Special Report Free Preview: Eagle Cement IPO Analysis #3

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

 

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

SUMMARY OF ANALYSIS AND RECOMMENDATION

Our recommendation for Eagle Cement Corp. (EAGLE) is …

At its indicative price, Eagle will trade at 15x PER 2017E, based on an estimate earnings growth of 30% for this year. This is compared to the regional average of 15.9x. We think that at the indicative price, it may seem …

The bulk of the IPO proceeds will be used to partially finance the construction of its cement manufacturing plant and its support facilities in Cebu.

COMPANY BACKGROUND

EAGLE is the fourth largest player in the Philippine cement industry in terms of sales volume and has the fastest-growing market share since it started in 2010. It is engaged in manufacturing, marketing, selling and distributing cement. It has the newest, state-of-the-art and single largest cement manufacturing plant in the Philippines.

Eagle has an end-to-end production model from sourcing raw materials to manufacturing and distributing cement. Eagle’s cement plant in San Ildefonso, Bulacan has two production lines with an annual capacity of 5.1 million metric tons (MT), or 130 million 40kg bags of cement.

The plant is strategically located near areas of strong demand and in rich limestone and shale reserves covered by Eagle’s exclusive mineral rights. Eagle also has a grinding and packaging facility in Limay, Bataan which can process 12M bags of cement per annum. Eagle’s Bulacan Line 3, which will increase capacity to 7.1M MT or 180M bags of cement per annum, is scheduled for completion in 2018. Eagle’s Cebu cement plant is also scheduled for completion in 2020; part of its long term plan is a cement plant in Davao, which would enable to have a position in all regions within the Philippines. Eagle’s market is currently Luzon which comprises 65% of total cement demand in the Philippines. Eagle has a 30% market share in NCR, Region III, and Region IV-A.

 

COMPANY DIRECTORS AND OFFICERS

INDUSTRY ANALYSIS

 

FINANCIAL ANALYSIS

 

FINANCIAL HIGHLIGHTS

 

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

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

 

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AB Capital Securities
AB Capital Securities

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