Integrated energy company Semirara Mining and Power Corp. (SMPC) intends to push through with the construction of the 700-megawatt (MW) coal-fired power plant in Calaca, Batangas once grid connection issues are resolved.<\/p>\n\n\n\n
Our View:<\/strong> The expansion, if SCC will be able to push through with it by next year and assuming a 5-year construction period, similar to GNPD\u2019s timeline, we expect this to increase our current valuations by 15% to P50.00\/share.<\/p>\n\n\n\n However, incorporating this to our valuations is still premature at this moment given the lack of details regarding the timeline of completion of NGCP\u2019s Tuy-Dasmarinas Transmission Line Expansion Project to which Calaca\u2019s 700MW expansion project is contingent to. We note that NGCP\u2019s project is still resolving some issues with regards negotiations and acquisitions of the rights-of-way for its 11-kilometer transmission line route traversing Calaca, Balayan and Tuy, Batangas.<\/p>\n\n\n\n We currently have a Target Price of P44.00\/share on SCC. Special dividends to be declared within 3Q 2022 to 4Q 2022 may stir further price action beyond our Target Price. Meanwhile, we note that the renewal of SCC\u2019s coal contract beyond 2027 and consolidation of DMC\u2019s mining assets into SCC, which are both currently being processed (in negotiation phase and due diligence), may warrant an upgrade to our valuations once those materialized.<\/p>\n","protected":false},"excerpt":{"rendered":" Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-316845","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=316845"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316845\/revisions"}],"predecessor-version":[{"id":320511,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316845\/revisions\/320511"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=316845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=316845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=316845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}