{"id":324505,"date":"2023-08-17T01:02:25","date_gmt":"2023-08-16T17:02:25","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324505"},"modified":"2024-08-27T00:27:11","modified_gmt":"2024-08-26T16:27:11","slug":"stock-in-focus-robinsons-land-corp-rlc-17-aug-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-land-corp-rlc-17-aug-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: Robinsons Land Corp. (RLC) – 17 Aug 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RLC<\/td><\/tr>
Company Name<\/strong><\/td>Robinsons Land Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Apr 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 22.55<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Given significant earnings outperformance on the back of higher consumer spending, pickup in resi, and traveler resurgence, we recommend a BUY on RLC based on consensus Target Price of P22.55 per share.<\/p>\n\n\n\n

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

Significant bottomline growth despite high base<\/strong><\/p>\n\n\n\n

RLC posted P5.78-Billion of Net Income, a growth of 23.3% YoY despite the absence of revenues from its China project which contributed 46% of 1H 2022 Revenues. The actual Q2 numbers reflect an outperformance of 17.9% based on consensus estimates. Topline growth was driven by Malls (+35.9% YoY), Hotels (+148.5% YoY), and their Residential segment (+28.11% YoY). We note though that earnings were heavily supplemented by a 780bps dip in their effective tax rate from 19.7% in 1H 2022 to 11.9% in 1H 2023.<\/p>\n\n\n\n

Sustained consumer spending<\/strong><\/p>\n\n\n\n

Their mall segment\u2019s revenue increase of 35.9% YoY was achieved as consumers spent more, and occupancy rates improved (92% in 2Q 2023 vs 91% in 1Q 2023). Management cited usage of normal rents already alongside 5-10% annual escalation rates which signifies their confidence in the sustainability of their mall segment.<\/p>\n\n\n\n

Travel and Tourism recovery<\/strong><\/p>\n\n\n\n

Their Hotels and Resorts segment displayed the highest year-on-year growth at 148% as travel and tourism recovers which contributed 10% to their topline, leading to higher occupancy and room rates. This reflects the broader trend in the recent GDP report wherein discretionary spending on travel and lifestyle remain resilient.<\/p>\n\n\n\n

Resilient resi<\/strong><\/p>\n\n\n\n

Despite higher interest rates, resi posted a 28% YoY growth attributable to higher collections, faster construction progress, and stronger equity earnings from JV projects. Management has also mentioned the normalization of payment schemes back to pre-pandemic levels. We note massive improvement in demand for this segment as Net Sales Take-up advanced 107% YoY. Their newly launched Mantawi \u2013 Tower 1, Le Pont- Tower 1, and Sierra Valley Garden 4 made up a bulk of the net sales<\/p>\n\n\n\n

Offices stable<\/strong><\/p>\n\n\n\n

Their office segment grew 4% YoY with the tenant mix remaining highly concentrated to BPOs. The concentration in tenant mix and 3.29 years WALE resulted in stable occupancy at 89%.<\/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>