earnings Summary
PhP in mn	2Q16	2Q17	YoY	1H16	1H17	YoY
Revenue	8,461.0	8,620.7	1.9%	16,131.88	16,651.1	3.2%
Gross Profit	1,839.0	2,007.3	9.1%	3,400.80	3,710.4	9.1%
Net Income	209.2	305.2	45.9%	262.03	401.1	53.1%
GPM	21.7%	23.3%	160bps	21.1%	22.3%	120bps
NIM	2.5%	3.5%	100bps	1.6%	2.4%	80bps
Source: MRSGI

EMP net income -20.6% YoY to PhP2.7bn amid softer domestic liquor consumption. This is below FY2017 consensus’ estimate of PhP7.49bn (36%). 1H17 revenues were also down 1.6% to PhP1.1bn. No further details were disclosed. Last 7.07

BLOOM 1H17 surged 24x YoY to PhP4.1bn, beating consensus at 109% of PhP3.8bn. In 2Q17 alone, net earnings grew 47% to PhP1.96bn. EBITDA rose 28% to PhP6.8bn. Strong earnings was mainly due to better Solaire operations and lower losses from Korea. . All segments reported strong volume: VIP (+25.0%), mass table (+22.0%), and gaming machines (+28.0%). Gross gaming revenues went up 26% to PhP22.9bn. Non-gaming revenues grew 40% to P1.6 bn driven by new shows in the Theatre at Solaire, the opening of The Shoppes at Solaire, and improved hotel occupancy of 91.6% from 84.2% in 1H16. Last 9.05.

MWC posts Php3.2bn (+3.0% YoY) in 1H17, in-line with consensus full-year estimate of Php6.0bn (53.0%). The 3.0% increase in consolidated billed volume (366.9mn cubic meters), with billed volume in the Manila concession area growing by 1.0%, while billed volume in local non-Manila concession areas grew by 10.0%. Last 31.35.

SCC 2Q17 profit flat at PhP3.4bn. 1H17 earnings were booked at PhP7.9bn (+23.5% YoY), in line with both PAPA (48%) and consensus (50%) estimates. The power segment recorded better capacity factor during the first half (blended rate of 56% vs 50% last year), leading to a 12% increase in generation, but only 1.2% increase in energy sold. Meanwhile, coal sales volume dropped 4.2% despite higher production (+25%) due to timing difference of export deliveries. We currently have a NEUTRAL rating on SCC with TP at 180/sh. Last 165.80.

CEB posts Php4.3bn (-43.6% YoY) in 1H17, in-line with consensus full-year estimate of Php8.7bn. Higher aviation fuel expense (+29.5% YoY), Php1.1bn hedging losses, and higher FX losses (+185.0% YoY) primarily drove the lower net income in the 1H17. Last 100.70.

Papa Securities Corp. (Morning Huddle Daily News) - August 9, 2017

noreply@blogger.com (Investorsavvy) — Wed, 09 Aug 2017 00:00:00 +0000

August 8, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks closed lower on news of N. Korea successfully producing a nuclear warhead.

DOW 22,085.34 -33.08 -0.15%

EPHE 36.44 -0.04 -0.11%

PHI 32.97 +.05 +0.15%

Peso 50.44

TEL Par 1,663 vs 1,658 TEL

Economic News

IMF lowers Philippine FY17 GDP forecast to 6.6% from 6.8%, and FY18 to 6.8% from 6.9%. The IMF says this is due to the absence of election-related public spending last year. They also said the government should pursue the comprehensive tax reform program, provide insurance against the volatile international finance conditions, and protect the confidence and trust that the private sector both domestic and international have on the conduct of economic policies.

Industry News

‘Milk tax’ to worsen undernutrition. The planned milk tax is included in House Bill 5636, the Tax Reform for Acceleration and Inclusion Act (TRAIN) bill. Proposed milk tax is likely to increase the prices of powdered milk in the country by a range of 11% - 26% while flavored milk, specifically chocolate flavored milk will see increased prices by a range of 11% - 34%. Brands under listed companies to be affected include Magnolia (PF) and Birch Tree (CNPF).

Corporate News

GTCAP acquires 20% stake (4mn shares) in Sumisho Motor Finance Corp (SMFC) for PhP379.92mn or PhP94.98/sh. This will allow GTCAP’s entry into motorcycle financing. Payment will be made on August 11, 2017. SMFC is a jv of PS Bank, PS Bank Retirement Fund, Sumitomo Corporation, and Sumitomo Corporation of the Philippines. As per its last SEC filing, SMFC’s FY15 net earnings more than doubled YoY to PhP50.5mn. Last 1,215.

PCOR 1H17 net income up to Php8.2bn (+56.0% YoY), above consensus full-year estimate of Php9.2bn (89.1%). The strong 1H17 was driven by improved refinery production yields and sustained sales volume of 52.9mn barrels (+0.5% YoY) coming from the strong performance in 2016. The press release did not provide any additional details regarding their 1H17 performance. Last 9.65.

ICT 1H17 net income up to US$103.6mn (+19.0% YoY), above consensus full-year estimate of US$177.1mn (58.7%). Strong volume growth (4.5mn TEU, +7.0% YoY), group-wide cost optimization initiatives and positive contribution of the Congo terminal contributed to the double-digit growth in 1H17. Last 105.2.

EAGLE's 1H17 net income of PhP2.22bn (+13% YoY) stands in line with our PhP4.35bn FY17 expectation (51%) and with the consensus forecast of PhP4.64bn (48%). Topline grew 12% to PhP7.48bn, driven by double-digit growth in selling volumes. This was offset by lower ave. selling prices (ASPs). EAGLE maintained that its Line 3 (2mn tons/year) would be complete by 1Q18, with an ITH from BoI effective in the same year. Current recommendation is a BUY with a TP of PhP17.15/sh. Last 15.00.

APS Daily Market Insights August 8, 2017

noreply@blogger.com (Investorsavvy) — Tue, 08 Aug 2017 00:30:00 +0000

TOP NEWS HEADLINES

 DD Plans P7.5 Bn Follow-on Offering. Double Dragon Properties Corp. plans to conduct a follow-on offering (FOO) of 150 Mn shares amounting to P7.5 Bn, in a bid to join the PSEi in the near term. Currently, DD has a free float level of 25.6% and will have a 30.3% float after the FOO. Assuming DD will reach its 2020 net income target of P5.5 Bn, earnings will record a CAGR of 50.25%. Price to book estimates for 2018 stood at 3.6x while 2018PER stood at 46.9x assuming current price levels.

Papa Securities Corp. (Morning Huddle - Daily News) - August 8, 2017

noreply@blogger.com (Investorsavvy) — Tue, 08 Aug 2017 00:30:00 +0000

August 8, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks close higher as stronger-than-expected corporate earnings continue.

DOW 22,118.42 +25.61 +0.12%

EPHE 36.48 +0.17 +0.47%

PHI 32.92 +0.19 +0.58%

Peso 50.355

TEL Par 1,658 vs 1,640 TEL

Corporate News

MBT 1H17 up 4.8% to PhP9.5bn, in line with our estimates (48%) and consensus (47%). 2Q17 net earnings is up 3.3% to PhP3.9bn. Loans went up 21.5%, as corporate segment grew 24% while retail went up 17%. We estimate NIM improved 9bps YoY and 2bps QoQ to 3.22%. This resulted in net interest income growth of 15.7% to PhP29.6bn. 1H17 non-interest income fell 10.8% as fee income came in flat while trading gains dropped 30% to PhP2.5bn. Note however that MBT was able to generate trading gains of PhP1.4bn in 2Q17, up 34%. Opex grew just 9% while provisions for credit losses declined 22% to PhP2.5bn. Asset quality still solid with NPL ratio at 0.9% while NPL cover is ample at 109%. CET 1 is strong at 13.2%.

Comment:

As earnings came in line with our forecasts, we maintain our FY17 net earnings estimate of PhP19.6bn (+9% YoY) and TP of PhP99.00, based on 1.38x PBV. MBT’s lending operations continues to beat peers as loan growth of 21.5% came in higher than the industry’s 19%, BDO’s 17%, and BPI’s 16.9%. We also estimate MBT’s asset yield continues to lead peers in 2Q17. Maintain BUY. Last 87.

GLO 1H17 core income down by 10.0% YoY to Php8.0bn, below our estimate of Php18.4bn (43.0%) but in-line with the consensus estimate of Php15.0bn (53.0%). Higher interest expense depreciation charges coupled with the share in equity losses and spectrum amortization related to the SMC telco asset acquisition offset the 6.0% YoY EBITDA growth.

Comment:

We have a NEUTRAL recommendation on GLO with TP at 2,090.0. Last 2,046.

MAXS 2Q17 net income up 14.9% YoY to PhP155.7mn. This brings 1H17 net income to PhP331.72mn (+12%YoY), slightly below our estimates (46.4%) and of consensus forecast (46.1%). 2Q earnings were driven by 11% (PhP6.05bn) topline growth and 12% improvement in systemwide sales (PhP8.29bn) driven by 20 new store openings in PH and 3 in abroad. Restaurant sales and commissary sales grew 11% and 7% to PhP5.04bn and PhP674.04mn, respectively. This is due to new store openings especially additional franchised outlets and stable same-store sales performance. This was achieved despite higher input costs due to the increase in prices of key raw materials.

Comment:

We currently have a BUY rating on MAXS with a TP of PhP24.00. At current price, MAXS trades at 22x 2017E PE. Meanwhile, MAXS currently operates a chain of 650 outlets with 51 located overseas. This is in-line with our 688 store outlet in 2017E. Last 19.3

DNL 1H17 recurring net income +7.5% to PhP1.35bn, below 2017 consensus estimates of PhP3.08bn (43.2%). In 2Q17 alone, net income was flat at PhP688.0mn. Consolidated GP contracted -1.9ppts to 17%. Also, majority of DNL's business segment food ingredients, oleochemicals, and specialty plastics experienced GP margin pressures during the period (FI -2.1ppts to 13%, Oleochemicals -0.4ppts to 16.4%, and SP -1.5ppts to 29%) due to decline in volume. Meanwhile, revenues grew by 24% YoY(PhP6.3bn), driven by strong domestic demand. Last 12.22

URC 1H17 profit -13.7% YoY to PhP6.4bn, below consensus’ estimate of PhP14.26bn (43.9%). In 2Q17 alone, net income down 23% to PhP2.88bn due to lower operating income and foreign exchange gains, and higher net finance costs and income tax provision. Consolidated EBIT also declined 7.9% to PhP7.6bn, EBIT margin dropped 300bps YoY due to decline in volumes in BCF Philippines and additional investments in Vietnam to recover the business. Meanwhile, revenues were up 9.6% to PhP60.8bn as a result of strong performances from Thailand and the consolidation of Snackbrands into the business. Last 151.50.

CNPF 1H17 net income +7.9% YoY to PhP1.47bn, in-line with consensus forecast (50.2%). In 2Q17 alone, net income up 6% YoY to PhP769mn. Growth in net income was driven by robust demand for its branded food products - marine, meat, and milk. 2Q17 revenues grew by 29.7% to PhP8.6bn, supported by the strong performance of its exports and a healthy increase in the CNPF’s branded sales. However, 2Q17 GPM and EBITM contracted 460bps to 25.6% and 190bps to 47.2%, respectively, due to higher input costs and the faster growth of lower margin OEM businesses. More details after briefing on August 10. Last 18.04.

ALI's 1H17 net income reached PhP11.51bn (+18% YoY), in line with the PhP24.18bn consensus forecast (48%). New bookings, project completion and lot sales drove the 29% growth in property development revenues to PhP46.58bn. Sustained demand growth from BPOs drove office leasing revenue 14% higher to PhP2.93bn, even as ALI did not aggressively tap POGOs. Meanwhile, foreign travel advisories and the conflict in Mindanao weighed on the hotels and resorts business, which grew 6% to PhP3.40bn. Last 41.85.

SMPH's 1H17 net income hit PhP14.39bn (+14% YoY). This is in line with the PhP27.44bn consensus forecast (52.4%). Consolidated revenue grew 10% to PhP43.25bn, driven largely by 10% growth in mall rentals to PhP21.75bn and 26% rise in amusement and merchandise sales to 1.58bn. Same mall sales growth was logged at 7%. Residential revenue grew 5% to PhP13.91bn on the back of higher construction accomplishments as outlook remains positive on 22% growth of reservation sales to PhP27.55bn. Last 34.

RLC's 1H17 net income hit PhP2.92bn (-9% YoY), below the FY17 consensus forecast of PhP6.39bn (46%). Earnings sustained its slide on a 9% decline in residential revenue to PhP3.34bn as the company rebuilt its team. Malls continued to account for bulk of revenue, growing 6% to PhP5.25bn, followed by offices (+9% at PhP1.51bn) and hotels (+7% at PhP919mn). RLC also entered the warehousing business with a 32k sqm facility in Muntinlupa, due for completion in 1Q18. On top of this, it will soon start development of the 18ha Sierra Valley township in Cainta Rizal. Last 24.95.

Papa Securities Corp. (Morning Huddle - Daily News) - August 7, 2017

noreply@blogger.com (Investorsavvy) — Mon, 07 Aug 2017 00:30:00 +0000

August 7, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks rise on strong jobs data.

DOW 22,092.81 +66.71 +0.30%

EPHE 36.31 +0.23 +0.64%

PHI 32.73 +0.45 +1.39%

Peso 50.16

TEL Par 1,642 vs 1,630 TEL

Economic News

July headline inflation was at 2.8%, slightly faster than 2.7% in June. This is in line with market expectation of 2.6%-3.0% for the month. YTD average is at 3.1%, in line with the BSP’s 2%-4% target range. The higher inflation is attributed to the PNR fare increase, increase in electricity rates due to higher generation charges, and higher rental rates for housing. Food prices eased on ample supply.

Corporate News

NIKL books PhP1.5bn earnings in 1H17. Despite being a turnaround from just PhP24mn last year, this is slightly below consensus, accouting for 46% of the full year estimate. NIKL sold 4.4% more NIKL ore in 1H17 at an ASP of US$4.4/lb, 12.2% higher YoY. A stronger dollar (+6.8%) helped boost earnings as well. Last 6.20.

MPI 1H17 core net income grew to Php7.8bn (+17.4% YoY), above our full-year estimate of Php14.2b (54.9%) and consensus estimate of Php13.4bn (58.1%). In 2Q17 alone, core net income grew to Php4.6bn (+49.0% YoY) driven by robust traffic growth on all managed toll roads, expanded power portfolio through increased investment in Beacon Electric, and continuing growth in the Hospital Group. Meanwhile, better-than-expected operations of the logistics and other operating segments drove the outperformance in this quarter. MPI moved the IPO of the Hospital Group from 2018 to 2019 as they look for various options to fund its expansion. MPI also submitted an unsolicited proposal to build a 4.6-kilometer expressway connecting Cavitex to Sangley Point in Cavite City. We have a BUY recommendation on MPI with a 12-month TP of 8.10 for a potential upside of 21.0%. Last 6.69.

APS Daily Market Insights August 7

noreply@blogger.com (Investorsavvy) — Mon, 07 Aug 2017 00:00:00 +0000

 Ayala’s IMI Revenues Up 22%. IMI (Buy, P 15.10*) recorded 22% increase in 1H2017 revenues to $ 501 Mn, mainly driven by robust international operations. Revenues from Europe and Mexico grew by 12% on the back of ongoing capacity expansions and new programs. IMI’s recent acquisitions Via Optronics GmbH (VIA) and Surface Technology International, Ltd. (STI Ltd.) delivered $73 Mn, accounting for 14% of the total 1H2017 revenues. We reiterate our positive outlook for IMI amid its recent won businesses, with aggregate value of $ 475 Mn, in Bulgaria, Czech Republic, China and Philippines. Full year contribution of its recent acquisitions and expansions will drive higher earnings growth this year.

 MPI Core Income Rises to P7.8 Bn. MPI reported 17% increase in its core net income for 1H2017, amounting to P7.8 Bn. The increase in the core net income of MPI was mainly attributed to its acquisition of the remaining 25% in Beacon Electric amounting to P21.8 Bn, along with the strong volume growth of its tollroads and hospital segments. In addition, the power, tollroads, water, and hospital segment of MPI contributed P5.3 Bn, P2.1 Bn, P1.8 Bn, and P0.93 Bn respectively.

APS Daily Market Insights August 4

noreply@blogger.com (Investorsavvy) — Fri, 04 Aug 2017 01:13:00 +0000

 Senators Still Undecided on Tax Reform. Yesterday, the ways and means committee had a meeting to tackle the Tax Reform Acceleration and Inclusion Bill. However, the team did not reach any decision according to committee chairman Juan Edgardo Angara. Discussions in the meeting included the proposed taxes on petroleum, sweet beverages, and ways to cushion the impact to the poor. The proposed tax on the sugar sweetened beverages poses a risk for consumer stocks like URC, LTG, JFC, and PIP as it will definitely affect the margins of these companies when the additional tax measures are passed.

 Logistics Faults to Surface in Shift to E-commerce. With Singapore taking over the chairmanship of the ASEAN next year, plans to focus on e-commerce initiative to improve regional trade, and the possibility of exposing infrastructure and technology gaps in the Philippines arises. According to PSBC chairman Loh Chin Hua, the Philippines are lagging in terms of infrastructure and technology which are essential factors for the success of the logistics industry; this poses a threat for logistic companies in the Philippines such as 2GO, LBC, and CLC which is to conduct its IPO listing on August 8. However, the growing e-commerce trend is also an opportunity for SSI which has the largest brand portfolio among retail companies.

EDC Tender Offer at P7.25/share Materials

noreply@blogger.com (Investorsavvy) — Fri, 04 Aug 2017 01:08:00 +0000

BPI Trade Buy Recommendation

noreply@blogger.com (Investorsavvy) — Fri, 04 Aug 2017 00:58:00 +0000

Papa Securities Corp. (Morning Huddle - Daily News) - August 4, 2017

noreply@blogger.com (Investorsavvy) — Fri, 04 Aug 2017 00:00:00 +0000

August 4, 2017

Morning Huddle

Daily Summary

US Tracker

US stocks end flat after an intensifying probe on Russian involvement in US elections.

DOW 22,026.10 +9.86 +0.04%

EPHE 36.08 +0.02 +0.06%

PHI 32.28 -0.11 -0.34%

Peso 50.27

TEL Par 1,623 vs 1,610 TEL

Corporate News

Philippines Renewable Energy Holdings Corp. (PREHC) is acquiring 23.5%-31.7% of EDC’s outstanding voting shares at 7.25/sh (22% premium to market price and 7.6% to PAPA’s fair value). FGEN will sell 10.6% of its existing stake in EDC, while the remaining 21.1% will be sourced from public ownership through a tender offer. In the event that all minority shareholders choose to sell their shares, the scale back provision will apply, where the number of tendered shares will be pro rated. If PREHC is able to acquire the full 8.9bn common shares during the tender offer, FGEN’s proceeds could range from PhP11.4bn-14.4bn, depending on the amount of shares the public minority is willing to sell.

MER reported core earnings of PhP5.5bn in 2Q17, 4.8% lower YoY. This brings 1H17 core profit to PhP10.1bn (-2.6% YoY), in line with both PAPA (53%) and consensus (53%) estimates. Lower income was recorded as revenue growth (+9.5%) failed to outpace greater expenses (+11.1%). Volume growth for the first half came in at 3.1%, while distribution revenue grew by 2.9%. We have a BUY rating on MER with TP at PhP319.00/sh. Last MER 279.60.

PX records 3.4% decline in 1H17 core profit. Core income during the period came in at PhP748mn, below consensus estimate (40%). In 2Q17, the level of ore mined continued to fall by 10% as the deeper draw points affected PX's ability to mine while terrain in newer draw points were harder to operate in. Consequently, revenue and core profit in 2Q17 fell 7.7% and and 24.8% respectively despite better copper and silver ASP. Last 8.86.

BPI 1H17 down 7.7% to PhP11.7bn, in line at 51% of FY17E consensus of PhP23.1bn. We estimate 2Q17 is down 27.9% to PhP5.5bn. Loan growth of 16.9% came in lower than the industry’s 19% pace, while deposits inched up just 8%. Net interest income rose 13.5% to PhP23.5bn. As expected, non-interest income dropped 18.4% to PhP11.8bn in the absence of hefty PhP4.8bn trading gains in 2Q16 last year as BPI sold some HTM securities. Opex growth was managed at just 5%, while provisions for credit losses declined 19% to PhP2.5bn. CET 1 of 12.8% is near the regulatory minimum of 9.33% (8.5% min + 0.83% for D-SIB). Last 105.4

APS Daily Market Insights July 28

noreply@blogger.com (Investorsavvy) — Fri, 28 Jul 2017 02:02:00 +0000

 Eastern Visayas Leads Growth in Household Spending. According to the data released by the PSA, Eastern Visayas posted the highest per capita household final consumption expenditure growth for 2016 at 8.1%. Among the top 5 are Central Luzon, Davao, Ilocos, and Central Visayas Regions. To add to that, the population growth of Eastern Visayas slowed down, but the economy of the region still grew by 12.4% during that period, proving that the growth in consumer spending bolstered growth. This is positive for RRHI (HOLD, P91.60) and PGOLD (HOLD, P49.40), but most especially from MRSGI (BUY, P4.80) since they have a strong brand equity in the area.

 Cement Battle Cuts CHP profit. CHP reported a -46% drop in earnings for 1H17, accounting for only 16% of full year Bloomberg consensus estimates. CHP attributed this to weak demand and pricing challenges during the period. However, CHP expects demand to recover in 2H17 as economic activity picks up, guiding a +3% volume growth in 2017 (+12% volume growth in 2H17 for this to happen). At the closing price of P 6.30, CHP is trading at an EV/EBITDA of 7.5x, compared to HLCM (7.9x) and EAGLE (9.4x). Recommendation to avoid the stock for now as we think earnings will take time to recover.  EAGLE 2Q17 Results Preview. EAGLE said their 2Q17 revenues grew by around +6%, a significant slowdown from 1Q17’s +19%. While this can be viewed as positive since revenues of HLCM (- 21%) and CHP (-12%) both had a steep drop in 2Q17, we are now expecting EAGLE’s earnings growth to taper from 1Q17’s 30% to single-digits for 2Q17. We reiterate our expectations that EAGLE will outperform other local manufacturers in terms of market share, volume and revenues. But at this point, we are more inclined to think that cement stocks have to bear the negative sentiment in the coming months unless there is an improvement in supply dynamics (and pricing) which will be more beneficiary to sector earnings, rather than keeping expectations that there will be an uptick in construction activity by 2H17.

Papa Securities Corp. (Morning Huddle - Daily News) - July 28, 2017

noreply@blogger.com (Investorsavvy) — Fri, 28 Jul 2017 02:00:00 +0000

Morning Huddle

Daily Summary

US Tracker

US stocks up boosted by a jump in Verizon.

DOW 21,711.01 +97.58 +0.45%

EPHE 36.96 +0.59 +1.62%

PHI 34.05 +0.14 +0.41%

Peso 50.64

TEL Par 1,724 vs 1,709 TEL Last

Corporate News

MWC unit aims to capture 200.0k service connections by 2022. Laguna Water seeks to expand its customer base to at lease 200.0k and become the third largest players by 2022. Laguna Water plans to spend Php5.0bn capex over the next five years. Laguna Water contributed 6.8% of MWC’s revenues as of 1Q17 and have spent Php227.0mn in the same period. Last 32.5.

City of Dreams 2Q17 net revenues at USD176.2mn (+46.6% YoY). We estimate 1H17 at USD333.6mn (+54.7% YoY). Adjusted 2Q17 EBITDA rose 72% to USD62.8mn due to increased casino revenues. Rolling chip volume jumped 88% to USD3.2bn as win rate improved to 3.5% from 3.4% in 2Q16. Mass market increased 26% to USD169.8mn while gaming machines gained 47% to USD759mn. Non-gaming revenue rose 7% to USD28.1mn. BEL and MRP closed at PhP3.68 and PhP9.03, respectively.

PLC 2Q17 net income surged 104% to PhP470.25mn. In 1H17, net income jumped 153% to PhP895.2mn. 2Q17 gross revenues jumped 55% to PhP1.25bn due to strong growth from City of Dreams Manila and improving gaming market. Last PhP1.63

UBP net income down 1.1% in 2Q17 to PhP2.15bn, 1H17 up 15.2% to PhP4.4bn. This is in line at 48% of our FY17E of PhP9.1bn, and 52% of consensus of PhP8.3bn. Net interest income is up 11% in 2Q17 to PhP4.1b, as loans grew 31.5% while deposits expanded 29.1%. Fee income surged 56.1% to PhP1.4bn, while treasury posted losses of PhP206mn. Gross income grew 11.1% to PhP5.9bn but, opex went up 20.6% thus leading to flat bottom line in 2Q17. We maintain our BUY rating and TP of PhP105, based on 1.5x 2017E PBV.

RECENT REPORTS

MBT: BUY; TP at PhP99.0

Immaterial impact on MBT from possible full provisioning of fraudulent loans.

EAGLE: BUY; TP at PhP17.15

EAGLE continues to enjoy a home court advantage vs. imports

MPI: Paving the way; BUY with 12-month TP of Php8.1

Robust project pipeline supported by strong balance sheet and asset tactical maneuvering

EW: Under review

Speculation of interest from foreign banks shore up share price

PCCI Newsletter - July 27

noreply@blogger.com (Investorsavvy) — Thu, 27 Jul 2017 02:31:00 +0000

The PSEi surged higher yesterday tracking most regional markets boosted by a rally in commodities, the upward momentum from European and U.S. markets from the previous night, and renewed confidence in global economic growth. After reaching a near one-year high in intra-day trading, the benchmark index settled at 8,037.51, adding 65.79 points. Most sectoral indices leaped back into the green led bythe Mining-Oil sector soaring by 131.41 points (+1.02%) followed by the Property and Holdings sectors climbing by 63.94 points (+1.68%) and 60.49 points respectively. The Industrials sector losing by 35.27 points remained the only sectoral loser. MEG, jumping by 5.51% headed the index-related gainersfollowed by LTG and SMPH rising by 3.28% and 1.76% respectively. SMC, falling by 1.56% paced the index-related losers followed by URC slipping by 1.24% and GLO. Value turnover strengthened by 31.3% to P8.17 billion inclusive of 10 block transactions. Foreigners were net buyers for the 78th in 141 trading days of the year in the regular market. The net buying position increased to P20.91 billion.

For index-related stocks, the net buying position also grew further to P15.48 billion.
The PSEi advanced sharply yesterday. It rose above the 1st minor fan line and is still above the 1st major fan line. The previous 5 and the January 2016 price gaps are still unfilled. It remains above both its 5-day and its 10-day moving averages whose bullish crossover is intact. It continues to be above its 40-day moving average. Both Its stochastics and the RSI are inside its trading zones and are bullish for the near-term. Most of the trending and volume oscillators are bullish for the short-term. A continuation of the rise is likely. The immediate resistances are now seen at 8,100 and 8,150. Another minor correction or a consolidation cannot be discounted. The immediate supports are seen at 7,900 and 7,800.

U.S. stocks ended higher last night following the Fed’s expected decision to hold rates steady given low inflation, upbeat new home sales data, better-than-estimated earnings reports from industry
heavyweights such as Boeing, AT&T and Facebook, and the rally of crude prices. The DJIA added
another 97.58 points to end at 21,711.01. The S&P 500 inched up by 0.70 point, closing at 2,477.83.
The U.S. dollar depreciated. U.S. treasury yields declined. Spot commodity prices were generally higher again. Gold climbed to 1,260.53/oz. Copper rose again to 2.8720/lb. LME nickel was higher anew at 9,915/tonne. Crude prices extended its gains. WTI leaped by another 1.80% to 48.75/bbl. Brent jumped by another 1.53% to 50.97/bbl. Most European bourses continued its modest winning streak. Vietnam continued to lead the gains of most markets in the region. Most of the regional currencies depreciated again however. Regional markets and local equities might be mixed to bullish again today behind the global rally continuing to be pushed higher by surging crude prices, and confidence on global economic growth sparked recently by upbeat global earnings reports. Profit-taking following yesterday’s sharp uptrend can however drag down the local market or limit any upward momentum.

PCCI SECURITIES BROKERS CORPORATION
Trading Participant: Philippine Stock Exchange Member:
Securities & Investor’s Protection Fund, Inc.

PSEi PER: 18.25X (2017F)
PBV: 2.19X (2017F)
Div. Yld: 1.41% (2017)
(2016F) (2016F)

The peso depreciated to finish at P50.640 versus the dollar yesterday. The weighted average rose sharply however to P50.586 with total value turnover increasing again to USD932.000 million.

Most of the benchmark treasury yields advanced as investors sold GS to take profit price-wise while re- balancing their portfolios ahead of the results of the 2-day Fed policy meeting.

APS Daily Market Insights July 27

noreply@blogger.com (Investorsavvy) — Thu, 27 Jul 2017 02:16:00 +0000

 Fed Holds Rate Steady. The US Fed kept its policy rates unchanged, taking note of the weakness of the US economy which only grew 0.7% last 1Q17, and benign inflation which is still below the target of 2.0%. The more dovish tone of the Fed could sustain the rally of the PSEi which broke out of its resistance of 8,000 yesterday.

 VAT on Low-Cost Housing to Worsen Backlog. The first tax reform package includes the removal of VAT exemption on low-cost housing. If passed, it would worsen the housing backlog in the Philippines which is estimated at 5.6 Mn units as of end-2016, and projected to balloon to 12.3 Bn in 2030. Property developers that offer low-cost housing are HOUSE, VLL, CLI, and FLI.

 Multinational Firms Asked to Hike Salaries. DOF asked ROHQ of multinational companies in the Philippines to increase salaries for the managerial position to offset the effect of the proposed removal of the 15% preferential tax treatment under the CTRP. Currently there are 158 ROHQs in the country, employing more than 50,000 workers with a combined $2 Bn employee wages and benefits. PTRs are part of the fiscal and non-fiscal incentives given to ROHQs to entice them to locate in the Philippines. DOF wants to remove the 15% PTR under the first package of the tax reform, which could affect the attractiveness of the Philippines as a location for ROHQs.

 PERC Sees 33% More Profit . With its shift to renewable energy from oil and gas exploration, PERC estimates its earnings to grow 33% for 2017. By our estimates, attrib. earnings could reach $ 2.4 Mn (P 117.9 Mn) this year. This translates to a BVPS of P 8.23 for PERC. At 1.2x P/BV (ave. of regional peers based on Bloomberg consensus), the price target for PERC is P 9.50 / share. We like PERC because around 85% of its earnings are now sourced from its RE portfolio, with total capacity at 106 MW. The company is also set to launch another four RE projects with total capacity of 48 MW which costs P 6.8 Bn. PERC is currently in talks with potential off-takers for the projects capacity. However, we note that our key concern on the company is the lack of liquidity.

 CLI Acquired 4.6-ha Property in Cebu. Cebu Landmasters (Buy, P 6.10) purchased a 4.6-hectare property in Bogo, Cebu for P 21.29 Mn to be developed into a socialized housing project under the Villa Casita brand. The land acquisition is in line with the company’s expansion plan in the Visayas-Mindanao region.  Federal Land JV With Japanese Giants Gets Go Signal. The Philippine Competition Commission has given its go signal for Federal Land to form a joint venture with Isetan Mitsukoshi Holdings Ltd. And Nomura Real Estate Development Co. Ltd. for the P 20 Bn Sunshine Fort Project. The project will have a commercial complex at the base of 4 high-rise residential towers targeted for completion in 2025, with a 60-40 partnership in favor of Federal Land (GTCAP, Buy on Dips, P 1,378*).