{"id":331409,"date":"2025-02-06T00:01:55","date_gmt":"2025-02-05T16:01:55","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331409"},"modified":"2025-02-06T00:01:58","modified_gmt":"2025-02-05T16:01:58","slug":"stock-in-focus-first-gen-corp-fgen-6-feb-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-first-gen-corp-fgen-6-feb-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: First Gen Corp. (FGEN) – 6 Feb 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>FGEN<\/td><\/tr>
Company Name<\/strong><\/td>First Gen Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/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 21.70<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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FGEN\u2019s leadership in LNG and renewable energy supports its long-term growth potential, though short-term challenges, such as margin pressures and regulatory risks, warrant caution. With a target price of P21.70, we maintain our Buy recommendation, focusing on developments in LNG operations and the regulatory landscape.<\/p>\n\n\n\n

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

The Philippine energy sector is undergoing a shift towards renewable energy, with First Gen Corporation (FGEN) well-positioned to capitalize on this change. The company\u2019s LNG subsidiary, FGEN LNG, received a 25-year permit for its offshore terminal in Batangas, marking a key milestone. <\/p>\n\n\n\n

FGEN LNG, in partnership with Tokyo Gas, generated P3.567 billion in revenues as of September 2024, reversing previous losses and supporting the integration of renewable energy into the grid.<\/p>\n\n\n\n

FGEN\u2019s diversified energy portfolio, including natural gas, geothermal, hydro, wind, and solar, strengthens its leadership in the sector. Despite mixed results in 9-months (9M) 2024, with revenues from natural gas and GWS declining, its hydro segment saw significant growth due to the Casecnan acquisition. However, consolidated revenues fell by -2.3% y\/y, and net income dropped by -16.1% year-on-year (y\/y).<\/p>\n\n\n\n

The company\u2019s strong balance sheet remains a positive, bolstered by investments in its LNG terminal and Casecnan plant. Long-term debt rose by +38.5% y\/y to fund these strategic expansions, ensuring FGEN is poised to meet the growing demand for clean energy. <\/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>