{"id":322652,"date":"2023-04-13T10:50:03","date_gmt":"2023-04-13T02:50:03","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322652"},"modified":"2023-04-13T10:50:04","modified_gmt":"2023-04-13T02:50:04","slug":"mwc-defensive-stock-pick","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/mwc-defensive-stock-pick\/","title":{"rendered":"Manila Water Co. (MWC) a defensive stock amid threat of El Ni\u00f1o and global recession"},"content":{"rendered":"\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Analysis and Recommendation<\/h2>\n\n\n\n<p>The National Water Resources Board (NWRB) is already making preparations for the forecasted drought season or El Ni\u00f1o which is expected to begin anytime between July to September of 2023. MWSS, on the other hand, is confident that the water supply from Angat Dam will be sufficient yet implores the public to conserve water.<\/p>\n\n\n\n<p>Angat Dam supplies 90% of Metro Manila\u2019s water requirements and was at the 199.37-meter level. While the current level is below the ideal level of 212 meters to have an adequate margin during the dry season, this is still far from the 180-meter level which will stop supplying water for irrigation. Domestic water requirements will be prioritized when this happens but most likely at a reduced level.<\/p>\n\n\n\n<p><strong>Our View:<\/strong> Manila Water and Maynilad should be ok, but vigilance is required. Manila Water Company, Inc. (MWC) is one of our top picks for the year given the defensive growth that the company offers especially in light of the looming global recession.<\/p>\n\n\n\n<p>MWC is expected to grow by 16% in 2023 in large part due to the higher tariff that it will implement this year. During the last El Ni\u00f1o episode in 2018 \u2013 2019, water level in the Angat Dam fell to the 159-meter, much lower than the 180-meter danger zone, leading to a reduced water allocation for both Manila Water and Maynilad. Manila Water\u2019s billed volume at the end of 2019 was lower by 2% but was tempered by the higher tariff implement during that year.<\/p>\n\n\n\n<p>If that will serve as a blueprint for the expected El Ni\u00f1o this year, then the 28% increase in tariff for 2023 should be more than enough to cover for a possible decline in billed volumes should a severe drought be seen from 2023 \u2013 2024.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-322652","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/322652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=322652"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/322652\/revisions"}],"predecessor-version":[{"id":322654,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/322652\/revisions\/322654"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=322652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=322652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=322652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}