{"id":325921,"date":"2023-12-03T00:16:38","date_gmt":"2023-12-02T16:16:38","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325921"},"modified":"2023-12-03T00:16:40","modified_gmt":"2023-12-02T16:16:40","slug":"stock-in-focus-gt-capital-holdings-inc-gtcap-3-dec-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-gt-capital-holdings-inc-gtcap-3-dec-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: GT Capital Holdings, Inc. (GTCAP) – 3 Dec 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>3 Dec 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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We expect Toyota to offset some of the softness from GTCAP\u2019s other profit pillar, MBT, which saw its Net Interest Margin (NIM) and loan growth starting to plateau in Q3 as the BSP\u2019s tightening cycle comes to an end and as high interest rates start to temper demand for loans. <\/p>\n\n\n\n

As such, we maintain GTCAP as our top conglomerate pick with its very cheap P\/E of 4.65x, as compared to AC (11.81x), AEV (12.72x), and SM (13.65x). We also like GTCAP\u2019s fairly streamlined portfolio of operating subsidiaries and its cyclical nature. As such, we rate GTCAP a BUY based on consensus Target Price of P833.50.<\/p>\n\n\n\n

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

Auto sales jump 18.6% in October<\/h3>\n\n\n\n

Data from the Chamber of Automotive Manufacturers in the Philippines (CAMPI) showed that vehicle sales in October jumped by 18.6% to 38,128 units, bringing the year-to-date total up to 352,971 (+25.9% YoY). The year-to-date total is already 83.4% of CAMPI\u2019s full-year sales target of 423,000 units (+20.0% YoY), meaning they can easily reach that goal even if they only sell around 35,000 units per month in November and December. Considering that the last two months of the year are typically the strongest months for sales, it is highly likely that CAMPI\u2019s target will be surpassed this year.<\/p>\n\n\n\n

Toyota is still king<\/h3>\n\n\n\n

GTCAP\u2019s Toyota Motor Philippines still captured the largest slice of the pie, with a market share of 44.7%. Toyota maintains a wide lead over the rest of the top five brands: Mitsubishi (18.4% market share), Ford (7.5%), Nissan (6.7%), and Suzuki (4.2%). Despite its dominance, Toyota continued to lose market share to its competitors as its October market share is 1.1 ppts lower than its 45.8% share as of end-September and a significant 5.4 ppts decline from last year\u2019s 50.1%.<\/p>\n\n\n\n

Wide range of offerings and better margins to ensure profits for GTCAP<\/h3>\n\n\n\n

Despite losing market share, Toyota is still GTCAP\u2019s income driver this year. In the first nine months, Toyota grew its share in GTCAP\u2019s consolidated net income by 85.1% and accounted for 42.9% of the total. The company attributed this to a wider range of offerings and better margins due to price increases and a relatively weaker Japanese yen. GTCAP reported that Toyota\u2019s gross margins for 9M 2023 improved by 4.5 ppts to 13.8% while operating margins widened by 4.4 ppts to 8.7%.<\/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>