{"id":329362,"date":"2024-09-09T06:47:48","date_gmt":"2024-09-08T22:47:48","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329362"},"modified":"2024-09-09T06:47:50","modified_gmt":"2024-09-08T22:47:50","slug":"stock-in-focus-sm-prime-holdings-smph-9-sept-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-sm-prime-holdings-smph-9-sept-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: SM Prime Holdings (SMPH) – 9 Sept 2024 by AP Securities"},"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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>9 Sept 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 39.32<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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SMPH continues to be the largest mall operator in the country and has already
expanded several segments that aim to capture consumer demand as well. We continue to recommend a BUY for SMPH with a Target Price of P39.32 as we see the company benefiting from the Philippines\u2019 growth story moving forward. We see the
company\u2019s continued focus on their strengths as one of the key aspects that would propel earnings to greater heights every year.<\/p>\n\n\n\n

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

Slowing down on China expansion<\/strong><\/p>\n\n\n\n

SMPH currently has 8 operational malls in China as of the 1st half (1H) of 2024, with the most recent mall being SM Yangzhou which was opened last year. An article from Philstar recently quoted management stating that their approach towards constructing malls in China will be proceeding at a more conservative pace due to tighter competition. <\/p>\n\n\n\n

SMPH is looking to open 1 mall in China every 2 years, specifically in the Fujian province, this is in stark contrast to their ongoing expansion in the Philippines as they aim to build at a substantially faster pace of 3 malls just for this year. This would bring SMPH\u2019s mall count up to a total of 88 malls, translating to a total GFA of 9.54-Mn sqm. PH malls also has a considerably higher revenue per sqm. compared to their
malls in China (except for the pandemic years), which further justifies SMPH\u2019s focus on building malls in the Philippines.<\/p>\n\n\n\n

Taking advantage of strengths<\/strong><\/p>\n\n\n\n

SMPH continues to remain focused towards expanding its footprint in the Philippines, despite its already huge presence here, with the domestic mall portfolio contributing more than 90% of segment revenues in the first half of the year. <\/p>\n\n\n\n

Moving forward, PH GDP is projected to grow at an average rate of 6.3% per year over the next 5 years, driven by the pick-up in consumer demand particularly for food and beverages. This is further bolstered by expectations for inflation to continue easing the following months, eventually hitting the BSP\u2019s inflation target of ~3% for 2024-2028.<\/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>