{"id":326481,"date":"2024-01-25T13:09:16","date_gmt":"2024-01-25T05:09:16","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326481"},"modified":"2024-01-25T13:09:17","modified_gmt":"2024-01-25T05:09:17","slug":"stock-in-focus-semirara-mining-power-corp-scc-25-jan-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-semirara-mining-power-corp-scc-25-jan-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Semirara Mining & Power Corp. (SCC) – 25 Jan 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SCC<\/td><\/tr>
Company Name<\/strong><\/td>Semirara Mining & Power Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>25 Jan 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 34.14<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

We maintain our HOLD rating on SCC with a Target Price of P34.14 per share.<\/p>\n\n\n\n

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

SCC boasts of \u201crecord-breaking\u201d sales volume in 2023<\/h3>\n\n\n\n

In a press release, SCC said that 2023 sales volume has reached a \u201crecord-breaking\u201d 15.8-Mn metric tons (MMT). According to the company, this would mark a 6% increase from 2022, and is aligned with its 2023 sales target of 15-16 MMT. Coal sales volume for the first nine months of 2023 was reported at 10.5 MMT, which would imply that SCC sold 5.3 MMT of coal in Q4 or more than double the 2.5 MMT sales volume in the same period last year.<\/p>\n\n\n\n

Offsetting the nosedive in prices<\/h3>\n\n\n\n

The massive jump in sales volume should be some help in offsetting the huge drop in coal prices this year from last year\u2019s high base. Average prices of benchmark Newcastle coal has declined by 51.3% yaer-on-year (YoY) in 2023, with average prices in Q4 down by 7.9% QoQ and 64.3% YoY. (Note: SCC sales prices are benchmarked against the Indonesian ICI4, which roughly tracks Newcastle prices) SCC\u2019s reported average selling price (ASP) for the first nine months of 2023 was down 20.9% from the same period last year, and assuming that Q4 prices would track the QoQ decline in Newcastle prices we estimate that the company\u2019s ASP would be down 29.4% YoY. All considered, we expect SCC\u2019s coal revenues to drop by only 23.1% in 2023 due to
the boost in sales volume.<\/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>