{"id":331606,"date":"2025-02-20T23:51:44","date_gmt":"2025-02-20T15:51:44","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331606"},"modified":"2025-02-20T23:51:46","modified_gmt":"2025-02-20T15:51:46","slug":"stock-in-focus-filinvest-development-corp-fdc-20-feb-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-filinvest-development-corp-fdc-20-feb-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Filinvest Development Corp. (FDC) – 20 Feb 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>FDC<\/td><\/tr>
Company Name<\/strong><\/td>Filinvest Development Corporation<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>20 Feb 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 6.37<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We maintain our BUY recommendation on FDC with a Target Price of P6.37\/share.<\/p>\n\n\n\n

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

Strong segmental growth drove a double-digit increase in Filinvest Development Corporation (FDC)\u2019s bottomline, pushing the firm\u2019s Net Income after Tax (NIAT) up by +59% year-onm-year (y\/y) to P9.5 billion in 9-months (9M) 2024 and by +97% y\/y to P3.9 billion in 3Q 2024. <\/p>\n\n\n\n

The surge in 9M 2024 Net income (NI) was a record high for the firm, even exceeding pre-pandemic levels, as 9M 2019\u2019s NIAT amounted to P8.98 million (+16.02% y\/y). Consolidated revenues also increased on the back of steady performances across the firm\u2019s business units. <\/p>\n\n\n\n

The banking segment accounted for majority of the firm\u2019s revenue generation and other income at 44%, amounting to P31.13 million (+26.39% y\/y). Real estate accounted for 25%, rising to P18.61 million (+66.91% y\/y), with power and utility accounting for 22% and rising to P20.18 million (+23.27% y\/y). Hospitality accounted for 3% of revenues, rising to P2.59mn (+28.86% y\/y).<\/p>\n\n\n\n

Zooming out into the property sector shows a mixed bag of experiences in 2024, with the influx of POGO exits, office vacancies, and sluggish residential condo take-ups as some of the challenges, yet tourism recovery and an increase in IT-BPM revenues were also seen. <\/p>\n\n\n\n

However, the estimated muted demand for new launches for the property sector may be partially offset considering that many of FDC\u2019s developments are located in areas that generate high demand for residential and commercial spaces, such as key business hubs, CBDs, and regional growth areas.<\/p>\n\n\n\n

With the infusion of Festival Mall from FLI to FILRT, the latter\u2019s WALE grew from 7.3 years to 14.6 years, while occupancy rates also increased from 83% to 88%.<\/p>\n\n\n\n

Government spending on infrastructure is estimated to increase this year, which may benefit the firm\u2019s recent ventures into government offices, yet the ban on public works prior to the election period may weigh upon project timelines and contract approvals. Trump\u2019s current tariff policies could also affect global supply chains and trade procedures, with potential changes in US immigration policies potentially impacting remittance flows.<\/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>