{"id":326957,"date":"2024-02-29T10:32:17","date_gmt":"2024-02-29T02:32:17","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326957"},"modified":"2024-02-29T10:32:19","modified_gmt":"2024-02-29T02:32:19","slug":"stock-in-focus-ayala-land-inc-ali-29-feb-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ayala-land-inc-ali-29-feb-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Ayala Land, Inc. (ALI) – 29 Feb 2024 by Regina Capital Development Corp."},"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>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>29 Feb 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 41.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are reiterating our BUY recommendation on ALI with a Target Price of P41.10 apiece. ALI is poised to thrive in the expected moderated macroeconomic conditions, given its track record of capitalizing on economic upswings in the past. The expected rate cuts by the BSP this year might further boost transaction volumes in the residential sector. Meanwhile, considering the drawbacks, ALI\u2019s topline would be likely hit by its planned renovation on its four flagship malls in a span of two years. The management, however, assure a strategic timeline for the temporary closures of the said malls.<\/p>\n\n\n\n

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

ALI saw an increase of 16% year-on-year (y\/y) to P6.1 billion in its 4Q 2023 attributable Net Income (NI) primarily propelled by the stable bookings of its residential business line as well as the improvement seen in the occupancy of its mall leasing units.<\/p>\n\n\n\n

Breaking it down, the 4Q 2023 revenue of ALI\u2019s residential segment soared by 65.67% y\/y to P29.66 billion on steady residential bookings. Mall leasing revenue rose by 10.93% y\/y to P5.42 billion as the firm saw improvement on occupancy
and increased rental rates. Hotels and resorts grew slightly by 7.29% y\/y to
P2.44 billion on strong tourism arrivals, pushing occupancy and rental rates higher.<\/p>\n\n\n\n

Reservation sales grew by +2% y\/y and q\/q in 4Q 2023 to P28 billion. Demand from
the OFWs weakened on a y\/y basis by -16%. Regained demand from other nationalities was seen as sales from foreigners registered P3.2 billion, which is higher +10% y\/y.<\/p>\n\n\n\n

In 4Q 2023, ALI opened two malls which infused a total of 54k sqm GLA in their
mall leasing portfolio. Ayala Malls One Ayala added 49k sqm of GLA, while the
firm opened an initial 5k sqm in Ayala Malls Vermosa which has a total GLA of
43k sqm once completed.<\/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>