{"id":326120,"date":"2023-12-15T12:19:45","date_gmt":"2023-12-15T04:19:45","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326120"},"modified":"2023-12-15T12:19:48","modified_gmt":"2023-12-15T04:19:48","slug":"stock-in-focus-gt-capital-holdings-inc-gtcap-15-dec-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-gt-capital-holdings-inc-gtcap-15-dec-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: GT Capital Holdings, Inc. (GTCAP) – 15 Dec 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GTCAP<\/strong><\/td><\/tr>
Company Name<\/strong><\/td>GT Capital Holdings, Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>15 Dec 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 800.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We set our 12-month target price (TP) for GTCAP at Php800.00 based on our estimated sum-of-the-parts (SOTP) NAV (net asset value) of Php1,067.00, discounted by 25%. Our valuation is mainly driven by its 51%-owned Toyota Motor Philippines Corp. (TMP) and 37.2%-owned Metrobank (MBT), which account for 39% and
35% of our gross asset value estimate, respectively. GTCAP is currently trading at a price that seems to reflect only 71%\/72% of our fair value estimate for TMP\/MBT. The other smaller investments, like MPI, Federal Land, and others, come totally free. <\/p>\n\n\n\n

Our Target Price offers a massive potential share price upside of 47%, a follow-through to a superb 25% increase year-to-date (YTD). GTCAP is one of the only two index-linked conglomerates outperforming the index YTD. We rate GTCAP a BUY.<\/p>\n\n\n\n

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

Core net income up 105% year-on-year (y\/y)<\/h3>\n\n\n\n

GTCAP\u2019s core net income (CNI) grew by 105% y\/y to Php23.25 billion in 9-month (9M) 2023. Including its pro-rated share in associate Metro Pacific Investments Corporation\u2019s (MPI) non-recurring expenses in 9M 2023 and the one-time gains it booked in 9M 2022, consolidated net income in 9M 2023 was up 54% y\/y to Php23.09 billion. Banking and auto accounted for a combined 75% of GTCAP\u2019s net income.<\/p>\n\n\n\n

Auto exposure is a big boost<\/h3>\n\n\n\n

Among the listed Philippine conglomerates, GTCAP is the only one with heavy auto exposure via TMP, whose contribution to GTCAP\u2019s consolidated net income has grown to 25% in 9M 2023, from 14% in FY22 and already higher than 24% in pre-pandemic year FY19. In 9M23, TMP\u2019s revenues grew by 22% y\/y to Php162.8 billion, while net income soared by 159% y\/y to Php10.9 billion. It had a market share of 47% in sales volume, with 9M 2023 retail vehicle sales up by 15.5% y\/y to 144,232 units.<\/p>\n\n\n\n

Banking unit remains buoyant<\/h3>\n\n\n\n

Banking unit MBT\u2019s 9M 2023 net income grew 36% y\/y to Php31.8 billion and contributed 50% to GTCAP\u2019s consolidated net income. Net interest income climbed 24% to Php77.2 billion with the 50bps y\/y net interest margin (NIM) expansion. Gross loans and total deposits grew by 7% and 15% y\/y, respectively. It has maintained its solid asset quality with an NPL ratio of 1.7% and NPL cover at 187%.<\/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>