{"id":331820,"date":"2025-03-07T00:41:33","date_gmt":"2025-03-06T16:41:33","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331820"},"modified":"2025-03-07T00:41:36","modified_gmt":"2025-03-06T16:41:36","slug":"stock-in-focus-manila-electric-co-meralco-mer-7-march-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-manila-electric-co-meralco-mer-7-march-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Manila Electric Co. – Meralco (MER) – 7 March 2025 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MER<\/td><\/tr>
Company Name<\/strong><\/td>Manila Electric Co. (Meralco)<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>7 March 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 563.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We maintain our BUY rating on MER with a Target Price of P563.00.<\/p>\n\n\n\n

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

Record year backed by power gen and El Nino<\/strong><\/p>\n\n\n\n

MER recorded a 2024 core net income of Php45.1 billion, up +21% year-on-year (y\/y), beating management\u2019s expectations of Php43.0 billion and consensus estimates. Consolidated revenues grew 6% driven by robust energy sales volume for the DU business at 54,325GWh (+6% y\/y) primarily from the onset of El Nino and the warmer temperatures. Total costs and expenses grew slower at 4% due to lower fuel and coal prices. Meanwhile, its power generation business grew by 10% primarily from SBPL and GBP\u2019s improved plant availability, offsetting the lower margins of PacificLight.<\/p>\n\n\n\n

Powering up ahead<\/strong><\/p>\n\n\n\n

Meralco continues to ramp up its power gen arm. As of end-January, MTerra Solar is 27% completed with land acquisition for phase 1 completed, while phase 2 is at 50%. These two phases will start operations by February 2026 and 2027 respectively. Furthermore, the PCC approved the joint acquisition of South Premiere Power Corp (SPPC) and Excellent Energy Resources, Inc. (EER), and are now commissioned and currently contracted with Shell and Vitol for the next 10 years. We also note that not the whole 2GWs are for these contracts as the rest will be up for the spot market.<\/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>