PSE Ticker

Monday, February 16, 2015

Market Talk (RLC, MWC, ABS/ABSP)

Property: RLC’s shows strong results in1QFY9/15. Maintain BUY, raise TP to PHP30.00 and NAV to PHP37/sh. 1QFY9/15 results were strong driven by malls, offices and hotels. Higher NAV was due to recent acquisition of landbank in East Metro Manila. 

Utilities: MWC’s FY14 results broadly in line; Stay HOLD. FY14 results in line with expectations. Maintain HOLD. Decision by arbitration panel on 2013-17 rate rebasing possible by end-1Q15. Growth opportunity in Bulacan bulk water supply project, bid documents may be released within the quarter. 

Media: ABS-CBN Mobile targets 3m subscribers in 2015. The Philippine Star reports ABS-CBN Corp’s (ABS/ABSP – BUY) ABS-CBN Mobile is looking to double its subscriber base to 3m this year, according to a top official of the company. The company has raised its break even subscriber count target to 3m from 2m previously as it has imputed a lower monthly average revenue per unit (ARPU) of PHP65 from the initial target of PHP120. ABS-CBN Mobile ended Jan with about 1.6m-1.7m subscribers. For now, we maintain our forecasts as we believe our PHP1.4b operating loss assumption for ABS-CBN Mobile to be conservative even with the higher break even subscriber count target. 

Power: Other power plants face penalties for violation of “must offer rule”. Apart from Therma Mobile, Panasia Energy, Inc. and the Power Sector Assets and Liaiblities Corp (PSALM) may also face penalties for withholding generation capacity in violation of the “must offer rule” of the Wholesale Electricity Spot Market (WESM) from November-December 2013. The power facilities involved are PSALM’s Casecnan (140 MW) and Malaya (650 MW) plants and Panasia’s Limay (540 MW). 

-maybank atr

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