{"id":332635,"date":"2025-05-29T01:00:41","date_gmt":"2025-05-28T17:00:41","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332635"},"modified":"2025-05-29T01:00:44","modified_gmt":"2025-05-28T17:00:44","slug":"stock-in-focus-doubledragon-corp-dd-29-may-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-doubledragon-corp-dd-29-may-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: DoubleDragon Corp. (DD) – 29 May 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>DD<\/td><\/tr>
Company Name<\/strong><\/td>DoubleDragon Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>29 May 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 11.22<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Considering the persistently high vacancy rates in the Bay Area, the 1st quarter (1Q) 2025\u2019s weaker than expected GDP rate, operating and development costs associated with the upcoming launch of Hotel101-Madrid, and the decline in unrealized gains, it may take a while for the firm\u2019s revenue streams to offset these challenges. Therefore, we maintain our HOLD recommendation with a Target Price of P11.22\/share.<\/p>\n\n\n\n

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

DoubleDragon Corporation\u2019s (DD) saw a drastic double-digit decline in its 2024 Net Income (NI), plunging by -47.2% year-on-year (y\/y) to P8.41 billion. This sharp drop was mainly driven by lower unrealized gains from changes in the fair value of investment properties and reduced project completions. Consequently, consolidated revenues also fell by -27.8% y\/y to P17.9 billion.<\/p>\n\n\n\n

On a more positive note, the company\u2019s rental income segment saw an increase of +17.7% y\/y, reaching P3.6 billion by end-2024. This growth was primarily fueled by improved occupancy rates across its leasing projects. Meanwhile, real estate sales grew by +9.9% y\/y to P1.5 billion, bolstered by contributions from Hotel101 and residential projects. Hotel revenues surged by +33.2% y\/y to P849.9 million, driven by higher occupancy rates and the successful operations of Hotel101-Fort.<\/p>\n\n\n\n

Looking ahead, DD\u2019s Hotel101 Global is preparing for a Nasdaq listing valued at $2.3 billion, expected in the first half of 2025. The company has until July 23 to finalize the merger with Hotel101 Global Pte. Ltd. and JVSPAC Acquisition Corporation. To ensure the merger proceeds, Hotel101 Global made a payment to JVSPAC in January 2025 for an extension. This milestone could make DD the first Filipino company to have a subsidiary listed and traded on the Nasdaq Stock Exchange in the U.S.<\/p>\n\n\n\n

Although the recent proposal for a 17% U.S. tariff on the PH raised concerns, recent developments in U.S.-China relations have sparked optimism in the market, fueling hopes for a reduction in trade tensions and potentially lower tariff rates.<\/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>