{"id":325365,"date":"2023-10-18T00:09:08","date_gmt":"2023-10-17T16:09:08","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325365"},"modified":"2023-10-18T00:09:11","modified_gmt":"2023-10-17T16:09:11","slug":"stock-in-focus-digiplus-interactive-corp-plus-18-oct-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-digiplus-interactive-corp-plus-18-oct-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: DigiPlus Interactive Corp. (PLUS) – 18 Oct 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>PLUS<\/td><\/tr>
Company Name<\/strong><\/td>DigiPlus Interactive Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>18 Oct 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 8.35<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

PLUS is now trading slightly below its 2018 high, but note that it didn\u2019t have its booming BINGO business five years ago. As such, renewed optimism could allow PLUS to realize the potential upside to the consensus Target Price of P8.35.<\/p>\n\n\n\n

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

PLUS looking to revive Boracay casino plans<\/h3>\n\n\n\n

DigiPlus Interactive Corp. (PLUS) is looking to revive its 500-Million integrated casino joint venture in Boracay with Galaxy Entertainment Group. To recall, the company formerly known as Leisure & Resorts World Corp. (LR) was tapped by Galaxy in 2017 to jointly develop a casino project in Boracay. A year later, it managed to secure a 24-hectare property for the project and a provisional license from PAGCOR. <\/p>\n\n\n\n

However, former President Duterte turned sour on gambling and at the same time ordered the rehabilitation of Boracay and the imposition of a complete ban on gambling on the island. The plan was eventually scrapped, but PLUS is now hopeful that a friendlier administration might allow the casino project to push through, especially since the nation\u2019s economic managers need the economy to be firing on all cylinders.<\/p>\n\n\n\n

Albee here waiting for you<\/h3>\n\n\n\n

PLUS majority owner and founder Albee Benitez said to reporters that he has sent out
feelers to Galaxy to test their willingness to restart the project. However, Galaxy is understandably hesitant and asking for guarantees that the sudden regulatory U-turn won\u2019t happen again. <\/p>\n\n\n\n

Current diplomatic tensions between the Philippines and China would also be a challenge, since Galaxy is based in Macau and serves mostly mainland Chinese clientele. Benitez said that they are still waiting for Galaxy to regain confidence in the project, but with Duterte recanting his Boracay gambling ban in 2021 and the property already secured on the island, all systems should be go once their Macau partner gives the green light.<\/p>\n\n\n\n

Would history repeat itself? <\/h3>\n\n\n\n

The Marcos administration has so far proven to be friendlier to most business sectors, even the mining and gambling sectors which was shunned by the previous President. The nation\u2019s economic managers are also desperate to restore tourist hotspots like Boracay to their pre-pandemic glory and would likely be open to the
idea. <\/p>\n\n\n\n

Benitez\u2019s statements that the company is not giving up on its Boracay plans would likely generate more hype for PLUS, which is already proving to be this year\u2019s hottest stock with a 198.3% gain year-to-date (YTD). And speaking of history, the share price of PLUS nearly doubled from P3.80 to P7.50 in 2018 when it secured its Boracay gaming license before eventually crashing back to P2.50 when Duterte killed the project. <\/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>