Вы находитесь на странице: 1из 2

ALERT

PHILIPPINE EQUITY RESEARCH

15 AUGUST 2011

First Gen Corporation : FGEN post US$29.4Mil net loss in 2Q11 on EDCs Northern Negros plant impairment

Hurt by EDCs write off of its Northern Negros plant. In a press release, FGEN said it registered a US$29.4Mil net loss during 2Q11. FGENs 46.3% owned subsidiary EDC booked a Php5Bil impairment loss during the quarter due to its 49MW Northern Negros plant. We are not surprised with the impairment loss since EDC already warned of the possibility of this developments earlier on. However, we can not determine how core operations performed given the absence of information. We will release a more detailed analysis on the core operating results of FGEN and EDC once the numbers are available. Reiterating BUY rating. We reiterate our BUY rating on FGEN. We continue to like FGEN given the stable cash flow of its gas plants and EDCs strong long term earnings growth potential following the re-pricing of EDCs Pal-Tong and the completion of Bacmans rehab in 2011. Liquidity should no longer be an issue for the Company given successfully executed capital raising and refinancing activities during the past few years, ending with the refinancing of convertible bonds. Valuation is also very attractive, with FGEN currently trading at a FY12E P/E of only 8.1X vs. the regional average of 12.7X. It is also trading at only 1.04X FY11E P/BV.

RESEARCH CONTACT

George Ching george.ching@citiseconline.com

15 AUGUST 2011

INVESTMENT RATING DEFINITIONS

BUY
Over the next six to twelve months, we expect the share price to increase by 15% or more.

HOLD
Over the next six to twelve months, we expect the share price move within a range of +/- 15%.

SELL
Over the next six to twelve months, we expect the share price to decline by more than 15%.

TOP PICK DEFINITION

A stock that is included in our Top Pick list has to meet the following criteria: 1.) It must belong to a sector with neutral to positive outlook; 2.) It must have double digit earnings growth for the current and the succeeding fiscal year; 3.) Its share price appreciation potential must be above 15% as of the date it was included in the list; and 4.) It must have an upward intermediate term trend.

IMPORTANT DISCLAIMERS

Securities recommended, offered or sold by CitisecOnline are subject to investment risks, including the possible loss of the principal amount invested. Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the judgment of CitisecOnlines Equity Research Department as of the date of the report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. CitisecOnline and/or its employees not involved in the preparation of this report may have investments in securities or derivatives of securities of companies mentioned in this report, and may trade them in ways different from those discussed in this report.

2401-B East Tower, Philippine Stock Exchange Center Exchange Road, Ortigas Center, Pasig City 1605 Philippines Voice: +632 636 54 11 to 20 Fax: +632 635 4632 Internet: http://www.citiseconline.com

FGEN/Alert/ page 2

Вам также может понравиться