{"id":322566,"date":"2023-04-05T01:46:25","date_gmt":"2023-04-04T17:46:25","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322566"},"modified":"2023-04-05T01:46:26","modified_gmt":"2023-04-04T17:46:26","slug":"stock-in-focus-pldt-inc-tel-5-apr-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-pldt-inc-tel-5-apr-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: PLDT, Inc. (TEL) – 5 Apr 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>TEL<\/td><\/tr>
Company Name<\/strong><\/td>PLDT, Inc. (TEL)<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>5 Apr 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1,730.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We are raising our Target Price for TEL by 4.8% to Php1,730.00, as we adjust our earnings forecasts and roll-forward our EV\/EBITDA-based valuation. We value TEL at 5.5x 12-month forward EV\/EBITDA, 10% below the regional telco peer average of 6.1x. It offers an upside potential of 21.8% and a composite return of 27.8% (including dividend yield). We retain our BUY rating.<\/p>\n\n\n\n

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

Capex overrun cut to Php33.0 billion<\/strong><\/p>\n\n\n\n

TEL cut its capex overrun to Php33.0 billion (~31% lower than the Php48.0 billion
previously disclosed) as the company negotiated with its network suppliers to cancel some of its purchase orders, and requested trade discounts to those ongoing. This prompted us to reduce our depreciation estimates for 2023-2024 by 14%.<\/p>\n\n\n\n

2022 core net income beat our estimates<\/strong><\/p>\n\n\n\n

TEL reported 2022 telco core net income (which excludes equity losses in Voyager) of Php33.2 billion, up 10% year-on-year (y\/y). Including the losses related to Voyager, 2022 core net income ended at Php30.6 billion, 5% higher y\/y and above our own estimate due to better-than-expected home revenues in 4Q 2022. For 2022, service revenues rose 4% to Php190.1 billion, lifted by home broadband (+20%) and enterprise revenues (+8%), offsetting the decline in individual revenues (-5%). Notably, fiber-only revenues climbed 45% to Php48.5 billion, now accounting for 84% of home revenues (vs. 70% in 2021).<\/p>\n\n\n\n

Robust home revenue growth led by fiber broadband<\/strong><\/p>\n\n\n\n

Home revenues in 4Q 2022 alone grew by 18% y\/y to Php14.7 billion, augmented
by a 7% increase in home ARPUs, alongside additional home subscriber count. Fiber revenues climbed 29% y\/y to Php12.8 billion, driven by 514k net fiber additions.<\/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>