{"id":327382,"date":"2024-04-05T02:04:50","date_gmt":"2024-04-04T18:04:50","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327382"},"modified":"2024-04-05T02:04:52","modified_gmt":"2024-04-04T18:04:52","slug":"stock-in-focus-gt-capital-holdings-inc-gtcap-5-apr-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-gt-capital-holdings-inc-gtcap-5-apr-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: GT Capital Holdings, Inc. (GTCAP) – 5 Apr 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GTCAP<\/td><\/tr>
Company Name<\/strong><\/td>GT Capital Holdings, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/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 919.58<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Despite the stock\u2019s impressive runup recently, we note that its valuations are still attractive with current Price-Earnings Ratio (PER) of 5.45x still lying at more than 1sd below its historical average. As such, we continue to recommend a BUY on GTCAP.<\/p>\n\n\n\n

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

February car sales go vroom vroom<\/h3>\n\n\n\n

New automobile sales for the month of February zoomed to 28,072 units, representing year-on-year (YoY) growth of 23.2%. We note that despite the high base from last year stemming from the reopening momentum, this year\u2019s February growth still comes in as the second fastest rate of increase in the last 6 years, far outstripping the pre-pandemic pace of expansion in the same month. <\/p>\n\n\n\n

We attribute the impressive numbers to banks\u2019 aggressive push towards the consumer lending space as well as the growing prevalence of friendlier financing terms provided in autoloans and by vehicle financiers. <\/p>\n\n\n\n

For 2024, the industry sees overall growth coming in at 9.0%. While this is much slower than the 24.4% average annual growth seen in the last 3 years, it is nevertheless still more than double that of 2019 pre-pandemic levels. In our view, additional tailwinds from interest rate cuts in 2H 2023 coupled with sustained
expansion in consumer lending could potentially lead to actual growth figures surpassing this guidance.<\/p>\n\n\n\n

GTCAP gunning for gold<\/h3>\n\n\n\n

The momentum that we are seeing in automobile sales should naturally carry over to GTCAP\u2019s Toyota segment. Although we cite risks of further market share declines for Toyota, the company nevertheless is still the most dominant player in the retail vehicle landscape with market share amounting to almost 3x that of its closest competitor. <\/p>\n\n\n\n

Furthermore, we also highlight the fact that the company is more than making up for any lost market share via a more potent sales mix. As a result, gross margins for the company have improved steadily in the last 3 years, with 2023 margins now at their 6-year mark. <\/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>