{"id":327975,"date":"2024-05-17T11:50:26","date_gmt":"2024-05-17T03:50:26","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327975"},"modified":"2024-05-17T11:50:28","modified_gmt":"2024-05-17T03:50:28","slug":"stock-in-focus-sm-prime-holdings-smph-17-may-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-sm-prime-holdings-smph-17-may-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: SM Prime Holdings (SMPH) – 17 May 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SMPH<\/td><\/tr>
Company Name<\/strong><\/td>SM Prime Holdings<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 May 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 44.45<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Given all-around segment growth alongside the company\u2019s plans to launch several malls which we see as something that will benefit the company greatly moving forward as inflation subsides and consumer demand begins to pick up once more, we reiterate our BUY rating for the stock with a Target Price of P44.45.<\/p>\n\n\n\n

<\/div>\n\n\n\n

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

In-line earnings<\/h3>\n\n\n\n

SMPH\u2019s 1st quarter (1Q) 2024 earnings of P10.46-Billion is in- line with estimates, slightly beating it by 1.28%. All of SMPH\u2019s segments posted decent growth with mall revenues growing 7% YoY, resi by 10%, and Hotels and Offices with a combined 9% year-on-year (YoY) growth.<\/p>\n\n\n\n

Malls continue growth<\/h3>\n\n\n\n

Malls continue to be the largest revenue contributor for SMPH, contributing P18.2-Billion in revenues (+7% YoY) which accounts for 59% of consolidated revenues. We see this trend continuing in the future as the company gears up to open 4 more malls in 2024 in areas outside Metro Manila, namely; SM City Caloocan, SM City J Mall in Mandaue City, Cebu, SM City San Fernando La Union, and SM City Laoag which adds a total of 442k-sqm GFA in the company\u2019s mall portfolio. SM City Caloocan will be launched this 17th of May while the rest are targeted to be launched by the second half of 2024. We note that casual dining sales from restaurant are seeing high double-digit growth, between 15-16%, indicating a pick-up in consumer demand. The company\u2019s future mall launches puts them in a position to further seize the upcoming demand.<\/p>\n\n\n\n

Continued demand for resi<\/h3>\n\n\n\n

SMPH\u2019s resi segment is the second largest contributor, accounting for 28% of consolidated revenues. The company posted 10% YoY revenue growth for this segment. The integration of the projects with SM Supermalls alongside transportation terminals is one of the drivers for demand in this segment despite high rates. The company is planning to launch 8-10k units for the year which would be composed of mid-rise buildings, located primarily outside Metro Manila, which poises the company to take advantage of the ongoing demand shift.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Check how many brokers recommend this stock<\/h2>\n\n\n\n
\n
All Stock Rankings<\/a><\/blockquote>