{"id":330898,"date":"2024-12-13T00:26:56","date_gmt":"2024-12-12T16:26:56","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330898"},"modified":"2024-12-13T00:26:58","modified_gmt":"2024-12-12T16:26:58","slug":"stock-in-focus-fruitas-holdings-inc-fruit-13-dec-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-fruitas-holdings-inc-fruit-13-dec-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Fruitas Holdings, Inc. (FRUIT) – 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>FRUIT<\/td><\/tr>
Company Name<\/strong><\/td>Fruitas Holdings, 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 1.18<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Despite the mixed economic landscape in the Philippines, FRUIT has been performing well, evidenced by its strong 9-months (9M) 2024 results driven by continuous expansion and improved margins. Thus, we maintain a BUY rating at a target price of P1.18\/sh reflecting +68.57% upside following FRUIT\u2019s strategic focus on store expansion, e-commerce, and delivery services positions it to weather economic challenges effectively. Downside risk in our projections involve potential risks arising from slower GDP growth, peso depreciation, and inflation rate.<\/p>\n\n\n\n

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

Fruitas Holdings, Inc. (FRUIT) realized a surge in net income for 9M24 as it managed to book a Net Income (NI) of P94.75 million, up +34.91% y\/y driven mainly by higher revenues posting P2.12 billion in 9M24, up +18.56% y\/y, resulting from ongoing expansion of the store network and improved performance at existing locations.<\/p>\n\n\n\n

Along 9M24 rise in revenue is direct costs increase of +15% y\/y to P848.17mn but reports improving GP margin in 9M24 of 60% from 58% from the same period last year, with improving merchandise inventory control for food and beverages by 9% y\/y whilst store supplies cost under inventories rose by more than +30% y\/y.<\/p>\n\n\n\n

FRUIT is ramping up its expansion efforts with a P750mn capital expenditures budget for 2024, up from P500mn last year. The funds will support the addition of 50 new stores, commissary enhancements, and acquisitions, building on its portfolio of over 30 brands, including Fruitas, Ling Nam, and Sugarhouse. FRUIT is also leveraging digital platforms like BalaiMart and third-party delivery services to meet growing consumer demand for online food delivery. Recent acquisitions and a P200mn corporate note issuance underline its commitment to growth and diversification.<\/p>\n\n\n\n

The Philippine economy’s slower GDP growth of 5.2% and peso depreciation may curb consumer spending, potentially affecting FRUIT. However, stable inflation at 2.3% supports purchasing power, while seasonal remittances boosted by a weaker peso could offset reduced local demand. Fruitas\u2019 expansion and diversification strategies position it to adapt to these challenges effectively.<\/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>