{"id":325021,"date":"2023-08-17T00:04:00","date_gmt":"2023-08-16T16:04:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325021"},"modified":"2023-11-15T22:06:47","modified_gmt":"2023-11-15T14:06:47","slug":"stock-in-focus-semirara-mining-power-corp-scc-17-aug-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-semirara-mining-power-corp-scc-17-aug-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Semirara Mining & Power Corp. (SCC) – 17 Aug 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SCC<\/td><\/tr>
Company Name<\/strong><\/td>Semirara Mining & Power Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 Aug 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 34.40<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We are maintaining our rating of BUY with a Target Price of P34.40, as the power contributions grows larger despite the slowdown in coal prices but with coal demand still expected to be at highs as the winter season comes. It is worth taking note that SCC pays out special dividends as long as its bottomline is maintained which can be better seen now as 3Q 2023 approaches, making it an attractive play for all investors.<\/p>\n\n\n\n

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

Semirara Mining and Power Corporation (SCC)’s Net Income (NI) dropped -5.5% year-on-year (y\/y) to P10.2 billion mainly due to the high base effect and the mellowing coal market prices with the power segment tempering the weakness of SCC\u2019s coal segment. <\/p>\n\n\n\n

With coal ASPs mellowing down, SCC posted a lower coal contribution, slumping to -23% y\/y from a high base of P6.9 billion. Nevertheless, SCC is still expecting coal demand to be sustained at a high level as winter season comes as early winter restocking drives the demand for coal.<\/p>\n\n\n\n

SCC\u2019s balance sheet remains healthy, with its 2Q23 maintaining a net cash position even after paying Ph18.6 billion in cash dividends, capex, and debt repayments. SCC\u2019s current ratio is at 2.85x, with an improved BVPS and leverage ratio. As for SCC\u2019s 2Q23 performance, NI fell -5.5% y\/y to P10.2 billion on a high base effect in coal prices. Coal revenues also went down by -6.49% y\/y due to the normalization of coal prices. Still, total shipments increased by +22% y\/y to 4.5MMT on the back of recovering export.<\/p>\n\n\n\n

On the other hand, power contribution rallied on the opening of SCPC Unit 2,
higher spot volume, better ASP, and lower replacement purchase. Total power sales rose to +22% y\/y at 1,097GW as higher power contribution continues towards the El Ni\u00f1o season with power revenues surging by +43.39% y\/y to P6.91 billion. However, there is a 20-day planned outage for SCPC Unit 1 and a 40-day outage for SLPGC Unit 2 from Oct to Nov 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>