{"id":325478,"date":"2023-10-25T22:01:54","date_gmt":"2023-10-25T14:01:54","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325478"},"modified":"2023-10-25T22:01:56","modified_gmt":"2023-10-25T14:01:56","slug":"stock-in-focus-robinsons-retail-holdings-inc-rrhi-25-oct-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-retail-holdings-inc-rrhi-25-oct-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Robinsons Retail Holdings Inc. (RRHI) – 25 Oct 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RRHI<\/td><\/tr>
Company Name<\/strong><\/td>Robinsons Retail Holdings 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 64.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We retain our target price (TP) for RRHI at Php64.00 based on our Discounted Cash Flow (DCF) valuation and reiterate a BUY rating on the stock. We believe that RRHI is trading cheaply at a Price-Earnings (P\/E) ratio of 12.2x, lower than its 5-year average of 23.8x and lower than its closest peer\u2019s median P\/E of 20.7x. Our Target Price offers a compelling share price upside of 50.2% and a total return potential of 54.9% including a 2023 dividend yield of 4.7%.<\/p>\n\n\n\n

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

More attractive upside<\/h3>\n\n\n\n

We believe that Robinsons Retail Holdings, Inc. (RRHI) is more attractive at current levels as its share price dropped a cumulative 8.4% over the last 8-consecutive sessions, closing its last session just 0.71% higher than its 52-week low. We are anticipating its current trading level to be more compelling as we wait on a more favourable earnings result to be reported within the week, given the strong pre-holiday season spending in the Philippines. RRHI also provides value as one of the strongest dividend play among consumer stocks, rising to 4.7% from 4.3% over the last 2 weeks.
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Earnings recap<\/h3>\n\n\n\n

RRHI reported 1H 2023 core net income of Php2.4 billion, 11% higher y\/y, RRHI\u2019s consolidated revenues ended 10% higher y\/y to Php91.0 billion supported by a same-store sales growth (SSSG) of 6.3% and contributions from newly-opened stores. The essential store formats; supermarkets and drugstore segments alongside department stores continued to boast double-digit revenue growth. <\/p>\n\n\n\n

Gross profit (GP) increased by 11% to Php21.5bn on a 20bps margin improvement to 23.7%. Operating income rose 7% to Php3.9bn despite margins falling 10bps to 4.3% owing to higher topline. Net income attributable declined 34% to Php1.8bn on higher forex losses and losses from associates. Interest expense from the BPI-share acquisitions in 1Q23 was fully offset by the dividend income from the BPI shares.<\/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>