{"id":332785,"date":"2025-06-05T01:33:22","date_gmt":"2025-06-04T17:33:22","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332785"},"modified":"2025-06-05T01:33:24","modified_gmt":"2025-06-04T17:33:24","slug":"stock-in-focus-emperador-inc-emi-5-june-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-emperador-inc-emi-5-june-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Emperador Inc. (EMI) – 5 June 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>EMI<\/td><\/tr>
Company Name<\/strong><\/td>Emperador Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>5 June 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 13.30<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We maintain our HOLD recommendation on Emperador Inc. (EMI) with a target price of P13.30\/share. The solid 1st quarter (1Q) 2025 performance, led by strong Brandy segment growth and supported by stable EBITDA and improved margins despite higher costs, reflects EMI\u2019s operational resilience. However, softness in the Scotch Whisky segment, global trade noise, and the normalization of post-election spending warrants a cautious outlook despite favorable domestic macroeconomic conditions and geographic diversification.<\/p>\n\n\n\n

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

Emperador Inc. (EMI) booked a solid 1Q 2025 performance, with net profit to owners rising +7% year-on-year (y\/y) to P1.9 billion and revenues inching up +1% y\/y to P13.2 billion, driven mainly by the Brandy segment. Despite higher input and operating costs, lower taxes supported improved margins, while stable EBITDA at P2.9 billion highlighted resilient operations.<\/p>\n\n\n\n

Looking over segment performance, EMI\u2019s Brandy segment led a strong 1Q 2025 with +10% y\/y revenue growth to P8.7 billion and a +76% y\/y jump in net profit to P1.4 billion, supported by improved product mix and lower interest and tax expenses. Meanwhile, the Scotch Whisky segment faced challenges with a -13% y\/y revenue decline and a -55% y\/y drop in profit due to weak global demand and higher financing costs. APAC remained the primary revenue source at up to 66%, highlighting EMI\u2019s solid geographic and client diversification.<\/p>\n\n\n\n

Furthermore, the economic landscape remains favorable for EMI, with household consumption rising by 5.3%, GDP growing moderately at 5.4%, and inflation easing to 1.4% in April 2025. Coupled with the BSP\u2019s recent 25bps rate cut signaling a more accommodative policy, these factors support stronger consumer spending, which is expected to benefit EMI\u2019s growth. However, the next quarter will be key to monitor as post-election spending patterns begin to normalize.<\/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>