|
Stock
|
Buy Below
|
Date Bought
|
Current Price
|
Target Price
|
Average Cost
|
Return + Dividends
|
Remarks
|
|
BLUE CHIP STOCKS
|
|
BDO
|
66.65
|
Sep
6, ‘12
|
68.00
|
80.00
|
60.10
|
13.15%
|
HOLD
|
|
ALI
|
22.50
|
|
22.85
|
27.00
|
-
|
0
|
HOLD
|
|
PGOLD
|
29.16
|
|
29.40
|
35.00
|
-
|
0
|
HOLD
|
|
EDC
|
7.08
|
Sep
6, ‘12
|
6.88
|
8.50
|
5.94
|
15.86%
|
BUY
|
|
TEL
|
2,660
|
Nov
6, ‘12
|
2,506
|
3,200
|
2,627.60
|
-4.63%
|
BUY
|
|
AGI
|
13.75
|
|
15.08
|
16.50
|
-
|
0
|
HOLD
|
|
MBT
|
95.80
|
Sep
14,’12
|
95.25
|
115.00
|
93.73
|
1.62%
|
BUY
|
|
|
|
|
|
|
|
|
|
|
MID CAP STOCKS
|
|
CPG
|
1.50
|
|
1.44
|
2.25
|
-
|
0
|
BUY
|
|
|
|
|
|
|
|
|
|
SMALL CAP STOCKS
|
|
BHI
|
0.158
|
|
0.150
|
0.510
|
-
|
0
|
BUY
|
|
MAC
|
2.80
|
Oct
23,2012
|
2.75
|
4.87
|
2.76
|
-0.29%
|
BUY
|
3rd quarter results are out and most of the companies listed above issued a press release on the results of their operations. I am putting them here and as you can read below, all of the blue chip stocks we have covered produce great numbers.
BDO –9M12 profits
surge to P10.5 billion.
BDO 9M12 profits surge to P10.5 billion BDO Unibank,
Inc. (BDO) posted an unaudited net income of P10.5 billion for the first nine
months of 2012, up 38 percent against the P7.6 billion earned during the
comparable period in 2011. The Bank sustained the growth in its core lending
and deposit-taking businesses and recurring fee-based service income. The Bank
also capitalized on the favorable conditions in the bond markets to realize
robust trading gains from its treasury activities.
Gross customer loans expanded by 17 percent to P724 billion,
while total deposits increased to P860 billion. This resulted in an improvement
in net interest income to P26.8 billion.
Fee-based income increased to P10 billion, driven by the
solid growth from the service businesses. Trading and foreign exchange gains
jumped 50 percent to P7 billion.
Overall, total non-interest income went up by 23 percent to P18.9
billion.
Operating expenses inched up to P29.7 billion, while P4.2
billion in provisions were set aside during the period. Gross non-performing
loan (NPL) ratio is at 3.1 percent, while gross NPL coverage is at 124
percent.
Following a successful US$1 billion stock rights offer that
was concluded in July 2012, the Bank’s capital base expanded to P152 billion,
making BDO the largest-capitalized bank in the industry. The Capital Adequacy
Ratio (CAR) and Tier 1 Capital ratio remain comfortably above the regulatory
minimum at 20.3 percent and 15.2 percent, respectively, as of end-September
2012.
Given this performance, the Bank is very optimistic on
achieving its year-end targets.PSE
ALI – Net income
increased to P7.59B for 9M12, a 22% increase compared to last year.
ALI’s revenues for 9M12 increase to P39.014B, a 16% increase
compared to the same period last year. Expenses increased as well consequently
but the spike is less than the percentage increase in revenues. ALI has managed
its expenses growth percentage well below the revenue growth percentage.
Expenses increased to P28.934B, a 14% compared to last year. PSE
Ayala Land Inc., the country’s biggest property company, has
increased its programmed project and capital expenditures for the whole year of
2012 to P70 billion from the original target of P37 billion due to “unbudgeted
property acquisitions.”
Ayala Land said it would fund the P70-billion capital spending
through a combination of internally-generated funds, borrowings and
pre-selling.
It said the property
acquisition “will ensure the pipeline of value accretive projects beyond the
current five-year plan.”Manila Standard Today
ALI is targets more than 100 Family Mart convenience stores
and the rollout of numerous department stores in the next five years. It will
spend P80M to put up 30 Family Mart stores next year and about P300M to reach
more than 100 convenience stores in the next five years. PSE
PGOLD - clears 45.2% growth in net sales and 67.2%
increase in net income as of 3Q 2012.
Puregold Price Club, Inc. (PGOLD), in
an SEC Form 17-Q submission for the quarter ending September 30, 2012, reported
that PGOLD posted total net sales of Php39.137 billion, for an increase of
45.2% compared to Php26.945 billion in the same period in 2011.
The 45.2% growth in net sales was largely due to increased
sales turnover arising from the full nine-month operations of the 38 new
Puregold stores opened in 2011; with these new stores contributing 48.8% of the
total increase in net sales as of 3Q 2012. In June 2012, PGOLD acquired 6
S&R warehouse clubs and 19 Parco supermarkets; with these acquisitions contributing
35.3% of the total increase in the PGOLD’s net sales.
As of 3Q 2012, PGOLD chalked up a gross profit margin of
16.0%, from a level of 14.6% as of the same period in 2011.
PGOLD recorded a net income of Php1.802 billion as of
September 30, 2012, compared to the P1.078 billion at the end of the same
period in previous year, for an increase of 67.2%. In terms of net profit
margin, PGOLD logged a 4.6% net profit margin as of 3Q 2012, compared to the 4.0%
figure as of the same period in 2011.
On the occasion of the Joint Analysts’ Briefing and Global
Investor Call last August 23, 2012, PGOLD provided revised guidance for CY
2012, as follows: net sales targeted to grow by 50% from Php39.0 billion in CY
2011; gross and net profit margins aimed at about 14.5% and 4.5%, respectively;
and the opening of 31 new Puregold stores.
During the first nine months of 2012, PGOLD opened 20 new
Puregold stores; consisting of 10 hypermarkets, 8 supermarkets and 2 extras. In
addition, during the month of October 2012, one each of Puregold hypermarket
and supermarket were opened. As of October 31, 2012, PGOLDhas a total of 122
Puregold stores in operation; consisting of 72 hypermarkets, 37 supermarkets and
13 extras. PSE
EDC –the
Company posted a net income of P8,566.1 million during the first three quarters of 2012, a 1,856.4% or
P9,053.8 million improvement from the net loss of P487.7 million in
the nine-month period ending September 30, 2011.
The following factors contributed to the increase:
·
P4,998.6 million
impairment loss on property, plant and equipment of Northern Negros Geothermal Project
that was recognized in June 2011;
·
P1,811.8
million GCGI’s higher revenues from
Tongonan I and Palinpinon powerplants as per agreed contracts that
became effective in mid-2011 and the additional power supply agreements that
were signed in December 2011; and
·
P1,481.5 million FG
Hydro’s revenues from sale of electricity as ancillary services.
These were partially offset by the P175.5 million increase
in net loss by BGI.
Net income (loss) is equivalent to 39.0% of total revenues
in 2012 as compared to the (2.7%) from the same period in 2011.
The recurring net income generated in the first three
quarters of 2012 increased by 95.9% or P3,804.4 million to P7,771.6 million
from the P3,967.2 million posted during the same period in 2011. This was
mainly attributable to the P3,366.2 million increase in sale of electricity by
FG Hydro and GCGI, offset by the P315.0 million increase in cost of sales of
electricity and steam.
TEL – Consolidated Reported Net
Income for 9M2012 at P28.7billion, from P30.6 billion in 9M2011.
Philippine Long
Distance Telephone Company (“PLDT”) (PSE: TEL) (NYSE: PHI) today announced its
unaudited financial and operating results for the first nine months of 2012
with consolidated Core Net Income, before exceptional items, declining to P28.0
billion. While 8% lower than the P30.6 billion recorded in the same period in
2011, the bulk of the decline, or P2.4 billion, was incurred in the first semester.
Also note that the 3Q2012 Core Net Income of P9.4 billion is 4% higher than the
average quarterly Core Net Income of P9.0 billion in the second half of 2011
when the operating environment was under severe competitive pressure.
Reported Net
Income, after reflecting exceptional gains for the period declined 6% to P28.7 billion,
from P30.6 billion in 2011. These results reflect the consolidation of the
operating performance of Digital Telecommunications Philippines, Inc. (“Digitel”)
from its acquisition closed 26th October 2011.
Despite higher
service revenues, Core Net Income declined as a result of higher operating expenses
relating mainly to the manpower reduction programs at PLDT and Digitel and
selling and promotions initiatives. Reported Net Income was impacted by the
decline in Core Net Income and higher net foreign exchange and derivative
gains.
EBITDA margin for
the first nine months of 2012 dipped to 46%, from 54% in 2011. To align more
closely with global accounting standards, service revenues have been restated
to reflect the change in the presentation of our outbound revenues from net to
gross of interconnect expense, which in turn is included in our expenses.
Although EBITDA does not change, EBITDA margins are calculated against the
adjusted service revenues. Consolidated
EBITDAfor the first nine months of 2012 was lower by 4% at P58.6 billion
compared with the same period in 2011.
Without the P1.8 billion charge relating to the manpower reduction
programs, EBITDA would have been P60.4 billion, or 1% lower than the first nine
months of 2011. Digitel EBITDA stood at
P5.3 billion; its lower EBITDA margin of 32% contributed to the decline in overall
EBITDA margin.
Overall
consolidated service revenues for the first nine months of 2012 increased by
12% to P126.2 billion, including the P16.6 billion revenue contribution from
Digitel and reflecting the combined effect (before Digitel) of a 3% decline in
wireless revenues, 1% decrease in fixed line revenues, and a 16% rise in BPO
revenues.
Consolidated free
cash flow reached P29.8 billion, or P6.7 billion lower compared with last year.
Consolidated capital expenditures for the first nine months amounted to P19.3
billion. PLDT Group Capex for 2012 is estimated to reach P38 billion, in line
with the Group’s P67.0 billion capital expenditure program, which has been
completed ahead of schedule. Capital expenditures are expected to return to
pre-2011 levels beginning in 2013.
Having completed
its investment program that has produced
a network that is unrivalled in terms of coverage, capacity and resiliency,
PLDT is now focusing on delivering superior service quality. Furthermore, the
Group announced new initiatives in anticipation of exponential growth in
Internet usage:
• Doubling the
capacity of PLDT’s internet gateway capacity by the end of 2012 and tripling by
the end of 2013;
• Expanding of
backhaul coverage with the built-out of the transmission backbone between Iloilo
and Palawan; and,
• Rolling out fiber
to “pass by” 2 million homes by the end of 2013.
The Group’s
consolidated net debt stood at US$2.1 billion as at 30th September 2012. Gross debt amounted to US$3.1 billion, with
the inclusion of Digitel’s debt amounting to US$0.5 billion. Net debt to EBITDA
was at 1.1x. The Company’s debt maturities continue to be well spread out, with
about 64% due in and after 2015. The percentage of US dollar-denominated debt
to the Group’s total debt portfolio is at 44%. Taking into account our peso
borrowings, our hedges and our U. S. Dollar cash holdings, only 31% of total
debt remains unhedged. The Group’s cash
and short-term securities are invested primarily in bank placements and Government
securities. PLDT is the first Philippine company to be rated “investment grade”
by all three major international ratings agencies. PSE
PLDT’s stock price
has been battered lately. The uncertainty hovering around the 40% foreign
ownership rule and the decrease in net income contributed to the decline in the
share price. From a high of 2,940 last Sep 17, 2012, PLDT’s share price
declined to 2,506 as of last Friday. That is a 15% decline! It is now about to
enter the 2,400s territory. At this price, I am happy to buy PLDT shares and
add to my initial shares that I bought recently. The more it goes down, the
more I will buy. Fundamentals remains the same and the rewards for the current
manpower reduction programme which has contributed P4.6B in expenses for 9M12 will
be reaped on the succeeding years.The competition with the market players is
intense, thus PLDT’s selling and promotion expenses increased by P2.4B for the
9M12.
Moving forward, I believe
PLDT is a buy given that the cellular and broadband subscribers continue to
increase while the company adopts manpower reduction programs. The synergy with
the recently acquired Digitel will also help in reducing expenses as the
company consolidates its operations.
AGI – Earnings in
First Nine Months of 2012 Up 48 Percent to P13.46 B.
The Andrew Tan-led
Alliance Global Group Inc. reported strong results for the first nine months of
2012, with its core net income growing to P13.46 billion, up 48 percent from
P9.12 billion, and net of a P3.13 billion non-recurring gain due to the
acquisition of Global-Estate Resorts Inc. in the same period in 2011.
Consolidated revenues also grew to P78.09 billion in the
first nine months of 2012, a 70 percent increase from P46.02 billion, with the
consolidation of Travellers International Hotel Group Inc. this year.
“We expect our consumer product business and tourism-related
real estate business to continue their growth momentum over the next year,”
said AGI CFO Dina Inting. Emperador was
named the No. 1 selling brandy in the world in terms of volume by UK-based
Drink International Magazine.
Core net income attributable to owners of AGI reached P9
billion, up 33 percent from P6.75 billion in the same period last year.
With total assets of around P265 billion, the company is in
a strong position to pursue its goals as it continues to enhance its operating
efficiency and profitability. AGI’s
total cash and cash resources at the end of the period amounted to P65.1
billion.
Real estate arm Megaworld Corporation contributed around 39
percent to AGI’s net income and about 30 percent to its total revenue.
Megaworld reported total revenues of P23.85 billion in the
first nine months of 2012 from P22.96 billion, up 4 percent year on year. Core net income, on the other hand, amounted
to P5.69 billion from P4.75 billion,
up 20 percent year on year, and net of a P1.95 billion non-recurring gain due
to the sale of shares of AGI, its parent firm, from the previous year.
Megaworld's performance as the No. 1 residential condominium
developer was backed by strong sales from its residential projects in its
townships, particularly Newport City, McKinley West, McKinley Hill and Eastwood
City, as well as strong leasing income from its BPO and retail portfolio.
Megaworld is also recognized as the leader in office
development and is currently the largest BPO office landlord. By the end of 2012, the company expects to
have around 500,000 square meters of office space in its portfolio.
Revenues and profits from the rest of AGI's portfolio of
businesses also grew in line with targets.
Apart from real estate, AGI has interests in industries such as food and
beverage, quick service restaurants and integrated tourism estates.
Food and beverage arm Emperador Distillers Inc. produces
Emperador, Generoso and Emperador Light brandies and a line of flavored
alcoholic beverages called The Bar.
Golden Arches Development Corporation operates the quick
service restaurant business under the McDonald's brand.
Travellers International, along with its partner Genting
Hong Kong, operates Resorts World Manila, the first integrated tourism estate
in the country. Resorts World Manila is
located in Newport City, set across from Terminal 3 of the Ninoy Aquino
International Airport in Pasay City.
Global-Estate Resorts develops integrated tourism estates in
strategically located tourism hot spots such as Boracay, Tagaytay, and
Batangas. It is well-positioned to
promote the country on a global scale and drive the contribution of tourism to
the growth of the economy. PSE
MBT –reported consolidated net income of P10.2 billion for the first
nine months of 2012, or 15.2% higher over the P8.9 billion earned in the same
period last year. As a
result, Metrobank’s return on average equity was recorded at 12.2%.
Total operating income increased by 8.9% to P41.0 billion, on the
back of a 6.7% growth in net interest income to P23.0 billion. Amid
intensified market competition and declining interest rates, the Bank’s net
interest margin showed a marked improvement from last year. This is
attributed mainly to the 11.2% year-on-year expansion in net loans and
receivables to P481.4 billion, coupled with a healthy mix in deposits.
Total low cost deposits reached P384.5 billion, accounting for 58.1% of the
deposit base from 51.7% in the comparative period last year.
Revenue growth was likewise supported by the 11.7% hike in
non-interest income, in turn driven by steady growth in fee-based income,
higher contributions from associates, and earnings from treasury and investment
activities.
The Bank continued to improve on efficiency as operating expenses
registered a slightly above-inflation growth from the same period last
year. For the first nine months of 2012, operating costs inched up by
5.0% to P23.6 billion. As revenues grew faster than expenses, Metrobank’s
pre-provision operating profit rose 14.7% year-on-year to P17.3 billion.
With its continued focus on asset quality, the nonperforming loans
(NPL) ratio further improved to 2.2% in the first nine months of 2012, from
2.5% last year. Metrobank set aside provision for credit and impairment losses
amounting to P3.4 billion, thus NPL coverage rose to 110.5% from 95.9%
previously.
Metrobank ended the third quarter with P953.7 billion in
consolidated assets and total equity of P114.4 billion. Total capital adequacy
ratio (CAR) was at 18.3% with Tier 1 CAR at 14.3%. PSE
CPG - Century Records 957% Growth for 9
Months 2012 Income.
Century
Properties Group, Inc. ("century") reported a 95% net income growth
to Php1.4 billion for the first nine months of 2012 on the strong sales performance
of its property developments. Century’s net income in the same period of 2011
was Php723 million. Total revenue for the first nine months of 2012 increased
by 104% to Php7.2 billion from Php3.5 billion in the same period in 2011. For
the third quarter of 2012 alone, total
revenues and total income stood atPhp2.3
billion and Php467 million respectively,
representing a 60% of growth in
revenue and 105% growth in net income
compared to the third quarter of
2011.
“On our first year
anniversary of being a publicly listed company, we have been able to capitalize
on the real estate sector's robust and sustained growth. For the first nine
months of 2012, Century’s pre-sales stood at P16.3B and we launched P12.5B of
inventory. With an average take up of P1.2B in pre-sales per month from the
international market, Century is the recognized leader in international sales with
60%, or Php 11.3 billion of its P16.3B pre-sales coming from abroad. For the remaining
quarter in 2012, we plan to launch an additional P4.0B of inventory, and will likely
exceed our full year 2012 pre-sales target of P20B. Out of a total of P6.6B of
credit facilities, Century credit facilities outstanding as of September 30,
2012 was P2.8B, with the balance remaining undrawn to fund our future
needs".
For the third
quarter of 2012, century generated P5.6B in pre-sales, of which 19%, 24% and 58%
came from the luxury, middle income and affordable markets, respectively. The
large take up of the affordable segment came from the launch of its latest
project in Quezon City, called Residences at Commonwealth as it launched 3 towards
with a sales value of P2.8B during the third quarter 2012.
Even with the diversification
of its development portfolio to various market price points, Century continues
to assert its leadership in the branded and premium residences category with the
announcement of new and groundbreaking partnerships. On November 9 it launched the
Residences at Acqua Iguazu, the firm's collaboration with the UK-based yoo
inspired by Starck, the internationally-acclaimed interior design brand founded
by the world-renowned French designer Philippe Starck and the British real estate
entrepreneur John Hitchcock. The Php1.7-billion development is the fifth of six
buildings to rise within the developer’s 2.4-hectare Mandaluyong city project
called Acqua Private Residences. Last
September, Century signed a strategic
partnership with telecoms leader PLDT and its business units. The agreement
aims to provide advanced digital connectivity and telecommunications services
to the property firm’s premium master planned and high-rise developments.
Through Century's services consolidation’ initiative, the PLDT Group will
provide "ultra connectivity"
to the projects of Century Properties, through the various services provided by PLDT's
business units: PLDT Home and PLDT ALPHA Enterprise, mobile phone
subsidiaries Smart Communications and Sun Cellular, and affiliate direct-to-home
Digital TV provider Cignal.
Further, in a
disclosure to the Philippine Stock Exchange 'and the Securities and Exchange Commission
on November 8, Century Properties Group, Inc., purchased 20 %o of the shareholdings of the Century Properties
Management Inc (CPMI) from the existing
minority owner. The sale effects a change in ownership structure of CPMI, which will become a 100%
wholly-owned subsidiary of Century Properties Group, Inc. CPMI was incorporated in 1989 and
is currently engaged in facilities
management, auction services,
as well as lease and secondary
sales for Century developments,
third-party developers and
property owners managing 50 buildings
totaling 2.3million square
meters.
With 26 years in
the business of real estate development. Marketing and property management, Century
Properties has completed 20 condominium buildings (4,128 units) with a total
GFA of 548,262 sqm and is currently managing 50 properties as of September 30,
2012. Delivering differentiated, quality real estate has been Century Properties’
commitment in its almost three decades in the business of full-service real
estate development, marketing and property management. The company is listed in
the Philippine Stock Exchange under the symbol CPG. PSE
I believe that I shall see the bounty of the Lord in the land of the
living. Psalm 27:13
First stock I bought for her is Ayala Land (ALI). The real
estate heavyweight is the largest and most diversified real estate company in
the Philippines. I believe that ALI will still be in business 20 years from now
and by that time my daughter may perhaps reap the rewards of this stock.
