{"id":333281,"date":"2025-07-30T00:52:42","date_gmt":"2025-07-29T16:52:42","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333281"},"modified":"2025-07-30T00:52:44","modified_gmt":"2025-07-29T16:52:44","slug":"stock-in-focus-manila-electric-co-meralco-mer-30-july-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-manila-electric-co-meralco-mer-30-july-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Manila Electric Co. – Meralco (MER) – 30 July 2025 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MER<\/td><\/tr>
Company Name<\/strong><\/td>Manila Electric Co. (Meralco)<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>30 July 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 615.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Following a sustained growth in the 1st half (1H) of 2025, we remain positive that MER will hit our 2025 target. We expect the generation business to grow its contribution to earnings, offsetting the flat DU, as rates are expected to remain until year-end. MER\u2019s customer count outlook remains stable at 8.2-8.22 million, as the Residential segment is expected to drive volume growth, while demand will be driven by the Commercial side. We reiterate our BUY rating, keeping our target price (TP) at PHP 615.00.<\/p>\n\n\n\n

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

Earnings update<\/strong><\/p>\n\n\n\n

Manila Electric Company (MER) reported a 10% year-on-year (y\/y) increase in its consolidated core net income (CCNI) to PHP25.5 billion, in line with consensus and RSEC estimates. The distribution utility (DU) business contributed the bulk at 54%, followed by the power generation segment at 37%. <\/p>\n\n\n\n

Gross revenues increased by 3%, driven by higher pass-through charges, a rise in sales and volumes of the DU and RES, and higher revenues from MGEN in the Reserve Market. Residential sales volume rose by 0.7% to 9,778 gigawatt-hours (GWh), driven by an uptick in new accounts, while Commercial sales volume rose by 0.3% to 10,103 GWh as ramp up and expansion of retail and restaurant sectors offset the impact of office vacancies following the POGO exit. <\/p>\n\n\n\n

In addition, the Industrial sales volume increased by 0.5% to 7,137 GWh amid sustained growth semiconductor and cement sectors. Meanwhile, MGEN delivered 12,644 GWh in 1H25, up 66% y\/y, due to the full commercial operations of all three units of Excellent Energy Resources. Inc\u2019s (EERI) in Batangas.<\/p>\n\n\n\n

Atimonan update<\/strong><\/p>\n\n\n\n

MGen recently secured the Department of Energy (DOE)\u2019s reaffirmation on the status of its 1,200-megawatt coal plant in Atimonan, Quezon. This confirms that the plant remains outside the coverage of the existing coal moratorium policy imposed in 2020.<\/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>