{"id":324316,"date":"2023-08-04T01:41:22","date_gmt":"2023-08-03T17:41:22","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324316"},"modified":"2023-08-04T01:41:24","modified_gmt":"2023-08-03T17:41:24","slug":"stock-in-focus-megaworld-corp-meg-4-aug-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-megaworld-corp-meg-4-aug-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Megaworld Corp. (MEG) – 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>MEG<\/td><\/tr>
Company Name<\/strong><\/td>Megaworld Corp.<\/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 2.74<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We are retaining our BUY recommendation in MEG with a Target Price of P2.74 per share.<\/p>\n\n\n\n

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

In the latest earnings report of Megaworld Corporation (MEG), its bottomline surged by +30% year-on-year (y\/y) to P4.56 billion on the back of the improvement seen across all its business lines, which then pushed its revenues by +23.58% y\/y to P16.23 billion. <\/p>\n\n\n\n

Still, its real estate sales division remained to be the biggest contributor in its topline, which accounts for about 58% of its total revenues. In 1Q 2023, the strong revenue performance counterbalanced its increasing cost and expenses.<\/p>\n\n\n\n

So far, things are looking good for MEG and we expect MEG\u2019s revenues to grow by a single digit growth to P63.02 billion in 2023 on the back of the opening of its new buildings this year. The property developer eyes on kicking of its mall projects by year end which are: D\u2019Olive (5,400 sqm GLA) in Eastland Heights Antipolo, Davao Whisky Park (3,000 sqm GLA) in Davao Park District, and Park McKinley West (7,000 sqm GLA) in McKinley West Taguig. <\/p>\n\n\n\n

Besides these, the property giant plans on adding two more hotels in its portfolio in 2023, with the Grand Westside Hotel having the most number of keys of around 1,530, and Chancellor Hotel Boracay with a total of 554 room keys.<\/p>\n\n\n\n

The property market is not appealing to investors in general with the elevated interest rates, however, MEG showed that the demand for their real estate arm does not falter and continues to be resilient despite the tight monetary policy. In their 1Q 2023 opstat it was revealed that their reservation sales stood at P27 million.<\/p>\n\n\n\n

Meanwhile, looking at the profitability ratios of the firm, we expect it improve in the years moving forward. ROE and EPS are forecasted to trek upwards,mreaching 8.05% and 0.56 in FY23E, respectively, with the introduction of new hotel rooms, residential units, and office spaces.<\/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>