{"id":328841,"date":"2024-08-08T00:38:50","date_gmt":"2024-08-07T16:38:50","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328841"},"modified":"2024-08-08T00:38:52","modified_gmt":"2024-08-07T16:38:52","slug":"stock-in-focus-aboitiz-equity-ventures-aev-8-aug-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-aboitiz-equity-ventures-aev-8-aug-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Aboitiz Equity Ventures (AEV) – 8 Aug 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>AEV<\/td><\/tr>
Company Name<\/strong><\/td>Aboitiz Equity Ventures<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>8 Aug 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 49.70<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Looking forward, AEV\u2019s strategic acquisitions, including Coca-Cola Beverages Philippines, Inc. (CCBPI), and investments in renewable energy and infrastructure projects are expected to drive future growth, despite current challenges in the infrastructure segment. We maintain our Buy rating on AEV, with a Target Price of P49.70.<\/p>\n\n\n\n

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

Aboitiz Equity Ventures Inc. (AEV) is a one of the leading conglomerates in the Philippines, with a diversified portfolio spanning various sectors, including power, banking and financial services, food and beverage, real estate, and infrastructure. The company operates through its strategic business units (SBUs), with AP being the most significant contributor to the group’s earnings.<\/p>\n\n\n\n

In the 2nd quarter (2Q) of 2024, AEV recorded consolidated Net Income (NI) of P6.6 billion, up 2% year-on-year (y\/y), though core NI slightly declined to P6.4 billion. For the 1st half (1H) of 2024, consolidated NI rose +10% y\/y to P11.5 billion, with core NI at P11.4 billion.<\/p>\n\n\n\n

Key drivers included a -2% y\/y drop in NI from the power sector, impacted by lower spot market prices and maintenance issues, despite an +8% y\/y increase in beneficial EBITDA to P36.3 billion from new solar projects. <\/p>\n\n\n\n

The banking unit, UBP, saw a -23% y\/y decrease in NI to P2.5 billion due to higher expenses and provisions, although NII grew by +15% y\/y to P14.9 billion. The Food and Beverage segment turned around significantly, contributing P2.8bn to NI, bolstered by stabilized commodity prices and the acquisition of CCBPI.<\/p>\n\n\n\n

The Real Estate segment reported a +14% y\/y increase in NI to P445 million, while the Infrastructure segment faced a -P312 million loss due to interest expenses and project delays.<\/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>