ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DISCLOSURES REVIEW_Week 47_November 22 to 26, 2010
CORPORATE NEWS & DEVELOPMENTS:
Last PE 1 2009 Market-to-
STOCK 52-wk range Support Resistance Outlook
Trade (ann 2010) PE range Book
RCB 27.000 16.00 – 31.00 5.7x 3x – 6x 0.78x 24.000 29.000 SELL
Accumulate-
RLC 16.380 10.25 – 18.50 13.0x 3x – 9x 1.7x 16.200 17.200 Medium Term
JFC 81.500 51.50 – 100.00 29.1x 15x – 21x 5.3x 79.250 87.000 Near Term SELL
RIZAL COMMERCIAL BANKING CORPORATION [pse: RCB]. Its wholly-owned consumer banking unit, RCB Savings Bank
posted a 39% year-on-year increase in its January to September net income to php803 million. This translates to an ROE of 16.8%
and ROA of 2.15%. It remains among the top 3 thrift banks in the Philippines with total resources of php52.7 billion, loans of
php33.2 billion and deposits of php44.2 billion. RCB Savings has 117 branches and 136 ATMs nationwide. (dc2010-7591)
Sustained margins and improved funding mix, highlighted by a 16% growth in low-cost funds pushed the Bank's interest income
8.32% higher year on year. Together with the double-digit growth in its operating income,the Bank has already exceeded its prior
full year net income of php3.3 billion in the first nine months of the current year. These figures translates to per share earnings of
php4.74, ROE of 16.65% and ROA of 1.72%, all annualized. Its Capital Adequacy Ratio (CAR) is well above the BSP mandate at 17%
vs 10%, respectively. Tier 1 ratio is 6.77 percentage points higher than the BSP requirement of 6.0%. Using interim results, and
applying against last year's PE range, the stock's current price of php27.00 is trading at a slight discount to the price translation of
php29.00, coincidentally, the strong resistance level.
Technical Profile: DAILY. Price (php27.00) drops below 50-pd
EMA (php27.401)dragging the shorter 10pdEMA for a potential
similar break even as the long term 150-pdEMA (php24.25) keeps
positive slant. Since the high in mid-September (php30.09-intra,
php30.70 close) chart developed into a descending triangle
formation with base at php27.50 and the tops gradually
descending with a -0.04 slope. This heightens the significance of
the price break under the base occuring, particulary as it did, just
past on strong volume turnover (950k, almost 3x the average
over the last 9 days and near the 1.27M average over the
formation of the triangle), at the 2/3 or ¾ mark. STO (20.97)
pierces trigger line (24.77) going south, almost at oversold
territory.It has been at below 30 (a conservative oversold
indicator) since the end of the second week of November with
price trading between php27.20-27.45, off its recent high of
php30.05 (intra). MACD suggests the pull on the price may
continue with OBV keeping its distributive bias, a similar picture
seen off the AccDist chart. Nevetheless, the price stopped at just
a shadow under the lower band of the Bbbands or price envelop
positing an interim low. Suggestions from the same measures
viewed weekly and/or monthly are likewise not encouraging. The
immediate trading band is defined within php24.00 and
php29.00 putting the issue almost at midpoint. This posits an
immediate possible 7.4% upside compared to an 11% downside.
Profitable positions may be booked (SELL), particularly if and
when a rally ensues. The stock may continue to be dragged by over-all negative market sentiment. Alternatively, there is no
suggestion to pick-up the counter at this level. Buyers should wait for evidences the price has stabilized and rebounds are beyond mere
technical bounces. The last time the issue provided positive returns in December was in 2004, +5.7%. Since then it has dropped an
average of -2.62% except in 2006 when it held at November close, putting the possible year-end closing price at php26.40. Thus while
this suggests that price may hold the php24 support, the upside may be limited by historical norms.
DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE
AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE
INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON
AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF
THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR
INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
DAILY Report Page 1 of 4
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DISCLOSURES REVIEW_Week 47_November 22 to 26, 2010
ROBINSONS LAND CORPORATION [pse: RLC]. The Board has approved a php5.2 billion increase in its authorized capital stock
to php8.2 billion divided into 8.2 billion shares at php1.00 par value. Expected proceeds from an offering out this increase will be
utilized by the company for its land acquisitions, project construction and development as well as a possible international
expansion. The details of the manner of distribution or allocation of the new shares arising out of the increase, including a possible
Stock Rights Offering, are to be determined by the Board of Directors. This capital action and its consequent amendment of the
Company's Articles of Incorporation will be presented for approval by the Stockholders in a Special Meeting on January 6, 2010.
(dc2010-7594)
The firm booked revenues of php8.319 billion over the nine months to June 30, 2010,(RLC fiscal year, September 30) a 7.0%
improvement year on year. Its Commercial Centers Division contributed over half with php4.3 billion (40% up yoy), offsetting a
27% decline in its Residential Division dragged by lower completion and diminishing realized revenue on projects nearing
completion. Both divisions combine for nearly 80% of the revenue pie. The balance of 20% is almost evenly shared by the Office
Buildings Division (php846.8 million, +15% yoy) and the Hotels Division (php865.6 million, +10% yoy.) Net Income and EBIT
margins marginally improved to 31.2% (vs. 30.0%) and 41.2% (vs. 39.7%), respectively. This translates to an annualized EPS of
php1.26, a php0.07 increase from its 2009 figure. The Company has a healthy cash position of php9.0 billion, up php100 thousand
from its end-fiscal year 2009 level. Debt-to-Equity Ratio improves to 0.56:1 from 0.59:1. Current net book value is php9.72. The
anticipated surge in consumer spending over the holiday season
may augur well for its Commercial Centers Division to at least
keep present earnings and growth momentum of the Company
considering its contribution to the total. Hotels Division is also a
potential near-term revenue growth prospect for the firm's fiscal
year first quarter result.
Technical Profile: (DAILY) Price has trended lower off its
php18.50 high over the last two weeks. Seven sessions back, the
stock made a sustained break under its 10pdEMA (php17.42).
Last week, it went even lower, falling under the 50-pdEMA
(php16.62). The current 10pdEMA (php16.60) is poised to track a
similar path, threatening to pierce the latter line (php16.38).
Nevertheless, even as the OBV give no indication of a shift in the
distributive bias, MACD and STO combine for readings that
suggest a possible disspation of pressure. STO (10.3) is deep in
oversold territory (6.31) slightly crossing over the trigger line
(5.24.) If the easing of the selling pressure continues, even at a
gradual pace, the window for positioning in the issue may begin
to open. At current price levels however, the upside to first
resistance at php17.20 presents a limited 5% margin although
the downside to the first support is an even less 1.1%. Major
support at php15.30. Over-all the stock is ripe for gradual
accumulation with a medium-term outlook.
JOLLIBEE FOODS CORPORATION [pse: JFC]. The Company completed its php3.0 billion purchase of 70% of Mang Inasal
Philippines, Inc. (MIPI) with Injap Investments, the original owners retaining the balance. Messrs Edgar Sia II, founder and
Ferdinand Sia were named President and CEO, respectively, of Mang Inasal Business under the Jollibee Group umbrella. The
acquisition is seen to benefit the brand through better store locations, more franchisees, lower raw materials and supply prices,
improved MIS, and its eventual introduction to the United States. JFC has already paid php200 million as initial payment with and
additional php1.5 billion in mid-November. Another php1.15 billion was paid November 22. The balance of 10% of the purchase
price or php300 million will be witheld as a security against the representations and warranties made by the sellers. Mang Inasal is
seen to add 5% to JFC's worldwide system sales, 5% to revenue, and 7% to its net operating income (net of 30% minority shares.)
(dc2010-7615)JFC system-wide sales expanded to php50.8 billion, 9.7% up year-on-year on the strength of 7.7% and 20.5%
growths in both Philippine stores and overseas operations, respectively. Over a hundred new stores were opened in the January to
September period, almost evenly distributed locally and internationally (63 and 61.) Robust growths were seen in Vietnam
(+95.1%), Midde East (+36.8%) and China (+23.5%.) Worldwide sales contributed 20% in the Third Quarter. Year-on-year EPS
increased 17.1% to php2.098 pushing the annualized figure to php2.80, surpassing the php2.61 actual result last year. The stock is
DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE
AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE
INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON
AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF
THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR
INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
DAILY Report Page 2 of 4
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DISCLOSURES REVIEW_Week 47_November 22 to 26, 2010
currently trading at 31x 2009 earnings and 29x annualized 2010 EPS. The Mang Inasal contribution to revenue, estimated at an
additional 5% to system-wide sales and to bottomline, is seen to impact on next year's FS. Thus while this is seen as a positive move,
the outlook in this respect is extended to the long term. Near-term price action will depend on anticipations of strong q4 sales further
extending the year-on-year gains. As has been mentioned, nine month per share earnings are poised to surpass 2009 levels, given the
year's average revenue stream.
Technical profile: (DAILY). There is yet no evidence that the
selling pressure, both as a function of the over-all market
pessimism over the recent period and the extent of the price run-
up (76% at the top, year-to-date),is dissipating. Thus, even for
the outlook for the food industry improves with the
spending/holiday season, the counter may be perceived as
pricey. The 10pdEMA (php88.20) broke under the 50pd-EMA
(php88.67) and is just marginally above the critical 150pdEMA
(php79.25), a break under which may signal a terminal move of
the upside. STO broke its trigger line as the stock struggled and
failed to restore the php90-level. MACD widens the gap with
the signal line indicating sustained downside bias. The
distributive bias nevertheless is less aggressive than the price
drop suggesting a possible near-term rebound. This argument is
strengthened by price falling under the lower limit of the price
envelop as defined by the BBbands (php84.09.) Note that this is
the biggest break under such line in its price history.
OTHERS:
ENERGY DEVELOPMENT CORPORATION [pse: EDC]. Northern Negros Power Plant in Bago City, Negros Occidental has been
temporarilty shut down for the conduct of additional technical studies. The shutdown which commenced on November 22 will
run for nine (9) months and will cost the Company about php6 million. The plant had been overdue for maintenance but such was
delayed in response to the tight power supply in the region. (dc2010-7598)
METRO PACIFIC INVESTMENTS CORPORATION [pse: MPI]. The Company confirmed its reported interest in increasing its
stake in the MRT-3 project beyond its assured acquisition of Fil-Estate Corporation's 29% stake. This however is still in the
planning stage and is still subject of approval by and consent of bondholders. (dc2010-7600)
FIRST GEN CORPORATION [pse: FGEN]. The Company will be raising between php5 billion to php7 billion via the offering a
perpetual preferred shares to fund its acquisitions and investments, including but not limited to the purchase of the British Group's
(BG) 40% stake in the 1,000MW Sta. Rita and 500MW San Lorenzo combined-cycle natural gas-fired power plants, the payment of
its 2.5% convertible bonds maturing in 2013 worth US$260 million, and the exercise of its call option over 585 million EDC
common shares at prices ranging from php5.67 to php6.76 over three years. The call option is currently valued at US$75 million.
The issuance of the earlier mentioned Series F Preferred shares have been approved by the SEC, after prior approvals by the Board
and the Stockholders were obtained.
In another development, the Company has received the “Writ of Kalikasan” issued by the Supreme Court ordering it to cease and
desist from operating the FPIC pipeline that has leaked and caused “flooding” at the basement of the West Tower condominium in
Makati City. (dc2010-7603)
PHILWEB CORPORATION [pse: WEB] Subsidiary PhilWeb Asia Corporation signed MOU with Simuong Group, a Ventiane-based
industrial group, for the joint development and operation of an internet and mobile games of chance in Laos. These include ala-
PAGCOR gaming cafes and lotteries, among others. The Group's president is the son-in-law of Laos PDR Vice Prime Minister and
Minister of Defense. This will be SMG's, whose businesses cover a wide range of interest, pioneering venture into the gaming
business. (dc2010-774)
DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE
AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE
INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON
AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF
THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR
INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
DAILY Report Page 3 of 4
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DISCLOSURES REVIEW_Week 47_November 22 to 26, 2010
METRO PACIFIC TOLLWAYS CORPORATION [pse: TOL]. Its subsidiary, Manila North Tollways Corporation (MNTC) has signed
a Concession Agreement with the Bases Conversion & Development Authority (BCDA) granting it the right to manage, operate
and maintain the 94-km SCTEX. The Agreement will become effective upon the procurement of necessary approvals from both
the Philippine Government and the Japan Bank for International Cooperation/Japan International Cooperation Agency (JBIC/JICA)
and the creditors of MNTC, among others. (dc2010-7639)
FILINVEST DEVELOPMENT CORPORATION [pse: FDC] The stockholders have approved the Board's proposition to increase the
Authorized Capital Stock of the Company by php7 billion to php17 billion divided into 5 billion common shares at php1.00 par value
and 2 billion preferred shares with the same par value. Also approved was the equity fund raising via “placing and subscription
transaction involving the offer and sale by ALG Holdings Corp of its existing shares not exceeding 3 billion and its subsequent
subscription to new shares FDC will issue, equal to the same number of shares sold.” (dc2010-7676)
MJC INVESTMENTS CORPORATION [pse: MJIC] The Company has entered into an MOU with the Accor Group, the world's
leading hotel maanger, for hotel consultancy and management services for its 250-room, 4-star hotel to rise in a 1.4 hectare
property within the PEZA registered San Lazaro Tourism and Business Park in Sta Cruz, Manila. The said hotel will be patterned
after the Mercure brand while the terms of the MOU will be finalized in the next three (3) months. (dc2010-7649)
ABOITIZ EQUITY VENTURES [pse: AEV] The Company firmed up its hold on Cebu-based thrift unti, CitySavings Bank to 99.25%
(beneficial) following the BSP's approval of its acquistion of 60% of CSB's outstanding stock. Pilmico Foods Corporation (PFC), a
100%-owned subsidiary, acquired 40%. The combined purchase is valued at php1.36 billion. (dc2010-7659)
BENGUET CORPORATION [pse: BC] The Company signed a pair of MOUs with Korean metal trading firm, Bong Doo
Development Company Ltd for (1) joint exploration of prospective areas for metallurgical chromite and (2) for a possible interest
of cooperation in BC's Sta Cruz Nickel Project for nickel off-take and processing venture. Definitive agreements are still being
negotiated by both parties. (dc2010-7667)
CASH DIVIDENDS DECLARATIONS:
LIB ERTY FLOUR MILLS [pse: LFM] Cash divdends of php1.00 per share ex dividend on December 7, 2010, payable on December
30, 2010 (dc2010-7671)
MANILA BROADCASTING CORPORATION [pse: MBC]. Cash dividend of php0.0625 per share ex-dvidend on December 6, 2010
and payable on December 23, 2010. (dc2010-7589)
PHILIPPINE SAVINGS BANK [pse: PSB]. Metrobank's thirft bank unit, PSB, has upgraded its 2010 net income projection to
php1.8 billion, following impressive growths in its trading gains and consumer loan portfolio. Its previous forecast, php1.4 billion
was already exceeded in the first nine months, contributing roughly 25% to the Parent Company's consolidated net profits for the
same period. PSB recorded net profits of php1.2 billion in 2009. (dc2010-7599)
The Bank has declared cash dividends of php0.15 per share with ex-dividend date on December 3, 2010 and payable on December
23, 2010. (dc2010-7609)
GRAND PLAZA HOTEL [pse: GPH]. Cash dividend of php1.00 per share, ex-dividend on December 2, 2010, payment date on or
before January 5, 2011. (dc2010-7605)
DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE
AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE
INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON
AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF
THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR
INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
DAILY Report Page 4 of 4
