{"id":332757,"date":"2025-06-05T01:07:08","date_gmt":"2025-06-04T17:07:08","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332757"},"modified":"2025-06-05T01:18:26","modified_gmt":"2025-06-04T17:18:26","slug":"stock-in-focus-first-gen-corp-fgen-5-june-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-first-gen-corp-fgen-5-june-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: First Gen Corp. (FGEN) – 5 June 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>FGEN<\/td><\/tr>
Company Name<\/strong><\/td>First Gen Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>5 June 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 27.74<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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FGEN’s assets generated P10.4-Billion in earnings in 2024 and P3.5-Billion during the 1st quarter (1Q) 2025. These power generation assets have a combined estimated book value of P104.3-Billion, which would translate to P18.85\/share (14.2% higher than FGEN\u2019s share price) even if we discount to 0.65x P\/B like RE peer ACEN. Add this to the P8.90\/share deal value of the natgas assets that will remain with FGEN, and we arrive at a Target Price estimate of P27.74\/share for FGEN as a whole. Given the 68.1% upside of this estimate vs FGEN\u2019s last traded price of P16.50\/share, we hereby reinstate our BUY rating on FGEN.<\/p>\n\n\n\n

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

Prime Infra acquires majority stake in FGEN natgas business for P50.0-Billion<\/strong><\/p>\n\n\n\n

Ricky Razon\u2019s Prime Infrastructure Holdings (Prime Infra) has signed a deal with FGEN to acquire a 60% stake in the latter\u2019s natural gas power plants and LNG facilities, which includes the 1,000-MW Santa Rita, 500-MW San Lorenzo, 450-MW San Gabriel, and the 97-MW Avion power plants along with the proposed 1,200-MW Santa Maria facility and an interim offshore LNG terminal in Batangas. <\/p>\n\n\n\n

The deal values FGEN\u2019s natgas business at P80.0-Billion, implying a massive undervaluation of FGEN since the company\u2019s market capitalization as of end-May stood at only P59.3-Billion. On the Prime Infra side, it represents a vertical integration that will tie in nicely with its ownership of the Malampaya Gas Fields and its affiliate\u2019s power distribution franchise in Iloilo.<\/p>\n\n\n\n

The deal implies FGEN undervaluation even without the RE business. Note that aside from the natgas business, FGEN also has a 1,358.5-MW portfolio of geothermal and other renewables under Energy Development Corp. (EDC), and operates the 132.8-MW Pantabangan-Masiway Hydro and the 165.0-MW Casecnan Hydro.<\/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>