{"id":333293,"date":"2025-07-30T01:23:06","date_gmt":"2025-07-29T17:23:06","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333293"},"modified":"2025-07-30T01:23:08","modified_gmt":"2025-07-29T17:23:08","slug":"stock-in-focus-aboitiz-equity-ventures-aev-30-july-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-aboitiz-equity-ventures-aev-30-july-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Aboitiz Equity Ventures (AEV) – 30 July 2025 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>AEV<\/td><\/tr>
Company Name<\/strong><\/td>Aboitiz Equity Ventures<\/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 46.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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With the possible boost in the value of infrastructure and Coca-Cola Europacific Aboitiz Philippines, Inc. (CCEAP), our current target price (TP) of PHP46.00 for AEV now appears conservative. Reiterate BUY.<\/p>\n\n\n\n

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

Stronger growth potential<\/strong><\/p>\n\n\n\n

Aboitiz Equity Ventures, Inc. (AEV) is in talks with Global Infrastructure Partners (GIP), a part of BlackRock, one of the leading global infrastructure investors. Under the discussions, AEV would sell 40% of its subsidiary Aboitiz Infracapital, Inc. (AIC) to GIP. The partnership reaffirms the Philippines as a prime investment destination in Asia. We welcome this crucial development. <\/p>\n\n\n\n

Apart from the potential value-add to AEV, the collaboration underscores the confidence of the global investors in the Philippine infrastructure space. At this point, pending the closing of the deal, infrastructure accounts for 17% of our gross asset value estimate for AEV. Aboitiz Power (AP), Union Bank of the Philippines (UBP), and Coca-Cola Europacific Aboitiz Philippines, Inc. (CCEAP) contribute 43%, 15%, and 16%, respectively. <\/p>\n\n\n\n

Earnings recap and outlook<\/strong><\/p>\n\n\n\n

AEV\u2019s 1Q 2025 net income declined by 36% year-on-year (y\/y) to PHP3.2 billion, as its power segment started recognizing the full impact of depreciation and interest expense from GNPD (GNPower-Dinginin). Its infrastructure arm\u2019s interest expense also increased as AIC optimizes its capital structuring. Beneficial EBITDA grew by 6% y\/y to PHP13.6 billion, mainly due to the continued improvement in the scale of the food and beverage unit. We expect depreciation and interest expenses to normalize in the second half, making our revised flat net income growth forecast for 2025 achievable.<\/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>