TUE 08 SEP 2020

Top Story:

URC: URC gets PCC nod to acquire Roxas Holdings’ sugar mill assets
(AS OF SEP 07, 2020)
INDICES

Other News: Close Points % YTD%

Close Points % YTD%
PSEi 5,935.85 150.76 2.61 -24.05
IMI: IMI’s VIA applies to list at the New York stock market
All Shares 3,558.01 64.28 1.84 -23.48
Financials 1,147.01 20.60 1.83 -38.45
Holding Firms 6,164.12 165.89 2.77 -18.81

COVID-19 Update: Industrial 7,916.26 101.76 1.30 -17.84

Mining & Oil 6,122.77 130.69 2.18 -24.34
Property 2,743.42 107.15 4.06 -33.97
Total Cases Total Deaths Total Recoveries
Services 1,477.15 21.74 1.49 -3.52
Dow Jones 28,133.31 -159 -0.56 -1.42
Philippines 238,727 (+1,383) 3,890 (+15) 184,906 (+230)
S&P 500 3,426.96 -28.10 -0.81 6.07
Nasdaq 11,313.13 -144.97 -1.27 26.09
USA 6,485,567 (+26,260) 193,534 (+298) 3,758,618 (+33,142)

Worldwide 27,477,073 (+195,192) 896,398 (+9,131) 19,570,746 (+204,449) INDEX GAINERS

Ticker Company Price %
ALI Ayala Land Inc 30.00 6.38
SM SM Investments Corp 894.00 5.67
Market Summary: FGEN First Gen Corporation 24.60 3.36
SMPH SM Prime Hldgs Inc 28.85 3.22
PGOLD Puregold Price Club Inc 51.20 2.81
The local equities market rose on Monday, driven by the recovery of property stocks amidst
signs of the slower spread of the COVID-19 pandemic.
INDEX LOSERS
Ticker Company Price %
The PSEi gained 150.76 points or 2.61% to close at 5,935.85. The rally was broad-based
SMC San Miguel Corporation 100.00 -1.77
with gainers outnumbering decliners, 25 to 4. The top movers were ALI (+6.38%), SM RRHI Robinsons Retail Hldgs Inc 68.90 -1.57
(+5.67%), FGEN (+3.36%), SMPH (+3.22%), and PGOLD (+2.81%). On the other hand, the BLOOM Bloomberry Resorts 6.96 -0.57
only decliners were SMC (-1.77%), RRHI (-1.57%), BLOOM (-0.57%), and EMP (-0.20%). EMP Emperador Inc 9.97 -0.20
LTG LT Group Inc 8.70 0.00

Value turnover declined to Php3.9Bil from Php5.5Bil in the previous session. Meanwhile,
foreigners remained net sellers, disposing Php841.4Mil worth of shares. TOP 5 MOST ACTIVE STOCKS
Ticker Company Turnover
ALI Ayala Land Inc 606,718,500
The US market was closed in observation of labor day. AC Ayala Corporation 230,107,100
  ICT Int'l Container Term 213,420,600
SMPH SM Prime Hldgs Inc 178,020,300
GTCAP GT Capital Hldgs Inc 145,875,800

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.

TUE 08 SEP 2020
Justin Richmond Cheng
Research Analyst
Universal Robina Corporation
BUY
Php147.00
Research Analysts
John Martin Luciano, CFA
Frances Rolfa Nicolas
Justin Richmond Cheng
Adrian Alexander Yu
Kerwin Malcolm Chan
COL Financial Group, Inc.
DAILY NOTES I PHILIPPINE EQUITY RESEARCH
Top Story:
URC: URC gets PCC nod to acquire Roxas Holdings’
sugar mill assets
URC gets PCC nod to acquire Roxas Holdings’ sugar mill assets. URC is set to
complete its acquisition of the sugar mill and bio-ethanol plant of Roxas Holdings, Inc.
(RHI) This is after receiving the go-ahead signal from the PCC to buy RHI’s operations
in Negros Occidental. Upon the completion of the transaction, URC will take full control
of RHI’s Negros operations, including all the buildings, machineries, equipment, and
land, among others. The acquisition of the sugar milling and bio-ethanol distillery is
expected to create synergies in the sugar industry in the region. This is also expected to
boost URC’s capability in providing good milling services to sugarcane planters. Apart
from enhancing its own operations, this would also help increase the productivity of the
farmers and help the local communities in La Carlota, Negros Occidental. As of 1H20,
URC’s sugar operations account for ~11.5% of total sales and ~23% of EBIT.
Maintain BUY rating. We currently have a BUY rating on URC with a FV estimate of
Php147/sh. Despite the challenging economic environment due to COVID-19, URC has
shown its resilience. We think this is a good sign that the company is prepared and well-
equipped to weather through additional challenges that may come amid the deepening
effects of the global pandemic. We also like URC for its positive long-term growth
prospects, and we remain confident in the company’s ability to revitalize its business and
return to previous levels of profitability.
Other News:
IMI: IMI’s VIA applies to list at the New York stock market
Ayala-led IMI disclosed yesterday that its subsidiary VIA optronics AG filed a registration
statement with the US Securities and Exchange Commission last week relating to a
proposed initial public offering of its American Depository Shares (ADSs), representing
ordinary shares in its capital. However, the number of ADS to be offered and the offer
price for each have not yet been determined. Berenberg Bank has been tapped to act as
the sole bookrunner for the offering. If the plan proceeds, the company’s shares will be
listed under the ticker symbol “VIAO”. VIA, a 76%-owned subsidiary of IMI, is a leading
supplier of enhanced display solutions based in Germany. (Source: Bworldonline, IMI)
2
 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

TUE 08 SEP 2020

Changes in Shareholdings

Date of Acquired or Price per

Stock Volume Person (Designation)
Disclosure Disposed share
Georgina Carolina Y. Martinez
07-Sep NIKL 1,000 A 3.28
(Senior Vice President)
So urce: P SE

COL Financial Group, Inc. 3

 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

TUE 08 SEP 2020

I M P O R TA N T R AT ING 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.

I M P O R TA N T DISC L AIM ER
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.

CO L R E S EAR C H T EAM

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

JOHN MARTIN LUCIANO, CFA FRANCES ROLFA NICOLAS JUSTIN RICHMOND CHENG
SENIOR RESEARCH ANALYST RESEARCH ANALYST RESEARCH ANALYST
john.luciano@colfinancial.com rolfa.nicolas@colfinancial.com justin.cheng@colfinancial.com

ADRIAN ALEXANDER YU KERWIN MALCOLM CHAN

RESEARCH ANALYST RESEARCH ANALYST
adrian.yu@colfinancial.com kerwin.chan@colfinancial.com

CO L F IN ANC IAL G R O UP, IN C.

2402-D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE,
EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
FAX NO. +632 635-4632
WEBSITE: www.colfinancial.com

COL Financial Group, Inc. 5