WED 22 JUL 2020

Top Story:

MEG: MEG says 1H20 reservations hit Php38Bil

(AS OF JUL 21, 2020)

Other News: INDICES

Close Points % YTD%

EAGLE: EAGLE allots Php1.5Bil for Bulacan plant expansion PSEi 6,136.31 -14.39 -0.23 -21.48
GMA7: GMA7 defers 30% of its 2020 capex All Shares 3,599.72 -5.96 -0.17 -22.58

Economy: BSP reduces RRR of thrift and rural banks Financials 1,184.97 -12.43 -1.04 -36.42
Holding Firms 6,479.88 17.15 0.27 -14.65
Industrial 7,470.99 -36.60 -0.49 -22.46
Mining & Oil 5,093.76 48.41 0.96 -37.05
COVID-19 Update: Property 2,979.93 -22.21 -0.74 -28.27
Services 1,429.96 8.11 0.57 -6.61
Total Cases Total Deaths Total Recoveries
Dow Jones 26,680.87 9 0.03 -6.51
S&P 500 3,251.84 27.11 0.84 0.65
Philippines 70,764 (+1,951) 1,837 (+2) 23,281 (+209)
Nasdaq 10,767.09 263.90 2.51 20.00

USA 4,028,332 (+67,749) 144,945 (+1,153) 1,885,527 (+36,902)

INDEX GAINERS
Worldwide 15,084,341 (+239,988) 618,477 (+5,682) 9,103,974 (+206,597) Ticker Company Price %
AEV Aboitiz Equity Ventures 51.60 4.14
ICT Int'l Container Term 101.00 4.12
AC Ayala Corporation 765.00 2.00
MEG Megaworld Corporation 3.18 1.92
Market Summary: JGS JG Summit Hldgs Inc 68.30 1.79

The local stock market fell on Tuesday amidst the absence of positive catalyst as the INDEX LOSERS
COVID-19 cases in the country continue to climb. Ticker Company Price %
URC Universal Robina Corp 122.10 -2.94
RLC Robinsons Land Corp 16.20 -2.88
The PSEi fell 14.39 points or 0.23% to 6,136.31. The main drags were URC (-2.94%), RLC GTCAP GT Capital Hldgs Inc 439.80 -2.70
(-2.88%), GTCAP (-2.70%), SMPH (-2.21%), and BDO (-1.94%). On the other hand, these SMPH SM Prime Hldgs Inc 31.00 -2.21
were mostly offset by gainers such as AEV (+4.14%), ICT (+4.12%), AC (+2.00%), MEG BDO BDO Unibank Inc 91.20 -1.94

(+1.92%), and JGS (+1.79%),

TOP 5 MOST ACTIVE STOCKS
Value turnover rose to Php4.4Bil from Php3.1Bil in the previous session. Meanwhile, Ticker Company Turnover
foreigners remained net sellers, disposing Php582.2Mil worth of shares. BPI Bank of the Phil Islands 556,544,100
SMPH SM Prime Hldgs Inc 359,232,900
BDO BDO Unibank Inc 309,157,800
In the US, major stocks indices (DJIA +0.60%; S&P 500 +0.17%; NASDAQ -0.81%) were SM SM Investments Corp 227,736,900
mixed. URC Universal Robina Corp 224,253,700

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.
 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

WED 22 JUL 2020

Top Story:

Richard Laneda, CFA MEG: MEG says 1H20 reservations hit Php38Bil
Senior Research Manager
Megaworld Corporation MEG said that it booked Php38Bil in reservation sales for various residential projects
BUY during 1H20, with 2Q20 registering around Php17Bil from reservations despite the
Php3.20
lockdown. MEG’s Chief Operating Officer Lourdes Gutierrez-Alfonso mentioned that
they received numerous inquiries and reservations through their online channels mostly
from the upper-middle market buyers. The property developer noted that most of the
reservation sales booked in 2Q20 were made up of big-ticket projects in the provinces.
(Source: Bworldonline)

Other News:

Research Analysts EAGLE: EAGLE allots Php1.5Bil for Bulacan plant expansion
John Martin Luciano, CFA
EAGLE has earmarked Php1.5BIl this year for the construction of its cement mill 5 in its
Frances Rolfa Nicolas
Bulacan plant. Recall that this expansion will increase EAGLE’s capacity by 1.5Mil MT
Justin Richmond Cheng
bringing total capacity to 8.6Mil MT. EAGLE President and Chief Executive Officer Paul
Adrian Alexander Yu
Ang said that they aim to finish the construction of the mill facility by 4Q20 from the
Kerwin Malcolm Chan
supposed commissioning schedule in 2Q20. (source: Businessworld)

GMA7: GMA7 defers 30% of its 2020 capex

GMA7 said that it will defer 30% or around Php376Mil of its capex budget this year due
to the ongoing COVID-19 pandemic. Note that the deferred capex was intended for
equipment upgrades. Nevertheless, the company will proceed with its plan of launching
more digital channels this year. Moreover, management said that another major project,
which was conceptualized prior to the COVID-19 pandemic, will be announced soon.
(source: Businessworld)

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 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

WED 22 JUL 2020

Economy: BSP reduces RRR of thrift and rural banks

The BSP announced a 100 bps reduction in the reserve requirements of thrift banks
(TB), rural and cooperative banks (RCB) effective 31 July 2020. This is expected to
release Php10Bil liquidity to the system. In addition, this is expected to increase lending
capacity of these banks to support financing requirements of their micro-, small- and
medium enterprise as well as rural community-based clients. This will also help lower
intermediation costs and ease financial strain faced by these banks’ customers. With the
reduction, the reserve requirements of TBs and RCBs will be 3% and 2%, respectively.
(Source: BSP, Businessworld)

Changes in Shareholdings
Date of Acquired or Price per
Stock Volume Person (Designation)
Disclosure Disposed share
Isidro A. Consunji
21-Jul SCC 1,582,400 A 10.47
(Director & Chief Executive Officer)
Isidro A. Consunji
21-Jul DMC 1,000,000 A 3.79
(Chairman and President)
Edward K. Lee
21-Jul COL 11,500 A 21.00
(Chairman of the Board)
Source: PSE

COL Financial Group, Inc. 3

 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

WED 22 JUL 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.

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EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
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WEBSITE: www.colfinancial.com

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