{"id":325727,"date":"2023-11-15T22:35:33","date_gmt":"2023-11-15T14:35:33","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325727"},"modified":"2023-11-15T22:35:34","modified_gmt":"2023-11-15T14:35:34","slug":"stock-in-focus-gt-capital-holdings-inc-gtcap-15-nov-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-gt-capital-holdings-inc-gtcap-15-nov-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: GT Capital Holdings, Inc. (GTCAP) – 15 Nov 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GTCAP<\/td><\/tr>
Company Name<\/strong><\/td>GT Capital Holdings, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/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 833.50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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The company\u2019s presence in key sectors tied to economic growth makes it our top cyclical conglomerate, and would make it the best stock to hold in the event of an economic turnaround. As such, we maintain our BUY on GTCAP, with 52.1% upside to consensus Target Price of P833.50.<\/p>\n\n\n\n

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

GTCAP earnings beat estimates<\/h3>\n\n\n\n

Despite the 34.6% quarter-on-quarter (QoQ) drop and 2.2% year-on-year (YoY) decline in net income, GTCAP earnings for the 3rd quarter (3Q) 2023 beat consensus expectations of P5.1 Billion. The year-to-date figures has also surpassed full-year estimates of P22.9 Billion.<\/p>\n\n\n\n

Earnings driven by auto sales<\/h3>\n\n\n\n

Sales of Toyota Motor Philippines (TMP) were up 22% for the first nine months despite losing 3.7% of market share to new entrants in the industry. Wider margins due to higher sales price and a weaker Yen further boosted the bottom line, resulting in net income attributable to GTCAP more than doubling to P10.9-Billion from P4.2-Billion in the same period last year. Overall, gross margins improved by 4.5 ppts to 13.8% while operating margins widened by 4.4 ppts to 8.7%.<\/p>\n\n\n\n

Firing on all cylinders<\/strong><\/p>\n\n\n\n

GTCAP\u2019s share in Metro Pacific\u2019s P16.1-Billion income (+22.0% YoY) for the period grew in line with the company raising its stake in MPI from 17.1% to 20.0%, resulting in MPI contributing 10.0% of GTCAP\u2019s net income. Excluding one-time gains from both years, Federal Land also more than doubled its core net income to P1.9-Billion in 9M23 from P679-Mn last year. <\/p>\n\n\n\n

Net income from property was flattish if one-time gains are included. Metrobank and AXA Life likewise posted double-digit income growth of 36% and 20% respectively.<\/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>