{"id":324815,"date":"2023-09-07T13:29:27","date_gmt":"2023-09-07T05:29:27","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324815"},"modified":"2023-09-07T13:29:29","modified_gmt":"2023-09-07T05:29:29","slug":"stock-in-focus-universal-robina-corp-urc-7-sept-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-universal-robina-corp-urc-7-sept-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Universal Robina Corp. (URC) – 7 Sept 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>URC<\/td><\/tr>
Company Name<\/strong><\/td>Universal Robina Corp.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>7 Sept 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 172.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We maintain our target price (TP) for URC at Php172.00 and reiterate our BUY recommendation for URC as we expect URC to perform more strongly in the 2nd half (2H) of 2023 on account of seasonally stronger demand (holiday season). Our TP offers a compelling share price upside of 49.6% and a total return potential of 51.9% which includes our 2023 dividend yield of 2.3%.<\/p>\n\n\n\n

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

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

We expect Universal Robina Corp. (URC) to perform more strongly in 2H 2023 on account of a seasonally stronger consumer demand as the holiday season approaches. We expect volume demand for the Branded Consumer Foods (BCF) to quicken in 2H 2023 with fill rates sustained or better than 80% (achieved in June 2023) as wholesalers\/retailers stock-up for the holiday spending while we expect the Agro-Industrial and Commodities (AIC) segment to maintain its performance as tight supply of flour and sugar keep prices elevated.<\/p>\n\n\n\n

Earnings recap<\/strong><\/p>\n\n\n\n

URC posted 1H 2023 core net income of Php6.4 billion, 11% higher year-on-year (y\/y). Consolidated net sales rose 11% to Php78.6 billion, underpinned by a 6% growth in BCF and 23% growth in AIC. Gross profit increased 10% to Php20.9 billion due to higher topline while margins remained in the 26.60% level. Operating income outpaced topline growth at 16% to Php8.6 billion due to a 50bps margin expansion to 10.90%.<\/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>