{"id":329983,"date":"2024-10-17T01:10:10","date_gmt":"2024-10-16T17:10:10","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329983"},"modified":"2024-10-17T01:10:12","modified_gmt":"2024-10-16T17:10:12","slug":"stock-in-focus-megaworld-corp-meg-17-oct-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-megaworld-corp-meg-17-oct-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Megaworld Corp. (MEG) – 17 Oct 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MEG<\/td><\/tr>
Company Name<\/strong><\/td>Megaworld Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 Oct 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2.63<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Despite MEG\u2019s continued efforts in allocating capital to developments which are earnings accretive, we continue to see their substantial exposure to offices as a key risk especially as earnings from this segment in the previous quarters has shown how it is struggling to grow. Given this, we see other property companies to be significantly more attractive vs MEG. We have a HOLD rating on MEG with a Target Price of P2.63.<\/p>\n\n\n\n

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

To the North<\/strong><\/p>\n\n\n\n

Megaworld recently disclosed that it will be allocating P15-Billion towards the
development of its premium mixed-use beach side township in Ilocos Norte, which would span a staggering 84-hectares of land. This will be the company\u2019s 34th township development and they have stated that this budget will be spent over 15 years.<\/p>\n\n\n\n

Opportunities abound<\/strong><\/p>\n\n\n\n

We note that the property will be in close proximity to several key developments in Laoag, namely Laoag International Airport, Fort Ilocandia, and the Paoay Church.
Additionally, a PSA study of Gross Regional Domestic Product performance for 2023 showed that Region I (Ilocos Region) posted one of the fastest growth rates
at 7.1%, 1.6ppts higher than the country\u2019s overall GDP growth of 5.5%. We note that there are only two regions that grew at a faster pace: Western Visayas (+7.2%) and Central Visayas (7.3%).<\/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>