{"id":331693,"date":"2025-02-28T01:00:32","date_gmt":"2025-02-27T17:00:32","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331693"},"modified":"2025-02-28T01:01:20","modified_gmt":"2025-02-27T17:01:20","slug":"stock-in-focus-ayala-land-inc-ali-28-feb-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-ayala-land-inc-ali-28-feb-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Ayala Land, Inc. (ALI) – 28 Feb 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ALI<\/td><\/tr>
Company Name<\/strong><\/td>Ayala Land, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Feb 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 42.01<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We see the continuance of BSP\u2019s rate cut cycle alongside moderating inflation to be the primary drivers that would help boost ALI\u2019s earnings to even higher levels in the coming years. As a result of ALI\u2019s stable earnings alongside continually showing their prowess in the real estate market, we reiterate our BUY rating for the largest property developer in the country with a Target Price of P42.01.<\/p>\n\n\n\n

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

Earnings in-line with estimates<\/strong><\/p>\n\n\n\n

ALI posted 2024 earnings of P28.2-Billion, putting it in-line with our estimates of P27.9-Billion. The company managed to deliver sufficient growth across all segments with property development posting a notable 22% YoY revenue growth driven by higher bookings followed by leasing and hospitality\u2019s 9% on higher rental and room rates and lastly, services\u2019 57% growth which was driven by additional contracts from external projects alongside stable property management fees.<\/p>\n\n\n\n

Premium leads the way<\/strong><\/p>\n\n\n\n

Resi revenues posted a significant growth of 23% YoY to end up at P94.9-Billion attributable to higher bookings, particularly for their premium segment which posted a sales growth of 25% YoY while their core offerings posted a minimal 6% YoY decline as mortgage rates remained high. While the prospect of higher-for-longer interest rate environment warrants concern for their core segment, we note that the growth posted by ALI\u2019s premium offerings was more than enough to offset the weakness from core as the former continued to account for the lion\u2019s share of the resi revenues at 57% of the entire pie.<\/p>\n\n\n\n

Sustained all-around growth<\/strong><\/p>\n\n\n\n

Aside from the widely talked about residential segment, we note that the company\u2019s commercial and industrial lots also managed to grow by a staggering 52% YoY, mainly driven by demand for lots in Nuvali, Azuela Cove Estates, and Laguindingan Technopark. Looking at their leasing and hospitality segment, we saw an 8% YoY growth in revenues driven by healthy operations of existing assets coupled with the contribution of their relatively newer assets such as the One Ayala Mall and BPI Towers. Lease out rates for both their malls and offices remained stable at 90% and 91% respectively. Hotel and resort revenues also posted a decent 11% YoY growth driven by higher average room rates coupled with the contribution of new rooms at Seda Manila Bay and Nuvali Tower 2. Occupancy for both sub-segments remained stable with hotels at 67% and resorts at 43% which is 2 ppts higher than 2023\u2019s 41%.<\/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>