{"id":321815,"date":"2023-02-24T11:46:45","date_gmt":"2023-02-24T03:46:45","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=321815"},"modified":"2023-02-24T11:47:35","modified_gmt":"2023-02-24T03:47:35","slug":"stock-in-focus-sm-investments-corp-sm-24-feb-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-sm-investments-corp-sm-24-feb-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: SM Investments Corp. (SM) – 24 Feb 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SM<\/td><\/tr>
Company Name<\/strong><\/td>SM Investments Corp.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>24 Feb 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1,100.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We currently have a Buy recommendation on SM with a<\/strong> Target Price of P1,100.00\/share<\/strong>. <\/p>\n\n\n\n

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

SM\u2019s market-leading position in Philippine retail (SM Retail) and mall operations (SM Prime Holdings) gives it the best exposure to resilient Philippine consumption growth, driven by a young population of 110mn situated at the cusp of the demographic dividend stage.<\/p>\n\n\n\n

SM also owns the largest Philippine bank (BDO Unibank), which is well-positioned to benefit from the rise in interest rates and the consequent expansion in banks\u2019 net interest margins.<\/p>\n\n\n\n

We forecast 2023\/2024 core net income to grow 20%\/10% to Php65.5bn\/Php72.0bn driven by its core businesses. We project SMPH\u2019s 2023\/2024 core net income to climb 28%\/12% to Php39.6 billion\/Php44.5 billion driven by the full-year benefit of normalized mall leasing rates and by rebounding residential revenues and easing of sales cancellations.<\/p>\n\n\n\n

We expect BDO\u2019s 2023\/2024 core net income to rise by 18%\/11% to Php60.5 billion\/Php66.4 billion driven by a 19%\/11% increase in net interest income, underpinned by NIM expansion and sustained loan and deposit growth.<\/p>\n\n\n\n

We expect SM Retail\u2019s 2023\/2024 net income to grow 10%\/6% to Php17.6 billion\/Php18.6 billion on the back of healthy same-store sales growth (SSSG) amid recovering foot-traffic back to pre-pandemic levels.<\/p>\n\n\n\n

In terms of relative valuation, SM trades at a discount-to-NAV of 18%, greater than its 5-year historical average discount-to-NAV of 3%.<\/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>