{"id":325702,"date":"2023-11-15T21:25:06","date_gmt":"2023-11-15T13:25:06","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325702"},"modified":"2023-11-15T21:25:08","modified_gmt":"2023-11-15T13:25:08","slug":"stock-in-focus-ayala-land-inc-ali-15-nov-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ayala-land-inc-ali-15-nov-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Ayala Land, Inc. (ALI) – 15 Nov 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ALI<\/td><\/tr>
Company Name<\/strong><\/td>Ayala Land, Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>15 Nov 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 42.30<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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ALI is well on track in hitting our 2023 estimates\u2014 its 9-month (9M) 2023 Net Income (NI) figure is already at 82% of our full-year forecast. Looking ahead, the growth story of ALI remains intact as we have an optimistic view that the macro headwinds will ease in 2024. Historically, ALI reaps significant benefits during economic recoveries, and the anticipated BSP rate cut next year could lead to an even higher volume in the residential category. Therefore, we reaffirm our BUY recommendation for ALI, retaining our Target Price of P42.30\/share.<\/p>\n\n\n\n

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

In the 3rd quarter (3Q) 2023, Ayala Land, Inc. (ALI) raked a total of P7 billion in its attributable Net Income (NI), higher by 33.02% year-on-year (y\/y) despite topline slightly dropping by -0.19% y\/y to P32.91 billion. This is mainly due to the significant decline in its real estate cost (down by -19% y\/y) which resulted from the property giant\u2019s cost control measures.<\/p>\n\n\n\n

Noticeably, the revenues of the property development category of the firm plunged by -12.30% y\/y to P18.51 billion as the segment saw a decline in its residential revenues. Residential revenues in 3Q23 declined by -10.65% y\/y to P16.28 billion. During the briefing, the management said the Ayala Land Premier and Alveo brands continued to carry the property development segment. Similarly, the revenues of commercial and industrial lots division slumped significantly, falling by -30% y\/y to P1.56 billion.<\/p>\n\n\n\n

Turning to the commercial leasing segment, all the division under it\u2014 the mall, office, and hotel and resort\u2014 saw growth. Among these, the hotel and resort division grew the largest y\/y in terms of growth percentage. It banked P2.17 billion, up by +36% y\/y, spurred by higher domestic travel coupled with the influx of foreign tourists. Moreover, office leasing slightly went up as well by +6% y\/y to P2.9 billion on stable occupancy and higher rental rates. <\/p>\n\n\n\n

Lastly, mall revenues jumped by +26% y\/y to P5.4bn as occupancy rate remained stable. Occupancy rate for the quarter accelerated to 84%, higher versus the 83% from 2Q23. Lease out rate, on the other hand, climbed up to 91%, 2% higher than the 89% recorded in 2Q23.<\/p>\n\n\n\n

In the 4th quarter (4Q) 2023, the firm will open two malls: One Ayala in Makati and Ayala Malls Vermosa in Cavite. These malls will add 44k GLA and 5k GLA, respectively. Further, their One Ayala South Tower is expected to be opened in 4Q23 as well which will infuse 12k GLA in its office portfolio.<\/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>