WED 21 OCT 2020

Top Stories:

JFC: JFC raises stake in Tim Ho Wan holding firm (AS OF OCT 20, 2020)
HOME: HOME plans to open 2 more stores this year INDICES

Close Points % YTD%

PSEi 6,112.71 93.45 1.55 -21.78

Other News: All Shares

Financials
3,681.26
1,209.01
40.23
23.57
1.10 -20.83
1.99 -35.13
Holding Firms 6,302.75 84.25 1.35 -16.98
Economy: Gov’t sees 2020 GDP shrinking by 6% Industrial 8,276.68 152.70 1.88 -14.10

Economy: Fitch sees tourism flows remaining weak next year Mining & Oil 7,361.86 -354.78 -4.60 -9.02
Property 2,891.22 54.63 1.93 -30.41
Services 1,452.93 2.97 0.20 -5.11

COVID-19 Update Dow Jones 28,195.42 -411 -1.44 -1.20

S&P 500 3,426.92 -56.89 -1.63 6.07
Total Cases Total Deaths Total Recoveries

Philippines 360,775 (+1,640) 6,690 (+17) 310,642 (+369)

INDEX GAINERS
Ticker Company Price %
USA 8,519,459 (+69,727) 226,210 (+1,013) 5,543,050 (+47,715)
JFC Jollibee Foods Corporation 169.00 9.31
GTCAP GT Capital Hldgs Inc 434.00 6.11
Worldwide 41,022,028 (+393,651) 1,128,876 (+6,143) 30,616,549 (+276,837)
ALI Ayala Land Inc 31.35 5.03
AGI Alliance Global Inc 7.50 4.90
LTG LT Group Inc 11.28 4.44

Market Summary:
INDEX LOSERS
Ticker Company Price %
The local equities market sustained its strong performance on Tuesday as investors grew
AEV Aboitiz EquityVentures 43.40 -1.36
optimistic amid the easing quarantine measures. FGEN First Gen Corporation 26.10 -0.76
ICT Int'l Container Term 116.20 -0.68
The PSEi gained 93.45 points or 1.55% to close the session at 6,112.71. The top movers MEG Megaworld Corporation 2.99 -0.66
AC Ayala Corporation 702.50 -0.50
were JFC (+9.31%), GTCAP (+6.11%), ALI (+5.03%), AGI (+4.90%), and LTG (+4.44%). On the
other hand, the main drags were AEV (-1.36%), FGEN (-0.76%), ICT (-0.68%), MEG (-0.66%),
and AC (-0.50%). TOP 5 MOST ACTIVE STOCKS
Ticker Company Turnover
JFC Jollibee Foods Corp 660,533,900
Value turnover increased to Php8.2Bil from Php5.4Bil in the previous session. Meanwhile, BPI Bank of the Phil Islands 596,440,900
foreigners remained net sellers, disposing Php718.0Mil worth of shares. BDO BDO Unibank Inc 497,735,900
GTCAP GT Capital Hldgs Inc 484,738,500
ALI Ayala Land Inc 434,561,800

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.
 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

WED 21 OCT 2020

Top Stories:

John Martin Luciano, CFA JFC: JFC raises stake in Tim Ho Wan holding firm
Senior Research Analyst
JFC, through its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd., plans to purchase
Jollibee Foods Corporation
the 25% participating interest of Aragon Investments SPC in Titan Dining LP, a private
HOLD
Php129.00 equity fund and the ultimate holding entity of the Tim Ho Wan Brand. This will increase
JFC’s participating interest in the Titan fund from 60% to 85%. The transaction worth
SGD36.3Mil (~Php1.3Bil) will be paid in cash and is targeted to be completed by October
30, 2020.

Kerwin Malcolm Chan

HOME: HOME plans to open 2 more stores this year
Research Analyst

HOME is looking to open two more new stores before the end of the year, bringing their
Allhome Corp.
N/A store count to 49 stores from 47 at present. The company initially planned to delay the
N/A new store openings to 2021, but they were encouraged by the resilience of existing stores
to open at least 4 new stores this year. Note that 42 out of HOME’s 47-store network
are located in Luzon, while the other five are distributed in Visayas and Mindanao. (Source:
Bworldonline)

Other News:

Research Analysts Economy: Gov’t sees 2020 GDP shrinking by 6%

John Martin Luciano, CFA The government now expects FY20 GDP to contract by about 6%, which is at the low
Frances Rolfa Nicolas end of their 4.4-6.6% forecast range, as the return to MECQ for two weeks in August
Justin Richmond Cheng slowed the economic recovery. Other key credit rating agencies are also expecting a
Adrian Alexander Yu
deeper economic decline for the Philippines. The World Bank slashed its GDP forecast
Kerwin Malcolm Chan
for the year to -6.9% from -1.9%. Meanwhile, the Asian Development Bank and the
International Monetary Fund cut their projections to -7.3% and -8.3% from -3.8% and
3.6%, respectively. Socioeconomic Planning Acting Secretary Karl Chua said that the
economic team will revisit macroeconomic assumptions after the release of 3Q20 GDP
data on November 10. However, external risks from the worsening COVID-19 outbreak
in the United States and Europe will have only have a minimal impact on the Philippines’
recovery as its biggest trading partner, China, is still growing. For 2021, the government
projects the economy to post a strong rebound of 6.5-7.5% GDP growth. (Source: Bworldonline)

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 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

WED 21 OCT 2020

Economy: Fitch sees tourism flows remaining weak next year

Fitch Ratings sees international services trade, especially in tourism, remaining weak
across the Asia Pacific region even in 2021. This is due to the impact of the COVID-19
pandemic. Despite the slow lifting of international borders and restrictions, Fitch expects
the uncertainty regarding the evolution of the pandemic to deter tourism flows until the
availability of a vaccine and effective treatment. Fitch says inbound tourism accounts for
around 5% of GDP for more than a third of countries in Asia-Pacific. For the Philippines,
this figure ranged from 3 to 4% of GDP in 2016 to 2018. Note that in the first seven
months of 2020, Philippine tourism receipts plunged 72% y/y. (Source: Philstar)

Changes in Shareholdings
Date of Acquired or Price per
Stock Volume Person (Designation)
Disclosure Disposed share
Alfredo S. Panlilio
20-Oct TEL 2,000 A 1,291.07
(Chief Revenue Officer)
Source: PSE

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 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

WED 21 OCT 2020

I M P O R TA N T R AT ING 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.

I M P O R TA N T DISC L AIM ER
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.

CO L R E S EAR C H T EAM

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

JOHN MARTIN LUCIANO, CFA FRANCES ROLFA NICOLAS JUSTIN RICHMOND CHENG
SENIOR RESEARCH ANALYST RESEARCH ANALYST RESEARCH ANALYST
john.luciano@colfinancial.com rolfa.nicolas@colfinancial.com justin.cheng@colfinancial.com

ADRIAN ALEXANDER YU KERWIN MALCOLM CHAN

RESEARCH ANALYST RESEARCH ANALYST
adrian.yu@colfinancial.com kerwin.chan@colfinancial.com

CO L F IN ANC IAL G R O UP, IN C.

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EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
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WEBSITE: www.colfinancial.com

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