{"id":327551,"date":"2024-04-17T22:11:12","date_gmt":"2024-04-17T14:11:12","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327551"},"modified":"2024-04-17T22:11:14","modified_gmt":"2024-04-17T14:11:14","slug":"stock-in-focus-monde-nissin-corp-monde-17-apr-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-monde-nissin-corp-monde-17-apr-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Monde Nissin Corp. (MONDE) – 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>MONDE<\/td><\/tr>
Company Name<\/strong><\/td>Monde Nissin Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>15 Nov 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 11.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are downgrading our rating to HOLD, with a Target Price of P11.20 given its limited upside of +9.59% as the stock saw its price climb since the beginning of the year. A slowdown in growth is expected from APAC as low base effects subside, while its Meat Alternative (MA) business is expected to continue to decline amid a weak meat alternative market in the U.K.<\/p>\n\n\n\n

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

Monde Nissin Corporation (MONDE) Core net income (NI) grew twice the previous year\u2019s core net income, climbing to P1.93 billion in 4Q 2023. Most of the rise was attributed to the +103.04% year-on-year (y\/y) increase in APAC\u2019s core net income to P2.13 billion, while Meat Alternative (MA) saw its core net loss double to -P207 million.<\/p>\n\n\n\n

MONDE finished the fiscal year with 2023 core bottomline rising by +15.70% y\/y to P7.63 billion. Core net income from APAC grew +25.19% y\/y to P8.59 billion, while MA saw losses expand to -P966 million from -P272 million a year prior. Reported bottomline came at a net loss of -P626.6 million in 2023. The loss comes as MONDE records significant impairment losses on Meat Alternative amounting to P13.27 billion, which was recorded in 4Q 2023. Despite cooling food inflation, inflation still remains high in Meat Alternative\u2019s key markets.<\/p>\n\n\n\n

Revenues from Meat Alternative continue to decline, falling by -15.22% y\/y to P3.53 billion. APAC\u2019s revenues grew by +12.74% y\/y to P65.94bn on better noodle sales.
MONDE expects a slowdown in APAC\u2019s growth to the low single-digits for 1Q 2024. For MA, MONDE expects a high single-digit revenue decline as inflationary pressures persist in key markets.<\/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>