{"id":330587,"date":"2024-11-25T16:01:37","date_gmt":"2024-11-25T08:01:37","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330587"},"modified":"2024-11-25T16:01:37","modified_gmt":"2024-11-25T08:01:37","slug":"stock-in-focus-robinsons-retail-holdings-inc-rrhi-25-nov-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-retail-holdings-inc-rrhi-25-nov-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Robinsons Retail Holdings Inc. (RRHI) – 25 Nov 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RRHI<\/td><\/tr>
Company Name<\/strong><\/td>Robinsons Retail Holdings Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>25 Nov 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 63.97<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We believe that the improvements in the macroeconomic environment, backed by moderating inflation and a forecasted 5.7% increase in wages next year, should expand the consumer\u2019s purchasing power. RRHI\u2019s current expansionary strategy thus puts them in a position to take advantage of upcoming demand in the following years. Given this, we reiterate our BUY rating for RRHI with a Target Price of P63.97.<\/p>\n\n\n\n

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

Doubling down on hard discount outlets<\/strong><\/p>\n\n\n\n

Management recently stated that it is looking to ramp up store openings over the next three to five years as it continues to put itself in a position to cater towards future demand. The hard-discounter segment is one of the areas that RRHI is gearing to expand, revealing plans to reach 400 stores by year-end for O!Save, in which RRHI currently has a 23% stake, marking a staggering 158% YoY growth in store count vs last year\u2019s 155 stores. The company is looking to open around 200 to 300 more stores by 2025, which would again increase the store count by another 50-75%.<\/p>\n\n\n\n

Focusing on what works<\/strong><\/p>\n\n\n\n

RRHI also mentioned an accelerated pace of expansion for its Robinsons Easymart, which boasts of an SKU (stock keeping unit) count of around 3,000 to 6,500, which makes it a great location for customers to fulfill their shopping needs. We note that the company\u2019s food segment continues to account for the largest piece of the pie in terms of net sales at 60.9% of overall revenues, 60bps higher than last year\u2019s 60.3%. Given this, we believe that the focus on expansion towards their largest segment is a wise decision as this would continue to boost earnings in a much more meaningful way moving forward.<\/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>