{"id":333204,"date":"2025-07-17T01:05:25","date_gmt":"2025-07-16T17:05:25","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333204"},"modified":"2025-07-17T01:05:29","modified_gmt":"2025-07-16T17:05:29","slug":"stock-in-focus-emperador-inc-emi-17-july-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-emperador-inc-emi-17-july-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Emperador Inc. (EMI) – 17 July 2025 by RCBC Securities"},"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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 July 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Underweight<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 12.70<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We slashed our target price (TP) for EMI by 14% to Php12.70 as we adjusted our 10-year EBITDA CAGR forecast from 10.15% to 8.38%, amid the possible implications to the business of the US trade policies. The whisky segment currently exports to the United States (US) from its distilleries in Scotland. A proposed 10% tariff by the US on the United Kingdom (UK), of which Scotland is part, will likely affect EMI\u2019s supply chain by 10%-12%. Moreover, the global demand slowdown in Brandy may continue, but may slightly be offset by strong domestic demand as efforts are made to pivot to the low-priced segment. We downgrade our rating from HOLD to Underweight (UW).<\/p>\n\n\n\n

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

EMI posted a 6.5% year-on-year (y\/y) growth in its 1Q 2025 net income to Php1.9 billion. Revenues were flat at Php13.2 billion as growth in the Brandy business was offset by a higher decline in Whisky. The Brandy segment reported Php8.7 billion in revenues, up 10% y\/y as domestic sales improved, while the Scotch Whisky segment declined by 13% to Php4.5 billion as the industry remained weak in most markets worldwide. <\/p>\n\n\n\n

Meanwhile, we forecast Emperador Inc. (EMI) to grow its revenues by a conservative 3% from 2025-2027 as global Brandy and Whisky demand remains muted. Nonetheless, we expect 2025 bottomline to grow by 6% to Php8.1 billion, while a 9% increase in 2026 to Php8.9 billion.<\/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>