ABOITIZ POWER CORP.

(AP)

UPDATES October 12, 2010

Aboitiz proposes four new Aboitiz Power Corp. (AP) is finalizing plans for four more hydroelectric plants
generating about 40MW. Plants will be located along Sibulan River Sta.
hydropower plants Cruz, Davao del Sur and another two in Compostela Valley and Bukidnon.
(Business World) 23sep10 AP is investing PHP3.5bn for the plants which are expected to break ground
next year.

AboitizPower mulls building Aboitiz Power Corp. (AP) president and chief executive Erramon Aboitiz said,
AP is planning to put up at least 150-megawatt (MW) of additional
coal-fired power plant in generating power capacity to meet the growing power demands in
Davao Mindanao. AP said it considering a coal-fired power plant.
(BusinessMirror) 17sep10

Aboitiz opens hydro plant, Aboitiz Power Corp. opened its new hydroelectric power plant in Davao
yesterday, in a bid to meet increasing power demand in the region. The
eyes coal 42.5-megawatt (MW) Sibulan hydropower plant in Davao del Sur was
(Business Mirror) 6sep10 formally launched yesterday with President Benigno Simeon C. Aquino III as
guest of honor.

We are upgrading our price objective to PHP27.50 from PHP20.50

Comment
and reiterate our BUY recommendation. Our PO is derived from the
average of our DCF estimates at end-2011 [PHP24.2] and the value
implied using 12x PER [PHP31.30], current peer average. What we
like about the company, aside from its continued efforts to expand,
are its cheap valuations. Currently, AP is trading at 2011E PER of
8x. Fundamentals are still intact. WESM prices are still high at YTD
PHP7.00/kWh, still above our full year target of PHP5.00/kWh thus
we expect earnings to outperform.

Aboitiz Power to build Aboitiz Power Corp. (AP) plans to build a 200MW coal plant in Davao City
worth PHP15bn. Management are already doing rounds in the area hoping
P15-billion power facility the plan would be approved to meet the power demand in Mindanao a.s.a.p.
in Davao City The company said, Mindanao is already experiencing 12hr power outages
(Philippine Daily Inquirer) 7oct10 and a shortfall of about 484MW is expected by 2014.

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to the fairness, accuracy, completeness or correctness in this report. The undersigned accepts no liability whatsoever for any loss arising from use of this report or its
contents. This report is being supplied solely for informational purposes and may not be reproduced or published (in whole or in part) for any purpose. Papa
Securities, Corp. 817-8454/817-8479. Fax No. 815-1308