{"id":333321,"date":"2025-07-31T01:53:06","date_gmt":"2025-07-30T17:53:06","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333321"},"modified":"2025-07-31T01:53:07","modified_gmt":"2025-07-30T17:53:07","slug":"stock-in-focus-robinsons-retail-holdings-inc-rrhi-31-july-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-robinsons-retail-holdings-inc-rrhi-31-july-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Robinsons Retail Holdings Inc. (RRHI) – 31 July 2025 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RRHI<\/td><\/tr>
Company Name<\/strong><\/td>Robinsons Retail Holdings Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>31 July 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 50.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We continue to bank on RRHI\u2019s diversified portfolio, with all segments posting sustained growth. As we navigate a lower inflation setting, consumer spending is likely to boost both essential and discretionary sales. We maintain our target price (TP) for RRHI at PHP50.00 with our DCF valuation based on a 10-year EBITDA CAGR of 9.7%. Moreover, we believe the company is still trading below its estimated fair value with a PE of 8.2x, lower than its 5-year historical PE of 13.2x. We reiterate our BUY rating.<\/p>\n\n\n\n

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

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

RRHI reported a 67% drop in its 1st half (1H) 2025 net income to parent as earnings normalized following the one-time gain from the BPI-Rbank merger last year. Excluding non-recurring items, core net income saw a 4.3% uptick to PHP2.8 billion. Net sales were up 5.1% to PHP98.5 billion, backed by a 3.9% same-store sales growth (SSSG), driven by increased demand from election and back-to-school related spending. Sales were driven by a 3.7% growth in the Food segment, a 9.7% uptick in Drugstore, and a 9.6% expansion in the Department store business. Gross profit advanced 6.4% to PHP23.9 billion on a 30bps margin expansion to 24.3% amid improved assortment shifts, sustained penetration of private label brands, and continued vendor support.<\/p>\n\n\n\n

Premiumbikes acquisition<\/strong><\/p>\n\n\n\n

RRHI has entered the motorcycle retail business with its recent acquisition of Premiumbikes Corp. for PHP146.4 million. With 214 stores nationwide and a 5-year historical CAGR of 10%, faster than the industry market, RRHI expects Premiumbikes to contribute PHP100mn-PHP200mn annually or 1%-2% to topline. A partnership with BPI for financing is also expected to boost transaction count and consumer attractiveness.<\/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>