{"id":319917,"date":"2023-01-02T12:10:00","date_gmt":"2023-01-02T04:10:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=319917"},"modified":"2023-01-05T13:22:41","modified_gmt":"2023-01-05T05:22:41","slug":"stock-in-focus-axelum-resources-corp-axlm-2-jan-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-axelum-resources-corp-axlm-2-jan-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Axelum Resources Corp. (AXLM) – 2 Jan 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>AXLM<\/td><\/tr>
Company Name<\/strong><\/td>Axelum Resources Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>2 Jan 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 3.14<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Due to the firm\u2019s upbeat figures and forward looking industry sentiments, we retain our BUY recommendation with a Target Price of P3.14<\/strong> on this stock. The company also has good e-commerce presence both domestically and internationally which helps the company boost its revenues.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Latest earnings performance<\/strong><\/p>\n\n\n\n

In 9-months (9M) 2022, AXLM logged an increase in its net income by +23.95% year-on-year (y\/y) to P717.28 million, on the back of its strong topline which rose by +10.92% y\/y to P5.31 billion. The upbeat performance of the company for the 9-month period was largely due to the favorable global market demand for coconut products. <\/p>\n\n\n\n

Further, as the company heavily relies on its export business line, it took a hitch and ride the volatility of the strong greenback which then helped bolster its earnings during the period. Based on our model, we forecast a single-digit growth in AXLM\u2019s topline, while we see a double-digit growth in its bottomline for 2022, weighing the positive growth momentum across all its business segment.<\/p>\n\n\n\n

Revenue mix through geographical locations<\/strong><\/p>\n\n\n\n

The company recognized a total of P5.31 billion in sales for 9M 2022. Of this amount, P2.7 billion comes from the sales in the Philippines, P2.33 billion generated from the sales in the US, and P280.95 million comes from the sales in Australia. The international sales footprint is projected to expand even further in line with the growing demand of green products and as global macro headwinds assumed to ease in 2023.<\/p>\n\n\n\n

Expanding manufacturing sector<\/strong><\/p>\n\n\n\n

The country\u2019s manufacturing sector grew to 52.7 in November, slightly improving from the 52.6 recorded in October. The PMI having 50 indicates an overall increase in activity in the industry. Thus, this signifies that the outlook towards the manufacturing sector is essentially positive as the economy continues to reopen.<\/p>\n\n\n\n

Meanwhile, the production of coconuts in the country in 3Q22 rose to 4.12mn MT,
rising by 1% y\/y from the 4.08mn MT recorded in 3Q21. The CALABARZON region
was the highest contributor during the quarter with a total of 645.93k MT output,
which accounts for 15.7% of the total share in the coconut production.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>