{"id":330598,"date":"2024-11-25T16:07:15","date_gmt":"2024-11-25T08:07:15","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330598"},"modified":"2024-11-25T16:08:18","modified_gmt":"2024-11-25T08:08:18","slug":"stock-in-focus-sm-investments-corp-sm-25-nov-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-sm-investments-corp-sm-25-nov-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: SM Investments Corp. (SM) – 25 Nov 2024 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SM<\/td><\/tr>
Company Name<\/strong><\/td>SM Investments Corp.<\/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 1,090.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Among all conglomerates, we are most comfortable with SM Investments Corporation (SM), which has demonstrated stability and resilience through the years, even during periods of crisis. Thanks to the strategies it has implemented for its business units, which are interlinked. With easing inflation, from an average of 6% in 2023 to our 2024 forecast of 3.2%, we expect SM\u2019s retail segment to recover next year. Such recovery, compounded with the sustained strength of its property and banking arms, should magnify the positive effect on group or consolidated financial performance.<\/p>\n\n\n\n

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

SM\u2019s 9-months (9M) 2024 net income reached Php60.9 billion, up 9% year-on-year (y\/y), in line with our estimates, representing about 74% of our full-year 2024 forecast of Php82.4 billion. About 15% of net income came from the retail segment, 27% from property, 50% from banks and 8% from portfolio. <\/p>\n\n\n\n

Revenues grew by 5% y\/y to Php462.5 billion. We highlight the merely 4% increase in the revenues of unlisted SM Retail as same-store-sales growth (SSSG) was only 0.6% in 9M24 versus the 9% posted in 9M23, and also the drop in EBIT margin to 6.5% from 7.4%, which led its net income to decline by 7%. The larger property and banking segments did very well, with SM Prime Holdings (SMPH) and BDO Unibank\u2019s (BDO) 9M24 earnings up 12%.<\/p>\n\n\n\n

SM\u2019s share price has marginally outperformed the PSEi year-to-date by 3.7%, which we believe should be more. Take advantage of the nearly 6% share price drop yesterday and catch the stock that serves as a proxy for the Philippine economy.<\/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>