{"id":331305,"date":"2025-01-28T00:06:49","date_gmt":"2025-01-27T16:06:49","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331305"},"modified":"2025-01-28T00:06:52","modified_gmt":"2025-01-27T16:06:52","slug":"stock-in-focus-cemex-holdings-philippines-chp-28-jan-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-cemex-holdings-philippines-chp-28-jan-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Cemex Holdings Philippines (CHP) – 28 Jan 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>CHP<\/td><\/tr>
Company Name<\/strong><\/td>Cemex Holdings Philippines<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Jan 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1.93<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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While national government spending for infrastructure is estimated to increase in 2025 due to an influx of various projects, additional factors such as sluggish cement prices, a potential implementation of Trump\u2019s tariff policies, and the upcoming public works ban set before the election period may continue to weigh upon the company. The aforementioned conditions could result in a slowdown in the awarding of new contracts and in government-led infrastructure projects, as well as margins pressure and challenges in terms of inventory management. Due to this, we are changing our BUY recommendation to a HOLD.<\/p>\n\n\n\n

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

Increased industry competition and a challenging market landscape have continued to weigh upon Cemex Holdings Philippines, Inc. (CHP)\u2019s operations. Cement demand has also been relatively soft over the last two years, which has driven lower cement prices y\/y. Due to the aforementioned conditions, the firm experienced a net loss of P2872.1mn in 9M24, accounting for around 23.5% of revenues.<\/p>\n\n\n\n

The company has also begun constructing a 1.5mn ton integrated cement production line at its Solid Plant in Antipolo, Rizal. As of end-September, ongoing activities include mechanical and electrical installation of the cement mill and other civil works, with the firm estimating the construction and commissioning of Solid Cement\u2019s New Line to be completed during 4Q24.<\/p>\n\n\n\n

Recent moves also include DMC acquiring Cemex Asian South East Corporation (CASEC) for $272mn, which ensures nearly 90% ownership in CHP and marks DMC\u2019s expansion into the cement manufacturing sector. After said transaction, the group is attempting to change the company\u2019s name to Concreat Holdings Philippines Inc., which is subject to approval during a stockholders\u2019 meeting on Feb 12. CHP also owns APO Cement Corporation and Solid Cement Corporation, and has a combined annual production capacity of 5.7mn tons.<\/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>