{"id":331302,"date":"2025-01-28T00:03:45","date_gmt":"2025-01-27T16:03:45","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331302"},"modified":"2025-01-28T00:03:49","modified_gmt":"2025-01-27T16:03:49","slug":"stock-in-focus-dmci-holdings-inc-dmc-28-jan-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-dmci-holdings-inc-dmc-28-jan-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: DMCI Holdings Inc. (DMC) – 28 Jan 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>DMC<\/td><\/tr>
Company Name<\/strong><\/td>DMCI Holdings Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Jan 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 12.46<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We previously had a HOLD rating on DMC, mainly due to the slim upside to consensus Target Price of P12.46. However, the recent market downturn has increased the potential upside to 11.6% which would warrant reinstating our BUY rating on the company. This rating is anchored on our expectations of higher nickel production (and consequently, higher revenues and better margins) from DMCI Mining, as well as emerging synergies between SCC and CHP. On top of that, DMC remains one of the most generous companies in giving out dividends, with a 12-month dividend yield of 10.75%.<\/p>\n\n\n\n

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

DMCI Mining to have three mines by end-1Q 2025<\/strong><\/p>\n\n\n\n

DMC disclosed in a press release that its Zambales Chromite Mine (ZCMC) in Sta. Cruz, Zambales has commenced operations in December 2024 and is expected to reach full operating capacity of 1-Mn WMT (wet metric tons) by 1Q25. Another mining subsidiary, Berong Nickel Corp. (BNC), is in the final stages of securing a Mineral Production Sharing Agreement (MPSA) for its Long Point Mine in Aborlan, Palawan. This would replace the production capacity of BNC\u2019s Quezon Mine which reached the end of its mine life in 2021 and is currently undergoing rehabilitation.<\/p>\n\n\n\n

These developments should shore up the earnings of DMCI Mining, which has been seeing a constant decline in its contribution to DMC since BNC Quezon\u2019s depletion in 2021. Since then, DMCI Mining has been operating only one mine (ZDMC in Zambales) with an annual production capacity of 1-Mn WMT. Assuming that BNC Long Point will successfully secure an MPSA, this capacity is set to triple to 3-Mn WMT of nickel ore this year. This higher production should offset the persistent softness in nickel prices and improve the company\u2019s operating margins.<\/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>