FRI 08 MAR 2019

Notable Movers:
Shares of MPI rallied following news that it received the approval by the TRB for
MPI (+7.66%)
its toll rate adjustments on the NLEX System.
BDO (+7.52%) Banks were particularly strong following the news that the central bank plans to
PNB (+21.01%) expedite the cut in reserve requirement ratio (AS OF MAR 07, 2019)
SCC (-6.44%) Shares of SCC dropped following the weaker-than-expected earnings results
INDICES
Close Points W/W YTD %
Top Story for the Week: PSEi 7,797.11 155.34 2.03 4.43
All Shares 4,817.22 87.29 1.85 6.63
Financials 1,760.86 77.47 4.60 -1.07
TEL: Core telco operations show strong FY18 Holding Firms 7,798.76 105.79 1.38 6.22

results and outlook, upgrade to BUY Industrial

Mining & Oil
11,580.39 242.38
8,139.15 -220.58
2.14
-2.64
5.74
-0.75
Property 3,945.68 19.69 0.50 8.76
TEL’s FY18 core net income in line, but outlook better than expected. TEL’s FY18 recurring core Services 1,550.64 32.22 2.12 7.48
net income was around Php21.4 Bil. This is in line with our forecast of around Php22.0 Bil. FY18
consolidated revenues rose 3% y/y to Php164.7Bil, in line with COL (100%) full year estimates.
Pro-forma service revenues increased by 5% to Php150.5 Bil. Growth was driven by the strong INDEX GAINERS
performance of the consumer individual, home and enterprise business (up 10%, 10% and 7% Ticker Company Price W/W
respectively) partly offset by the steep decline of the international/carrier business (down 26%) MPI Metro Pacific Inv Corp 4.92 7.66
as it was hit by government regulations mandating lower interconnection fees. EBITDA was BDO BDO Unibank inc 133.00 7.52
down 2% to Php64.9 Bil as Voyager’s EBITDA loss expanded by 116% to Php2.5 Bil. GTCAP GT Capital Hldgs Inc 993.00 6.77
AGI Alliance Global Inc 14.62 6.72
Despite the in-line results, outlook has improved due to the following reasons: 1.) Signs that MEG Megaworld Corporation 5.45 5.83
the turnaround of the mobile business is gaining momentum, allowing FY18 profits from its
core telco operations to grow by 3% to Php24.4 Bil, in line with PLDT’s earnings guidance; 2.)
The deconsolidation of Voyager effective November 2018 which should reduce PLDT’s share in INDEX LOSERS
the company’s losses; and 3.) PLDT’s strong 2019 earnings guidance of its core telco operations Ticker Company Price W/W
(excluding Voyager) to Php26 Bil notwithstanding the expected decline of the international/ SCC Semirara Mining Corp 20.35 -6.44
carrier business due to the mandated removal of interconnection fees effective February 2019. AP Aboitiz Power Corp 34 -2.86
AEV Aboitiz Equity Ventures 58.8 -2.00
We are upgrading our recommendation on TEL from HOLD to BUY, with a FV estimate of RRHI Robinsons Retail Hldgs Inc 85.5 -1.16
Php1,360/sh ALI Ayala Land Inc 43 -0.46

Other Stories:
TOP 5 MOST ACTIVE STOCKS
SCC: FY18 earnings below forecasts due to higher than expected mining costs, accelerated Ticker Company Turnover
depreciation of Calaca unit 1 and 2 ALI Ayala Land Inc 435,731,380
ICT Int'l Container Term 409,143,300
MBT: Earnings underperform on higher-than-expected provisions JGS JG Summit Hldgs Inc 256,665,660
BDO BDO Unibank Inc 199,337,840
MPI: FY18 core earnings exceed forecasts SMPH SM Prime Hldgs Inc 184,542,188

BLOOM: FY18 profit grows 21.8% on higher GGR, better margins

AP: AP FY18 core income beats forecast

DNL: 4Q18 earnings flat y/y but 2019 growth remains intact

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 08 MAR 2019

Other Stories:

EAGLE: FY18 core earnings in line with COL estimates

FGEN: DOE likely to approve FGEN’s LNG project

ICT: FY18 earnings in line with COL forecast, beat consensus estimates

WLCON: WLCON FY18 profits up 32.5% y/y to Php1.83Bil, in line with COL, but ahead of
consensus

Market Summary:

The PSEi increased by 155.34 points or 2.03% w/w to close at 7,797.11 following the
announcement of a much slower inflation uptick. Value turnover decreased to Php30.0 Bil
from Php44.4 Bil in the previous week. Meanwhile, foreigners turned net sellers this week,
disposing a total of Php296 Mil worth of shares.

Summary of Changes in Shareholdings:

Date of Acquired or Price per

Stock Volume Person (Designation)
Disclosure Disposed share
Jose Alfredo G. Pascual
4-Mar BDO 2,500 D 130.00
(Senior Vice President)
So urce: P SE

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B EL: EX-DATE PH P0.12 C A S H DIV IDEND
UR C: EX-DATE PH P1.50 C A S H DIV IDEND
AB S: EX-DATE PH P0.55 C A S H D IV IDEND

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 WEEKLY NOTES I PHILIPPINE EQUITY RESEARCH

FRI 08 MAR 2019

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

ANDY DELA CRUZ JOHN MARTIN LUCIANO FRANCES ROLFA NICOLAS

SENIOR RESEARCH ANALYST SENIOR RESEARCH ANALYST RESEARCH ANALYST
andy.delacruz@colfinancial.com john.luciano@colfinancial.com rolfa.nicolas@colfinancial.com

JUSTIN RICHMOND CHENG ADRIAN ALEXANDER YU

RESEARCH ANALYST RESEARCH ANALYST
justin.cheng@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