{"id":321149,"date":"2023-01-28T15:43:07","date_gmt":"2023-01-28T07:43:07","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=321149"},"modified":"2023-01-28T15:43:35","modified_gmt":"2023-01-28T07:43:35","slug":"stock-in-focus-holcim-philippines-inc-hlcm-29-jan-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-holcim-philippines-inc-hlcm-29-jan-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Holcim Philippines, Inc. (HLCM) – 29 Jan 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>HLCM<\/td><\/tr>
Company Name<\/strong><\/td>Holcim Philippines, Inc. <\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>29 Jan 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 6.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We are keeping our BUY<\/strong> rating on HLCM as our Target Price of P6.20<\/strong> offers an attractive double-digit upside potential from its last traded price of P3.98.<\/p>\n\n\n\n

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

The local construction industry has been steadily recovering as the pandemic takes the back seat, thus allowing the economy to further reopen. However, Holcim Philippines, Inc. (HLCM) had encountered two speed bumps last year. First, with the election-related construction ban that affected its first half (1H) 2022 performance, and second, the payment of settlement agreement in favor of Seasia with regard to the termination of an agreement in Bataan province. Hence, this resulted in a double-digit bottomline contraction in 9-month (9M) 2022.<\/p>\n\n\n\n

However, these factors are non-recurring for the settlement was in the guise of a one-off cost and an election-related ban is not anticipated to be implemented again within our forecast period.<\/p>\n\n\n\n

Nevertheless, we remain cautiously optimistic towards HLCM\u2019s performance. The gradual reversion into normalcy of the economy is likely to stir demand for HLCM\u2019s products. However, the firm\u2019s topline growth could potentially be capped by the non-extension of safeguard measures against certain imported cement types since HLCM has two product brands that could be potentially affected by it. Although, this should be mitigated by the demand coming from the demographic profile of HLCM\u2019s clients, which usually handles big commercial and government flagship projects nationwide.<\/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>