{"id":331387,"date":"2025-02-06T00:01:00","date_gmt":"2025-02-05T16:01:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331387"},"modified":"2025-02-05T23:53:16","modified_gmt":"2025-02-05T15:53:16","slug":"stock-in-focus-sta-lucia-land-inc-sli-6-feb-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-sta-lucia-land-inc-sli-6-feb-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Sta. Lucia Land, Inc. (SLI) – 6 Feb 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>SLI<\/td><\/tr>
Company Name<\/strong><\/td>Sta. Lucia Land, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>6 Feb 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 6.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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SLI has managed to post a sustainable earnings growth for 9-months (9M) 2024 and we are expecting them to continue towards this path as demand continues to shift towards Areas Outside of NCR (AONCR) where 97% of SLI\u2019s property developments are located. Additionally, we see SLI benefitting from the continuance of the reduction in borrowing costs moving forward, which should boost demand for property. Lastly, SLI has proven themselves capable of turning low-valued plots of land into assets that significantly appreciate in value, which puts them in an advantageous position to advertise their offerings as viable investments for prospective buyers. <\/p>\n\n\n\n

Given all of the above, we reitarate our BUY rating for SLI with a Target Price of P6.00.<\/p>\n\n\n\n

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

Masters in property development<\/strong><\/p>\n\n\n\n

We recently had the opportunity to attend a site visit arranged by SLI, showcasing their property developments in Palawan, Iloilo, and Davao. Upon visiting the company\u2019s several property developments, the trend that we noticed was the significant land value appreciation that resulted from the development of the said property. <\/p>\n\n\n\n

One of these properties is their Green Peak heights, located in Palawan which sold for P5k\/sqm back in 2016 and is currently valued at P13.7k\/sqm translating to a CAGR of 13.4%. Another example would be the Green Meadows in Iloilo, a flagship project of SLI launched in 2014 which started with a selling price of P3k\/sqm and is now valued at around P17.2k\/sqm, which translate to an even higher CAGR of 19.5%.<\/p>\n\n\n\n

Earnings recap<\/strong><\/p>\n\n\n\n

SLI reported P3.3-Bn in earnings for 9M24, marking a 4.4% YoY growth while revenues grew at a faster rate of 7% YoY to P9.4-Bn. Net margins, however, posted a minor contraction of 80 bps on account of higher interest expense. Breaking down their revenue sources, we note that resi continued to account for the majority portion of revenues at P7.1-Bn or 76% of the entire pie, growing by 1% YoY. This was followed by other income which is composed of short-term investments and dividend income which posted a substantial growth rate of 82%. Their leasing segment and interest income on the other hand took a slight dip of 3% and 6% respectively.<\/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>