{"id":322126,"date":"2023-03-11T13:06:11","date_gmt":"2023-03-11T05:06:11","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322126"},"modified":"2023-03-11T13:17:24","modified_gmt":"2023-03-11T05:17:24","slug":"stock-in-focus-megaworld-corp-meg-13-mar-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-megaworld-corp-meg-13-mar-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Megaworld Corp. (MEG) – 13 Mar 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MEG<\/td><\/tr>
Company Name<\/strong><\/td>Megaworld Corp.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>13 Mar 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

MEG\u2019s stock price has declined 12.0% from its year-to-date high of Php2.40 last Feb. 8, bringing the stock to near-pandemic low levels and at a discount-to-NAV of 70%, substantially greater than its 5-year pre-pandemic average discount of 54%.<\/p>\n\n\n\n

We recommend a BUY<\/strong> with a Target price of Php2.60 per share<\/strong>.<\/p>\n\n\n\n

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

Megaworld Corp.\u2019s (MEG) 2022 net income ended flat year-on-year (yoy) at Php13.5 billion. Excluding non-core items such as forex losses and one- time tax gain from the CREATE law, we estimate 2022 core net income at Php14.9 billion, 18% higher yoy and above our estimates. Consolidated revenues grew 17% to Php59.5 billion.<\/p>\n\n\n\n

Residential revenues grew 18% to Php36.8 billion on higher bookings from its horizontal projects. Residential take-up climbed 49% to Php119.0 billion, above management\u2019s target pre-sales of Php110.0 billion for the year. The company launched Php45.0 billion worth of projects, above the company\u2019s target of Php35.0 billion.<\/p>\n\n\n\n

Office revenues rose 11% to Php12.2 billion as occupancy rates improved 2.0ppts to 92%, driven by office take-up from BPOs and SMEs. Notwithstanding the rising trend of a hybrid work setup, MEG\u2019s office  occupancy rate remains to be above the industry average office occupancy rate of 82%.<\/p>\n\n\n\n

Mall revenues jumped 51% to Php3.4 billion on pent-up consumption and improved mall traffic, resulting in tenant sales to reach 6% above pre-COVID levels. As of December 2022, MEG collected ~90% of normal rent, and has started collecting full mall rental rates starting January 2023.<\/p>\n\n\n\n

Hotel revenues climbed 35% to Php2.6 billion on the back of improved domestic tourism activities. Hotel occupancy rate improved 3.0ppts to 64%.<\/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>