FRI 14 JULY 2017

Notable Movers:

Shares of LTG rose following news that competitor, Mighty Corp., is in

LTG (+15.35%)
talks to sell its assets to Japan Tobacco International for Php45Bil.

Top Story for the Week:

INDICES
MAC: Ready for takeoff Close Points W/W YTD %
PSEi 7,885.90 -3.43 -0.04 15.28
All Shares 4,735.82 0.70 0.01 13.95
Expanding the catering business to a wider market. Given its strong track record as evidenced Financials 1,956.13 -4.77 -0.24 18.16
by its numerous excellence awards from foreign airline customers, performance of MAC’s catering Holding Firms 7,880.87 -16.42 -0.21 12.71
business which accounts for 59% of revenues has been very strong. Operating profits registered Industrial 11,118.97 -20.95 -0.19 4.40
a four year CAGR of 15.1% while earnings jumped by 106% to Php92.7Mil in 1Q17. Future growth Mining & Oil 12,729.99 119.93 0.94 7.36
Property 3,687.06 35.78 0.97 20.24
is expected to remain strong. The CAPA projects international passengers in NAIA to increase
Services 1,694.51 -7.19 -0.42 30.06
by at least 7.0% annually for the next couple of years, benefiting MAC. Meanwhile, MAC plans
to secure more non-airline institutional clients. At present, it already caters to clients such as
BPI, ADB and Uber amongst others. To execute its growth plans, MAC is currently developing a
INDEX GAINERS
Php600 Mil multilevel kitchen in Sucat that will boost its capacity.
Ticker Company Price W/W
LTG LT Group Inc 17.88 15.35
Attractive valuations, share buyback initiated. MAC’s share price has increased significantly JFC Jollibee Foods Corp 215.00 3.37
this year. Nevertheless, at Php8.40, MAC is trading at a 17E P/E of only 8.6X, a discount relative ALI Ayala Land Inc 41.20 3.00
to the regional median 17E P/E of 21.9X. This is based on the assumption that the company will DMC DMCI Hldgs inc 15.10 2.72
be able to earn Php1.2Bil for the full year, up 175% y/y. Despite the significant jump, we believe PGOLD Puregold Price Club 46.30 2.55
that the said number is achievable given the strong earnings growth MAC exhibited in the first
quarter. MAC will also no longer incur a Php212.9Mil one time provision for deferred mining
charges which was booked in 2016. As a sign of its confidence on it earnings performance, MAC INDEX LOSERS
started a Php210Mil share buy-back program last June. As of this writing, the company has Ticker Company Price W/W
bought back Php4.0 Mil worth of shares, equivalent to 640,000 shares at an average price of EDC Energy Dev't Corp 5.77 -4.47
Php6.29/sh. TEL PLDT Inc 1720 -2.22
AC Ayala Corporation 853 -1.95
PCOR Petron Corporation 9.58 -1.94
Other Stories: URC Universal Robina Corp 161.5 -1.7

EW: EW up on speculation that foreign banks competing to buy a stake

EDC: EDC discloses initial assessment on status of Leyte plants TOP 5 MOST ACTIVE STOCKS
AP: AP buys out partner in San Carlos Solar Project
Ticker Company Turnover
2GO: Restated earnings largely driven by non-cash expenses MBT Metrobank 525,906,720
ALI Ayala Land Inc 375,306,320
Market Summary: SM SM Investments Corp 351,609,480
BDO BDO Unibank Inc 337,288,200
SMPH SM Prime Hldgs Inc 234,891,176
The PSEi ended flat for the week as the Fed signaled a gradual approach for raising rates amidst
an uncertain inflation outlook for the US. The benchmark index declined 3.43 points or 0.04%
to close at 7,885.90. Value turnover increased to Php37.2Bil from Php30.5Bil the previous week.
Foreigners were net sellers throughout the week, liquidating Php272Mil worth of shares.

Disclaimer: All content provided in COL Reports are meant to be read in the COL Financial website. Accuracy and completeness of content cannot be guaranteed if reports are viewed outside of
the COL Financial website as these may be subject to tampering or unauthorized alterations.
 WEEKLY NOTES I PHILIPPINE EQUITY RESEARCH

FRI 14 JULY 2017

Summary of Changes in Shareholdings:

Date of Acquired or Price per
Stock Volume Person (Designation)
Disclosure Disposed share
Reynaldo A. Tanjangco
7-Jul BDO 2,000 D 124.00
(Seior Vice President)
Hernan G. Lim
7-Jul COL 19,000 A 16.20
(Director)
Caesar A. Guerzon
7-Jul COL 4,000 A 16.04
(Corporate Secretary)
100 16.10 Edward K. Lee
7-Jul COL A
28,700 16.20 (Chairman of the Board)
294,700 6.71 Antonio A. Picazo
10-Jul MPI D
5,300 6.72 (Corporate Secretary)
50,000 5.10
383,200 5.12
16,800 5.13
106,600 5.15 Atty. Vincent E. Tomaneng
12-Jul MRSGI D
400,000 5.16 (Corporate Secretary)
27,500 5.25
10,000 5.28
5,900 5.29
50,000 6.70
Edward S. Go
13-Jul MPI 75,000 D 6.74
(Independent Director)
75,000 6.75
1,000 16.04 Caesar A. Guerzon
13-Jul COL A
4,000 16.08 (Corporate Secretary)
4,000 123.80
7,000 123.90
8,000 124.00
Pedro M. Florescio III
14-Jul BDO 2,000 D 124.10
(Executive Vice President)
5,000 124.20
2,000 124.30
12,000 124.40
Jaime M. Nasol
14-Jul BDO 17,500 D 123.90
(Senior Vice President)
Noel B. Sungay
14-Jul BDO 10,000 D 124.10
(Senior Vice President)
Edna R. Tarroza
14-Jul BDO 5,000 D 124.40
(Senior Vice President)
Rosola A. Vivas
14-Jul BDO 3,000 D 124.00
(Senior Vice President)
Souce: PSE

COL Financial Group, Inc. 2

 WEEKLY NOTES I PHILIPPINE EQUITY RESEARCH
CALENDAR OF EVENTS
FRI 14 JULY 2017

JULY
SUN MON TUE WED THU FRI SAT

1 29 30 31 29 30 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31 6 7 8 9 10

K E Y E V ENTS HOL IDAY

J ULY 3
B PI : Ex- date Php0.90 Cash D ivid en d
J ULY 4
AUB : Ex- date Php1.00 Ca sh Divid en d
AC: Ex- date Php3.46 Cash Divid en d
J ULY 5
I : Ex- date Php0.0328 Cash D ivid en d
CI C: Stock Divide nd
J ULY 6
PTC: Ex- date Php0.20 Ca sh D ivid en d
J ULY 7
I : An n u a l Sha re holders M eet in g
J ULY 1 1
STN: Annua l Sha reholders M eet in g
J ULY 1 2
RRHI : E x- date Php0.70 Ca sh Divid en d
JGS: Ex- date Php0.28 Ca sh D ivid en d
TFHI : Annua l Sha re hold ers M eet in g
JU LY 1 3
M JC : Ex- d ate Ph p0 . 0 5 Ca s h D i v i d e n d
D NL: Ann u a l S h a re h o l d e r s M e e ti n g
EC P: An n u a l Sh a re h o l d e r s M e e ti n g
IM P: An nu a l S h a re h o l d e r s M e e ti n g
M B: An n u a l S h a re h o l d e r s M e e ti n g
JU LY 1 7
IS M : An n u a l Sh a re h o l d e r s M e e ti n g
JU LY 2 0
P IZZA : An n u a l S h a re h o l d e r s M e e ti n g
JU LY 2 1
MAC : Ann u a l S h a re h o l d e r s M e e ti n g
HI: An n u a l Sh a re h o l d e r s M e e ti n g
JU LY 2 5
C NP F: E x- d ate Ph p0 . 1 8 Ca s h D i v i d e n d
IP O : Ex- d ate Ph p0 . 0 6 Ca s h D i v i d e n d
R FM : Ann u a l S h a re h o l d e r s M e e ti n g
C EU : An n u a l S h a re h o l d e r s M e e ti n g
J U LY 2 6
P E R C : An n u a l Sh a re h o l d e r s M eeti ng
J U LY 2 7
AT: An n u a l S h a re h o l d e r s M eeti ng
M H C : An n u a l Sh a re h o l d e r s M eeti ng
I R C : An n u a l S h a re h o l d e rs M eeti ng
M F I N : An n u a l S h a re h o l der s M eeti ng
J U LY 2 8
D F N N : An n u a l Sh a re h o l der s M eeti ng
L R : An n u a l Sh a re h o l d e r s M eeti ng
J U LY 3 1
H O U SE : An n u a l S h a re h o l d er s M eeti ng
FJ P: An n u a l Sh a re h o l d e r s M eeti ng
A B A : An n u a l Sh a re h o l d e r s M eeti ng

COL Financial Group, Inc. 3

 WEEKLY NOTES I PHILIPPINE EQUITY RESEARCH

FRI 14 JULY 2017

Important Rating Definitions

BUY
Stocks that have a BUY rating have attractive fundamentals and valuations based on our analysis. We expect the share price to outperform the market
in the next six to 12 months.

HOLD
Stocks that have a HOLD rating have either 1) attractive fundamentals but expensive valuations 2) attractive valuations but near-term earnings outlook
might be poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely in line or underperform in the
market in the next six to twelve months.

SELL
We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to12 months.

Important Disclaimer
Securities recommended, offered or sold by COL Financial Group, Inc. are subject to investment risks, including the possible loss of the principal
amount invested. Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy
and said information may be incomplete or condensed. All opinions and estimates constitute the judgment of COL’s Equity Research Department as of
the date of the report and are subject to change without prior notice. This report is for informational purposes only and is not intended as an offer or
solicitation for the purchase or sale of a security. COL Financial and/or its employees not involved in the preparation of this report may have investments
in securities of derivatives of the companies mentioned in this report and may trade them in ways different from those discussed in this report.

COL Research Team

APRIL LYNN TAN, CFA

VP & Head of Research
april.tan@colfinancial.com

CHARLES WILLIAM ANG, CFA GEORGE CHING RICHARD LAÑEDA, CFA

Deputy Head of Research Senior Research Manager Senior Research Manager
charles.ang@colfinancial.com george.ching@colfinancial.com richard.laneda@colfinancial.com

FRANCES ROLFA NICOLAS ANDY DELA CRUZ JUSTIN RICHMOND CHENG

Research Analyst Research Analyst Research Analyst
rolfa.nicolas@colfinancial.com andy.delacruz@colfinancial.com justin.cheng@colfinancial.com

KYLE JEMMRIC VELASCO JOHN MARTIN LUCIANO

Research Analyst Research Analyst
kyle.velasco@colfinancial.com john.luciano@colfinancial.com

Contact

COL FINANCIAL GROUP, INC.

2402-D East Tower, Philippine Stock Exchange Centre,
Exchange Road, Ortigas Center, Pasig City
1605 Philippines
Tel No. +632 636-5411
Fax No. +632 635-4632
Website: www.colfinancial.com

COL Financial Group, Inc. 4