I Philippine Equity Research Daily Notes

Tuesday, 16 July 2024

OTHER NEWS: Indices

Close Points % YTD%
PSEi 6,689.37 41.14 0.62 3.71
• CHP, SCC: APO Cement executes agreement with SCC’s retail
All Shares 3,594.22 18.00 0.50 4.95
electricity supply arm Financials 2,027.42 -1.65 -0.08 16.59
• MER: Rates increase by Php2/kWh in July as power costs ‘normalize’ Holding Firms 5,785.36 98.89 1.74 -5.25
Industrial 9,156.50 25.27 0.28 0.89
• Economy: Remittances up 3.7% y/y in May
Mining & Oil 8,646.25 91.75 1.07 -13.54
Property 2,651.18 49.58 1.91 -7.14
Services 2,046.62 -22.15 -1.07 27.52

MARKET SUMMARY:
Dow Jones 40,000.90 247.15 0.62 6.13
S&P 500 5,615.35 30.81 0.55 17.73
The PSEi extended its climb to reach the 6,700 mark intraday before paring Nasdaq 18,398.45 115.04 0.63 22.56
gains. Advances were led by Property (+1.91%), Holdings (+1.74%), and
Mining (+1.07%), while Services (-1.07%) and Financials (-0.08%) closed Index Gainers
lower. Ticker Company Price %
ALI Ayala Land Inc 30.70 3.72
AEV Aboitiz Equity Ventures Inc 37.15 2.62
The local benchmark index rose by 41.14 points or 0.62% to close at SM SM Investments Corp 900.00 2.27
6,689.37. The top gainers were ALI (+3.72%), AEV (+2.62%), SM (+2.27%), CNPF Century Pacific Food Inc 35.55 2.16
LTG LT Group Inc 9.70 2.11
CNPF (+2.16%), and LTG (+2.11%). On the other hand, the top decliners
were MER (-2.23%), WLCON (-1.67%), CNVRG (-1.57%), ICT (-1.30%), and
TEL (-1.02%). Index Losers
Ticker Company Price %
MER Manila Electric Co 376.40 -2.23
Value turnover stood at Php5.2Bil, up from Php4.4Bil on the previous day. WLCON Wilcon Depot Inc 17.70 -1.67
Meanwhile, foreign investors were net sellers, posting net outflows of CNVRG Converge Information and Commu 11.26 -1.57
ICT International Container Termin 363.20 -1.30
Php46.2Mil.
TEL PLDT Inc 1549.00 -1.02

Top 5 Most Active Stocks

Ticker Company Turnover
ALI Ayala Land Inc 870,661,100
SM SM Investments Corp 436,130,800
BDO BDO Unibank Inc 329,441,400
AC Ayala Corp 298,760,000
JFC Jollibee Foods Corp 289,488,600

(as of July 15, 2024)

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Daily Notes I Philippine Equity Research Tuesday, 16 July 2024

OTHER NEWS:

CHP, SCC: APO Cement executes agreement with SCC’s retail Denise Joaquin
Research Analyst
electricity supply arm
Charmaine Co
In a PSE disclosure, CHP reported that its subsidiary, APO Cement Research Analyst
Corporation (APO) has executed a Retail Supply Agreement with SEM
CALACA RES Corporation for the supply of electricity to APO’s cement Paolo Miguel Manansala
Research Analyst
plant facilities in Naga, Cebu. SEM CALACA RES Corporation is the retail
electricity supply business arm of SCC. According to the firm, the supply
agreement will expire on December 25, 2024.

MER: Rates increase by Php2/kWh in July as power costs ‘normalize’

MER announced in a statement on Monday that its overall rate would

increase by Php2.1496/kWh (or 22.7%) to Php11.6012/kWh in July from
Php9.4516/kWh in June as power costs normalized, following artificially
low rates last month. The company saw generation charge increase by
Php2.0021/kWh as the charges from the Wholesale Electricity Spot Market
(WESM) returned to the normal level and as MER started the collection
of deferred costs. Recall that the June electricity rate was supposed to
be higher than May, but was reduced by Php1.9623/kWh after the Energy
Regulatory Commission (ERC) ordered the staggered collection of charges
related to WESM purchases over a four-month period to soften the impact
of the high generation rates. (Source: BusinessWorld)

Economy: Remittances up 3.7% y/y in May

Personal remittances from Overseas Filipinos (OFs) rose by 3.7% y/y to

US$2.88Bil in May from US$2.78Bil in the same period last year. This
increase was driven by remittances from land-based workers with work
contracts of one year or more, and sea- and land-based workers with
work contracts of less than one year. Year to date, personal remittances
were up by 3.0% y/y to US$14.89Bil. Of the personal remittances from OFs,
cash remittances coursed through banks, cash remittances amounted to
US$2.58Bil in May (+3.6% y/y) and US$13.37Bil (+3.0% y/y) in the period
from January to May. Among the countries where remittances originated,
the US (40.9%) had the highest share of overall remittances, followed by
Singapore (7.2%) and Saudi Arabia (6.1%). (Source: BSP)

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Daily Notes I Philippine Equity Research Tuesday, 16 July 2024

July 2024
Monday Tuesday Wednesday Thursday Friday Saturday Sunday

1 2 3 4 5 6 7
PH - PMI (Jun) SMD - MWIDE CD - GTCAP (GTPBB) PH - CPI (Jun)
SMD - CNPF PH - Foreign Reserves
CD - JFC (JFCPA) (Jun)
CD - JFC (JFCPB)

8 9 10 11 12 13 14
PH - Unemployment PH - Trade Balance US - CPI (Jun) PH - Bank Lending (May)
Rate (May) (May) US - PPI (Jun)
CD - AC
CD - ACEN

15 16 17 18 19 20 21
PH - Overseas Cash SMD - AGI PH - Balance of
Remittances (May) Payments (Jun)

22 23 24 25 26 27 28
PH - Budget Balance SMD - CIC US - Core PCE (Jun) US - GDP (2Q)
(Jun) SMD - PLUS
US - PMI (Jul)

29 30 31 1 2 3 4
ABD - BDO SMD - SSI PH - Bank Lending PH - PMI (Jun) ABD - SCC
(Jun) US - FOMC Rate ABD - UBP
Decision ABD - AP
ABD - AEV
ABD - UBP
ABD - AP

5 6 7 8 9 10 11
PH - CPI (Jul) PH - Unemployment PH - GDP (2Q)
PH - Trade Balance Rate (Jun)
(Jun) PH - Foreign Reserves
(Jul)
ABD - SM

Legend June '24 August '24

CD - Cash Ex-Date LD - Listing Date EOS - ETF Offer Start PH - Philippines M T W T F S S M T W T F S S
STD - Stock Ex-Date SRD - SRO Ex-Date EOE - ETF Offer End US - United States of America 1 2 1 2 3 4
PD - Property Ex-Date SRS - SRO Start WED - Warrant Exp Date 3 4 5 6 7 8 9 5 6 7 8 9 10 11
ABD - Analysts' Briefing SRE - SRO End 10 11 12 13 14 15 16 12 13 14 15 16 17 18
SMD - Stockholders' Meeting SRL - SRO Listing 17 18 19 20 21 22 23 19 20 21 22 23 24 25
OFS - Offer Start EDD - ETF Dividend 24 25 26 27 28 29 30 26 27 28 29 30 31
OFE - Offer End Ex-Date

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Daily Notes I Philippine Equity Research Tuesday, 16 July 2024

Important Rating Definitions COL Research Team

BUY April Lynn Tan, CFA

Stocks that have a BUY rating have attractive fundamentals and valuations based on our First Vice President & Chief Equity Strategist
analysis. We expect the share price to outperform the market in the next six to 12 months. [email protected]

HOLD Charles William Ang, CFA

Stocks that have a HOLD rating have either 1) attractive fundamentals but expensive AVP & Head of Research
[email protected]
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
George Ching
line or underperform in the market in the next six to twelve months.
Senior Research Manager
[email protected]
SELL
We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the Richard Laneda, CFA
share price to underperform in the next six to12 months. Senior Research Manager
[email protected]

Important Disclaimer Denise Joaquin

Research Analyst
Securities recommended, offered or sold by COL Financial Group, Inc. are subject to investment [email protected]
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 Charmaine Co
its accuracy and said information may be incomplete or condensed. All opinions and estimates Research Analyst
[email protected]
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
Paolo Miguel Manansala
is not intended as an offer or solicitation for the purchase or sale of a security. COL Financial
Research Analyst
and/or its employees not involved in the preparation of this report may have investments in
[email protected]
securities of derivatives of the companies mentioned in this report and may trade them in
ways different from those discussed in this report.

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