FRI 02 FEB 2018

Top Story for the Week:

RLC: Adjusting estimates for rights offering,

reiterate BUY rating (AS OF FEB 01, 2018)
INDICES
Raising Php20 Bil for landbank. RLC has finalized the terms of its stock rights offering. RLC
Close Points W/W YTD %
will be offering 1 rights share for every 3.7217 share at an offer price of Php18.20 per rights PSEi 8,810.75 -230.45 -2.62 28.80
share (lower end of the indicative range) to existing common shareholders as of record date 31 All Shares 5,181.82 -87.50 -1.69 24.68
January, 2018. With a total of 1.1 Mil shares to be offered, RLC will be raising Php20 Bil from the Financials 2,223.55 -33.18 -1.49 34.31
rights offering. The proceeds will be used for landbanking activities as RLC sees more upside on Holding Firms 9,007.76 -350.24 -3.89 28.83
land values. Industrial 11,891.59 -198.37 -1.67 11.66
Mining & Oil 12,083.05 -106.57 -0.88 1.90
Property 3,993.89 -133.07 -3.33 30.24
Bridgetown project to be expanded. Around Php11 Bil of the Php20 Bil proceeds of the rights
Services 1,718.11 21.30 1.24 31.87
offering will be used to purchase the 22-hectare lot behind its Bridgetown project. Successfully
acquiring the lot will allow RLC to expand its Bridgetown project from 8 hectares to 30 hectares.
The expansion will be favorable for RLC as this will make Bridgetown its biggest mixed-use
INDEX GAINERS
project in Metro Manila. The first phase of the Bridgetown project is doing really well as demand
Ticker Company Price W/W
for PEZA-accredited BPO space (which Bridgetown has) is very strong. In fact, Bridgetown is GLO Globe Telecom Inc 1899.00 8.76
already in its fourth office building. SMC San Miguel Corporation 152.00 7.73
PCOR Petron Corporation 9.80 6.41
Reducing FV estimate to Php28.00 but maintain BUY. We are reducing our fair value estimate TEL PLDT Inc 1558.00 3.66
from Php31.05 to Php28.00 after factoring in 1.) the 27% increase in the number of shares BPI Bank of the Phil Islands 120.00 1.87

outstanding; 2.) the acquisition of the 22-hectare lot next to Bridgetown; and 3.) the additional
Php9 Bil in cash, as a result of the rights offering. We valued the 22-hectare lot at a premium
to its purchase price given that the first phase of the Bridgetown project is already successful, INDEX LOSERS
minimizing execution risk and improves the value of the whole project. We also reiterate our BUY Ticker Company Price W/W
SM SM Investments Corp 1030 -9.65
rating on RLC. At Php21.15, capital appreciation potential to our revised fair value estimate of
URC Universal Robina Corp 162.2 -5.15
Php28.00 is significant at 32.39%.
SMPH SM Prime Hldgs Inc 36.95 -4.27
AEV Aboitiz Equity Ventures 75.3 -4.08
Other Stories: ALI Ayala Land Inc 45.85 -3.47

MBT: 2017 earnings ended flat y/y; below estimates

UBP: 4Q17 earnings climb 5% y/y; slightly below COL estimates TOP 5 MOST ACTIVE STOCKS
MPI: Reducing estimates as toll road tariff adjustment faces delay Ticker Company Turnover
NIKL: Shipment volume to recover in 2018, nickel prices to remain in an uptrend ALI Ayala Land Inc 690,009,280
RCB: RCB: RCB to conduct stock rights offering SM SM Investments Corp 657,029,220
SMPH SM Prime Hldgs Inc 551,060,320
BDO BDO Unibank Inc 548,227,600
Market Summary: AC Ayala Corporation 302,184,460

The PSEi declined last week tracking the regional market. The benchmark index lost 230.45
points or 2.62% to close at 8,810.75. Value turnover decreased to Php45.6Bil from Php41.9Bil
the previous week. Foreigners turned net sellers for the week, disposing Php6.8Bil 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.
 WEEKLY NOTES I PHILIPPINE EQUITY RESEARCH

FRI 02 FEB 2018

Summary of Changes in Shareholdings:

COL Financial Group, Inc. 2

 CALENDAR OF EVENTS

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V MC: A NNUAL SH ARE H OLDER S M EE T ING R OX: A N N UA L SH A R E H O L D E R S M E E T I N G

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UB P: EX-DATE PH P1.90 C A S H D IV IDEND HO LIDAY: E D S A R E V O LU T I O N A N N I V E R S A RY

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 WEEKLY NOTES I PHILIPPINE EQUITY RESEARCH

FRI 02 FEB 2018

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
12 months.

HOLD
Stocks that have a 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 valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to12 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 guarantee its accuracy and said information may be
incomplete or condensed. All opinions and estimates constitute the judgment of COL’s Equity Research Department as of the date 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 or 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

CHARLES WILLIAM ANG, CFA GEORGE CHING RICHARD LAÑEDA, CFA

DEPUTY HEAD OF RESEARCH SENIOR RESEARCH MANAGER SENIOR RESEARCH MANAGER
charles.ang@colfinancial.com george.ching@colfinancial.com richard.laneda@colfinancial.com

FRANCES ROLFA NICOLAS ANDY DELA CRUZ JUSTIN RICHMOND CHENG

RESEARCH ANALYST RESEARCH ANALYST RESEARCH ANALYST
rolfa.nicolas@colfinancial.com andy.delacruz@colfinancial.com justin.cheng@colfinancial.com

KYLE JEMMRIC VELASCO JOHN MARTIN LUCIANO ADRIAN ALEXANDER YU

RESEARCH ANALYST RESEARCH ANALYST RESEARCH ANALYST
kyle.velasco@colfinancial.com john.luciano@colfinancial.com adrian.yu@colfinancial.com

COL FINANCIAL GROUP, INC.

2402-D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE,
EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
FAX NO. +632 635-4632
WEBSITE: www.colfinancial.com

COL Financial Group, Inc. 4