{"id":324313,"date":"2023-08-04T01:37:27","date_gmt":"2023-08-03T17:37:27","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324313"},"modified":"2023-08-04T01:41:55","modified_gmt":"2023-08-03T17:41:55","slug":"stock-in-focus-robinsons-retail-holdings-inc-rrhi-4-aug-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-retail-holdings-inc-rrhi-4-aug-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Robinsons Retail Holdings Inc. (RRHI) – 4 Aug 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RRHI<\/td><\/tr>
Company Name<\/strong><\/td>Robinsons Retail Holdings Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>4 Aug 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 67.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are reiterating our BUY recommendation on RRHI with a Target Price of P67.60. We attribute our rating on additional store openings and steady margins.<\/p>\n\n\n\n

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

Robinsons Retail Holdings, Inc. (RRHI) Core Net Income in 2Q 2023 rises slightly by +3.17% y\/y to P1.27 billion. Slower growth is attributed to a high base last year which covered the election season. The company records a +8% y\/y increase in revenues to P46.39 billion. <\/p>\n\n\n\n

In terms of topline, supermarkets and drugstores led the company\u2019s revenue mix, rising by +8.2% and +18.1% y\/y respectively. Core NPM slightly declines by 13bps y\/y to 2.73%, this however is an improvement q\/q vs the 2.45% recorded in 1Q23.<\/p>\n\n\n\n

Net Income to Parent declines sharply by -18.96% y\/y to P1.26 billion. The decline was affected by higher forex losses and equitized losses from associates. This brought 1H 2023 bottomline down -34.17% y\/y to P1.8 billion. Forex declines on bond and equity holdings.<\/p>\n\n\n\n

The high interest expense from the acquisition of BPI shares was fully offset by the dividend income received. This expense previously brought RRHI\u2019s bottomline to significantly decline in 1Q 2023. Dividend income from the BPI acquisition is estimated to bring in P950 million for the year, with the next dividend income from BPI expected in 4Q 2023.<\/p>\n\n\n\n

The Gokongwei Group\u2019s digital banking arm GoTyme of which RRHI has a 20% stake in, has 737k account holders, on track to reach a million by 3Q 2023. Since the acquisiton, the company has been recording equitized losses from associates. GoTyme is expected to be positive by 2025.<\/p>\n\n\n\n

Net store additions for the year is estimated at 160-190 additional stores, mostly coming from drugstore openings. Lower revised target comes as construction of stores got delayed. Capex has been lowered for supermarket stores due to backlogs with expectations to open all stores by this year.<\/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>