Philippines News: FREE

Get an edge on the Philippine Stock Market in this comprehensive tool for Filipinos and foreign investors.
Get it on Google Play

Thursday, April 10, 2014

FLI: Earnings top estimates

Earnings reach Php4Bil. Filinvest Land reported 4Q13 net income of Php1.6Bil, up by 10% from the same period of the previous year. This brought full year earnings to Php4Bil, up by 14% from last year and above estimates as it accounts for 106.5% and 109.1% of COL and consensus forecasts respectively. Earnings growth was primarily driven by higher real estate and leasing revenues. Real estate sales grew by 19% to Php10.5Bil while leasing revenue grew by 8% to Php2Bil.

Sales take-up grows by 11% while gross margins decline. Filinvest’s sales take-up improved by 11% to Php14.5Bil a slowdown from the 15% growth seen in the previous year. Meanwhile, gross margins declined to 42% in 2013 from 44%. According to FLI, the decline was mostly attributable to the contribution of high rise buildings which has 38-39% gross margins. Meanwhile, Filinvest was able to keep operating costs in check as SG&A expenses was up by only 5% to Php2.1Bil.

More aggressive in 2014. Filinvest Land plans to be more aggressive in terms of project launches this year. FLI is looking to launch Php17.5Bil worth of projects this year, more than double than the Php7.5Bil projects last year. As a result, FLI is looking to Php20Bil in capex, double from last year. The increase in capex will mostly be funded by internally generated cash and debt. With more projects to be launched this year, FLI expects sales take-up to increase by 15%.

Reiterate BUY rating. We continue to like FLI with its plans to launch more projects this year and
improve recurring income in the next five years. We currently have a FV estimate of Php2.29/sh
based on a 30% discount to NAV method for FLI.

Source: Col Financial

No comments:

Post a Comment