{"id":329156,"date":"2024-08-27T00:45:51","date_gmt":"2024-08-26T16:45:51","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329156"},"modified":"2024-08-27T00:45:53","modified_gmt":"2024-08-26T16:45:53","slug":"stock-in-focus-gt-capital-holdings-inc-gtcap-27-aug-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-gt-capital-holdings-inc-gtcap-27-aug-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: GT Capital Holdings, Inc. (GTCAP) – 27 Aug 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GTCAP<\/td><\/tr>
Company Name<\/strong><\/td>GT Capital Holdings, Inc.<\/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 881.06<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We reiterate that GTCAP continues to be our top conglomerate pick moving forward
as inflationary pressures begin to subside, given the cyclical nature of GTCAP\u2019s operating subsidiaries. We believe that the increase in discretionary spending on the back of improving macroeconomic conditions would slowly translate to larger contributions from the company\u2019s vehicle segment. We therefore reiterate our BUY for GTCAP based on our Target Price of P881.06.<\/p>\n\n\n\n

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

CAMPI positive on car sales hitting record high<\/strong><\/p>\n\n\n\n

The Chamber of Automative Manufacturers of the Philippines, Inc. (CAMPI) said that new vehicle sales could hit the 500k mark for the year, anchored on launches and the double-digit sales growth of 10.9% from January to July. The realization of this number would be the industry\u2019s highest annual sales, beating the previous recordof 473k set in 2017 and translating to a 13.9% increase from 2023\u2019s vehicle sales of 439k units.<\/p>\n\n\n\n

TMP continues to take the lion\u2019s share<\/strong><\/p>\n\n\n\n

GTCAP\u2019s subsidiary, Toyota Motor Philippines (TMP), continues to be the largest contributor to sales for the industry and accounted for 45.9% of total industry sales for the first half. Alongside this, TMP is also the number one in passenger car sales at 54.6% led primarily by strong sales for the Vios, Wigo, and Camry models. TMP also leads in commercial vehicle sales at 43% of the total market as of 1H 2024 driven by Hilux, Innova, and Raize sales.<\/p>\n\n\n\n

GDP growth and stable forex to assist growth<\/strong><\/p>\n\n\n\n

We expect vehicle sales growth to remain robust this year, after GDP growth came within expectations in 2Q24 at 6.3% and forecasted to grow by 6.0% this year on the back of a pick-up in consumer demand. Additionally, the yen has weakened substantially to a rate of JPY2.60\/PHP vs its previous high of JPY2.77, lowering the cost of car parts imported by TMP from Japan. This could further boost TMP\u2019s margins and contribute to GTCAP\u2019s bottom line.<\/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>