Apart from producing sizeable returns for its investors, the \u201cRazon-related stocks\u201d have been providing strong support to the local index and have helped attract investor interest into the Philippine equities market.<\/p>\n\n\n\n
If you own these Enrique Razon-related stocks, you must be doing very well in terms of your investment:<\/p>\n\n\n\n
– ICT (+28.5%) and BLOOM (+11.8%) are significantly outperforming year-to-date (YTD)<\/p>\n\n\n\n
– MWC (+20.2%) is also doing very well<\/p>\n\n\n\n
– APX (-14.3%) is lagging behind YTD but still shows positive returns over a one-year view<\/p>\n\n\n\n
Collectively, ICT and BLOOM account for over 8% of the local index. In terms of trading activity, ICT and BLOOM are among the most actively traded index names in the market averaging US$5 million and US$1.6 million per day over the past year. <\/p>\n\n\n\n
All of the Razon firms are all significant players in their own sectors, often times dominating their respective fields (gaming, port operations, etc).<\/p>\n\n\n\n
High profile ICT and BLOOM have also helped promote the country globally, the former via its international port operations while the latter has helped boost tourism into the country.<\/p>\n\n\n\n
MWC and APX, both non-index names, also trade more actively relative to the other smaller counters.<\/p>\n\n\n\n
Not listed yet but Prime Infrastructure is already very actively involved in the local infrastructure scene investing in power and local utilities. The company is among the most highly anticipated IPOs in the market.<\/p>\n\n\n\n
ICT \u2013 We are fans of the stock too but given its strong showing already YTD, we feel that valuations are looking more fair at current levels. Thus, we are more of a HOLD on the stock now.<\/p>\n\n\n\n
BLOOM \u2013 We like the stock and view the recent selloff as an opportunity to accumulate. The prospect of Solaire Resort North (which could potentially be as big as 70% of the existing mass gaming business) looks very encouraging and not fully priced in yet.<\/p>\n\n\n\n
MWC – We estimate the stock\u2019s fair value at P26.00\/share (~16% potential upside). This is backed by: (1) strong balance sheet with debt\/equity at 1x; (2) relatively high dividend yield which could reach 6.7% this year; (3) 15%-16% EPS growth for 2024\/25; and (4) potential further expansion out of the East Zone.<\/p>\n\n\n\n