{"id":323034,"date":"2023-05-05T01:45:37","date_gmt":"2023-05-04T17:45:37","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323034"},"modified":"2023-05-05T01:45:38","modified_gmt":"2023-05-04T17:45:38","slug":"stock-in-focus-robinsons-retail-holdings-inc-rrhi-5-may-2023-by-ap-securities-2","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-retail-holdings-inc-rrhi-5-may-2023-by-ap-securities-2\/","title":{"rendered":"Stock in Focus: Aboitiz Power Corp. (AP) – 5 May 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>AP<\/td><\/tr>
Company Name<\/strong><\/td>Aboitiz Power Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>5 May 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 42.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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The consensus target price of P42.60 implies a 12.1% upside, with potential upgrades due to the 1st Quarter 2023 financial performance. As such, we maintain our BUY recommendation on AP.<\/p>\n\n\n\n

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

AP\u2019s preliminary earnings report to the PSE showed that first quarter (Q1) 2023 earnings reached P7.5-Billion, 161% higher than the same period last year. Excluding the one-off losses of P101-Million in Q1 2023 and P70-Million in Q1 2022, core net income stood at P7.6-Billion, 158% higher than the previous year. The company attributed the gains to fresh contributions from GNPower Dinginin (GNPD), higher plant availability, and higher water inflows in its hydropower facilities. To recall, GNPD\u2019s 668-MW Unit 1 started commercial operations in January 2022, while the 668-MW Unit 2 came online in April 2022.<\/p>\n\n\n\n

Overall, AP\u2019s stellar performance was driven by a combination of higher energy volume sales (+44% YoY) and higher prices (+11% YoY in spot prices, +18% YoY in contract prices). This allowed the company to offset a 70% YoY increase in generation costs and increase its gross margins by 28% to P13.5-Billion.<\/p>\n\n\n\n

It must be noted that the hefty percent change in Q1 net income is due to having a low base in 2022. However, this quarter\u2019s earnings still outperformed considering that it is already 28.6% of consensus full-year forecast, in a quarter that typically contributes only 23% to full year. Annualizing this quarter\u2019s figures while factoring in seasonality implies a 74.7% full-year outperformance and a forward P\/E ratio of 8.45x.<\/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>