{"id":327543,"date":"2024-04-17T22:01:48","date_gmt":"2024-04-17T14:01:48","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327543"},"modified":"2024-04-17T22:01:49","modified_gmt":"2024-04-17T14:01:49","slug":"stock-in-focus-manila-electric-co-meralco-mer-17-apr-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-manila-electric-co-meralco-mer-17-apr-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Manila Electric Co. – Meralco (MER) – 17 Apr 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MER<\/td><\/tr>
Company Name<\/strong><\/td>Manila Electric Co. (Meralco)<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 Apr 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 420.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Considering the outperformance in MER’s results, we are revising our target price to P420.00, indicating a potential upside of approximately 20% from its last traded price. We maintain our Buy recommendation.<\/p>\n\n\n\n

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

Manila Electric Company (MER) demonstrated impressive resilience and strategic prowess in 2023, marked by substantial growth across key financial metrics. The company reported a +37% year-on-year (y\/y) surge in consolidated core net income (NI) to P37.1 billion, and a robust +34% y\/y increase in consolidated reported NI to P38.0 billion. In 4Q 2023 alone, MER booked a +12% y\/y rise in its bottomline which
stood at P9.7 billion. These figures underscore MER’s capability in navigating
market dynamics.<\/p>\n\n\n\n

A significant portion of MER’s growth can be attributed to its power distribution segment totaling P23.7bn, showcasing the company’s stronghold in the energy market. Additionally, the RES unit demonstrated resilience, with sales volumes remaining steady despite challenges, further solidifying MER’s market position.<\/p>\n\n\n\n

MER’s proactive approach to managing costs and investments is evident in its average retail rate increase by +11% y\/y to P10.55 per kWh. Despite this
upward trajectory, the company remains mindful of its debt profile, with a strategic focus on managing short-term maturities.<\/p>\n\n\n\n

Looking forward, MER’s commitment to sustainability initiatives, including the exploration of nuclear energy, underscores its forward-thinking approach to long-term energy security and environmental stewardship. These initiatives are further supported by significant capital investments allocated through 2030, highlighting MER’s dedication to innovation and sustainability.<\/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>