{"id":329243,"date":"2024-09-02T01:07:52","date_gmt":"2024-09-01T17:07:52","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329243"},"modified":"2024-09-02T01:07:54","modified_gmt":"2024-09-01T17:07:54","slug":"stock-in-focus-sm-prime-holdings-smph-2-sept-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-sm-prime-holdings-smph-2-sept-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: SM Prime Holdings (SMPH) – 2 Sept 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SMPH<\/td><\/tr>
Company Name<\/strong><\/td>SM Prime Holdings<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>2 Sept 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 40.05<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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With the BSP cutting benchmark rates by 25 bps (0.25%) for the first time in four years, homebuyers might start having the urge to purchase real estate assets again. Lower borrowing costs should bring mortgage rates down, making homeownership more affordable. Thus, we are reaffirming our BUY rating with a Target Price of P40.05\/share for SMPH.<\/p>\n\n\n\n

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

SM Prime Holdings, Inc (SMPH) posted a +16% year-on-year (y\/y) growth to P11.6 billion in the 2nd quarter (2Q) 2024, driven mainly by its mall leasing segment, which continues to show strength thanks to solid foot traffic and consumer spending. Revenues also rose by +8% y\/y to P34 billion amid the improved performance across all segments. <\/p>\n\n\n\n

For FY24E, we\u2019re expecting a +27% y\/y jump in net income to P51 billion, boosting Earnings per Share (EPS) to P1.76. This upward trend is driven by its booming mall leasing business and improving prospects in the residential game.<\/p>\n\n\n\n

The mall leasing segment, the biggest moneymaker in SMPH’s revenue mix, pulled in P19.3 billion in 2Q 2024 \u2014 up +9% y\/y. This growth mainly came from new additions like SM City Yangzhou and SM City Caloocan, which swung open in 2H 2023 and 1H 2024, respectively. <\/p>\n\n\n\n

On the residential side, the company\u2019s second-largest revenue generator, there was a modest +5% y\/y rise to P11.1 billion in 2Q 2024. But, despite these gains, reservation sales took a hard hit, plummeting -58% y\/y to P13.7 billion for the quarter. <\/p>\n\n\n\n

Still, even with reservations looking a bit gloomy now, the steady performance of mall leasing keeps earnings strong, and we\u2019re hopeful demand will bounce back in the coming quarters as the Philippine central bank starts with its policy easing.<\/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>