Consumer: PIP’s earnings rebound sustained. 2014 profit of PHP811m
exceeded forecast by 7%. Earnings rebound sustained in 2H14 after
disappointing 1H14. EBIT up 66% in 4Q14 as cash operating expenses
kept at bay. Elevated capex to help support PIP’s long-term growth.
Positive earnings momentum to continue this year. BUY.
Power: Malampaya to go back online. The Malampaya natural gas
facility is expected to go back online this week after a 30-day maintenance
shutdown. During the shutdown, three power plants (Sta Rita, San Lorenzo
and Ilijan) shifted to more expensive liquid fuel in lieu of nat-gas.
Power: Aboitiz, Vivant start construction on Cebu plant. Therma
Visayas Inc, owned by Aboitiz Power Corp (AP – HOLD) and Vivant Corp,
announced the commencement of construction of a 340MW coal-fired
power plant in Toledo, Cebu with net capacity of 300 MW. The
engineering, procurement and construction contract was awarded last year
to Hyundai Engineering Co Ltd and Galing Power Energy Co Inc. The
company said the plant is targeted to go online by 1Q18.
Power: TA looks to double capacity in five years. Trans-Asia Oil and
Energy Development Corp (TA – BUY) is looking to invest USD1.2b to
double its power generation capacity in five years. The company said the
expansion will be financed by borrowings and internally generated funds.
Another option is to issue shares. TA is also looking at the remaining
assets of PSALM to be privatized.
Consumer durables: Car sales up 21.6% in 1Q15. Data from the
Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and
the Truck Manufacturers Association show vehicle sales jumped 21.6%
YoY to 62,882 units in 1Q15. Passenger cars leaped 38.2% to 25,051 units
and accounted for 40% of total automotive sales. CAMPI says demand
stems from the business process outsourcing market and attractive
financing. Commercial vehicles climbed 12.6% to 33,595 units which
CAMPI attributed to demand from SME businesses. In March, total auto
sales grew 23% YoY and 14% MoM to 23,557 units. GT Capital Holdings
Inc’s (GTCAP – BUY) automotive subsidiary Toyota Philippines remains
the market leader with 44.2% share as it sold 10,237 units (+16% YoY) in
March and 27,816 vehicles (+22%) in 1Q15.
-Maybank ATR
No comments:
Post a Comment