{"id":322509,"date":"2023-03-30T01:32:40","date_gmt":"2023-03-29T17:32:40","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322509"},"modified":"2023-03-30T02:32:47","modified_gmt":"2023-03-29T18:32:47","slug":"stock-in-focus-universal-robina-corp-urc-30-mar-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-universal-robina-corp-urc-30-mar-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Universal Robina Corp. (URC) – 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>URC<\/td><\/tr>
Company Name<\/strong><\/td>Universal Robina 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 168.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Given the better-than-expected 4th quarter (4Q) 2022 earnings of URC, we upgrade our BUY recommendation on the stock with a Target Price of P168.00\/share.<\/p>\n\n\n\n

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

URC’s 4Q 2022 revenue increased +36% year-on-year (y\/y) to P42.03 billion, while Net Income (NI) from continued operations surged +81% to P4.77 billion. URC\u2019s net
income spiked on price adjustments conducted by the company and cost-saving initiatives throughout the year. For 2022, revenue has grown +28% y\/y to P149.90 billion with NI up by +12% to 14.49 billion, disregarding the sale of its Oceania business.<\/p>\n\n\n\n

On the banks of higher consumer spending, URC saw profitability spike amid high inflation rates and increasing input costs. Price increases were implemented across its product lineup. Cost optimizations were executed to improve bottom line, allowing EBIT to finish +20% y\/y. Strong demand lifted 2022 as consumers remained resilient to inflation, with decreasing unemployment numbers and the return to offices pushing pent-up demand to high levels.<\/p>\n\n\n\n

Branded Consumer Foods (BCF) sales from international operations saw significant growth with 4Q 2022 up +31% y\/y to P7.91 billion, while 2022 saw a much larger increase at +46% y\/y to P32.30 billion. Local sales were also lucrative, growing +25% y\/y to P19.94 nillion for the same quarter and ending the fiscal year up +23% y\/y to P75.47 billion.<\/p>\n\n\n\n

Agro-Industrial and Commodity (AIC) for 4Q22 increased +34% y\/y to P14.15 billion. SURE, the sugar manufacturing arm of URC accounted for 63% of total AIC revenue. Revenue from this segment increased significantly by +80% y\/y to P8.90mn due to the spike in prices of sugar during the period.<\/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>