{"id":332268,"date":"2025-04-22T00:06:00","date_gmt":"2025-04-21T16:06:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332268"},"modified":"2025-04-21T23:24:54","modified_gmt":"2025-04-21T15:24:54","slug":"stock-in-focus-gt-capital-holdings-inc-gtcap-22-april-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-gt-capital-holdings-inc-gtcap-22-april-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: GT Capital Holdings, Inc. (GTCAP) – 22 April 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GTCAP<\/td><\/tr>
Company Name<\/strong><\/td>GT Capital Holdings, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>22 April 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 828.50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We see car sales driving GTCAP\u2019s automotive revenues higher this year especially with the launch of the next-generation Tamaraw. Toyota is also no slouch in the HEV\/PHEV game, with this segment already making up 6.4% of total sales in FY24 from just a little over 1.0% three years ago. Based on Toyota Motor Philippines (TMP)\u2019s statements and what we see on the roads, the company is becoming more aggressive in this space and willing to go head-to-head with its Chinese competitors. Further, the weakening of the US dollar against the peso, albeit offset a bit by the slight strengthening of the Japanese yen, should give GTCAP margins a boost this year. As the only way to invest in TMP\u2019s growth story, we retain GTCAP as our top conglo pick with a STRONG BUY rating and a Target Price of P828.50.<\/p>\n\n\n\n

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

1Q 2025 car sales reach 23.4% of target<\/strong><\/p>\n\n\n\n

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed new vehicle sales increased 7.6% year-on-year (YoY) to 40,306 units in March, bringing the year-to-date (YTD) total up to 117,074 or 23.4% of CAMPI-TMA\u2019s 500,000 units target for the year. This represents a more normalized growth rate as compared to the double-digit jumps in 2023 and early 2024 when the auto industry was playing catch-up with order backlogs. Moving forward, we expect car sales to continue growing by mid to high single-digits driven by a steady increase in
motorization levels.<\/p>\n\n\n\n

Toyota remains king, but Chinese automakers have the potential to disrupt<\/strong><\/p>\n\n\n\n

Toyota continued to capture the lion\u2019s share of car sales, accounting for 46.9% of total monthly sales in March and 47.4% of total 1Q 2025. However, we see the potential for tighter competition as trade barriers against Chinese cars in Western markets could lead to an influx of affordable China-made cars into more open markets in Southeast Asia like the Philippines. It must be noted at this point that BYD, Geely, and other Chinese automakers are not members of CAMPI-TMA so their sales numbers are not included in the report and we have limited visibility on their sales.<\/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>