{"id":323114,"date":"2023-05-09T08:26:27","date_gmt":"2023-05-09T00:26:27","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323114"},"modified":"2023-05-09T08:26:29","modified_gmt":"2023-05-09T00:26:29","slug":"stock-in-focus-bloomberry-resorts-corp-bloom-9-may-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bloomberry-resorts-corp-bloom-9-may-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Bloomberry Resorts Corp. (BLOOM) – 9 May 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BLOOM<\/td><\/tr>
Company Name<\/strong><\/td>Bloomberry Resorts Corp.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>9 May 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 11.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We upgraded our target price (TP) for BLOOM by 9.4% from Php10.60 to Php11.60 to reflect China\u2019s easing of COVID restrictions and lockdowns. The Target Price was based on an EV\/EBITDA of 9.8x, halfway from BLOOM\u2019s current EV\/12-month forward EBITDA of 9.1x and the regional peer average EV\/EBITDA of 10.5x. Our revised Target Price offers an upside of 13.7%, hence, we reiterate our BUY rating.<\/p>\n\n\n\n

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

2022 net income at Php5.1 billion, reversal from previous year<\/strong><\/p>\n\n\n\n

BLOOM recorded 2022 net income of Php5.1 billion, a reversal from last year\u2019s net loss of Php4.2 billion. Without forex gains, we estimate core net income at Php5.3 billion. Net revenues soared 77% year-on-year (y\/y) to Php38.9 billion, with Net gaming revenues climbing 72% to Php32.2 billion, mostly driven by the 144% jump in VIP gross gaming revenues (GGR) to Php16.5 billion. Mass GGR increased by 48% to Php16.8bn, while slot GGR grew 81% to Php50.1 billion. Non-gaming revenues more than doubled (+104%) to Php6.7 billion with the easing of lockdowns in the country and as occupancy rate improved by 35bps to 53.7%.<\/p>\n\n\n\n

Slot machines exceeding pre-pandemic levels<\/strong><\/p>\n\n\n\n

Along with the reopening of the economy, BLOOM\u2019s GGRs have also recovered. 4Q 2022 GGR was 84% up y\/y at Php14.7 billion, which surpassed pre-pandemic GGR (4Q 2019) of Php14.5 billion despite the absence of the Chinese players. Drop volumes are also close to recovering with VIP and mass tables at 93% and 81%, respectively, of 4Q 2019 levels. Slot machines made the difference, surpassing pre pandemic level by 30%. With the easing of COVID restrictions and lockdowns in China, BLOOM expects Chinese players to turn up by 1H 2023.<\/p>\n\n\n\n

Solaire North operations delayed to 1Q 2024<\/strong><\/p>\n\n\n\n

BLOOM also announced that the completion of Solaire North will be moved to 1Q 2024. Solaire North will add 250 mass tables, around 2,300 slot machines, 200 electronic gaming machines, and 500 hotel rooms to BLOOM\u2019s portfolio. There will be no VIP rooms.<\/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>