{"id":323044,"date":"2023-05-05T01:56:57","date_gmt":"2023-05-04T17:56:57","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323044"},"modified":"2023-05-05T02:02:22","modified_gmt":"2023-05-04T18:02:22","slug":"stock-in-focus-semirara-mining-and-power-corporation-scc-5-may-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-semirara-mining-and-power-corporation-scc-5-may-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: Semirara Mining and Power Corporation (SCC) – 5 May 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SCC<\/td><\/tr>
Company Name<\/strong><\/td>Semirara Mining and Power Corporation<\/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 38.30<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We expect a K-shaped recovery in SCC\u2019s two business units, with coal dropping from its high base due to softer prices while improved operations lift the power segment. Despite this, we believe that SCC remains undervalued with a forward P\/E of 3.6x and we maintain our BUY rating based on consensus Target Price of P38.30 per share.<\/p>\n\n\n\n

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

SCC disclosed through a press release that its net income in the 1st quarter of 2023 dropped by 40% from its all-time high quarterly earnings of P15.0-Billion last year. The company attributed the drop to lower contribution from its coal mining and export segment, which saw a 31% decline in shipments from 5.1-Million MT to 3.5-Million MT coupled with a 14% decrease in average selling prices (ASP) from P5,125\/MT to 4,427\/MT, resulting in a 40% slump in coal revenues from P25.7-Bn to P15.5-Bn. <\/p>\n\n\n\n

According to the company, the decline in shipments was strategic on their part as they limited their shipments due to volatile market prices. SCC President and COO Maria Cristina C. Gotianun said that the company intends to boost foreign shipments in the coming months now that prices have settled, and that SCC is targeting 15 to 16-Mn MT in shipments for year.<\/p>\n\n\n\n

The company\u2019s bottom line was somewhat underpinned by a 59% surge in revenues from its power business, as overall plant availability improved from 58% to 86%, while total average capacity increased by 32% from 520-MW to 688-MW. Power sales grew by 37% from 908 GWh to 1,241 GWh, and coupled with a 17% increase in ASP from 5.29\/kWh to 6.17\/kWh, resulted in power revenues for the quarter reaching an all-time high of P7.7-Billion.<\/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>