{"id":326689,"date":"2024-02-08T02:28:38","date_gmt":"2024-02-07T18:28:38","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326689"},"modified":"2024-02-08T02:28:40","modified_gmt":"2024-02-07T18:28:40","slug":"stock-in-focus-vista-land-lifescapes-inc-vll-8-feb-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-vista-land-lifescapes-inc-vll-8-feb-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Vista Land & Lifescapes, Inc. (VLL) – 8 Feb 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>VLL<\/td><\/tr>
Company Name<\/strong><\/td>Vista Land & Lifescapes, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>8 Feb 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1.94<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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While it seems the company is cheap at 0.82x Price-to-Book (P\/B) ratio, this is in line with the historical discount of 85% vs comps, given the provided data which highlights VLL\u2019s incapability not only to collect receivables but to also sell inventory before building more. Taking all factors into consideration, as well as the slim upside to consensus Target Price of P1.94 per share, we are issuing a HOLD rating for VLL.<\/p>\n\n\n\n

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

VLL bond offer falls through<\/h3>\n\n\n\n

VLL has reportedly cancelled their $2-Billion dollar-denominated bond sale amid lackluster investor demand. This is despite the high yield being offered at 9%, according to industry sources. The proceeds of the offer were intended to be used for refinancing, working capital, investment and other general corporate purposes. Based on the company\u2019s last annual report, VLL has P32.7-Billion worth of debt which matures this year. It is not immediately clear how the company will refinance this maturing debt following the cancellation of the bond offer. <\/p>\n\n\n\n

Potential cause of death #1: A\/R turnover ratio<\/h3>\n\n\n\n

The lack of interest at the offered rate was likely due to concerns over the company\u2019s financial liquidity. Upon looking at the accounts receivable turnover ratios of VLL in comparison to that of the two largest residential developers in the country which is ALI and MEG, we saw a very noticeable difference in terms of their receivable turnover ratios. While MEG and ALI\u2019s ratios experienced significant recovery for 9M22 and 9M23, VLL has failed to do so. VLL\u2019s ratios has remained below 1.00 beginning 9M21 at 0.59 and 9M23 at 0.62.<\/p>\n\n\n\n

Potential cause of death #2: Inventory outstanding<\/h3>\n\n\n\n

Looking at their days inventory outstanding, we saw ALI\u2019s days inventory decline from its 1Q 2021 peak of 882 days and MEG from 2Q 2021\u2019s 2,710. In the case of VLL however, they not only have the highest days inventory among the three, but the only one that has significantly climbed quarter-on-quarter, barring the small decline from 2Q23\u2019s 3,915 to 3Q23\u2019s 3,716. This poses a concern for VLL\u2019s ability sell their inventory and internally generate funds that it needs for debt refinancing and future projects.<\/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>