{"id":331612,"date":"2025-02-20T23:58:14","date_gmt":"2025-02-20T15:58:14","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331612"},"modified":"2025-02-21T00:24:55","modified_gmt":"2025-02-20T16:24:55","slug":"stock-in-focus-philippine-seven-corp-sevn-20-feb-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-philippine-seven-corp-sevn-20-feb-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Philippine Seven Corp. (SEVN) – 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>SEVN<\/td><\/tr>
Company Name<\/strong><\/td>Philippine Seven Corp.<\/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 85.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We recommend a BUY rating on SEVN with a Target Price of P85.10 per share, which presents an appealing upside potential of 37.48% from its last traded price.<\/p>\n\n\n\n

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

Philippine Seven Corporation sustained strong growth in 9-months (9M) 2024, with merchandise sales rising +16.7% year-on-year (y\/y) to P58.91 billion and net income increasing +13.7% y\/y to P2.58 billion, supported by a 2.7% same-store sales growth despite weather-related challenges. <\/p>\n\n\n\n

In 3Q 2024, net income grew +13.1% to P813.9 million, while merchandise sales rose +12.2%. Margins showed signs of recovery, with a 40bps improvement in 3Q 2024 to 27.5%, aided by price subsidies and promotional support, though 9M 2024 gross profit margin remained pressured by lower alcohol margins. Franchise revenue grew +8.4% y\/y to P4.72 billion, driven by a +14.6% increase in franchise gross profit share, while rent income improved with new lease agreements. <\/p>\n\n\n\n

As of September 30, 2024, SEVN expanded its store network to 4,022 locations, surpassing its initial 4,000-store target for Q4 2024. The network includes 456 stores in Mindanao, 594 in the Visayas, 1,114 in Metro Manila, and 1,858 in Luzon. To drive further growth, SEVN is investing P5.5bn in capital expenditures to open 500 additional stores, aiming to reach 4,600 locations by 2025.<\/p>\n\n\n\n

Consumer spending in 2024 remained stable but slowed, with HFCE averaging 4.8% for the year. Consumer confidence improved in Q4, with the index rising to -11.1% from -15.6% in Q3, driven by optimism over income and jobs. <\/p>\n\n\n\n

While sentiment has recovered from pandemic lows, it remains below pre-pandemic levels. Confidence is expected to strengthen in 2025, supported by rising incomes, a strong labor market, and election spending.<\/p>\n\n\n\n

BMI projects household spending growth to increase from 5.0% in 2024 to 5.3% in 2025, reaching P13.2tn. With GDP stable at 5.6% and inflation easing to 2.9% in January 2025, rising consumer demand presents growth opportunities for SEVN.<\/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>