{"id":333023,"date":"2025-06-25T22:43:26","date_gmt":"2025-06-25T14:43:26","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333023"},"modified":"2025-06-25T22:43:27","modified_gmt":"2025-06-25T14:43:27","slug":"stock-in-focus-manila-water-co-mwc-25-june-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-manila-water-co-mwc-25-june-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Manila Water Co. (MWC) – 25 June 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MWC<\/td><\/tr>
Company Name<\/strong><\/td>Manila Water Company Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>25 June 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 35.75<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Our valuation model already priced in that MWSS will grant the extension, although we are now upgrading our Target Price from P33.85 to P35.75 to factor in lower cost of debt and lower risk-free rate following the recent string of rate cuts, as well as the reduced regulatory risk. As our Target Price is 6.0% lower than MWC\u2019s last traded price, we maintain our HOLD rating on the stock though it remains one of our top defensive picks.<\/p>\n\n\n\n

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

MWSS grants MWC and MYNLD RCA extension<\/strong><\/p>\n\n\n\n

The Metropolitan Waterworks and Sewerage System (MWSS) has granted the request of water concessionaires MWC and MYNLD to extend their revised concession agreement (RCA) by ten years to coincide with the expiration of their congressional franchise in 2047. The extension clears the way for the long-term plans of both MWC and MYNLD, with the two firms pledging to increase capex and opex spend to improve services now that they have more time to recover their investments.<\/p>\n\n\n\n

Connecting (and billing) more people<\/strong><\/p>\n\n\n\n

MWC estimates that the franchise extension will allow them to increase their water service connections from the forecasted 1.24-Million connections in 2037 to 1.33-Million connections by 2047. As a result, the company\u2019s billed volume should jump from 732 mcm in 2037 to 1,009 mcm by 2047. The company also expects sewer service connections to increase from its forecast of 731k in 2037 to 1.1-Million in 2047.<\/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>