20150617-Maybank_KERPL-Daily_Edge_11页_312kb

Daily Edge Summary - June 17, 2015

Core Content

The Daily Edge report from June 17, 2015, provides an overview of key financial indicators and market updates for various sectors in the Philippines. It includes stock performance, analyst insights, and upcoming company events. The report is sourced from Bloomberg and Maybank ATRKE.

Key Financial Indicators (June 16, 2015)

Analysts

The report lists several analysts and their contact details:

• Luz Lorenzo - Head of Research / Economist

  • Phone: (632) 849 8836
  • Email: luz_lorenzo@maybank-atrke.com

• Ramon Adviento

  • Phone: (63) 28498845
  • Email: ramon_adviento@maybank-atrke.com

• Michael Bengson

  • Phone: (63) 28498840
  • Email: michael_bengson@maybank-atrke.com

• Rommel Rodrigo

  • Phone: (632) 849 8839
  • Email: rommel_rodrigo@maybank-atrke.com

• Lovell Sarreal

  • Phone: (632) 849 8841
  • Email: lovell_sarreal@maybank-atrke.com

• Katherine Tan

  • Phone: (632) 849 8843
  • Email: kat_tan@maybank-atrke.com

Top Idea: Mining Sector - PX (PHP6.58)

• PX is preparing to open the Boyongan open-pit mine, targeting commercial operations by early 2018.
• The mine will access half of the deposit's current resource base of 399m MT.
• The Bayugo deposit is still in the design stage and not included in current forecasts.
• Maintain BUY recommendation with a target price of PHP15.42.
• The open-pit mining is preferred over block caving due to lower risks and shorter development time.
• The timber-cutting permit is the only pending government permit, and the Declaration of Mine Project Feasibility has been granted in April.

Market Talk Highlights

Mining & Oil

• DOE approves the transfer of COC 130 from Brixton Energy and Mining Corp to Grace Coal Mining and Development Inc (GCMDI).
• COC 130 is located in Diplahan and Buug, Zamboanga Sibugay.
• PXP, a 64.8% owned subsidiary of PX, will have its obligations transferred to GCMDI.

Telecoms

• Globe Telecom Inc. (GLO-HOLD) received approval to create a wholly-owned holding company for new and strategic businesses.
• PLDT spent PHP216m to deploy underground fiber-optic cables in Southern Luzon, enhancing network resilience and connectivity.

Utilities

• MWSS announced the pre-bid conference for the PHP24.4b Bulacan bulk water supply project (BBWSP) on 30 June.
• The project will be executed via a 32-year build-operate-transfer contract.
• Energy Secretary Carlos Petilla mentioned more coal-fired power plants are expected to be operational by 2020.

Property

• A ceiling collapse at Ayala Center Cebu's cinema injured at least six people.
• The incident has limited impact on Ayala Land Inc (ALI-BUY)'s fundamentals, as it only contributes 4% to shopping revenue and 2.7% to leasing revenue.

Banks

• Non-performing loans (NPL) ratio for universal and commercial banks fell to 1.96% as of April, down from 2.16% in the previous year.
• NPL cover remains adequate at 139%.
• Real and other properties acquired declined by 6.4% YoY to PHP89.8b.
• Non-performing assets (NPA) fell by 1.7% to PHP187.7b.

Earnings and Valuations (As of June 16, 2015)

The Week Ahead

Several companies are set to hold annual stockholder meetings:

• June 17: Harbor Star Shipping Services, Inc.
• June 18: Shang Properties, Inc., Travellers International Hotel Group, Inc.
• June 19: Megaworld Corporation, Panasonic Manufacturing Philippines, Corporation, Keppel Philippine Holdings, Inc., A. Brown Company, Inc., Sta. Lucia Land, Inc.
• June 22: Century Properties Group, Inc.
• June 23: LT Group, Inc.

Summary

The Daily Edge report highlights the following:

• PX is preparing for the Boyongan open-pit mine, with a target commercial operation in 2018.
• The mining sector is expected to benefit from the transfer of COC 130 to GCMDI.
• PLDT is strengthening its fiber-optic network in Southern Luzon.
• Globe Telecom is creating a holding company to focus on new and strategic businesses.
• MWSS has set a timetable for the Bulacan bulk water supply project (BBWSP).
• Ayala Land faced a ceiling collapse in its Cebu mall, but the impact is limited.
• Banks show strong asset quality, with NPL ratio at 1.96%.
• Earnings and valuations for various stocks are presented, with BUY and HOLD recommendations.

This report serves as a comprehensive overview of key financial and market developments in the Philippines.