Media: ABS healthy core business highlighted. Reiterate BUY on biggest Philippine media company. 2013 earnings up 25% in line with expectations. Attractive long-term potential growth from new
businesses. (Refer to page 3 for more details) Conglomerates: AC to issue USD300m exchangeable bonds into ALI common common shares. Ayala Corp (AC – BUY) disclosed last 10 April the pricing of the USD300m 0.50% exchangeable bonds due 2019 offered by its wholly-owned subsidiary AYC Finance Limited. The bonds are exchangeable into ALI common shares. It will bear an annual interest rate of 0.50% payable annually and will mature on 2 May 2019 unless earlier exchanged, redeemed or repurchased. (Refer to page 5 for more details)
Consumer: CIC posts 20% earnings growth to PHP511m. Concepcion Industrial Corp (CIC – BUY) disclosed 2013 net income grew 20% to PHP511m, slightly higher than our PHP492m estimate. This implies 4Q13 earnings growth of 68% to PHP148m. Full-year net sales went up 9% to PHP7.6b, 5% lower than our PHP8b forecast but more than made up by the 2.6-ppt improvement in operating margins to 15.7%. Higher net sales were mainly driven by growth in the residential segment, particularly among first-time buyers and in the replacement market. We will be releasing a more detailed report in the coming days but for now maintain our BUY rating.
Utilities: TA signs PHP2.5b loan facilities. Trans-Asia Oil and Energy Development Corp (TA – BUY) disclosed it signed two loan facilities worth PHP2.5b. It executed a PHP1b five-year term loan agreement with Security Bank Corp (SECB – BUY) and PHP1.5b and a 10-year corporate note facility with China Banking Corp (CHIB – HOLD). Proceeds of the loans will be used for TA’s projects and working capital.
-ATR Kim Eng
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