{"id":330595,"date":"2024-11-25T16:04:26","date_gmt":"2024-11-25T08:04:26","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330595"},"modified":"2024-11-25T16:04:30","modified_gmt":"2024-11-25T08:04:30","slug":"stock-in-focus-puregold-price-club-pgold-25-nov-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-puregold-price-club-pgold-25-nov-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Puregold Price Club (PGOLD) – 25 Nov 2024 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>PGOLD<\/td><\/tr>
Company Name<\/strong><\/td>Puregold Price Club, Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC 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 40.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We retain our BUY rating for Puregold Price Club, Inc. (PGOLD) with a target price (TP) of Php40.00 (+36% upside), on account of stable earnings prospects, long-term value, and sustainability. We expect improving consumer spending to benefit Puregold\u2019s topline margins amid the holiday season, as well as the effect of lowered (15% vs. 35% prev.) rice tariffs. <\/p>\n\n\n\n

Although for S&R, the weakening of the Peso in the 2nd half (2H) of 2024 may offset its strong 1st half (1H) 2024 margins, given its 70% imported product mix. We forecast PGOLD\u2019s gross profit to grow 8%\/7% to Php38.1 billion\/Php40.9 billion in 2024\/2025, while net income to increase 12%\/9% to Php9.6 billion\/Php10.5 billion, respectively.<\/p>\n\n\n\n

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

PGOLD reported 9-months (9M) 2024 net income of Php6.9 billion, up 4.5% year-on-year (y\/y) but below our estimates. Consolidated revenues grew 9.1% to Php151.97 billion from the Php139.3 billion recorded in the same period last year. This was driven by higher traffic and basket size, as reflected by the +3.5% same-store sales growth (SSSG) of Puregold stores and +4.1% from S&R business. <\/p>\n\n\n\n

Gross profit improved 8% to Php27.65 billion as a slight improvement in margins of S&R boosted topline growth. As of September 2024, the company has added 19 Puregold stores, 3 S&R membership shopping warehouses, and 3 S&R New York QSRs (quick service restaurants).<\/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>