20150713-Maybank_KERPL-Daily_Edge_12页_907kb

报告摘要

Daily Edge Summary - July 13, 2015

Core Content

This document is a financial report dated July 13, 2015, focusing on market updates, analyst insights, and stock performance data. It provides information on various sectors including banks, conglomerates, utilities, telecoms, cement, and property, with a particular emphasis on Metro Pacific Investments Corp (MPI). The report also includes details on upcoming shareholder meetings and financial valuations for multiple stocks.

Key Market Indicators

PSEi: 7,392.59 (+0.20%)
Turnover (PHPm): 6,797.55 (-19.57%)
PLDT ADR (USD): 63.08 (+2.62%)
PLDT ADR (PHP): 2,846.49 (+2.43%)
Ave interbank rate: 2.53 (+3.13 bps)
PHP/USD rate: 45.15 (+0.04%)

Analysts

Luz Lorenzo: Head of Research / Economist
Ramon Adviento
Michael Bengson
Rommel Rodrigo
Lovell Sarreal
Katherine Tan

Top Idea: Conglomerates

MPI (PHP4.69)

Slightly higher NAV on MER update: The NAV and target price for MPI were increased by 3% to PHP8.40 and PHP6.70 respectively due to the MER update.
Earnings Impact: Lower earnings are expected in 2016, but upside potential exists from the toll road and water segments.
Valuation and Outlook: Conservative valuation and clear growth prospects for basic physical and social infrastructure businesses. Maintain BUY rating.

Market Talk

Banks

Solid asset quality: NPL ratio improved to 1.94%, with NPLs increasing by 0.9% YoY to PHP96.9b while total loan portfolio grew by 12.9%.
NPL cover: Remains ample at 141.9%.
Real and other properties: Acquired declined by 8.8% YoY to PHP88b.
Non-performing assets (NPA): Fell by 4% to PHP184.97b, with NPA to gross assets ratio improving to 1.84%.

Transportation

CEB passenger traffic: Increased by 4.8% in May.
CEB's performance: Flown 1.79m passengers in May, up 4.8% from last year. Total flights increased by 6.6% to 12,088, and seat capacity jumped by 8.7% to 2.03m.
Projection: CEB expects to exceed 18m passenger volume this year and target a low double-digit increase in capacity.

Utilities

ERC lowers MER interim rate: The new rate is PHP1.3810/kWh, a 11.26% decrease from Meralco's current average rate of PHP1.5562/kWh.
Power supply deals: ERC and DOE will soon draft rules for competitive selection processes for distribution utilities to secure power supply deals.

Telecoms

Smart expands mobile wallet coverage: Smart Money can be used to purchase App Store and iTunes content, and pay for Apple Music subscriptions. Free trial period of three months, with subscription costs at USD2.99 and USD4.99.

Cement

HLCM acquires LRI assets: HLCM's board authorized an offer for LRI's assets, which includes shares, Star Terminal assets, and certain parcels of land.
Ireland-based CRH Plc and AEV: May proceed with acquiring an 88.85% majority stake in LRI.

Property

SMPH continues projects in China: Despite market volatility, SMPH plans to start its first residential project with less than 2,000 units and continue the opening of SM Tianjin in phases.

Earnings and Valuations (as of 10 July 2015)

Stock	Share Price (PHP)	Target Price (PHP)	Upside (%)	Recommendation
BDO	103.10	123.00	19	BUY
BPI	94.50	101.00	7	HOLD
CHIB	45.30	51.00	13	HOLD
EW	20.20	29.00	44	BUY
MBT	90.00	105.00	17	BUY
PBB	8.87	13.00	47	BUY
PGOLD	36.00	47.50	32	BUY
EMP	8.87	13.00	47	BUY
ALI	36.85	48.60	32	BUY
FLI	1.89	2.40	27	BUY
MEG	4.75	7.10	49	BUY
RLC	27.50	31.00	13	HOLD
VLL	6.78	8.40	24	BUY
SMPH	20.15	22.00	9	BUY
EDC	7.28	9.20	26	BUY

The Week Ahead

July 10: Steniel Manufacturing Corporation Annual Stockholders' Meeting
July 13: National Reinsurance Corporation of The Philippines
July 14: Coal Asia Holdings, Inc.
July 15: Es咽喉 Communications Phils., Inc. Concepcion Industrial Corporation
July 16: Robinsons' Retail Holdings, Inc. RFM Corporation Petroenergy Resources Corporation Island Information and Technology, Inc.
July 17: Iripple, Inc. Macroasia Corporation

Summary of Key Points

MPI has a slightly increased NAV and target price due to MER update, with a BUY recommendation despite expected lower earnings in 2016.
Banks show improved asset quality with a lower NPL ratio and higher NPL cover.
CEB reports growth in passenger traffic and is on track to exceed 18m passenger volume this year.
ERC has reduced MER's interim rate and is working on rules for power supply deals.
Smart Communications expanded mobile wallet coverage to include Apple Music.
HLCM is acquiring LRI's assets, facilitating a potential majority stake acquisition by CRH Plc and AEV.
SMPH continues its expansion in China despite market volatility.
Earnings and valuations for various stocks are provided, with BUY and HOLD recommendations based on performance and growth expectations.