{"id":327376,"date":"2024-04-05T01:56:20","date_gmt":"2024-04-04T17:56:20","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327376"},"modified":"2024-04-05T01:56:22","modified_gmt":"2024-04-04T17:56:22","slug":"stock-in-focus-universal-robina-corp-urc-5-apr-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-universal-robina-corp-urc-5-apr-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Universal Robina Corp. (URC) – 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>URC<\/td><\/tr>
Company Name<\/strong><\/td>Universal Robina 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 148.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are downgrading our topline forecast from low-mid teens to high single-digit growth as we see a slowdown in the BCF segment and sugar prices already having reached its peak for AIC. We maintain our BUY recommendation on URC, although with a lower Target Price of P148\/share as we see a slowdown in growth.<\/p>\n\n\n\n

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

Universal Robina Corporation (URC) Core Net Income (NI) declined by 6.83% year-om-year (y\/y) to P3.24 billion, while 2023 core earnings saw a slight growth of +6.10% y\/y to P12.61 billion. Net income (parent) saw a sharp decline of -46.72% y\/y to P2.46 billion in 4Q 2023 as the previous year included one-off gains from land sale amounting to roughly P2.7 billion. 2023 net income (parent) declined by -12.63% y\/y to P12.19 billion.<\/p>\n\n\n\n

For 4Q 2023, the company saw a decline in both BCF and AIC businesses. BCF\u2019s domestic and international business saw slight declines of -1.10% and -0.47% respectively. BCF saw a rather flat growth for FY23, rising by +1.72% y\/y to P158.37 billion, BCF\u2019s domestic division rose +1.79% y\/y to P76.82 billion, while international grew +1.53% y\/y to P32.79 billion.<\/p>\n\n\n\n

For 2023, AIC\u2019s SURE grew by +16.94% y\/y to P25.72 billion, AIG by +16.04% y\/y to P16.75 billion, and FLOUR grew +10.09% y\/y to P6.29bn. AIC saw a growth of +15.70% y\/y to P48.75 billion in 2023.<\/p>\n\n\n\n

GPM rose by 323bps to 28.08% in 4Q 2023 as the company implemented price increases. Despite the price increases, revenues saw a decline as volumes declined. AIC\u2019s SURE division posted a -17.96% decline to P7.3 billion as sugar prices normalized and on tightened supply of sugar production in 4Q 2023.<\/p>\n\n\n\n

Management remains optimistic, with expectations that profits from AIC\u2019s SURE will remain bullish on an increase in market share, compensating for a decline in margin with an increase in volume.<\/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>