{"id":327718,"date":"2024-05-03T01:17:00","date_gmt":"2024-05-02T17:17:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327718"},"modified":"2024-05-03T01:17:01","modified_gmt":"2024-05-02T17:17:01","slug":"stock-in-focus-alliance-global-group-inc-agi-3-may-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-alliance-global-group-inc-agi-3-may-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Alliance Global Group, Inc. (AGI) – 3 May 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>AGI<\/td><\/tr>
Company Name<\/strong><\/td>Alliance Global Group, Inc. (AGI)<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>3 May 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 15.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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All things considered, we are reinforcing our BUY rating towards AGI with a Target Price of P15.20\/share. With the prevailing stock price, AGI has a potential to trek on a high double-digit upside. Presently, AGI is trading at 3.31x P\/E based on our house 2025 EPS.<\/p>\n\n\n\n

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

In 4Q 2023, AGI saw a +59% year-on-year (y\/y) increase in its bottomline to P6.6 billion amidst the strong revenue performance in majority of its business units. Topline for 4Q23 stood at P60.8 billion (+10% y\/y) led by its real estate arm MEG with P21 billion (+24% y\/y) revenue contribution followed by EMI with P18.4 billion (-6% y\/y).<\/p>\n\n\n\n

For 2023, the Tan-led conglo recorded P19.6 billion in attributable Net Income (+21% y\/y higher), while consolidated revenues reached P211.2 billion. MEG remained to have the lion share in its profit mix with P12.4 billion total contribution. Breaking down MEG\u2019s revenue streams, the residential segment saw significant growth from the increased project completions and rising housing demand, banking a total of P42.7 billion in 2023 revenues. <\/p>\n\n\n\n

Reservation sales exceeded the 2023 target of P130bn, reaching P139.2bn on upbeat homebuyers\u2019 appetite, and the management sees this trend to continue as MEG announced an aggressive reservation sales target of P145 billion this year. The office segment remained flat with P12.6 billion (+3% y\/y) revenue contribution, while the mall segment, which ranked first in terms of growth among the business segments of MEG, garnered P5.3 billion (+54% y\/y). <\/p>\n\n\n\n

The hotel business category bagged P3.8bn in FY23 revenues, as the firm continued their positive momentum with the improve tourism and MICE activities. This year, the firm is looking to add 3,533 hotel keys, with the notable launch of Grand West
Side Hotel, which will be the biggest hotel in the country in terms of total hotel room
keys. This time around, the company plans to introduce fewer projects this year with a projected total value of P40 billion, compared to the P72.6 billion worth of projects launched in 2023.<\/p>\n\n\n\n

EMI, on the flipside, booked losses. The 2023 attributable NI stood at P8.6 billion, plunging by -14% y\/y mainly due to the softness in liquor demand combined with the
higher input costs. Looking ahead, management believes that the whiskey segment will be EMI’s main growth driver. They anticipate that this sector will have more stable margins compared to their brandy business.<\/p>\n\n\n\n

Meanwhile, Travellers International grew its FY23 bottomline by +89% y\/y to P2 billion, driven by sustained GGR amid mass gaming volume improvements and continued uptick in hotel occupancy rates, coupled with increased MICE activities across their hotel brands.<\/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>