{"id":329441,"date":"2024-09-12T00:18:14","date_gmt":"2024-09-11T16:18:14","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329441"},"modified":"2024-11-07T01:01:29","modified_gmt":"2024-11-06T17:01:29","slug":"stock-in-focus-cebu-landmasters-inc-cli-12-sept-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-cebu-landmasters-inc-cli-12-sept-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Cebu Landmasters Inc. (CLI) – 12 Sept 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>CLI<\/td><\/tr>
Company Name<\/strong><\/td>Cebu Landmasters, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>12 Sept 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 3.24<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We maintain our BUY rating for CLI as a result of its huge potential for growth in the
following quarters which would be driven by both management\u2019s move to create more projects coupled with the ongoing rate cut cycle. CLI is a company poised for growth and we believe that the stock\u2019s current consolidation should be utilized by investors to accumulate shares given its decent upside of 24.1%.<\/p>\n\n\n\n

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

Positioning for growth<\/strong><\/p>\n\n\n\n

CLI has recently approved a move to reallocate the unused proceeds from its follow-on offering (FOO) towards project development. The breakdown of the proceeds will be as follows, P1.91-Billion for Land acquisitions, P1.35-Billion for project development expenses, and P0.39-Billion for general corporate expenses. This progression would allow CLI to put themselves in a better position to cater towards the resurgence of property buyers in the coming quarters as interest rates slowly wind down.<\/p>\n\n\n\n

Middle income and economic segments to spearhead growth<\/strong><\/p>\n\n\n\n

CLI\u2019s target market has transitioned greatly towards their more affordable offerings which are their Garden series (mid) and Casa Mira (economic) composing more than 81% of 2023\u2019s reservation sales followed by an even larger 92% contribution for 1H 2024. Given that these segments are more sensitive to changes in interest rates, the continuance of the rate cut cycle would again prove to not only be beneficial to the property market as whole, but to CLI in particular given its substantial exposure to these segments.<\/p>\n\n\n\n

Healthy inventory and dividends<\/strong><\/p>\n\n\n\n

We have noticed the rapid decline of CLI\u2019s inventory over the past quarters, from 3Q 2023\u2019s 866 days to 2Q 2024\u2019s 577 which resulted in Inventory Turnover ratio of 0.63, the highest quarter turnover since 2019. Not only does declining inventory mean that the company is able to sell much faster than it builds, it also opens them up to expand their current property development portfolio without pushing inventory levels to all-time highs. <\/p>\n\n\n\n

Lastly, the company is one of the highest dividend- yielding stocks listed in the PSE with the last 2 declarations yielding 6.3% and 7.3% upon the dividend announcement while the same goes for blended forward yields almost reaching 10%. We believe that this makes it all the more attractive to investors as they would be able to reap dividends from the stock alongside potential capital appreciation in the event that the stock\u2019s price rises.<\/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>