{"id":326867,"date":"2024-02-22T12:06:43","date_gmt":"2024-02-22T04:06:43","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326867"},"modified":"2024-02-22T12:06:45","modified_gmt":"2024-02-22T04:06:45","slug":"stock-in-focus-ayala-land-inc-ali-22-feb-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ayala-land-inc-ali-22-feb-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Ayala Land, Inc. (ALI) – 22 Feb 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ALI<\/td><\/tr>
Company Name<\/strong><\/td>Ayala Land, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>22 Feb 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 41.67<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We remain bullish on ALI\u2019s growth prospects moving forward, majority of which is hinged on our expectations on rate cuts for the year. Once rate cuts begin, we believe that people will see ALI\u2019s offerings as being even more desirable. We therefore reiterate our BUY rating for ALI with a Target Price of P41.67 per share.<\/p>\n\n\n\n

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

Continued outperformance<\/h3>\n\n\n\n

ALI managed to sustain its earnings outperformance, with 2023 earnings of P24.5-Billion reaching 107.5% of our estimates. We attribute this outperformance mainly to their Shopping Centers, which beat our revenue forecast by 22.2%. Resi on the other hand managed to perform in-line with our estimates, coming in at 104.2% of our estimates.<\/p>\n\n\n\n

Reiterating resi resiliency<\/h3>\n\n\n\n

Resi continued its resiliency streak despite currently high interest rates with in-line 2023 numbers brought about by healthy bookings alongside higher project completions. ALI launched 14 projects in Q4, one of which is ALP\u2019s first signature line project. The total value of project launches for Q4 amounted to P37.7-Billion which accounted for 49.7% of total projects launched for the year. <\/p>\n\n\n\n

We note that management\u2019s FY24 plan involves the launching of P100-Billion worth of residential projects wherein 80% would be composed of premium offerings. This highlights ALI\u2019s confidence in the residential segment, geared towards the premium market which is not as sensitive to high rates. <\/p>\n\n\n\n

Shopping Centers take the lead<\/h3>\n\n\n\n

As previously mentioned, Shopping centers led topline growth, with revenues equating to 122.2% of our estimates. This is on the back of higher occupancy alongside the increase in rents which was led by Glorietta, Manila Bay, Circuit Makati, and Capitol Central. Occupancy also remains stable at 84%, which is 3 ppts higher than 2022\u2019s 81%. We note that recent news came out wherein ALI will be renovating 4 of their prime malls, with a budget of P13-Billion.<\/p>\n\n\n\n

Travelers slowly coming back<\/h3>\n\n\n\n

Although ALI\u2019s Hotels and Resorts segment contribute a miniscule amount to overall revenues, it is worth noting that the segment beat our estimates by 12.1%, attributable to higher travel and tourism demand which pushed up occupancy and room rates.<\/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>