{"id":324143,"date":"2023-07-20T11:00:07","date_gmt":"2023-07-20T03:00:07","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324143"},"modified":"2023-07-20T11:00:09","modified_gmt":"2023-07-20T03:00:09","slug":"stock-in-focus-cosco-capital-inc-cosco-20-july-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-cosco-capital-inc-cosco-20-july-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: Cosco Capital Inc. (COSCO) – 20 July 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>COSCO<\/td><\/tr>
Company Name<\/strong><\/td>COSCO Capital Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>20 July 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 9.70<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The potential REIT listing would allow the market to better appreciate the value of COSCO\u2019s properties, which would in turn trickle down to the conglomerate\u2019s valuations as well. Based on its consensus Target Price, COSCO currently has a Target Price of P9.70.<\/p>\n\n\n\n

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

COSCO mulling REIT listing<\/strong><\/p>\n\n\n\n

The holding company of Lucio Co is mulling a potential REIT listing worth P15-Billion to P30-Billion this year. If the offer pushes through, then this would grant it the status of being the largest IPO in the local market so far for this year. Primarily known for its retail operations Puregold and S&R, the conglomerate also has a real estate segment which deals mainly in the selling and leasing of properties, and accounts for 8.0% of the firm\u2019s total income. Its leasing tenant profile includes PGOLD itself as the real estate segment also provides the properties for many of PGOLD\u2019s stores. In total, the division owns a total of 47 properties, with its portfolio including various retail buildings such as the shopping complex Fairview Terraces (co-developed with Ayala), and also a fuel-terminal facility in the Subic Bay Freeport Zone.<\/p>\n\n\n\n

Unlocking heavily discounted value<\/strong><\/p>\n\n\n\n

While further information is still needed regarding this potential REIT, we note that such a listing would help unlock the value of COSCO\u2019s heavily discounted real estate segment. Based on COSCO\u2019s market cap of P36.85-Billion, investors are essentially valuing the entire company at a price worth less than its stake in PGOLD. By buying into COSCO, investors are not only getting PGOLD at a bargain, but are also getting its liquor distribution, real estate operations, and oil and mining division essentially for free. Upside all the more increases when we factor in our estimated TP and consensus Target Price on PGOLD (P56.50) and KEEPR (P2.20) respectively.<\/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>