{"id":329520,"date":"2024-09-17T13:14:22","date_gmt":"2024-09-17T05:14:22","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329520"},"modified":"2024-09-17T13:14:24","modified_gmt":"2024-09-17T05:14:24","slug":"stock-in-focus-semirara-mining-power-corp-scc-17-sept-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-semirara-mining-power-corp-scc-17-sept-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Semirara Mining & Power Corp. (SCC) – 17 Sept 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SCC<\/td><\/tr>
Company Name<\/strong><\/td>Semirara Mining & Power Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 Sept 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 37.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Despite global coal market fluctuations, SCC’s strong reserves and efficient mining operations position it well for future growth. The potential for renewable energy investments further enhances its prospects. Therefore, we recommend a Hold on SCC with a target price of P37.00 per share, offering a limited potential upside of a little
over +10%.<\/p>\n\n\n\n

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

Semirara Mining and Power Corporation (SCC) stands as the largest coal producer in the Philippines and one of the most prominent players in power generation, operating a highly integrated business model, extracting coal from its own mines and utilizing this resource to fuel its power generation facilities.<\/p>\n\n\n\n

This vertical integration allows SCC to capture significant operational synergies and cost efficiencies, which support its long-term profitability and stable cash flows. As the demand for energy in the Philippines continues to grow, SCC is well-positioned to benefit from its strong market leadership in coal and power.<\/p>\n\n\n\n

In the 1st half (1H) 2024, SCC generated P36.6 billion in revenues (-17.9% y\/y), with cost management lowering opex by -30% y\/y. Coal segment revenues dipped, but cash flow remained strong at P15.7 billion, supporting a P14.88 billion dividend payout. The company’s low strip ratio (11.4) contributed to its cost efficiency. Its power generation segment contributed P12.71bn (35% of topline), supported by higher bilateral contract prices. SCC’s recent acquisition of an 11.13% stake in CHP
is expected to open new revenue streams in the cement sector.<\/p>\n\n\n\n

Despite volatile coal prices, SCC remains competitive due to its large reserves and efficient operations, securing long-term domestic coal supply contracts and expanding exports to Korea and Japan to reduce reliance on China.<\/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>