{"id":325346,"date":"2023-10-18T00:05:00","date_gmt":"2023-10-17T16:05:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325346"},"modified":"2023-10-17T23:45:35","modified_gmt":"2023-10-17T15:45:35","slug":"stock-in-focus-manila-electric-co-meralco-mer-18-oct-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-manila-electric-co-meralco-mer-18-oct-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Manila Electric Co. &#8211; Meralco (MER) &#8211; 18 Oct 2023 by RCBC Securities"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Summary of Broker&#8217;s Recommendation<\/h2>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Stock Code<\/strong><\/td><td>MER<\/td><\/tr><tr><td><strong>Company Name<\/strong><\/td><td>Manila Electric Co. (Meralco)<\/td><\/tr><tr><td><strong>Broker<\/strong><\/td><td>RCBC Securities<\/td><\/tr><tr><td><strong>Opinion Issued on<\/strong><\/td><td>18 Oct 2023<\/td><\/tr><tr><td><strong>Recommendation<\/strong><\/td><td>Buy<\/td><\/tr><tr><td><strong>1-Year Target Price<\/strong><\/td><td>PHP 432.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Our target price (TP) for MER at Php432.00 provides an attractive share price upside of 15.5%. The total potential return is 20.7% inclusive of our 5.2% 2023 dividend yield forecast. We reiterate our Buy rating for MER as it evolves into more than just a distribution business. Its aggressive renewable energy (RE) expansion will pave the way for higher growth for the company in the next few years.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Analysis and Opinion<\/h2>\n\n\n\n<p>Following MER\u2019s strong 1st half (1H) 2023 performance due to the robust growth in its power gen business, Meralco committed to invest at least Php18 billion to develop or bring over 2GWs of gross renewable energy (RE) capacity. <\/p>\n\n\n\n<p>Solidifying their goal, Meralco\u2019s power gen subsidiary MGen Renewable Energy (MGREEN) agreed with SP New Energy Corp. (SPNEC) and its parent, Solar Philippines Power Project Holdings, Inc. (SPH) to invest Php15.9 billion to subscribe to 15.7 million common shares and 19.4bn redeemable preferred voting shares in SPNEC. <\/p>\n\n\n\n<p>Once the deal is completed, MGreen\u2019s common and preferred voting shares will make the company the controlling shareholder of SPNEC with a total voting interest of 50.5%. Recall that SPNEC has 10GWs of RE plants in its pipeline, a part of this is the 2.5GW solar plant and 4GW battery energy storage system. <\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Check how many brokers recommend this stock<\/h2>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-pinoyinvestor wp-block-embed-pinoyinvestor\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"ETWAMrhZe3\"><a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-rankings-all-stocks\/\">All Stock Rankings<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;All Stock Rankings&#8221; &#8212; PinoyInvestor\" src=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-rankings-all-stocks\/embed\/#?secret=fnv3Nlw7OC#?secret=ETWAMrhZe3\" data-secret=\"ETWAMrhZe3\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our recommendation and 1-year Target Price for this stock is<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-325346","post","type-post","status-publish","format-standard","hentry","category-stocks-in-focus","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/325346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=325346"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/325346\/revisions"}],"predecessor-version":[{"id":325348,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/325346\/revisions\/325348"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=325346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=325346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=325346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}