{"id":324589,"date":"2023-08-24T00:07:09","date_gmt":"2023-08-23T16:07:09","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324589"},"modified":"2023-08-24T00:07:11","modified_gmt":"2023-08-23T16:07:11","slug":"stock-in-focus-robinsons-land-corp-rlc-24-aug-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-land-corp-rlc-24-aug-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Robinsons Land Corp. (RLC) – 24 Aug 2023 by RCBC 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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>24 Aug 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 23.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We raise our target price to Php23.10 as we increased our NAV estimate by 16%. We also upgraded RLC’s 2023\/2024 EPS estimate by 5%\/6% as we impute a lower effective tax rate due to the tax savings from the properties infused to RCR. We continue to highlight RLC\u2019s strong operational rebound across all segments, which we believe is underappreciated by the market. Its mall operations are now back to pre-pandemic levels, while its residential pre-sales surged to new record high level.<\/p>\n\n\n\n

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

Net income up 23% y\/y to Php5.8 billion, beating estimates<\/strong><\/p>\n\n\n\n

RLC\u2019s 2Q 2023 net income ended at Php3.1 billion, down 5% year-on-year (y\/y) but up 17% quarter-on-quarter (q\/q), bringing 1H 2023 net income to Php5.8 billion (+23% y\/y), beating estimates. The 5% y\/y slide in 2Q 2023 net income was due to a high base effect brought by earnings from the Chengdu project in 2Q 2022. If we exclude Chengdu, 2Q 2023 domestic net income would have climbed 47% y\/y.<\/p>\n\n\n\n

Mall continued to recover as consumption held up<\/strong><\/p>\n\n\n\n

Mall revenues in 2Q 2023 grew 27% y\/y to Php3.9 billion (-1% q\/q), driven by higher tenant sales and foot traffic. Mall EBITDA margin improved to 60.3% (+13.4ppts y\/y, +1.9ppts q\/q) due to normalized rental rates and lower power costs.<\/p>\n\n\n\n

Residential pre-sales at new record high<\/strong><\/p>\n\n\n\n

Residential take-up in 2Q 2023 reached a new record high of Php6.8 billion (+119% y\/y, +21% q\/q) driven by the take-up of newly launched project, Mantawi (Cebu), alongside Le Pont (Quezon City), and Sierra Valley Garden (Cainta). Meanwhile, JV take-up in 2Q23 grew 19% y\/y to Php3.8bn (-24% q\/q).<\/p>\n\n\n\n

Office occupancy rate flat q\/q, but may weigh down on new pipeline <\/strong><\/p>\n\n\n\n

Office revenues in 2Q 2023 remained stable at Php1.9bn (+5% y\/y, +1% q\/q), while occupancy rate was flat q\/q at 89%. However, management stated that the upcoming GBF Center 1, which has a gross leasable area (GLA) of 53k, has only been ~13% pre leased. Assuming that the company does not increase its pre-lease contracts, we estimate that office occupancy could potentially decline upon the completion of GBF 1 by end-2023.<\/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>