{"id":325475,"date":"2023-10-25T21:55:28","date_gmt":"2023-10-25T13:55:28","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325475"},"modified":"2023-10-25T21:55:30","modified_gmt":"2023-10-25T13:55:30","slug":"stock-in-focus-puregold-price-club-pgold-25-oct-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-puregold-price-club-pgold-25-oct-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Puregold Price Club (PGOLD) – 25 Oct 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>PGOLD<\/td><\/tr>
Company Name<\/strong><\/td>Puregold Price Club, Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>25 Oct 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 41.70<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We retain our target price (TP) for PGOLD at Php41.70 based on our Price-Earnings (PE) valuation and reiterate our BUY recommendation. We believe that despite earnings falling behind expectations, PGOLD may be able to catch up on the 4th quarter (4Q) 2023 due to holiday spending. Our Target Price indicates a 46.80% share price upside, and a total return potential of 49.80%, including a 2023 dividend yield of 3.00%.<\/p>\n\n\n\n

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

Net income grew 2% higher<\/h3>\n\n\n\n

(PGOLD) recorded 9-months (9M) 2023 net income of Php6.6 billion, 2% higher year-om-year (y\/y). Earnings trailed below expectations, accounting for 67% of our 2023 forecast of Php9.9 billion and 69% of consensus 2023 estimates of Php9.6 billion.<\/p>\n\n\n\n

Dragged by opex<\/h3>\n\n\n\n

Consolidated revenues increased 9% y\/y to Php139.3 billion on a same store sales growth (SSSG) of 4.8% from PGOLD stores and 4.1% SSSG from S&R Warehouses mainly on higher store traffic. Gross profit grew 7% to Php25.5 billion even on a blended margin contraction of 50bps to 18.3% owing to higher topline. Operating income declined 2% to Php10.0 billion as margins shrank 90bps to 7.2% due to higher operating expenses. As of end-9M 2023, PGOLD opened 30 new PGOLD stores, 2 S&R warehouses, and 2 S&R QSR bringing its store portfolio to a total of 558 stores.<\/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>