{"id":326596,"date":"2024-02-02T00:39:09","date_gmt":"2024-02-01T16:39:09","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326596"},"modified":"2024-08-27T00:34:31","modified_gmt":"2024-08-26T16:34:31","slug":"stock-in-focus-acen-corp-acen-2-feb-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-acen-corp-acen-2-feb-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: ACEN Corp. (ACEN) – 2 Feb 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ACEN<\/td><\/tr>
Company Name<\/strong><\/td>ACEN Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>2 Feb 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 8.94<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Profitability ratios are expected to increase with ACEN’s aggressive expansions, while margins are anticipated to stable. However, minimal dividend yields reflect the company’s strategic use of cash reserves for expansion plans. ACEN’s strong operational performance, commitment to sustainable practices, and significant figures position it as a key player in the global renewables market, with its growth strategy contributing positively to future shareholder value. <\/p>\n\n\n\n

Following the recent performance of the company, we are revising our Target Price to P8.94. Retain buy.<\/p>\n\n\n\n

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

AC Energy Corporation (ACEN) reported robust 3Q 2023 core net income (NI) of P2.33 billion, marking a double-digit year-on-year (y\/y) improvement. This positive performance was driven by a surge in other income, particularly gains from the remeasurement of retained interest, partial settlement of a development loan, and foreign exchange gains. <\/p>\n\n\n\n

Despite a -11.79% y\/y decline in revenues, attributed to scheduled plant maintenance and seasonally low wind and electricity prices due to the rainy season, ACEN maintained a net selling merchant position during the quarter. The commissioning of new power plants, both domestically and internationally, contributed to higher output, especially from projects like the Arayat-Mexico Solar Farm, Pagudpud Wind Farm, Masaya Solar Farm in India, and ACEN’s acquisition of SUPER in Vietnam.<\/p>\n\n\n\n

For the 9M 2023 period, ACEN achieved a core bottom line of P6.57 billion, reflecting a notable +59.34% y\/y increase. Operational excellence and strategic expansion, including the commissioning of new power plants in the Philippines and Australia, were key contributors to this positive financial outcome. The equity in NI of associates and joint ventures also increased over 5x to P1.56 billion in 9M 2023, driven by stronger wind regimes and improved geothermal availability in Indonesia and Vietnam.<\/p>\n\n\n\n

Regarding expansion updates, ACEN remains on track to achieve its ambitious renewable target of 20 GW by 2030, with total attributable capacity reaching approximately 4,515 MW as of 9M23. The company’s international portfolio contributed significantly to a +27% y\/y increase in total attributable output. The expansion into Australia, India, and the USA diversifies ACEN’s revenue streams geographically, reducing dependence on a single market.<\/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>