{"id":324052,"date":"2023-07-13T01:16:50","date_gmt":"2023-07-12T17:16:50","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324052"},"modified":"2023-07-13T01:16:51","modified_gmt":"2023-07-12T17:16:51","slug":"stock-in-focus-sm-prime-holdings-smph-13-july-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-sm-prime-holdings-smph-13-july-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: SM Prime Holdings (SMPH) – 13 July 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SMPH<\/td><\/tr>
Company Name<\/strong><\/td>SM Prime Holdings<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>13 July 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 38.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

All things considered, we reiterate our BUY recommendation for SMPH, however, we are lowering our Target Price from P39.50 to P38.20 on the back of the bleak outlook on the residential business of the firm as well as the steady prospects in its mall units.<\/p>\n\n\n\n

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

SM Prime Holdings Inc. (SMPH) banked a total of P9.65 billion (up by +28.46% y\/y) in its 1Q 2023 net income as the property developer saw an improvement in its mall, hotels, and commercial segments. Meanwhile, consolidated revenues during the quarter surged by +20.07% y\/y to P28.70 billion.<\/p>\n\n\n\n

With the low base effects, SMPH saw a high double-digit growth in its mall division. As the biggest mall operator in the country, the Sy-led property firm was able to mirror the strong recovery in economic activity as foot traffic further increased. What added to SMPH\u2019s surge in earnings, in addition, was its full collection of rental fees during the quarter. The mall segment grew by +72% y\/y to P17.05 billion, however, retail may moderate in the subsequent months with the falling purchasing power of households. In 2023, SMPH intends to launch three new malls located in key provinces in the country.<\/p>\n\n\n\n

Moreover, the hotels and convention centers biz lines of the group delivered a triple digit growth on the resurgence of demand in travel. On the flipside, the high benchmark rates as well as cancellations continued to dampen the residential category of the firm. In 1Q 2023, residential revenues tumbled by – 29.14% y\/y to P8.52 billion, which was lower compared to pandemic levels.<\/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>