{"id":329140,"date":"2024-08-27T00:46:47","date_gmt":"2024-08-26T16:46:47","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329140"},"modified":"2024-08-27T00:46:48","modified_gmt":"2024-08-26T16:46:48","slug":"stock-in-focus-robinsons-land-corp-rlc-27-aug-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-land-corp-rlc-27-aug-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Robinsons Land Corp. (RLC) – 27 Aug 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RLC<\/td><\/tr>
Company Name<\/strong><\/td>Robinsons Land Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>27 Aug 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 22.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We maintain our BUY rating for RLC on the back of their current efforts to launch resi projects geared towards the premium market, especially as we continue to see this segment benefiting greatly as the rate cut cycle continues. Alongside this, expectations on improvements in GDP and inflation moving forward should help spur demand for their Malls and Hotels segment as well.<\/p>\n\n\n\n

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

Rate cut cycle to ramp up resi demand<\/strong><\/p>\n\n\n\n

The premium residential segment has remained resilient through high rates, and we are forecasting demand to ramp up further as the Bangko Sentral further eases its monetary policy. The BSP recently cut rates by 25 bps, and we expect this to be followed by another 25 bps cut in December and by 100 bps worth of cuts next year. These cuts are expected to boost demand for loans, especially housing loans, therefore boosting residential demand.<\/p>\n\n\n\n

Taking a bite out of the premium market<\/strong><\/p>\n\n\n\n

In January 2023, RLC launched the Tower One of premium market Le Pont Residences in Bridgetowne, composed of 431 units with a value of P10.6-Billion. Le Pont\u2019s 1st tower is now nearing 90% sales take-up, and RLC is expecting the same sales velocity of roughly 18 months for the 2nd tower which will be launched within the 3Q24. To support this, management said in its latest briefing that the company is
seeing a pick-up in demand in the premium market segment, which would drive sales for the 2nd Le Pont Residences tower. <\/p>\n\n\n\n

Significant revenue contribution<\/strong><\/p>\n\n\n\n

The residential segment\u2019s contribution to RLC\u2019s total revenues have continued to grow from 17.7% in 2021 to 22.1% in 2023. While Malls continue to be the company\u2019s top revenue generator, their resi segment is starting to consistently post significant contributions as well. We reiterate our positive outlook towards this segment and we project contributions for this segment to remain between 20-25% in the future as RLC launches more residential towers in its Bridgetowne estate.<\/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>