{"id":321789,"date":"2023-02-24T10:54:27","date_gmt":"2023-02-24T02:54:27","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=321789"},"modified":"2023-02-24T11:26:40","modified_gmt":"2023-02-24T03:26:40","slug":"stock-in-focus-ayala-land-inc-ali-24-feb-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ayala-land-inc-ali-24-feb-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Ayala Land, Inc. (ALI) – 24 Feb 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ALI<\/td><\/tr>
Company Name<\/strong><\/td>Ayala Land, Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>23 Feb 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 39.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

ALI\u2019s 2022 net income was in line with our estimate. For 2023\/2024, we forecast core net income to grow 23%\/20% to Php22.9 billion\/Php27.4billion driven by improved residential bookings, reduced sales cancellations, and higher mall revenues due to the full-year effect of normalized rental rates. We currently have a BUY<\/strong> recommendation on ALI with a Target Price of P39.00<\/strong>.<\/p>\n\n\n\n

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

Ayala Land, Inc. (ALI) reported 2022 net income was Php18.6 billion, 52% higher year-on-year (yoy). Excluding one-off items in 2021, such as gain from the sale of ALI\u2019s 39% economic interest in Qualimed, we estimate 2022 core net income to have grown 67% yoy. Its 4Q 2022 core net income rose 46% yoy to Php5.3 billion while consolidated revenues climbed 19% to Php126.6 billion.<\/p>\n\n\n\n

Its property development revenues rose 7% to Php81.2 billion. Residential revenues ended at Php63.5 billion, flat yoy, dragged by lower sales bookings in the 4Q 2022 attributed by stretched payment terms and sales cancellations after the expiration of the Bayanihan Act. Commercial lot and industrial sales jumped 75% to Php14.5 billion, lifted by higher sales in Nuvali, Arca South, and South Coast City in Cebu. Meanwhile, office-for-sale revenues declined 16% to Php3.2bn after the completion of Alveo’s Park Triangle Tower last year.<\/p>\n\n\n\n

Commercial leasing revenues, meanwhile, jumped 62% to Php33.4 billion. Mall revenues soared 103% to Php16.1 billion on improved tenant sales and foot traffic, alongside normalization of mall rental rates. Office leasing revenues rose 13% to
Php11.1 billion due to an increase in the average occupancy rate to 88% from 81% a year ago and the contribution from new office spaces. Hotels and resort revenues surged 119% to Php6.2 billion boosted by higher room rates on the back of recovering domestic tourism.<\/p>\n\n\n\n

The company raised its 2023 capex budget by 17% yoy to Php85.0 billion, of which 39% will go to residential development, 23% to land acquisition, 16% to estate development, and the rest to mall, office, and hotel developments. ALI intends to launch Php110.0 billion worth of projects in 2023, most of which will be under the higher-end brands Ayala Land Premier, Alveo, and Avida.<\/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>