{"id":322497,"date":"2023-03-30T01:01:15","date_gmt":"2023-03-29T17:01:15","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322497"},"modified":"2023-03-30T02:01:23","modified_gmt":"2023-03-29T18:01:23","slug":"stock-in-focus-metro-pacific-investments-corp-mpi-30-mar-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-metro-pacific-investments-corp-mpi-30-mar-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Metro Pacific Investments Corp. (MPI) – 30 Mar 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MPI<\/td><\/tr>
Company Name<\/strong><\/td>Metro Pacific Investments Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>30 Mar 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 5.39<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Overall, we retain our BUY rating on MPI, however with a lower fair value Target Price of P5.39<\/strong> on slower growth under other subsidiaries<\/p>\n\n\n\n

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

Metro Pacific Investments Corporation (MPI) revenue in 4Q 2022 rose by +17% year-on-year (y\/y) to P13.28 billion. MPI registered also the same percentage increase in revenue to P50.88 billion in 2022. Core Net Income, though, for 4Q 2022 has decreased -17.21%, while 2022 income increased by +15.12%. <\/p>\n\n\n\n

Higher energy usage and costs as well as traffic growth on MPTC\u2019s tollways provided
uplifts in MPI\u2019s 4Q22 revenue performance, however Core NI went down due
to the closure of its logistics business, a one-off loss for 4Q 2022.<\/p>\n\n\n\n

The power and toll operations segment of the group provided most of MPI\u2019s
revenue. 4Q 2022 power sales amounted to P3.47 billion up by +23.67% y\/y. The
increase in revenue reflected the higher volume and pass-through generation
charges. 2022 saw energy usage increase as businesses and the public
recovered from the pandemic. <\/p>\n\n\n\n

Meralco\u2019s MGen contributions in FY22 spiked +351% y\/y from the previous P1.2 billion, driven by Singapore based PacificLight Power Pte. Ltd (PLP). Currently, MGen owns a 58% equity stake in PLP.<\/p>\n\n\n\n

Toll roads, handled by MPTC, grew +35.23% to P1.62 billion in 4Q 2022. Toll rate
increases were implemented, and traffic grew despite higher prices. Ongoing
constructions such as the NLEX-SLEX Connector Road, CALAX, and C5
Southlink should boost revenues soon as parts of these roads are slated to
open this year. Water revenue declined -24.82% y\/y to P424 million due to higher operating cost.<\/p>\n\n\n\n

Net Profit Margin (NPM) however decreased in 4Q 2022, down to 17.76% y\/y for 4Q 2022. Subsidiary losses in the others segment caused the decrease in net income for 4Q22. This includes the shutdown of its logistics operation, and also business development and startup costs.<\/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>