{"id":328634,"date":"2024-07-30T13:10:35","date_gmt":"2024-07-30T05:10:35","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328634"},"modified":"2024-08-27T00:31:50","modified_gmt":"2024-08-26T16:31:50","slug":"stock-in-focus-doubledragon-corp-dd-30-july-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-doubledragon-corp-dd-30-july-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: DoubleDragon Corp. (DD) – 30 July 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>DD<\/td><\/tr>
Company Name<\/strong><\/td>DoubleDragon Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>30 July 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 10.30<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are revising our recommendation of DD to HOLD with a Target Pricr of P10.30 apiece on the back of murky POGO ban effects, weakening real estate sales, and rising expenses.<\/p>\n\n\n\n

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

DoubleDragon Corporation (DD) took a nosedive in the 1st quarter (1Q) 2024, with net income plunging 57% year-on-year (y\/y) to a mere P269.5 million, mainly due to the weak real estate sales coupled with the rising interest expenses. As revenue tumbled, EBIT likewise narrowed by 26% y\/y to P509.8 million. However, amidst this gloom, the company managed to squeeze out an improved GPM of 80%, up from 75% in 1Q 2023, on higher hotel revenues recorded during the quarter.<\/p>\n\n\n\n

Looking beyond 1Q 2024, DD paints a brighter picture with its ongoing projects. The company recently launched construction of Hotel101-Libis, a 702-unit leisure hotel in Bridgetowne Estate, which is slated for completion by the end of 2026. Besides this, the success story of Hotel101-Madrid offers further optimism with the recent bleak figures. The 680-room hotel, poised to become one of Madrid’s top five hotels, has already netted $10mn in sales as of end-June. This positions DD to potentially exceed its target of $100 million in contracted unit sales for the project within the next year. The expected completion date for Hotel101-Madrid is by the fourth quarter of 2025.<\/p>\n\n\n\n

DD is also expanding its mall portfolio, with plans to open its 50th CityMall in
the 2nd half (2H) of 2024. This addition would mark the 7th CityMall opened by DD so far this year, underscoring its push into the retail sector. By 2030, DD is targeting a 2.3mn sq.m. GFA with the following mix of property types: 30% retail, 15% office
space, 20% hospitality, and 35% dedicated to industrial leasing.<\/p>\n\n\n\n

During the SONA of President Ferdinand Marcos Jr., he announced that he will be banning all POGO activities effective immediately. This dealt a heavy blow to DD, particularly its REIT arm DDMPR, which has the biggest exposure among PH REITs with a whopping 33% POGO exposure. DDMPR’s share price plummeted, dragging down DD. While the full impact is yet to be determined, lower revenues for Hotel101-Manila and higher vacancies in DDMPR’s offices are likely outcomes.<\/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>