{"id":325912,"date":"2023-12-02T23:49:51","date_gmt":"2023-12-02T15:49:51","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325912"},"modified":"2023-12-02T23:49:53","modified_gmt":"2023-12-02T15:49:53","slug":"stock-in-focus-bloomberry-resorts-corp-bloom-2-dec-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bloomberry-resorts-corp-bloom-2-dec-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Bloomberry Resorts Corp. (BLOOM) – 2 Dec 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BLOOM<\/td><\/tr>
Company Name<\/strong><\/td>Bloomberry Resorts Corp.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>2 Dec 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 14.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Our target price for BLOOM at Php14.00 provides an attractive 44% upside. The Chinese fly-in players remain to be a key upside for earnings growth in the future as their entry to country has been stagnant. Recall that Chinese players accounted for 45% of BLOOM\u2019s 2019 gross gaming revenues (GGR) pre-pandemic.<\/p>\n\n\n\n

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

Poised for better 4Q 2023<\/h3>\n\n\n\n

Bloomberry Resorts Corp.\u2019s (BLOOM) experienced a 12% drop quarter-on-quarter (q\/q) in the 3rd quarter (3Q) 2023. Management has noted that the decline was due to seasonality (ghost month). We believe, however, that the 4th quarter (4Q) 2023 earnings will do better with the resurgence in volumes due to the holiday season.<\/p>\n\n\n\n

Earnings recap<\/h3>\n\n\n\n

Bloomberry Resorts Corp.\u2019s (BLOOM) 9-month (9M) 2023 net income more than doubled year-on-year (y\/y) to Php8.3 billion, in line with estimates. Consolidated gross gaming revenues (GGR) grew 26% to Php44.5 billion with VIP\/mass\/slot volumes climbing by 46%\/46%\/22%. EBITDA jumped 48% to Php15.4 billion.<\/p>\n\n\n\n

Opportunity in the north<\/h3>\n\n\n\n

We expect that the start of Solaire North\u2019s operations by 1H 2024 will boost BLOOM\u2019s GGRs as it will add 250 mass tables, around 2,300 slot machines, 200 electronic gaming machines, and 500 hotel rooms. Note that there are no VIP rooms, as the new casino banks on tapping more local players, which have been consistently dominant in its GGR mix this year.<\/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>