1Q15 core earnings up 36.2%. AC’s income in 1Q15 reached Php5.04 Bil, implying a growth of
36.2% from AC’s core income of Php3.63 Bil. Recall that in 1Q14, AC booked a Php1.8 Bil gain
from the divestment of its BPO unit. The strong growth in AC’s income was driven by the growth
of ALI, GLO, and BPI. Income of MWC was flat compared to last year. The performance of AC in
1Q15 puts them on track to meet COL and consensus full-year estimates.
Most subsidiaries perform within expectations, GLO outperforms. ALI, BPI, and MWC all
performed within expectations in 1Q15. ALI registered an 18.4% growth, BPI with a 36% growth,
and MWC was flattish. GLO, on the other hand, outperformed COL and consensus estimates on
higher than expected margins.
Maintain BUY with FV estimate of Php877.00. We maintain our BUY rating on AC with a FV
estimate of Php877.00. We like AC for the solid performance of GLO, BPI and ALI. Although our
outlook for MWC is negative, its contribution to AC’s NAV is limited to 3.8%. We also like AC for
its growing exposure in the power generation sector. We believe AC’s value will be enhanced
going forward as more of AC Energy’s investments start operations, making AC more than a
parent company for listed companies ALI, BPI, GLO, and MWC but also a play on the power and
infrastructure sector.
- COLfinancial
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