{"id":323763,"date":"2023-06-21T23:12:44","date_gmt":"2023-06-21T15:12:44","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323763"},"modified":"2023-06-21T23:12:46","modified_gmt":"2023-06-21T15:12:46","slug":"stock-in-focus-emperador-inc-emi-21-june-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-emperador-inc-emi-21-june-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: Emperador Inc. (EMI) – 21 June 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>EMI<\/td><\/tr>
Company Name<\/strong><\/td>Emperador Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>21 June 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy on pullback<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 20.52<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

As of now, the stock is already trading above our Target Price of P20.52\/share, and we would therefore recommend long-term investors to wait for pullbacks before buying. For those looking for some short-term upside however, we would consider buying at the support of P21.20 and selling at the resistance of P24.70.<\/p>\n\n\n\n

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

Logistical issues now in the rearview mirror<\/strong><\/p>\n\n\n\n

While we were previously skeptical about EMI\u2019s prospects given its lackluster earnings for 2022, we now feel that the company is primed for a strong rebound. The company\u2019s main concern used to be logistical challenges, as the difficulty in procuring shipping containers led to missed orders, particularly for its single-malt whisky. The weak demand for containers however, should now all but ensure that EMI will no longer be lacking in this department. World container prices firmly reflect this, as they are down 40.8% YoY.<\/p>\n\n\n\n

Appetite for premium single malts to persist<\/strong><\/p>\n\n\n\n

Global risks, particularly with regard to UK and Chinese consumption remain. However, we note that the premium nature of EMI\u2019s single malt whisky products should continue to capture demand on the back of the higher income-per-capita of its target consumers. In Asia alone, the whisky market is expected to grow by 5.25% per year until 2028.<\/p>\n\n\n\n

Despite disappointing recovery figures, China is still expected to contribute greatly to this. By 2025, imports of whisky into the region are seen to grow to USD2.25-Bn, which would translate to a yearly increase of 23.5% relative to pre-pandemic figures. Much of the demand in the Chinese market is driven by young, well-educated consumers who are likely to spend north of USD145\/bottle. In this regard, EMI\u2019s exposure to the region grants it a demographic sweet spot which will help propel sales and margins. It is worth noting that China has also been EMI\u2019s fastest growing market to date.<\/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>