{"id":324704,"date":"2023-08-31T15:23:12","date_gmt":"2023-08-31T07:23:12","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324704"},"modified":"2023-08-31T15:23:14","modified_gmt":"2023-08-31T07:23:14","slug":"stock-in-focus-vista-land-lifescapes-inc-vll-31-aug-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-vista-land-lifescapes-inc-vll-31-aug-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Vista Land & Lifescapes, Inc. (VLL) – 31 Aug 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>VLL<\/td><\/tr>
Company Name<\/strong><\/td>Vista Land & Lifescapes, Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>31 Aug 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1.70<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Reiterate HOLD with Php1.70 target price. VLL posted 2nd quarter (2Q) 2023 headline net income of Php2.8 billion, bringing its 1st half (1H) 2023 headline net income at Php5.0 billion, up 83% year-on-year (y\/y). Although, this was boosted by a one-time gain from insurance proceeds amounting Php1.8 billion. Excluding this non-recurring item, its 1H 2023 core net income would have been Php3.2 billion, behind our estimates. This reinforces our HOLD rating on VLL with a target price of Php1.70.<\/p>\n\n\n\n

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

Residential revenues fell sequentially amid extended payment terms<\/strong><\/p>\n\n\n\n

Residential revenues in 2Q 2023 fell to Php3.5 billion, down 11% y\/y and -21% quarter-on-quarter (q\/q) attributed by extended payment terms offered to residential buyers (~15-20 months vs. 15 months pre-COVID). On the bright side, 2Q 2023 reservation sales rose 13% y\/y to Php17.0 billion, albeit down -9% q\/q. The company launched Php24.5 billion worth of projects in 1H 2023, most of which were upscale projects. Meanwhile unbooked revenues remained healthy at ~Php75 billion.<\/p>\n\n\n\n

Rental revenues supported by higher tenant sales<\/strong><\/p>\n\n\n\n

Rental revenues in 2Q 2023 grew climbed to Php4.3 billion (up 14% y\/y; up 21% q\/q) as mall operations sustained recovery. Foot traffic is now on-par with pre-COVID, while leasing occupancy rate improved 1ppt y\/y to 87%.<\/p>\n\n\n\n

2023 estimated EPS cut by ~10%<\/strong><\/p>\n\n\n\n

Following the 1H 2023 performance, we cut our estimated 2023 EPS by ~10% to incorporate higher residential costs and operating expenses. Our new assumptions imply a forecasted 2023\/2024 EPS growth of 1%\/20%, which is equivalent to 2022- 2024 EPS CAGR of 10%. We expect accelerated earnings rebound in 2024 underpinned by the robust take-up performance in the past few quarters. However, we remain cautious on the impact of longer payment schemes on revenue bookings, especially since VLL is highly exposed to the affordable-to-middle income projects. We expect VLL to deliver only ~65% of 2019 earnings by 2024.<\/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>