{"id":323782,"date":"2023-06-21T23:48:13","date_gmt":"2023-06-21T15:48:13","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323782"},"modified":"2023-06-21T23:48:14","modified_gmt":"2023-06-21T15:48:14","slug":"stock-in-focus-universal-robina-corp-urc-21-june-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-universal-robina-corp-urc-21-june-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Universal Robina Corp. (URC) – 21 June 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>URC<\/td><\/tr>
Company Name<\/strong><\/td>Universal Robina Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>21 June 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 178.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We maintain our BUY recommendation towards URC with a fair value target price of P178.00\/share.<\/p>\n\n\n\n

<\/div>\n\n\n\n

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

Universal Robina Corporation (URC) Core Net Income rises by +10.9% year-on-year (y\/y) to P3.61 billion. Net income after taxes however remains flat at P3.6bn due to higher finance costs and impairment on farms. Revenues are up +11% y\/y to P39.8 billion with BCF recording moderate growth and AIC segment growing much higher.<\/p>\n\n\n\n

The company was able to recover from its planned supply tightness following the SAP ERP transition. Revenue from BCF PH grew +6% y\/y to P18.1 billion, while its international operations grew much larger at +13% y\/y to P8.9 billion. Vietnam, Malaysia, and Myanmar showed the strongest growth, leading double-digit numbers.<\/p>\n\n\n\n

Bottomline under BCF PH remains flat due to an increase in costs, while international operations fared much better, up by +37% as these are much more wheat dependent, having better cost control. Wheat saw an -8% y\/y decline in prices.<\/p>\n\n\n\n

AIC grows +20% y\/y to P12.4bn under the performance of SURE and AIG. SURE, which accounts for 57% of AIC\u2019s total revenue, records strong profits on account of high sugar prices. This segment grew +22% y\/y to P7.1 billion, while AIG, grew +26% y\/y to P3.9 billion on higher demand for Feeds. Prices of Sugar is expected to remain elevated for the succeeding quarter as the country is yet to import more sugar.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Check how many brokers recommend this stock<\/h2>\n\n\n\n
\n
All Stock Rankings<\/a><\/blockquote>