FREE Market Commentary: DoubleDragon (DD) Bets Big on Countryside Growth

PinoyInvestor’s “Market Views and Commentaries” highlight our partner brokers’ analysis and opinion on a range of stock market issues and events. Be ahead of other investors by reading these reports to understand how our partner stockbrokers view important issues and how these events impact the stock market.

 

Market Issue or Event

DD Bets Big on Countryside Growth

DoubleDragon Properties (DD) is awaiting the signal of SEC to launch a PHP 7.3 billion share sale which was originally slated late last year. DD will use the proceeds to fund its expansion on 2nd and 3rd tier cities, with plans to build a network of industrial leasing hubs in 40 provinces and community malls in 100 cities.

 

Our Partner Broker’s View and Commentary

We see this as a positive move for a company like DD, as the urban areas such as Metro Manila are already congested and dominated by the bigger players in the property sector. However, we believe DD’s earnings has yet to catch up following its various equity and debt issuances, with the stock trading at a high 2018 P/E of 54.5x. We would not be looking to buy the stock for now as we see more attractive valuations for the top-tier property companies.

 

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AP Securities (formerly Angping & Associates Securities)
AP Securities (formerly Angping & Associates Securities)

AP Securities (formerly Angping & Associates Securities) is one of PinoyInvestor’s partners in delivering superior and reliable stock research reports that help Filipino investors make smart stock investing decisions! Learn more about them here.