{"id":328872,"date":"2024-08-11T12:24:01","date_gmt":"2024-08-11T04:24:01","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328872"},"modified":"2024-08-11T12:24:03","modified_gmt":"2024-08-11T04:24:03","slug":"stock-in-focus-megaworld-corp-meg-12-aug-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-megaworld-corp-meg-12-aug-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Megaworld Corp. (MEG) – 12 Aug 2024 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MEG<\/td><\/tr>
Company Name<\/strong><\/td>Megaworld Corp.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>12 Aug 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We characterize MEG as a value stock, being the cheapest in Price-Earnings Ratio of 3.2x compared with the the other property companies. BUY rating maintained, with a Target Price of P2.60 per share.<\/p>\n\n\n\n

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

Net income up 9%<\/h3>\n\n\n\n

Megaworld Corporation\u2019s (MEG) 1st half (1H) 2024 net income grew by 9% to Php8.55 billion, in line with our estimates. Consolidated revenues surged by 22% to Php39.1 billion. EBITDA improved by 21% to Php16.3 billion as margins were steady on effective pricing and cost management measures. In 2Q 2024 alone, net income growth was the same at 9%.<\/p>\n\n\n\n

Robust real estate sales<\/h3>\n\n\n\n

Real estate sales surged 30% y\/y (the highest among all business segments) to Php24.8 billion, contributing 63.5% to MEG\u2019s consolidated revenues. However, reservation sales declined by 10% to Php68.5 billion as the value of project launches dropped by 22% to Php22.2 billion, with lower-priced provincial properties accounting for 40% this time versus zero in 1H 2023.<\/p>\n\n\n\n

Malls and offices<\/h3>\n\n\n\n

Mall rental revenues increased by 19% year-on-year (y\/y) to Php3.0 billion, enjoying a 93% occupancy rate and a foot traffic growth of 19%. Meanwhile, office rentals were almost unchanged at Php6.3 billion (+1% y\/y) with an occupancy rate of 87%. Note that POGOs occupied only 2% of MEG\u2019s office space.<\/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>