{"id":322871,"date":"2023-04-28T02:25:33","date_gmt":"2023-04-27T18:25:33","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322871"},"modified":"2023-04-28T02:29:47","modified_gmt":"2023-04-27T18:29:47","slug":"stock-in-focus-megawide-construction-corp-mwide-28-apr-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-megawide-construction-corp-mwide-28-apr-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Megawide Construction Corp. (MWIDE) – 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>MWIDE<\/td><\/tr>
Company Name<\/strong><\/td>Megawide Construction Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Apr 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 3.93<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

As MWIDE continues to operate at a net loss despite the improvement construction revenues, we are revising our Target Price on MWIDE to P3.93\/share. Likewise, we are modifying our rating to HOLD due to the minimal upside potential from MWIDE\u2019s current price.<\/p>\n\n\n\n

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

Megawide Construction Corporation (MWIDE) sank deeper in the red due to higher losses generated from its landport ops and discontinued airport ops, which trumped the improvement printed in its construction ops. Within our forecast period, MWIDE\u2019s construction ops is looking brighter than the rest of the segments as the new administration made its vow to continue the over 70 plus projects of the Duterte administration. <\/p>\n\n\n\n

The larger net loss from its airport business, already a discontinued ops following the share subscription and transfer agreement inked with Aboitiz\u2019s AIC, was mainly due to higher interest costs on loans brought about by BSP\u2019s successive rate hikes and the absence of a one-time gain recognized associated with the loan modification
executed at GMCAC in 9M21. Note that this was despite the recovery in passenger
volume which more than doubled to roughly 3.67mn, split to 90% domestic:10%
international on a more laxed air travel requirements.<\/p>\n\n\n\n

Meanwhile, MWIDE\u2019s consolidated revenues for the period slipped by -4% y\/y to P10.69bn due to the slowdown in construction ops and lower occupancy rate in PITX.
The firm\u2019s construction segment was accountable for the 96% of the topline or
P10.23bn. However, the figure was -2.25% y\/y lower due to contract re-negotiation
amid rising input costs and high inflationary environment. <\/p>\n\n\n\n

On the other hand, POGO exodus continued to weigh on PITX\u2019s occupancy rate. On the brighter side, BPOs may take fill-in some of the hole left by the POGOs as more and more businesses have started to either revert to full on-site setup or hybrid setup of work.<\/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>