{"id":327373,"date":"2024-04-05T01:51:39","date_gmt":"2024-04-04T17:51:39","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327373"},"modified":"2024-09-02T01:03:10","modified_gmt":"2024-09-01T17:03:10","slug":"stock-in-focus-aboitiz-power-corp-ap-5-apr-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-aboitiz-power-corp-ap-5-apr-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Aboitiz Power Corp. (AP) – 5 Apr 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>AP<\/td><\/tr>
Company Name<\/strong><\/td>Aboitiz Power Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>5 Apr 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 41.80<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Overall, AP\u2019s performance in 2023 not only reflects financial success but also highlights its resilience, adaptability, and commitment to sustainability, positioning it as one of the market leaders in the industry. Hence, we are retaining our Target Price of P41.80 and BUY rating on AP.<\/p>\n\n\n\n

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

In 2023, Aboitiz Power Corporation (AP) demonstrated remarkable resilience and adaptability in navigating the dynamic energy market landscape.<\/p>\n\n\n\n

The substantial +29% year-on-year (y\/y) increase in core Net Income (NI), reaching P32 billion, showcases the company’s ability to capitalize on fresh contributions from ventures like GNPD and optimize its generation portfolio to meet evolving demand dynamics. However, the 4Q 2023 downturn in core NI, which got logged at P5.2 billion (-20% y\/y), attributed to WESM fluctuations, underscores the importance of risk management strategies in managing the impacts of external factors.<\/p>\n\n\n\n

The growth in energy sales is equally notable, particularly in the Residential and Commercial\/Industrial segments. Energy sales increased by +6% y\/y to 6,157 GWh in 2023, with Residential segment sales rising by +8% y\/y and Commercial\/Industrial segment sales by +6% y\/y. This surge in demand post-Typhoon Odette and the resurgence of energy sales to pre-pandemic levels underscore the company’s ability to adapt and capitalize on emerging opportunities.<\/p>\n\n\n\n

Financially, AP’s stable current ratio and improved net-debt-to-equity ratio prove prudent financial management and a solid foundation for future growth. As of December 31, 2023, the company’s total consolidated assets stood at P487.0 billion, reflecting a +2% y\/y increase. Equity attributable to holders of the parent stood at \u20b1180.1 billion. The current ratio remained stable at 1.8x, comparable to the previous year, while the net-debt-to-equity ratio improved to 0.9x from 1.0x in 2022.<\/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>