{"id":332934,"date":"2025-06-19T00:05:16","date_gmt":"2025-06-18T16:05:16","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332934"},"modified":"2025-06-19T00:05:18","modified_gmt":"2025-06-18T16:05:18","slug":"stock-in-focus-acen-corp-acen-19-june-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-acen-corp-acen-19-june-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: ACEN Corp. (ACEN) – 19 June 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ACEN<\/td><\/tr>
Company Name<\/strong><\/td>ACEN Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>19 June 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 3.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Overall, we don\u2019t see the sales of its diesel plants mentioned below to be material except for the impact on ACEN’s ESG ratings. As such, we retain our HOLD rating on ACEN with a TP of P3.10\/share.<\/p>\n\n\n\n

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

ACEN sells diesel plants to parent for undisclosed amount<\/strong><\/p>\n\n\n\n

ACEN disclosed that it is selling its stake in the special purpose vehicles (SPVs) holding its ownership of a 52-MW diesel plant in Norzagaray, Bulacan, a 116-MW diesel plant in Subic Freeport, and a 21-MW diesel plant in Bacnotan, La Union. The transaction value was not required to be disclosed as it was less than 10% of ACEN\u2019s total assets, implying that the amount was less than P32.95-Billion. The three plants provide ancillary services to NGCP and accounted for only 1.2% of total attributable output (20 GWh) in 1Q 2025.<\/p>\n\n\n\n

What\u2019s the impact? <\/strong><\/p>\n\n\n\n

The sale removes the last vestiges of non-renewable power generation from ACEN\u2019s portfolio, and one of the last barriers preventing ACEN from claiming to be a full RE platform. The sale will also give ACEN a little bit more cash to pour into expanding its RE investments. The last thing to do now is to sell ACEN\u2019s remaining stake in listed oil and gas exploration company ENEX, and this is something that we are looking forward to. Letting go of the diesel assets also removes the need for ACEN to enter into commodity swap contracts to hedge against the volatility of bunker fuel prices. While this is not significant relative to ACEN\u2019s balance sheet, it at least removes one risk that must be managed. The loss of revenues from the sold assets are also not significant, now that ACEN\u2019s RE portfolio has grown significantly. <\/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>