ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
MARKET NOTES_Week 16_TD77_April 19, 2011_Tuesday
source: [Link]
SM PRIME HOLDINGS INC. [pse: SMPH]
Disc. No. 2011-2979 Q1 2011 RESULTS
The Company defied early general expectations of a slower Q1 performance of listed firms, owing to “un-anticipated” risks that arose during
the period, as it managed to grow bottom-line by 12% to php12.2 billion. Revenue, led by sustained rental incomes, surged 13% to php6.07
billion, translating to a net profit margin of 34.9%, slightly below the year-ago level of 35.5%. Q1 EPS is at php0.1525 from the same period last
year's php0.141 per share.
Rental fees accounted for 87% of consolidated revenue, expanding 14% to php5.26 billion. Growth in this segment was contributed by a 6%
increase in same store rentals plus fresh streams from four (4) new malls opened last year: SM City Tarlac, SM City San Pablo, SM City Calamba
and SM City Novaliches. The new malls added 289.2k sq. m. of gross floor area, which is expected to reach 5.9m sq. m. at the end of this year.
Existing and new malls registered a 94% occupancy rate. Cinema ticket sales, on the other hand, slowed marginally to php0.57 billion from
php0.59 billion in the first three months last year.
The Company will open four new malls this year, 3 in the Philippines (SM City Masinag, Antipolo, SM City San Fernando, Pampanga, and SM City
Olongapo, Zambales) and one in China (SM City Suzhou.) SM Cities Davao and Dasmarinas (Cavite) are up for expansion.
At yesterday's closing level of php11.70, the stock trades a little
above a slightly rising 10-pd EMA and significantly over the 150-pd
EMA, which posits the major support line of php11.17 (11.20) which
should be the ideal entry level given positive signals from the
underlying indicators. STO(14,3,3) has freshly broken above the
trigger line, coinciding with a breach of the 50-line, which moves
sentiments to positive. RSI(14) indicates a pick up in upside
momentum. Volume is almost neutral with value flow having a
sustained bias for distribution, albeit light. This should lead to a
possible retreat towards the earlier cited support band (php11.17-
11.20), opening the buying window. Over the last three years (2008-
2010), SMPH share price has traded within a PE range of 14x to 25x.
More importantly, the highs and lows of the respective ranges,
based on trailing EPS have risen by an almost uniform two (2)
multiple points. This proposes, ceteris paribus of a PE range for 2011
of 18x to 27x, translating to a trading band of php10.51 to php15.76.
Our initial target, assuming sustained growth, minimally affected, or
even unaffected by current external risks, is pegged between
php14.60 to php16.00, providing a medium- to long-term upside of
25% to 36% based on the latest closing price. LONG TERM BUY
Disc. No. 2011-2991 CASH DIVIDEND
Dividend Amount : php0.27 per share
Ex-Dividend Date : May 16, 2011
Record Date : May 19, 2011
Payment Date : On or before June 14, 2011
itsDISCLAIMER: 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 CO MPLETE 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.
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