{"id":331061,"date":"2025-01-08T12:34:41","date_gmt":"2025-01-08T04:34:41","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331061"},"modified":"2025-01-08T12:34:44","modified_gmt":"2025-01-08T04:34:44","slug":"stock-in-focus-ayala-land-inc-ali-8-january-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ayala-land-inc-ali-8-january-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Ayala Land, Inc. (ALI) – 8 Jan 2025 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ALI<\/td><\/tr>
Company Name<\/strong><\/td>Ayala Land, Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>8 Jan 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 45.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Still trading at a wide discount of 68% to our estimated net asset value (NAV) versus the 5-year historical average of 45%, we find it timely to firmly reiterate our BUY rating on ALI. Our 12-month target price (TP) based on discounted NAV is solid at Php45.00, offering a potential upside of 72%.<\/p>\n\n\n\n

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

Solid fundamentals are unrecognized<\/strong><\/p>\n\n\n\n

Ayala Land, Inc. (ALI) remained fundamentally strong in 2024, with earnings growth estimated at 16% year-on-year (y\/y), but its share price ended the period 24% lower y\/y, underperforming the PSEi by 25%. The uncertain timing of interest rate cuts in the early part of the year and the victory of Donald Trump in the November US presidential elections that spiked fears of protectionist policies seemed to be the main reasons for the sell-offs we believe were exaggerated. <\/p>\n\n\n\n

We think it is time to focus on ALI\u2019s strong earnings, flexible strategies, and competitive position in the property development space, all rooted in brand equity and should be magnified under a declining interest rate environment. We are not worried about the decline in RREPI (Residential Real Estate Price Index) as ALI\u2019s prospective property buyers are not sensitive to banks\u2019 appraised values (for mortgage purposes) in our observation.<\/p>\n\n\n\n

Earnings recap and 2025 forecast<\/strong><\/p>\n\n\n\n

ALI\u2019s 9-months (9M) 2024 net income reached Php21.2 billion, +15% y\/y. Consolidated revenues grew 27% y\/y to Php125.2 billion, driven by the residential segment on higher bookings. Residential reservation sales climbed 17% y\/y to Php100.5 billion. Net income may have grown by 16% y\/y in 2024, and for 2025, we forecast another 15% y\/y broad-based growth.<\/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>