M O N 11 J U LY 2016

Top Stories for the Week:

Stocks in Focus:

AP: Postponement of Davao coal plant expansion to have

minimal impact on FV

INDICES
Close

Points

PSEi

7,771.52

-58.83

YTD
%
-0.76 11.79

All Shares

4,713.90

-24.13

-0.51 18.13

Financials

1,765.15

1.34

0.08 13.83

Holding Firms

7,627.04

-20.87

-0.27 15.54

W/W

AP announced that it will postpone its plan to expand the capacity of its Davao coal plant. AP

Industrial

11,750.38

-176.26

-1.50

6.52

originally planned to expand its 300MW Davao coal plant by another 150MW. The expanded

Mining & Oil

11,333.17

43.63

0.38

8.69

Property

3,418.88

-24.92

Services

1,647.62

-8.13

capacity was supposed to be operational by 2018. The company said it made the decision as
it projects power supply in Mindanao to be in surplus with the operation of several new power

-0.73 17.26
-0.49

7.67

Price

W/W

7.35

3.96

6.78

3.51

plants in the new few years. The postponement of the 150MW expansion project will result to
a 6.5% reduction in APs 2018 profits. It will also lead to a 1.8% reduction in our FV estimate to
Php44.40/sh. We reiterate our HOLD rating on AP.

GMA7: Adjusting FV estimate to Php7.0/sh, maintaining

HOLD rating
We are adjusting our forecasts to factor in updates from our latest meeting with management.
However, our earnings forecasts hardly changed for 2016 and 2017. For 2016, GMA7s weaker-

INDEX GAINERS
Ticker Company
EMP

Emperador Inc

BLOOM Bloomberry Resorts

MBT

Metrobank

90.90

2.13

RLC

Robinsons Land Corp

30.10

2.03

MEG

Megaworld Corporation

4.65

1.09

than-expected pol ad revenues were almost completely offset by its strong recurring revenue
performance and below expected production costs. Meanwhile, for 2017, the one-time expense
that resulted from the CBA negotiation was offset by the projected increase in airtime revenues.
However, we reduced our FV estimate slightly from Php7.40/sh to Php7.00/sh after lowering
our assumption on the value of future revenues from pol ads and after factoring the increase
in personnel costs every two and three years as a result of CBA negotiations. We are also

INDEX LOSERS
Ticker

Company

PCOR

Petron Corporation

Price

W/W

10.28

-6.55

AP

Aboitiz Power Corp

44.00

-4.14

maintaining our HOLD rating on GMA7. At Php6.35/sh, potential upside based on our FV

URC

Universal Robina Corp

200.00

-3.57

estimate is limited at only 10.24%. Media stocks are also currently out of favor since the election

FGEN

First Gen Corporation

24.05

-3.02

season is already over.

SCC

Semirara Mining

121.90

-2.95

Other Stories:
Power Sector: Indonesia coal shipment moratorium has minimal impact on power plants
Mining Sector: Government to order review of existing mines, to suspend those without certifications
Gaming Sector: Online gaming stocks fall on Dutertes aversion to online gambling
CEMEX: Rising with the tide of the cement industry
JGS: JGS to acquire 30% of GBPC from GT Capital and Meralco
DMPL: Earnings turnaround on strong performance of Asian businesses and one-time gains

TOP 5 MOST ACTIVE STOCKS

Ticker

Company

SMPH

SM Prime Hldgs Inc

596,800,825

Turnover

ALI

Ayala Land Inc

572,969,350

URC

Universal Robina Corp

466,778,275

TEL

Phil Long Distance Co

297,188,225

SM

SM Investments Corp

272,123,350

Market Summary:
The PSEi declined week-on-week as investors took in gains due to renewed concerns over the global
economy following the US Feds reiteration of uncertainty following the Brexit. The main index lost
58.83 points or 0.76% to close at 7,771.52. With only four trading days this week, value turnover
decreased to Php35.7Bil from Php46.3Bil the previous week. Foreigners continued to be net buyers,
accumulating Php2.9Bil worth of shares.

Disclaimer: All content provided in COL Reports are meant to be read in the COL Financial website. Accuracy and completeness of content cannot be guaranteed if reports are viewed outside of
the COL Financial website as these may be subject to tampering or unauthorized alterations.

W eekl y N o t es I P h i l i p i ne Equi ty Resear ch

MO N 11 JULY 2016

Summary of Changes in Shareholdings:

Date of
Disclosure

Stock

Volume

Acquired or
Disposed

Price per
share

4-Jul

CIC

5,000

46.00

4-Jul

MPI

200,000
200,000

D
D

6.74
6.75

5-Jul

SECB

1,000

190.00

7-Jul

COL

6,200

14.20

3,500
10,000
600
11,500
200
2,100
9,100
17,200
167,500
32,500

A
A
A
A
A
A
A
A
D
D

14.00
14.10
14.18
14.20
14.28
14.30
14.38
14.40
6.86
6.87

3,125,000

4.60

7-Jul

COL

7-Jul

MPI

7-Jul

MPI

Person (Designation)
Jose Ma. A. Concepcion
(Board of Directors)
Edward S. Go
(Independent Director)
Jason T. Ang
(Senior Vice President)
Hernan G. Lim
(Director)

Edward K. Lee
(Chairman of the Board)

Antonio A. Picazo
(Corporate Secretary and Director)
Ramoncito S. Fernandez
(Director)

source: PSE

Disclaimer: All content provided in COL Reports are meant to be read in the COL Financial website. Accuracy and completeness of content cannot be guaranteed if reports are viewed outside
of the COL Financial website as these may be subject to tampering or unauthorized alterations.

CAL E N D AR OF E V E N TS
MO N 11 JULY 2016

J U LY

29

TH

31

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

25

26

27

28

29

30

KEY EVENTS

JULY 1
E EI: A nnu a l Sh a r e h o ld e rs Mee ti n g
I : A nnual Sh a r e h o ld e r s Mee ti n g
JULY 4
CDC : Sto c k D iv id e n d
JULY 5
ALHI: An n u a l Sh a r e h o ld ers Mee ti n g
JULY 6
Holiday: E id a l- F it r
AC : Ex-d a t e Ph p 6 . 8 8 Ca s h D i vi d e n d
JULY 7
CP G: Ex-d a t e Ph p 0 . 0 1 8 C as h D i vi d e n d
JULY 8
STN: Ann u a l Sh a r e h o lde rs Mee ti n g
JULY 11
I DC: Ann u a l Sh a r e h o ld e rs Mee ti n g
JULY 12
CNP F: Ex- d a t e Ph p 0 . 2 0 C a s h D i vi d e n d
CNP F: St o c k D iv id e n d

W eekl y N o t es I P h i l i p i ne Equi ty Resear ch

HOLIDAY

JU L Y 1 3
N R C P : A n nua l Sha re hol de rs Me e ti ng
C IC : A n n u a l Sha re hol de rs Me e ti ng
MW ID E : Annua l Sha re hol de rs Me e ti ng
JU L Y 1 4
E C P : A n n ua l Sha re hol de rs Me e ti ng
T F H I: A n n ua l Sha re hol de rs Me e ti ng
IMP : A n nua l Sha re hol de rs Me e ti ng
MB : A n n u a l Sha re hol de rs Me e ti ng
A B A : A n nua l Sha re hol de rs Me e ti ng
JU L Y 1 5
MA C : A n nua l Sha re hol de rs Me e ti ng
H I: A n n u a l Sha re hol de rs Me e ti ng
JU L Y 1 9
IP O : E x -da te Php0.06 Ca s h Di v i de nd
C O A L : A nnua l Sha re hol de rs Me e ti ng
JU L Y 2 1
MH C : A n nua l Sha re hol de rs Me e ti ng
IR C : A n n u a l Sha re hol de rs Me e ti ng
P E R C : A nnua l Sha re hol de rs Me e ti ng
S E V N : A nnua l Sha re hol de rs Me e ti ng
D D : A n n u a l Sha re hol de rs Me e ti ng

J ULY 22
CPG: Annua l Sha re hol der s M eet ing
J F C: Annua l Sha re hol de rs M eet ing
J ULY 25
HOUSE: Annua l Sha re holder s M eet ing
J ULY 26
CEU: Annua l Sha re hol de rs M eet ing
J ULY 27
DMC: Annua l Sha re hol der s M eet ing
J ULY 28
MF IN: Annua l Sha re hol der s M eet ing
F J P: Annua l Sha re hol de rs M eet ing
J ULY 29
APO: Annua l Sha re hol der s M eet ing
LBC: Annua l Sha re hol de rs M eet ing
LR: Annua l Sha re hol de rs M eet ing
RF M: Annua l Sha re hol der s M eet ing

Disclaimer: All content provided in COL Reports are meant to be read in the COL Financial website. Accuracy and completeness of content cannot be guaranteed if reports are viewed outside
of the COL Financial website as these may be subject to tampering or unauthorized alterations.

W eekl y N o t es I P h i l i p i ne Equi ty Resear ch

MO N 11 JULY 2016

Important Rating Definitions

BUY
Stocks that have a BUY rating have attractive fundamentals and valuations based on our analysis. We expect the share price to outperform the market in the
next six to twelve months.
HOLD
Stocks that have HOLD rating have either 1) attractive fundamentals but expensive valuations 2) attractive valuations but near term earnings outlook might be
poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely in line or underperform in the market in the next
six to twelve months.
SELL
We dislike both the valuation fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to twelve months.

Important Disclaimer
Securities recommended, offered or sold by COL Financial Group, Inc. 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 gurantee its accuracy and it may be
incomplete or condensed. All opinions and estimates constitute the judgment of COLs Equity Research Department as of the report and are subject to change
without prior notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase of sale of a security. COL
Financial and/or its employees not involved in the preparation of this report may have investments in securities of derivatives of the companies mentioned in
this report and may trade them in ways different from those discussed in this report.

COL Research Team

April Lynn Tan, CFA, VP & Head of Research
april.tan@colfinancial.com
Analysts
Charles William Ang
George Ching
Richard Laeda, CFA
charles.ang@colfinancial.com george.ching@colfinancial.com richard.laneda@colfinancial.com
Meredith Hazel Cua
Jose Angelo Lecaros
Michelle Angeline Yu
meredith.cua@colfinancial.com angelo.lecaros@colfinancial.com michelle.yu@colfinancial.com

Contact
COL Financial Group, Inc.
2402-D East Tower, Philippine Stock Exchange Centre,
Exchange Road, Ortigas Center, Pasig City
1605 Philippines
Tel No. +632 636-5411
Fax No. +632 635-4632
Website: www.colfinancial.com

Disclaimer: All content provided in COL Reports are meant to be read in the COL Financial website. Accuracy and completeness of content cannot be guaranteed if reports are viewed outside
of the COL Financial website as these may be subject to tampering or unauthorized alterations.