{"id":322551,"date":"2024-05-30T22:31:21","date_gmt":"2024-05-30T14:31:21","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322551"},"modified":"2024-05-30T22:31:23","modified_gmt":"2024-05-30T14:31:23","slug":"stock-in-focus-ayala-corp-ac-30-may-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ayala-corp-ac-30-may-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Ayala Corp. (AC) – 30 May 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>AC<\/td><\/tr>
Company Name<\/strong><\/td>Ayala Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>30 May 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 766.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

We are reinforcing our BUY rating towards AC with our Target Price (TP) of P766.00. This TP represents a 30% discount to our sum-of-the-parts (SOTP) estimate of P1,094.50. We base this on the uncertainties surrounding the GDP growth trend, depreciation of the PHP, and the liquidity issues in the broader market. With the prevailing stock price, AC has a potential ~23% upside.<\/p>\n\n\n\n

<\/div>\n\n\n\n

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

In the 1st quarter (1Q) 2024, Ayala Corporation (AC) grew its net income after tax by +28% year-on-year (y\/y) to P13.07 billion as its banking, property, and power business segments performed exceptionally well. Topline reached P87.27 billion up by a modest +10% y\/y.<\/p>\n\n\n\n

The upbeat 1Q 2024 figures of the conglo was primarily fueled by the higher contribution from its banking entity, BPI, driven by an increase in net interest income (+24% y\/y). In addition to that, the substantial contributions from ALI, owing to strong residential bookings and lot sales, significantly bolstered the conglomerate’s financial standing. Reservation sales of ALI delivered a +20% y\/y growth to P33.3 billion, with the increased demand for the Alveo brand among homebuyers.<\/p>\n\n\n\n

Likewise, ACEN saw a nice bump in profits during the quarter, up by +34% y\/y
totaling P2.7 billion, thanks to the increased output volumes from the new plants and a better position in WESM. For the years ahead, ACEN has a lot of projects in store, and the firm is optimistic to hit its goal of having a 5,000 MW RE portfolio by 2025.<\/p>\n\n\n\n

On the flipside, the group\u2019s ISP arm GLO bagged P6.81 billion in bottomline, down by -6% y\/y. This slight dip was due to the high base effects as the group sold tower assets last year. Still, topline was sustained by strong demand for data-related services and effective cost management.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Check how many brokers recommend this stock<\/h2>\n\n\n\n
\n
All Stock Rankings<\/a><\/blockquote>