{"id":332284,"date":"2025-04-22T00:10:00","date_gmt":"2025-04-21T16:10:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332284"},"modified":"2025-04-21T23:47:07","modified_gmt":"2025-04-21T15:47:07","slug":"stock-in-focus-converge-ict-cnvrg-22-april-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-converge-ict-cnvrg-22-april-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Converge ICT (CNVRG) – 22 April 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>CNVRG<\/td><\/tr>
Company Name<\/strong><\/td>Converge ICT Solutions Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/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 23.70<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Overall, we are maintaining our BUY recommendation for CNVRG with a Target Price of P23.70\/share with an upside of 32.25% as the company continues to exhibit strong growth and development across business segment, continuous expansion and investments, and increasing its product offerings, while also providing value to investors with higher dividends.<\/p>\n\n\n\n

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

Converge Information and Communications Technology Solutions, Inc. (CNVRG) posted strong 2024 results with revenues up 15% y\/y to P40.6 billion, driven by double-digit growth in both consumer and enterprise segments. Net income rose 19% year-on-year (y\/y) to P10.8 billion, supported by topline gains and cost discipline. EBITDA grew 14% y\/y to P24.6 billion, maintaining a solid 60.5% margin, highlighting CNVRG\u2019s robust profitability and operating leverage amid ongoing network investments.<\/p>\n\n\n\n

CNVRG\u2019s residential segment remained its core revenue driver in 2024, accounting for 84.76% of total revenues and growing 14% y\/y to P34.42bn, led by a 16.24% y\/y rise in FTTH. Customer count rose 20.46% y\/y to 2.56mn, with 95% under FTTH, while ARPU held steady at P1,225. Churn rate slightly improved to 2.07%, reflecting gains from enhanced network reliability and customer service. <\/p>\n\n\n\n

Key initiatives like Boost Mode and Converge Netflix Bundles are expected to drive further growth through improved offerings and user experience. Moving over to enterprise segment, CNVRG\u2019s enterprise revenues grew 22% y\/y to P6.18bn in FY24, with rising SME contributions (27%) and steady wholesale share (12%) reflecting a more diversified client base. New solutions like Converge Content+ and FTTR support this shift, with further expansion planned via tech partnerships in 2025.<\/p>\n\n\n\n

CNVRG is ramping up its expansion efforts with a planned CAPEX of P20\u201325 billion in FY25, nearly doubling from FY24, to support new product offerings, international subsea cable investments, data centers, and wider port deployment. This aggressive push aligns well with improving economic conditions, as easing inflation and stronger consumer spending are expected to further propel growth.<\/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>