{"id":323288,"date":"2023-01-29T18:18:04","date_gmt":"2023-01-29T10:18:04","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323288"},"modified":"2023-05-22T23:55:31","modified_gmt":"2023-05-22T15:55:31","slug":"stock-in-focus-gt-capital-holdings-inc-gtcap-23-may-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-gt-capital-holdings-inc-gtcap-23-may-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: GT Capital Holdings, Inc. (GTCAP) – 23 May 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GTCAP<\/strong><\/td><\/tr>
Company Name<\/strong><\/td>GT Capital Holdings, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>23 May 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 730.90<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We have a Buy<\/strong> recommendation on GTCAP with a Target Price of P730.90<\/strong> per share.<\/p>\n\n\n\n

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

The government has approved the 5-year extension of the Comprehensive Automotive Resurgence Strategy (CARS) program. Under this initiative, automobile manufacturers who are able to produce the 200,000-unit quota of an enrolled model within the deadline would be entitled to fiscal incentives amounting up to P9 billion. With this extension, manufacturers now have more time to meet the program\u2019s specifications in order to avail of the benefits.<\/p>\n\n\n\n

We expect this to be beneficial for listed company GTCAP, given that the potential tax incentives would lower costs for its subsidiary Toyota Motors PH, and would allow it to roll out more units while being able to maintain a pricing advantage. The segment is a key contributor to the conglomerate, and by our estimates, accounts for 31.8% of the conglomerate\u2019s earnings. <\/p>\n\n\n\n

Furthermore, the CARS program would also incentivize increased sourcing of materials from local parts manufacturers, which would aid in softening the blow of forex-induced volatility in Toyota\u2019s costs. Currently, the DTI pegs the forex-related savings resulting from the increasing portion of local content in Mitsubishi and Toyota at P1.0 billion in total. With this extension, Toyota would now have until 2030 to meet the required unit count.<\/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>