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Daily Edge Summary - 19 June 2014

Core Content

The document provides a financial summary and market insights for various companies in the Philippines, focusing on stock performance, analyst recommendations, and key financial metrics. It includes updates on the property sector and other industries, along with upcoming stockholder meetings.

Key Financial Data (June 19, 2014)

Analysts

• Luz Lorenzo - Head of Research / Economist
• Laura Dy-Liacco, Rommel Rodrigo, Lovell Sarreal, Katherine Tan, Ramon Adviento – Analysts

Top Idea: Property Sector

MEG (PHP4.41)

• NAV Raised: MEG's NAV increased slightly due to a new land asset acquired by its subsidiary, Empire East Land Inc (ELI), which is expected to be its largest development yet.
• Valuation Update: ELI's valuation was increased by 30% to PHP16b, factoring in the land acquisition.
• Target Price (TP): Updated to PHP5.45 from PHP5.29, with a 3.1% upside.
• Net Profit CAGR (2013-2016F): 14%, one of the most stable in the property sector.
• NAV per Share: Increased to PHP6.81 from PHP6.61, with a 3.1% change.
• Recommendation: Maintain BUY.

Market Talk Highlights

Gaming

• Melco Crown Resorts Corp (MCP-Not Rated): Planning an equity offering to fund the PHP9b capex for the City of Dreams Manila integrated resort. Total capex budget increased to USD832m from USD680m.

Conglomerates

• Metro Pacific Investments Corp (MPI-BUY): Interested in the Laguna Lakeshore Expressway Dike and the ITS Southwest Terminal projects.

Mining

• Philex Mining Corp (PX – BUY): DENR formally lifted the suspension order on the Padcal mine after settling environmental obligations worth PHP188.6m. This has been factored into forecasts.

Upcoming Stockholder Meetings (June 18–30, 2014)

• June 18: Euro-Med Laboratories, Phils., Inc. and The Philodrill Corporation
• June 20: Sta. Lucia Land, Inc., Megaworld Corporation, Steniel Manufacturing Corporation, Panasonic Manufacturing Philippines
• June 23: Emperador, Inc. and Agrinurture, Inc.
• June 24: Shang Properties, Inc.
• June 25: Robinsons Retail Holdings, Inc., Philex Mining Corporation, Oriental Petroleum and Minerals Corporation, Jolliville Holdings Corporation, Supercity Realty Development Corporation
• June 26: Global-Estate Resorts, Inc., Lorenzo Shipping Corporation, Cebu Air, Inc., Anchor Land Holdings, Inc., JG Summit Holdings, Inc., Solid Group, Inc.
• June 27: Arthaland Corporation, Primex Corporation, AG Finance, Inc., Vivant Corporation, Macay Holdings, Inc., Jollibee Foods Corporation, MJCI Investments, Inc., Cosco Capital, Inc., Marcventures Holdings, Inc.
• June 30: Philippine Realty & Holdings Corporation, Rizal Commercial Banking Corporation, Manila Jockey Club, Inc., Starmalls, Inc.

Earnings and Valuations Table (as of 17 June 2014)

Banks

Consumer Sector

Summary of Key Points

• MEG's NAV Increase: The company's NAV increased slightly due to a new land acquisition, with the valuation of ELI raised by 30%.
• Target Price Update: MEG's target price was raised to PHP5.45 from PHP5.29, with a 3.1% upside.
• Capex Plans: MEG is investing PHP230b over the next five years, primarily in previously disclosed projects.
• Market Trends: Melco is increasing capex and planning an equity offering, while MPI is exploring infrastructure projects.
• Mining Sector: Philex Mining Corp received approval to resume operations at Padcal mine after settling environmental obligations.
• Stockholder Meetings: A list of upcoming meetings for various companies is provided, highlighting the importance of shareholder engagement in the market.

Conclusion

The document outlines the current market sentiment and financial performance of several companies, emphasizing the property sector with a focus on MEG. Analysts have maintained a BUY recommendation for MEG, noting its stable net profit growth and updated NAV estimates. Other sectors, such as gaming, conglomerates, and mining, are also covered, with relevant developments and forecasts provided.