{"id":331182,"date":"2025-01-15T19:45:59","date_gmt":"2025-01-15T11:45:59","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331182"},"modified":"2025-01-15T19:46:02","modified_gmt":"2025-01-15T11:46:02","slug":"stock-in-focus-eei-corp-eei-15-jan-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-eei-corp-eei-15-jan-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: EEI Corp. (EEI) – 15 Jan 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>EEI<\/td><\/tr>
Company Name<\/strong><\/td>EEI Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>15 Jan 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 4.04<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are reducing our Target Price to P4.04\/sh and placing a HOLD recommendation on EEI.<\/p>\n\n\n\n

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

EEI Corporation (EEI) saw a triple-digit decline in its bottomline in 3Q 2024, with a net loss of P32.4mn (-107.93% y\/y), which can be attributed to weaker contributions from equity in associate and joint ventures, particularly the Al Rushaid Construction Company (ARCC).<\/p>\n\n\n\n

Consolidated revenues also lowered, falling to P3.14bn (-27.8% y\/y) in 3Q24 and P11.32bn (-7.21% y\/y) in 9M24. This was mainly driven by lower revenues from domestic construction contracts and merchandise sales, as well as sluggish completion rates. As of end-Sept, the firm\u2019s unworked portion of existing contracts continues to hold strong at P42.25bn.<\/p>\n\n\n\n

Zooming out into the industry scene features a surge in residential construction and investments in non-residential projects, with a slight increase (+4% y\/y) in the number of constructions to 13,848 projects.<\/p>\n\n\n\n

Majority of construction projects in October were attributed to said residential projects, accounting for around 9,003 projects or 65% of the total. Single-type houses were the main drivers of the residential segment, making up +76.6% of all residential constructions. Non-residential constructions contributed around +20.7% to the total number of projects, despite a slight decline of -2.2% y\/y.<\/p>\n\n\n\n

Growth in domestic construction is estimated to be primarily driven by infrastructure projects under the Build Better More program, while demand for construction services from the private sector continues to recover.<\/p>\n\n\n\n

Increased infrastructure spending may result from preparations for the 2025 midterm elections, yet staggered completion rates may result from the public works ban and from the recent CPI growth (which reached an all time high of 127.7 points in December), while potential tariff policy implementations may lead to increased costs of imported construction materials, disruptions to global supply chains, and reduced availability of equipment, as well as fluctuating oil prices and loss occurring from ARCC, may further weigh upon the firm.<\/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>