{"id":330544,"date":"2024-11-21T11:17:29","date_gmt":"2024-11-21T03:17:29","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330544"},"modified":"2024-11-21T11:17:33","modified_gmt":"2024-11-21T03:17:33","slug":"stock-in-focus-dmci-holdings-inc-dmc-21-nov-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-dmci-holdings-inc-dmc-21-nov-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: DMCI Holdings Inc. (DMC) – 21 Nov 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>DMC<\/td><\/tr>
Company Name<\/strong><\/td>DMCI Holdings Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>21 Nov 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 11.53<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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DMC\u2019s segmental performance offers a mixed bag of sectoral gagues, as buyer sentiment is impacted by the country\u2019s recent fluctuating inflation rates, as well as potential slowdowns in areas such as real estate and fluctuating coal prices and slower construction progress, alongside the upcoming proposed 10-20% tariffs on certain impacts potentially resulting in higher costs for construction materials and key exports such as coal. Our sum of the parts (SOTP) financial model yielded a Target Price of P11.53\/share, and we are issuing a HOLD recommendation on the stock.<\/p>\n\n\n\n

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

DMCI Holdings, Inc. (DMC)\u2019s 9-months (9M) 2024 Net Income (NI) dove to P15.14 billion, down 23% year-on-year (y\/y), despite its 3rd quarter (3Q) 2024 NI seeing an uptick of growth by +3% y\/y to P4 billion. This decline in growth is attributed to weaker contributions from SMPC and DMCI homes, which partially offset strong results from Maynilad, DMCI Power, DMCI and DMCI Mining. Consolidated revenues declined to P21.85bn in 3Q24 (-2% y\/y), and to P77.4bn in 9M24 (-16% y\/y), due to reduced construction accomplishments, weaker coal and on-grid power selling prices and higher reversals from real estate sales cancellations.<\/p>\n\n\n\n

DMCI Homes\u2019 total units sold experienced a double-digit decline on high-base effect following strong Solmera Coast (SLC) sales last August 2023. Residential units plunged by -47% y\/y to 848, while sales of parking units slipped by -13% to 539, due to the lack of parking slots in leisure projects such as Solmera Coast and Moncello Crest.<\/p>\n\n\n\n

SMPC\u2019s 9M24 NI also experienced a significant decline by -31% y\/y to P15.7bn, with its 3Q24 NI lowering by -8% y\/y to P3.12bn. However, higher coal and power sales were able to lift the firm\u2019s 3Q24 topline through increased coal and power sales.<\/p>\n\n\n\n

Meanwhile, Maynilad saw one of its best earnings for both the 3Q24 and 9M24 periods, as both its revenues and NI posted double-digit growth, due to higher billed volumes, adjusted tariffs and re-opening fees. Both DMCI Power and DMCI Mining saw higher revenues as well, with the former rising on upticks in dispatch and ASP, while the latter\u2019s revenues more than tripled, due to shipments recovery and higher ASP.<\/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>