{"id":330983,"date":"2024-12-19T00:52:55","date_gmt":"2024-12-18T16:52:55","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330983"},"modified":"2024-12-19T00:53:01","modified_gmt":"2024-12-18T16:53:01","slug":"stock-in-focus-emperador-inc-emi-19-dec-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-emperador-inc-emi-19-dec-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Emperador Inc. (EMI) &#8211; 19 Dec 2024 by RCBC Securities"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Summary of Broker&#8217;s Recommendation<\/h2>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Stock Code<\/strong><\/td><td>EMI<\/td><\/tr><tr><td><strong>Company Name<\/strong><\/td><td>Emperador Inc.<\/td><\/tr><tr><td><strong>Broker<\/strong><\/td><td>RCBC Securities<\/td><\/tr><tr><td><strong>Opinion Issued on<\/strong><\/td><td>19 Dec 2024<\/td><\/tr><tr><td><strong>Recommendation<\/strong><\/td><td>Downgrade to Underweight<\/td><\/tr><tr><td><strong>1-Year Target Price<\/strong><\/td><td>PHP 16.30<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Given the slower-than-expected results for Emperador Inc (EMI), we downgraded our rating from HOLD to Underweight as we expect earnings to contract in the 4th quarter (4Q) 2024. We slashed our target price (TP) by 14% from Php18.60 to Php16.30, adjusting our 2024\/2025 forecasts. Nevertheless, we remain hopeful that EMI will rebound next year amid a low base, improvement in general demand as consumers will likely adapt to inflationary pressures, and the completion of the Dalmore Distillery by end-2024, doubling the production capacity.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Analysis and Opinion<\/h2>\n\n\n\n<p><strong>Earnings recap<\/strong><\/p>\n\n\n\n<p>EMI recorded a 9-months (9M) 2024 net income of Php4.9 billion, 30% lower year-on-year (y\/y) and below our estimates, accounting for only 52% of our 2024 forecast. Revenues slipped 8% to Php43.2 billion as global demand for brandy and whisky softened amid downtrading. Gross profit fell 17% to Php14.3 billion while GP margin (GPM) decreased to 32% from 36% last year due to higher input prices. EBITDA rate stood at 19%, lower than the 22% in 9M 2024.<\/p>\n\n\n\n<p><strong>Earnings outlook<\/strong><\/p>\n\n\n\n<p>We revised our 2024\/2025 net income by -16%\/-19% to Php7.7 billion\/Php8.6 billion, reflecting a -12%\/+12% growth y\/y. We tempered our forecast given the continuous revenue decline that started in 1Q 2024. Our 2024 revenue estimates changed by -16% from the initial Php69.8 billion to now Php60.2 billion (-8% y\/y), backed by a Php36.4 billion from Brandy (-9% y\/y) and Php23.8bn from its Whisky business (-7% y\/y). For next year, we remain hopeful that EMI will rebound as revenue is anticipated to grow 7% y\/y to Php64.4 billion.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Check how many brokers recommend this stock<\/h2>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-pinoyinvestor wp-block-embed-pinoyinvestor\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"5nfYNmiQEu\"><a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-rankings-all-stocks\/\">All Stock Rankings<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;All Stock Rankings&#8221; &#8212; PinoyInvestor\" src=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-rankings-all-stocks\/embed\/#?secret=lV7FmOhzUg#?secret=5nfYNmiQEu\" data-secret=\"5nfYNmiQEu\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our recommendation and 1-year Target Price for this stock is<\/p>\n","protected":false},"author":1685,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-330983","post","type-post","status-publish","format-standard","hentry","category-stocks-in-focus","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/1685"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=330983"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330983\/revisions"}],"predecessor-version":[{"id":330987,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330983\/revisions\/330987"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}