{"id":322149,"date":"2023-03-11T13:30:17","date_gmt":"2023-03-11T05:30:17","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322149"},"modified":"2023-03-11T13:31:09","modified_gmt":"2023-03-11T05:31:09","slug":"stock-in-focus-sm-prime-holdings-smph-13-mar-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-sm-prime-holdings-smph-13-mar-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: SM Prime Holdings (SMPH) – 13 Mar 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SMPH<\/td><\/tr>
Company Name<\/strong><\/td>SM Prime Holdings<\/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 41.50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We have a Target Price of Php41.50 for SMPH<\/strong> based on an estimated net asset value (NAV) per share of Php43.97, and applying a 6% discount-to-NAV, based on the average of SMPH\u2019s current and 2017-2019 discount-to-NAV. <\/p>\n\n\n\n

Our Target Price offers an upside of 16.7% and a composite return of 17.4%, inclusive of our estimated 12-month forward dividend yield of 0.7%. We have a BUY <\/strong>rating on SMPH.<\/p>\n\n\n\n

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

2022 core net income up 38% to Php30.1 billion<\/strong><\/p>\n\n\n\n

SM Prime Holdings, Inc.\u2019s (SMPH) 4Q 2022 core net income grew 31% yoy and 3% qoq to Php8.1 billion, bringing 2022 core net income to Php30.1 billion, 38% higher yoy, and in-line with our estimates.<\/p>\n\n\n\n

PH mall revenues surpassed pre-pandemic levels<\/strong><\/p>\n\n\n\n

4Q PH mall revenues jumped 65% yoy and 18% qoq to Php18.6 billion, 8% above 4Q2019 level of Php17.2 billion. This was driven by the recovery of foot traffic back to pre-COVID levels, pushing tenant sales higher.<\/p>\n\n\n\n

Weak residential reservations warrants caution<\/strong><\/p>\n\n\n\n

4Q residential reservations declined 20% yoy and 26% qoq to Php18.1 billion due to softer demand for high-rise buildings (HRBs) in Metro Manila. Furthermore, management indicated that the company limited the project launches of HRBs in the 4Q due to elevated sales cancellations in the 1H and the increasing inventory of residential units from HRBs. Nevertheless, 4Q residential sales recovered 18% qoq as the company booked lower cancellations during the quarter.<\/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>