{"id":329373,"date":"2024-09-09T07:00:30","date_gmt":"2024-09-08T23:00:30","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329373"},"modified":"2024-09-09T07:00:31","modified_gmt":"2024-09-08T23:00:31","slug":"stock-in-focus-bloomberry-resorts-corp-bloom-9-sept-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bloomberry-resorts-corp-bloom-9-sept-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Bloomberry Resorts Corp. (BLOOM) – 9 Sept 2024 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BLOOM<\/td><\/tr>
Company Name<\/strong><\/td>Bloomberry Resorts Corp.<\/td><\/tr>
Broker<\/strong><\/td>RCBC 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 11.50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We retain our BUY rating and emphasize a strategy of gradual accumulation. BLOOM is trading at a hefty discount to what we think is its fair value, as the market may have focused on its lagging VIP volumes. It is the fifth biggest index loser year-to-date (ytd), dropping by 20.5%. We believe Solaire Resort North (SRN) will ramp up in the coming quarters and boost earnings as it adds 40 VIP tables starting in September.<\/p>\n\n\n\n

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

Net income drops 38% y\/y<\/strong><\/p>\n\n\n\n

BLOOM recorded a net income of Php4.0 billion in the 1st half (1H) 2024, 38% down year-on-year (y\/y). Gross gaming revenues (GGR) slid by 6% to Php29.2 billion on the back of a 34% drop in rolling chip VIP and a 7% decline in mass drop volumes. This was slightly tempered by the 15% jump in slot coin-in volumes. Cash operating expenses jumped 13% to Php16.2 billion, mainly due to SRN\u2019s pre-operating costs.
Consequently, EBITDA was 24% lower y\/y to Php8.6 billion.<\/p>\n\n\n\n

Recovering VIP rolling chips on a quarterly basis<\/strong><\/p>\n\n\n\n

VIP rolling chips may have fallen y\/y in 2Q 2024, but it rose 10% from 1Q. We see
volumes picking up for the rest of the year, boosted by the improved economic conditions in South Korea, the second biggest market of BLOOM in terms of GGR (26%.) We remain optimistic about BLOOM\u2019s volumes moving forward, given the bullish target of the Department of Tourism (DOT) for international visitor arrivals this year at 7.7 million despite the 1H 2024 arrivals just at 3.2 million.<\/p>\n\n\n\n

Solaire North \u2013 already EBITDA positive<\/strong><\/p>\n\n\n\n

SRN started operations on May 25, operating for 37 days in 2Q 2024. Despite the
short period, it reported a positive EBITDA of Php250.1 million as GGR stood at Php1.1 billion. We expect SRN to contribute more to BLOOM\u2019s bottom line as it
continues to ramp up. The new casino will also launch VIP tables and events in
September and promote it through marketing.<\/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>