{"id":322868,"date":"2023-04-28T02:25:33","date_gmt":"2023-04-27T18:25:33","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322868"},"modified":"2023-04-28T02:30:37","modified_gmt":"2023-04-27T18:30:37","slug":"stock-in-focus-puregold-price-club-pgold-28-apr-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-puregold-price-club-pgold-28-apr-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Puregold Price Club (PGOLD) – 28 Apr 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>PGOLD<\/td><\/tr>
Company Name<\/strong><\/td>Puregold Price Club, Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Apr 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 48.19<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Overall, we retain our BUY recommendation for PGOLD with a Target Price of P48.19. We see strong growth in revenue and continuous store expansions to provide uplifts in PGOLD\u2019s bottomline.<\/p>\n\n\n\n

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

Puregold Price Club, Inc (PGOLD)\u2019s net income in 4Q 2022 improves by +15.05% year-on-year (y\/y) to P2.81 billion. Topline growth was primarily attributed to the strong growth in sales due to the reopening of the economy and the opening of new stores. The company saw its topline increase significantly for the S&R business by +22.4% compared to a much more moderate increase of +8% y\/y in revenue from Puregold stores.<\/p>\n\n\n\n

S&R business recorded larger ticket size and higher traffic, while Puregold also recorded an increase in traffic, it also saw a reduction in ticket size. Revenue contribution of S&R to Puregold is currently at 67-33. PGOLD, according to management, has gained market share as the company posted double digit growth compared to its competitors that only saw single digit growths. <\/p>\n\n\n\n

In terms of CAPEX, PGOLD has increased this number by +105% y\/y to P11.9 billion for 2023 as the company focuses on ramping expansion of its stores especially under the S&R brand, with five S&R stores and 10 QSRs slated for 2023. Store expansions for this year are not expected to impact much growth as these are projected to open in the latter parts of the year.<\/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>