{"id":328669,"date":"2024-08-01T00:19:03","date_gmt":"2024-07-31T16:19:03","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328669"},"modified":"2024-08-01T00:19:05","modified_gmt":"2024-07-31T16:19:05","slug":"stock-in-focus-robinsons-retail-holdings-inc-rrhi-1-aug-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-retail-holdings-inc-rrhi-1-aug-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Robinsons Retail Holdings Inc. (RRHI) – 1 Aug 2024 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RRHI<\/td><\/tr>
Company Name<\/strong><\/td>Robinsons Retail Holdings Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>1 Aug 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 50.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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RRHI is currently trading at the lower spectrum of its multiples. Its appealing 5.6% 2024 dividend yield, continuous share buyback program, and P\/E of 9.2x \u2013 about half its 5-year historical P\/E of 22.2x are compelling enough for us to retain our BUY rating, with a Target Price of Php50.00 per share.<\/p>\n\n\n\n

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

Core earnings grew 12.1%<\/h3>\n\n\n\n

RRHI recorded a 1st half (1H) 2024 core net earnings of Php2.6 billion, 12.1% higher year-on-year (y\/y), in line with our estimates with seasonality considered. Attributable net income surged 3.8x to Php6.8 billion following a one-time gain from the BPI-Rbank merger earlier this year. <\/p>\n\n\n\n

There was a notable slowdown in the top line as net sales climbed only 3% to Php93.7 billion versus the 7.4% growth in 2023, with a blended same-store sales growth (SSSG) at 0.7% from last year\u2019s 3.9%. EBITDA rose 2.1% to Php7.68 billion while operating income was up 5.5% to Php4.09 billion. For the 2nd quarter (2Q) 2024 alone, core net earnings rose 15.3% y\/y to Php1.46 billion.<\/p>\n\n\n\n

Key segments continued to perform<\/h3>\n\n\n\n

The food & drugstores segment comprised 79.3% of net sales and 81.1% of total EBITDA for 1H 2024, and they continued to post a decent combined net sales growth of 4.5%, along with the department stores\u2019 mild increase of 1.9%. Other segments (DIY & specialty stores) struggled with this 1H 2024 due to underperforming stores and higher operating expenses.<\/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>