Special Report Free Preview: Eagle Cement Corp. (EAGLE) IPO Analysis #1

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EXCLUSIVE Eagle Cement Corp. (EAGLE) IPO Reports! (With Target Prices!):

 

UPDATE: Eagle Cement Corp. (EAGLE) has moved the listing of its shares to May 29 from May 17 this year. The company adjusted the timetable as it is still securing all the necessary regulatory approvals.

The company’s IPO has already obtained the green light from the Securities and Exchange Commission but, until now, it is still waiting for the approval of the Philippine Stock Exchange (PSE).

Based on the revised timetable, the price setting date will be on May 11 from an earlier target of April 27, 2017 while the IPO shares offering will run from May 15 until May 22, 2017.

 

Eagle Cement Corp. (EAGLE) IPO — Our Partner Broker’s Analysis

 

SUMMARY OF ANALYSIS AND RECOMMENDATION

With an indicative offer price of up to PHP 16.00 per share, at which Eagle Cement Corp. (EAGLE) will be trading at an estimated 2017 EV/EBITDA of 9.4x, the latter will be at par with industry leader Holcim Philippines (HLCM).

However, given superior margins and a high earnings growth trajectory due to committed future expansions, EAGLE is…

Our Recommendation: should the offer be priced below ?????, we recommend investors to…

 

COMPANY BACKGROUND

EAGLE is the most profitable (with highest margins) cement producer in the sector. It is the fourth largest player in terms of sales volume (14% share), and third in terms of grinding capacity (17% share). It operates the Bulacan Cement Plant, the most modern and largest integrated cement plant in the Philippines, which has an average production capacity of 5.1 million metric tons (MT) as of 2016.

EAGLE was incorporated in June 1995, and started operations in January 2010 with the commissioning of its Bulacan Cement Plant, currently the single largest integrated cement production plant in the Philippines. With two operating production lines in its Bulacan plant, EAGLE has an estimated cement production capacity of 5.1 million MT or 130.0 Mn bags per annum as of 2016.

Currently in the pipeline are …

 

 

VALUATION HIGHLIGHTS

 

Our Partner Broker’s Recommendation

At the indicative offer price of up to PHP 16.00/ share, EAGLE is estimated to trade at a 2017 EV/EBITDA of 9.4x, at par with the industry leader HLCM. On the other hand, regional peers’ weighted average 2017 EV/EBITDA is at 9.6x. It seems though that …

Our fair value Target Price for EAGLE is PHP ????.

Our Recommendation: should the offer be priced below ?????, we recommend investors to…

 

EXCLUSIVE Eagle Cement Corp. (EAGLE) IPO Reports! (With Target Prices!):

 

 

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

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