{"id":329833,"date":"2024-10-10T01:30:49","date_gmt":"2024-10-09T17:30:49","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329833"},"modified":"2024-10-10T01:30:50","modified_gmt":"2024-10-09T17:30:50","slug":"stock-in-focus-robinsons-land-corp-rlc-10-oct-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-land-corp-rlc-10-oct-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Robinsons Land Corp. (RLC) – 10 Oct 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RLC<\/td><\/tr>
Company Name<\/strong><\/td>Robinsons Land Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>10 Oct 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 21.86<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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The continued recovery of the tourism industry coupled with the significantly better outlook for pick-up in consumer demand gives us the confidence to continually recommend a BUY for RLC with a Target Price of P21.86 which translates to an upside of 39.6% from its last traded price of P15.66. The stock is also an excellent value play, with its current Price-to-Book (P\/B) ratio of 0.49x trading at a steep 38.8% to its 7-year average P\/B of 0.80x.<\/p>\n\n\n\n

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

Keys to success<\/strong><\/p>\n\n\n\n

RLC\u2019s hotel subsidiary Robinsons Hotel and Resorts (RHR) recently announced its plans to invest over P10-Billion to expand its upscale and ultra-luxury hotel offerings, with the goal to add over 990 room keys to its portfolio. We note that Colliers 1H 2024 data for Hotels showed that occupancy for 4-5 star hotels are typically higher by roughly 5 ppts vs 2-3 star hotels. The planned launches are their NuStar in Cebu, Grand Summit in Cebu and Pangasinan, and Fili in Bridgetowne. The completion of these projects would bring their total room keys to 5,233, marking a significant expansion of 23% from 4,243 keys as of year-end 2023.<\/p>\n\n\n\n

On traveler resurgence<\/strong><\/p>\n\n\n\n

We see this as a positive progression for the company given that tourism is continuing to improve, with 4.4-Million tourist arrivals in the first nine months of the year. We note that this is already 81% of 2023\u2019s total arrivals, and marking a 10% YoY increase from 4.0-Mn in the same period last year. However, this is only 58% of the DOT\u2019s 2024 target of 7.7-Million tourist arrivals. <\/p>\n\n\n\n

Nonetheless, the expected influx of travelers for the holiday peak season in Q4 could still help the DOT reach that lofty target. Even reaching the 7.7-Mn target would still translate to only 93.2% of pre-pandemic arrivals, indicating that despite the substantial recovery in tourism the past two years, there is still a massive room for growth that companies with exposure to hotels such as RLC can take advantage of.<\/p>\n\n\n\n

Focus on hotels to ease concerns for office exposure<\/strong><\/p>\n\n\n\n

We note that in the previous quarters, we continually recommended ALI and SMPH as our top picks in the property sector as they have displayed substantial earnings growth over the past quarters. Alongside this, both companies have relatively limited exposure to offices, which is a segment where the outlook remains cloudy. <\/p>\n\n\n\n

However, the trend of moderating inflation, coupled with the upcoming easing cycle which should improve demand for low to middle income residential, has led to a shift in our main narrative for the property sector as well as our top picks. <\/p>\n\n\n\n

With this current narrative in mind, we would be more partial towards developers with heavy mall exposure, a pipeline of more affordable residential offerings, and expanding hotel segments. As such, we drop ALI from our top pick and replace it with RLC.<\/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>