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Stocks to Watch: SMC, PAL, GTCAP, DD, PNX, SLI

Foreign Buying*: AGI, BDO, LTG, GTCAP, BLOOM
Foreign Selling*: TEL, ICT, PCOR, MER, AC
Foreign Buying>Foreign Selling
RSI>70: STR, NIKL, CEB, PAX, SECB
RSI<30: PNX, PXP, COSCO, PGOLD, OPMB
*As of Sep 08, based on PSE Reports



KEY HEADLINES
San Miguel CEO signs US$1B deal to sell out of PAL
Global Power plans upgrade of Cebu plant
DoubleDragon expands footprint to Cotabato, Dau
Phoenix Petroleum to build exclusive jet fuel storage for Cebu Pacific
PSE delists Alphaland, bars key execs from serving in other listed firms
Sta Lucia Land opens extension of Cainta mall
Maynilad spending P133M for pipe-laying in Cavite



STOCK MARKET NEWS
At the Philippine Stock Exchange (PSE), the benchmark index rose 51.36pts, or
0.71%, to close at 7,314.94 yesterday. The Philippine benchmark index returned
above 7,300, to a 15-month high off the back of buying momentum. All counters
finished in the green, led by the property and financials sub-indices with a gain of
1.60% and 1.17%, respectively. Advancers beat decliners, 95 to 90, while 39 issues
were unchanged. Value turnover improved to Php10.1B from Php11.4B last Fri, as
1.5B shares changed hands. Most actively traded stocks were TEL +0.23% to
Php3,430.00, SMPH +3.55% to Php17.50, ALI +1.17% to Php34.60, and ICT (0.18%)
to Php113.70, while AGI remained unchanged at Php25.80. Top gainers were ORE,
CMT, and LIB. The biggest losers were MED, CAB, and IS.



TRIVIA OF THE DAY

Traders Takedown
09 September 2014




YTD Movement of the PSEi
Source: PSE


08-Sep CHG
PSEi 7,314.94 +0.71%
DJIA 17,111.42 (0.15%)
S&P 500 2,001.54 (0.31%)
NASDAQ 4,592.28 +0.20%
EPHE 39.74 (0.28%)
PHI 78.08 (0.76%)
Key References: PSE, Bloomberg



















*See Appendix for Disclaimer.

Research Team:
Thomas Huang, MBA
Marc Reyes-Lao, MBA
Riche Lim
Bennette Edward John Fajardo
Christina Pang





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CORPORATE NEWS (RESEARCH VIEW)

San Miguel CEO signs US$1B deal to sell out of PAL
According to the media, San Miguel Corp. (SMC) has
agreed to sell its stake in PAL Holdings Inc. (PAL) back to
Lucio Tan for US$1B. SMC confirmed in a disclosure to the
PSE that both parties had agreed to a deal. SMC owns 49%
of PAL, which controls 90% of Philippine Airlines, with a
market value of US$3.4B. SMC bought PAL for US$500M in
2012.

Analyst comment (+): With the information at
hand, we believe that this information is positive for
both SMC (NOT RATED, Cons. FY14F P/E: 15.6x) and PAL
(NOT RATED, No Cons. Recommendations). Due to its
selling price vs its acquisition cost, we expect SMC to
book a one-off gain on the PAL sale. For PAL, we expect
that its share price should react to this acquisition news
positively in the short term as management will be
consolidated under Lucio Tan. There are 0 buys, 1 hold,
and 1 sell on SMC. SMCs Cons Price Target: Php74 (vs.
current price of Php77.85). There are no consensus
recommendations on PAL. PAL has a current price of
Php6.00.

Global Power plans upgrade of Cebu plant
According to the media, Global Business Power Corp.
(GBPC), a unit of GT Capital Corp. (GTCAP), plans to
upgrade its Toledo power plant in Cebu to increase the
facility's generating capacity. The refurbishment of the
Toledo power plant will generate an additional 40 MW of
additional power. Aside from the Toledo Power Plant, GBPC
is also on track to expand its 164MW plant in La Paz, Iloilo
City by 150MW, initially planned to be a 162MW expansion.
This expansion project is expected to finish by Jul next year.

Analyst comment (+): We believe that this
information is positive for GTCAP (NOT RATED,
Consensus FY14F P/E: 17.7x). The net addition of power
generation to its portfolio should be 28MW, equivalent
to a 4.5% increase in its overall power generation
capacity. The Cebu refurbishment project has the added
benefit of being implementable relatively recently, next
year. There are 2 buys, 3 holds, and 1 sell on GTCAP.
Cons Price Target: Php981.17 (vs. current price of
Php992.00).




MARKET MOVERS (SALES VIEW)

SM Prime Holdings, Inc.
Php17.50 - +3.55% - +Php0.60
SMPH's share price increased in yesterday's trading. SM
Land, a unit of SMPH, won a Supreme Court (SC) ruling
against the Bases Conversion and Development Authority
(BCDA) over a 33.1Ha lot in Bonifacio Global City (BGC) in
Taguig. After the SC order, the BCDA will go forward with
the process of entertaining SM Land's unsolicited bid for
the property.

Melco Crown Philippines
Php11.86 -+1.89% - +Php0.22
MCP rose yesterday. The media reported that the Securities
and Exchange Commission (SEC) approved the company's
bid to amend its statement of corporate activities to include
handling foreign exchange transactions.

Energy Development Corporation
Php7.28 - (1.62%) - (Php0.12)
EDC declined yesterday. The media reported that Green
Core Geothermal Inc., a unit of EDC, will extend its supply
agreement with Capelco until Dec 2040 from from an initial
end date of Dec 2020. The agreed rates for this supply
contract will be lower by Php0.30/kWh over the longer
term.
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PSE delists Alphaland, bars key execs from serving
in other listed firms
According to the media, the PSE has delisted
Alphaland Corp. (ALPHA) for repeated violations of its
disclosure rules. The PSE also noted that ALPHA is banned
from re-joining the stock market for five years from the
delisting date. The local bourse disqualified Roberto V.
Ongpin (Chief Executive Officer of ALPHA), Mario Oreta
(President of ALPHA), and Rodolfo Ma. Ponferrada
(Corporate Secretary of ALPHA) from becoming directors or
executive officers in any company applying for listing or
listed on the local stock exchange. The delisting of ALPHA
will take effect after completing a tender offer to the real
estate developer's minority stockholders as of Jan 23, 2014.
The real estate firm has 60 days to complete the tender
offer, as required by the PSE..

Sta Lucia Land opens extension of Cainta mall
According to the media, Sta Lucia Land Inc. (SLI) has
opened the extension of its shopping mall (IL Centro) in
Cainta, Rizal. Il Centro is a two-level commercial
development with a total gross floor area of 50K sqm.
Combined with the existing Sta Lucia East Grand Mall, the
total gross floor area of the shopping complex will increase
to 230K sqm. Il Centro will serve as the podium of the
planned five-tower development Sta. Lucia Residenzes.

Maynilad spending P133M for pipe-laying in Cavite
According to the media, Maynilad Water Services Inc.,
a joint venture of DMCI Holdings Inc. (DMC) and Metro
Pacific Investments Corp. (MPI), will spend Php133M to
install new pipes in Cavite. The project will lay more than
6Km of pipes along Molino III Road from Avenida Rizal St.
to Meadowpark Subdivision in Bacoor City. The project is
set to be completed by 1Q15, connecting 3K households to
Maynilads distribution network. The project will also
improve the water pressure of almost 500 households from
7 pounds per square inch (psi) to 16 psi. Maynilad has
increased its customer base in Cavite by 35% from 62.2K in
Jul 2013 to 82.2K this Jul 2014.

CORPORATE NEWS (RESEARCH VIEW)

DoubleDragon expands footprint to Cotabato, Dau
According to the media, CityMall Commercial Centers
Inc. (CMCCI), a subsidiary of DoubleDragon Properties
Corp. (DD), has purchased two prime commercial lots in
Cotabato City and Pampanga for the development of its
community mall business. CMCCI purchased a 1.5Ha lot
along Gov. Gutierrez Avenue in Rosary Heights VII,
Cotabato City. The company also inked a 30-year long-term
lease agreement for a 0.5Ha property along Dau Access
Road in Mabalacat, Pampanga. To date, CMCCI has
acquired 10 sites for its 25 CityMalls target by end-2015.

Analyst comment (=): We view the development as
neutral for DD. (NOT RATED, No Cons.
Recommendations). In our view, although the
additional properties help increase the company's
visibility in hitting its ambitious net income targets
(Php525M for FY14 and Php1B by FY20), at its current
price of Php7.54, the company is already trading at a
high PE of 32x its FY14 guided EPS vs the market
average of c18x FY14F. There are no consensus
recommendations. DD has a current price of Php7.54.

Phoenix Petroleum to build exclusive jet fuel
storage for Cebu Pacific
According to the media, Phoenix Petroleum Philippines
Inc. (PNX) will build a new jet fuel storage facility in Cebu
exclusively for Cebu Air Inc. (CEB) under a renewable 10-
year supply contract. PNX will construct a Jet A-1 storage
facility in Tayud, Consolacion, The facility will solely be for
CEBs Visayas and Mindanao operations. Full disclosure of
the deal has yet to be made by both firms.

Analyst comment (+): We view the development as
positive for PNX (NOT RATED, Cons. FY14F P/E: 8.3x). In
our view, the renewable supply contract could help
drive the sales of the company. We believe that the
thrust of the Philippines to improve tourism will benefit
CEB via more flights and should increase CEB's fuel
consumption. There are 2 buys, 1 hold, and 0 sells on
PNX. Cons Price Target: Php8.02 (vs. current price of
Php5.25).









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BPI Trade
8F BPI Head Office, Ayala Ave. cor.
Paseo de Roxas, Makati City
Tel.: (02) 845-5289 | 816-9292 | 816-9678
Fax: (02) 818-7809
Email: bpitrade@bpi.com.ph
Website: www.bpitrade.com

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APPENDIX | GENERAL DISCLAIMER

The information contained herein is based on information obtained from sources considered to be reliable, but does not make any
representation or warranty, express or implied, as to its accuracy, completeness, timeliness or correctness for any purpose. All the charts and
graphs are taken from publicly available sources or derived from proprietary data. Expressed opinions may be subject to change without
prior notice. Any recommendation contained herein does not pertain to any specific investment objectives, financial situation and the
particular needs of any addressee.

The information herein is published for the information of addressees only and is not to be taken in substitution for the exercise of judgment
by addressees who should obtain separate legal or financial advice. The Company or any of its related companies or any individuals
connected with the group accepts no liability for any direct, special, indirect, consequential, incidental damages or any other loss or damages
of any kind arising from any use of the information herein (including any error, omission or misstatement herein, negligent or otherwise) or
further communication thereof, even if the Company or any other person has been advised of the possibility thereof.

The information herein is not to be construed as a solicitation to buy or sell any securities, or currency mentioned therein. The information
herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would
be contrary to law or regulation.

Sources:
www.bloomberg.com, www.cnn.com, www.cnbc.com, www.bsp.gov.ph, www.pse.com.ph, www.inquirer.net, www.bworldonline.com,
www.philstar.com, www.interaksyon.com

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APPENDIX | SALES DISCLAIMER

This report was prepared by a sales function within BPI Securities Corporation (BSC). Any opinions expressed herein are solely those of the
author and may be different from the views expressed by BSC itself and its other departments, including the research department. Sales
functions are subject to potential conflicts of interest which the other BSC departments, including the research department, do not
encounter.

This report is published for the information of the recipients only. This report is not to be construed as a solicitation to buy or sell any
securities, futures, options or other financial instruments, to participate in any particular trading strategy or to provide any investment advice
or services. Any recommendation contained herein does not pertain to any specific investment objectives, financial situation and the
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BSC is not a deposit-taking institution and their obligations or liabilities do not represent the obligations or liabilities of the Bank of the
Philippine Islands ("BPI"). Securities and other financial instruments discussed, recommended, offered, or sold by BSC: (a) are not insured by
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and (c) are subject to investment risks, including the possible loss of the principal amount invested.

BSC may deal or transact in a manner inconsistent with the views discussed in this report. BSC trades or may trade as principal in the
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transactions in, securities mentioned in this report. BSC may make a market in the instruments discussed herein. The author of this report
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The assumptions, estimates and opinions expressed in this report are the author's judgment as of the date hereof and are subject to change
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APPENDIX | RESEARCH DISCLAIMER

This report was prepared by an analyst(s) of BSC. Any opinions expressed herein are solely those of the author and may be different from the
views expressed by BSC itself and its other departments.

This report is published for the information of the recipients only. This report is not to be construed as a solicitation to buy or sell any
securities, futures, options or other financial instruments, to participate in any particular trading strategy or to provide any investment advice
or services. Any recommendation contained herein does not pertain to any specific investment objectives, financial situation and the
particular needs of any recipient.

BSC is not a deposit-taking institution and their obligations or liabilities do not represent the obligations or liabilities of the Bank of the
Philippine Islands ("BPI").

Securities and other financial instruments discussed, recommended, offered, or sold by BSC: (a) are not insured by the Philippine Deposit
Insurance Corporation; (b) are not deposits or other obligations of any insured depository institution (including BPI); and (c) are subject to
investment risks, including the possible loss of the principal amount invested.

BSC may deal or transact in a manner inconsistent with the views discussed in this report. BSC trades or may trade as principal in the
instruments mentioned herein. BSC, its directors, officers and/or employees may have positions or other interests in, and may effect
transactions in, securities mentioned in this report. BSC may make a market in the instruments discussed herein. The author of this report
may know the nature of such positions and strategies.

The author(s) has received assistance from the subject company in this report including but not limited to meetings with the management of
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The assumptions, estimates and opinions expressed in this report are the authors judgment as of the date hereof and are subject to change
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author does not make any representation or warranty, express or implied, as to its accuracy, timeliness or completeness for any purpose. Any
information is subject to change without notice and the author is not under any obligation to update or keep current the information
contained herein.

Certain transactions or securities in this report are subject to substantial risk and are not appropriate for all investors. Past performance is not
necessarily a guide to future performance. BSC deals with counterparties on an arms length basis. BSC assumes that each counterparty is
capable of making an independent evaluation of the merits and risks of each, and an independent decision on any, transaction.

BSC does not render legal, tax or financial advice, and the information contained in this report should not be considered as such and should
not be taken in substitution for the exercise of judgment by the recipient who should obtain separate legal, tax or financial advice. No liability
whatsoever is accepted for any direct, special, indirect, consequential, incidental damages or any other loss or damages of any kind arising
from any use of the information herein (including any error, omission or misstatement herein, negligent or otherwise) or further
communication thereof.
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APPENDIX | TERMS FOR PROVISION OF REPORT, DISCLAMERS AND DISCLOSURE

Compliance Notice

This research report prepared by BPI Securities is distributed in the United States to Major US Institutional Investors (as defined in Rule 15a-6
under the Securities Exchange Act of 1934, as amended) only by Decker & Co, LLC, a broker-dealer registered in the US (registered under
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any jurisdiction from making it available to you. You should satisfy yourself before reading it that Decker & Co, LLC and BPI Securities is
permitted to provide research material concerning investment to you under relevant legislation and regulations. In all instances Decker & Co
acts only as an indirect distributer of research provided by our local partners.

Disclosure of Interest Area

As of March 15, 2013, BPI Securities and the authoring analyst do not have any interest in any companies recommended in this research
report. BPI Securities may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently
may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the
previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment.

Analyst Certification of Independence

The views expressed in this research report accurately reflect the analysts personal views about any and all of the subject securities or issuers;
and no part of the Research analysts compensations was, is or will be, directly or indirectly, related to the specific recommendation or views
expressed in the report.