{"id":328560,"date":"2024-07-29T02:19:42","date_gmt":"2024-07-28T18:19:42","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328560"},"modified":"2024-07-29T02:19:44","modified_gmt":"2024-07-28T18:19:44","slug":"stock-in-focus-megawide-construction-corp-mwide-29-july-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-megawide-construction-corp-mwide-29-july-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Megawide Construction Corp. (MWIDE) – 29 July 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MWIDE<\/td><\/tr>
Company Name<\/strong><\/td>Megawide Construction Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>29 July 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 3.74<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We expect MWIDE to have better margins in the years moving forward as growth in construction materials begun ratcheting down coupled with the improvement in the company\u2019s order book. Hence, we reiterate our BUY recommendation for MWIDE with a Target Price of P3.74\/share.<\/p>\n\n\n\n

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

In the 1st quarter (1Q) 2024, Megawide Construction Corporation (MWIDE) was able to recuperate from prior losses, growing its attributable net income by 27x to P188.38 billion, mainly driven by the 19% increase in its revenues due to the stable construction operations (+16% y\/y) along with the improvement in its terminal revenues (+19% y\/y). <\/p>\n\n\n\n

Additionally, the increase in revenues is coupled with the decline in its direct and operating costs. As a result, GPM improved to 18% in 1Q 2024 from the 9% GPM in 1Q 2023. With the construction materials in Metro Manila hitting its slowest pace in five years, RCDC estimates further improvement in its GPM for the first half of the year.<\/p>\n\n\n\n

MWIDE’s order book in 1Q 2024 amounting P45 billion came in significantly lower than its 2018 to 2022 recorded order book, albeit an ascent from last year\u2019s P42 billion. The office and commercial segment remained to have the lion share in its mix with 59% contribution, followed by the residential arm at 23%, and the balance of 18% for the infrastructure projects. <\/p>\n\n\n\n

Recently, the company announced that it started the construction of Hote101 Libis with DD which is slated to be completed by 4Q 2026. Looking ahead, upcoming projects that MWIDE could potentially engage in include the 32.15km Cavite-Bataan Interlink Bridge and the 3.3km Cebu-Mactan Bridge.<\/p>\n\n\n\n

Meanwhile, small portion of revenues came from the landport operations of MWIDE which saw stable occupancy rate in its office and commercial spaces, higher foot traffic within its terminals, and increased passenger spending. Interestingly, foot traffic in March significantly climbed by +24% y\/y averaging 120,000 passengers daily with a P32 average spending per passenger. Collectively, these factors prompted the landport operations\u2019 topline to accelerate by +19% y\/y to P107.19 million.<\/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>