{"id":330892,"date":"2024-12-13T00:21:19","date_gmt":"2024-12-12T16:21:19","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330892"},"modified":"2024-12-13T00:21:20","modified_gmt":"2024-12-12T16:21:20","slug":"stock-in-focus-ltg-group-inc-ltg-13-dec-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ltg-group-inc-ltg-13-dec-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: LTG Group, Inc. (LTG) – 13 Dec 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>LTG<\/td><\/tr>
Company Name<\/strong><\/td>LTG Group, Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>13 Dec 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 12.40<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We retain our BUY rating on LTG with a Target Price of P12.40. The potential capital appreciation of the firm is at 20.16% with its last traded price. For 2025, things are looking bright for LTG amid easing interest rate and inflation rate, recovery in consumer expenditure, and anticipated strong demand for goods and spending for 2025 election season.<\/p>\n\n\n\n

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

LT Group, Inc. (LTG)\u2019s 9-months (9M) 2024 revenues rose +12.8% year-on-year (y\/y) to P95.16 billion driven by strong performance and improved revenues from banking, distilled, beverage, and property development segment on the back of the significantly lower operating expenses of -1.9% y\/y to P29.47 billion resulting to increase in Net Income which climbed by +4.90% y\/y to P26.67 billion. Banking segment leads the charge with high interest income growth at +14.80% y\/y. <\/p>\n\n\n\n

Moreover, LTG recognized higher sales volume on its distilled spirits and beverages business category driven by strong demand and higher selling prices for liquor segment boosted its profitability. The property units of the firm, which is being led by Eton Properties, are now seeing higher residential sales based on its latest report with leasing segment increased by 3.9% y\/y.<\/p>\n\n\n\n

Tobacco segment on the other hand, led by PMFTC continues to face challenges with lower sales volume attributed to illicit trade of tobacco in the country, resulting to a decrease of -12% y\/y on the segment\u2019s NI.<\/p>\n\n\n\n

Meanwhile, the key financial ratios are expected to accelerate for FY25E-
FY26E given that the profitability continues to foster. The equity returns, profit margins, and ROA are projected to trend upwards, following prospects of easing interest and inflation rate, recovery in consumer expenditure, and anticipated strong demand for goods and spending ahead of 2025 election season.<\/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>