{"id":325709,"date":"2023-11-15T22:03:43","date_gmt":"2023-11-15T14:03:43","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325709"},"modified":"2023-11-15T22:03:45","modified_gmt":"2023-11-15T14:03:45","slug":"stock-in-focus-monde-nissin-corp-monde-9-oct-2023-by-ap-securities-2","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-monde-nissin-corp-monde-9-oct-2023-by-ap-securities-2\/","title":{"rendered":"Stock in Focus: Monde Nissin Corp. (MONDE) – 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>MONDE<\/td><\/tr>
Company Name<\/strong><\/td>Monde Nissin Corp.<\/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 11.75<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are retaining our BUY rating with a higher Target Price of P11.75 and a potential upside of +42.45%. We believe that MONDE would be able to continue to see strong growth under its APAC business and are bullish on the recovery of its MA business as inflation starts to ease down.<\/p>\n\n\n\n

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

Monde Nissin Corporation (MONDE)’s Core Net Income (NI) in the 3rd quarter (3Q) 2023 rose sharply by +41.03% year-on-year (y\/y) to P2.19 billion. Bottomline rose as the company saw a strong bottomline growth under the Asia-Pacific (APAC) region. Core NI for 9-month (9M) 2023 registers a growth of +1.12% y\/y to P5.7 billion after a strong 3Q 2023 performance.<\/p>\n\n\n\n

APAC\u2019s Core Net Income rose by +40.13% y\/y to P2.4 billion as this segment saw a strong volume recovery under its noodle division. We expect the noodle segment to continue its volume recovery as consumer confidence in the brand returns. The company has locked in favorable prices under key commodities for the succeeding quarters. Wheat has been locked-in up to 2Q 2024, and 80% of palm oil has been secured for 4Q 2023, while 60% has been locked-in for 1Q 2024 and 2Q 2024.<\/p>\n\n\n\n

Meat Alternative continues to suffer as its core bottomline declined further into negative territory, registering a decline of -P213 million. Meat Alternative continues to be troubled amid a difficult U.K. environment. Food inflation remains highly elevated. GPM declined significantly under MA, dropping by 700bps to 22.93% in 3Q23 as input costs grew despite the decline in revenue.<\/p>\n\n\n\n

Management noted that for APAC, topline is likely to follow the growth recorded in 3Q 2023 for 4Q 2023. Revenues for the month of October has reached all time highs and NPM is projected to expand further.<\/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>