{"id":327660,"date":"2024-04-25T02:14:52","date_gmt":"2024-04-24T18:14:52","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327660"},"modified":"2024-04-25T02:14:54","modified_gmt":"2024-04-24T18:14:54","slug":"stock-in-focus-first-gen-corp-fgen-2-feb-2024-by-rcbc-securities-2","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-first-gen-corp-fgen-2-feb-2024-by-rcbc-securities-2\/","title":{"rendered":"Stock in Focus: First Gen Corp. (FGEN) – 25 Apr 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>FGEN<\/td><\/tr>
Company Name<\/strong><\/td>First Gen Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>25 Apr 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 33.50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Considering FGEN’s strategic initiatives, including the successful completion of a significant LNG regasification terminal and its proactive cost management strategies alongside expansion in renewable energy, we maintain our target price at P33.50 per share. Therefore, we uphold our Buy rating, anticipating continued positive momentum.<\/p>\n\n\n\n

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

First Gen Corporation (FGEN) demonstrated robust financial performance, with consolidated Net Income (NI) reaching $449.3 million, marking a +21.6% year-on-year (y\/y) increase despite a -7.2% y\/y decline in consolidated revenues from electricity sales. Key subsidiaries, such as EDC and San Gabriel, contributed significantly to this growth, with NI surging by +25.6% y\/y and +103.3% y\/y, respectively.<\/p>\n\n\n\n

However, certain subsidiaries faced challenges, experiencing declines in NI. Interest income surged on an annual basis, primarily due to higher interest rates, while interest expense and financing charges increased by +15.8% y\/y. The discussion on platforms revealed mixed performances, with the natural gas platform and GWS platform experiencing declines in revenues, while the hydro platform saw a significant revenue decrease. Despite cost reductions in electricity sales across platforms, other costs increased substantially due to various factors, including recognition of costs related to FGEN LNG’s BW Batangas FSRU and tugboat charters, as well as increased operating costs for FGES.<\/p>\n\n\n\n

FGEN achieved significant milestones in fortifying its energy portfolio, highlighted by the completion of a landmark LNG regasification terminal in Batangas City. Coupled with the acquisition of a FSRU, this infrastructure ensures a continuous supply of natural gas for its gas-fired power plants.<\/p>\n\n\n\n

Additionally, FGEN’s subsidiary, EDC, is expanding its RE footprint through a 40-well drilling campaign, while the acquisition of the Casecnan hydroelectric plant underscores its commitment to RE expansion. These initiatives position FGEN as a key player in the evolving energy landscape.<\/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>