Daily Edge
Top Idea.
Banks.
SECB (PHP147.40): Tracking forecast, no surprises in 2Q 2Q15 earnings down 41% without extraordinary trading gains. Robustloan growth of 20% but NIM compression persisted; Maintain BUYbased on TP of PHP200.
Market Talk.
Utilities: PNX’s strong operating 1H15 results. Slight cut in forecasts onhigher finance costs & depreciation. 1H15 EBITDA and sales volume grewstrongly YoY. Expect continued earnings recovery if oil price stable. (Detailson page 3).
Mining: PX 1H15 profits down 3%. Philex Mining Corp (PX – BUY)disclosed 1H15 net income of PHP607m, down 3% YoY and accounting for31% of our 2015F forecast of PHP1.9b. Total revenues fell 15% toPHP4.9b, 48% of our full-year forecast of PHP10.2b. Gold productionslightly increased 3% to 54k oz while copper production fell 7% to 16.9mlbs. Metal prices were likewise lower as average realized price for golddropped 11% to USD1,190/oz and copper prices declined 16% toUSD2.61/lb. These price levels were the lowest recorded in the last fiveyears. This implies 2Q15 profits fell 26% to PHP278m while revenues were13% lower to PHP2.5b. We will be coming up with a more detailed report.
Property: ALI reveals new luxury residential project. Ayala Land Inc(ALI-BUY) has revealed another luxury project in Bonifacio Global Citycalled West Gallery Place, a partner development to East Gallery Placelaunched last year. This project will have 430 units for sale at a price ofPHP234,000/sqm. Unit sizes have a wide range starting at a minimum cut of52sqm for one bedroom to 701sqm for a four-level villa. There will also be aspecial penthouse unit called Skyrise with 832sqm in size. Turnover isexpected to be in 3Q21Property: ALI’s first mall in Bicol to open by Dec. ALI’s first mall in theBicol region is on track to open by Dec. The mall is a joint venture withBicol-based LCC Gorup. The shopping complex will be in a 14k sqm lot andwill have 32k sqm in gross leasable area, presumably in three to four floorsof retail shops and restaurants, almost the same size as the Glorietta 2expansion in the Makati CBD.
Telcos: GLO tapped to draw tourists. According to BusinessMirror, GlobeTelecom Inc (GLO-BUY) launched a partnership deal with the TourismPromotions Board (TPB) to drive its Visit the Philippines Year 2015campaign by offering Globe Traveller SIM for free and give tourists andoverseas Filipino workers worry-free connectivity during their stay in thePhilippines. The Globe Traveller SIM is a local prepaid SIM card that offerslocal rates for calls, texts and mobile data services. It allows users toreceive calls and texts from abroad for free and cut costs on mobile data.
Tourists and OFWs can claim the free Globe Traveller SIM by presentingtheir non-Philippine passport, foreign resident card, Seaman’s book, orOFW e-card at any of the Globe booths located at the airports in Manila,Cebu, Davao, Kalibo, Iloilo and Clark starting today.