WE D 14 D EC 2016

Top Story: (as of Dec 13, 2016)

ICT: ICTSI completes Australian port INDICES

Close Points % YTD%

Other News:
PSEi 6,880.91 12.02 0.17 -1.02
All Shares 4,172.65 10.26 0.25 4.57
JFC: Jollibee says to sell stake in China-based noodle restaurant Financials 1,682.79 16.93 1.02 8.52
SHLPH: To add 50-70 stations next year Holding Firms 6,974.36 -4.39 -0.06 5.65
Economy: Php3.35Tril budget for 2017 approved and ratified Industrial 10,828.78 -54.27 -0.50 -1.84
Economy: ADB expects Philippines to outdo most major Asian economies Mining & Oil 12,034.99 0.97 0.01 15.42
Property 3,110.55 10.54 0.34 6.69
Services 1,277.63 0.06 0.00 -16.51

Market Summary:
Dow Jones 19,911.21 114.78 0.58 14.27
S&P 500 2,271.72 14.76 0.65 11.14
The PSEi advanced on Tuesday, gaining 12.02 points or 0.17% to close at 6,880.91.
Nasdaq 5,463.83 51.29 0.95 9.11

Index gainers led decliners 16 to 11 while 3 issues remained unchanged. Likewise, most sectors
advanced with Financials (+1.02%) leading the gainers and Industrial (-0.50%) leading the decliners. INDEX GAINERS
Significant index gainers were MPI (+3.68%), SECB (+2.26%), SMPH (+1.95%), PCOR (+1.94%),
and RLC (+1.89%). On the other hand, significant decliners were URC (-3.07%), AC (-2.27%), and Ticker Company Price %
ALI (-1.86%). MPI Metro Pacific Inv Corp 6.48 3.68
SECB Security Bank Corp 204.00 2.26

Value turnover increased to Php7.2Bil from Php6.3Bil the previous session. Foreigners continue to SMPH SM Prime Hldgs Inc 28.70 1.95
PCOR Petron Corporation 10.50 1.94
be net sellers, liquidating Php1.1Bil worth of shares.
RLC Robinsons Land Corp 27.00 1.89

INDEX LOSERS

Ticker Company Price %

URC Universal Robina Corp 158.00 -3.07
AC Ayala Corporation 690.00 -2.27
AGI Alliance Global Inc 12.64 -1.86
ALI Ayala Land Inc 32.50 -1.52
SM SM Investments Corp 638.00 -1.09

TOP 5 MOST ACTIVE STOCKS

Ticker Company Turnover

URC Universal Robina Corp 970,201,900
AC Ayala Corporation 901,258,500
ALI Ayala Land Inc 672,342,300
SMPH SM Prime Hldgs Inc 315,263,000
SM SM Investments Corp 226,197,400

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.
 D ai l y N o t es I P h i l i p i ne Equi ty Resear ch

WED 14 DEC 2016

Top Story:

George Ching ICT: ICTSI completes Australian port

Senior Research Manager
Stock Data ICTSI completes Australian port. ICT disclosed that it has already completed the construction
Ticker ICT of its port in Melbourne, Australia. ICT said a total of US$415Mil was spent on the project.
Rating BUY
Php89.90 Based on ICT’s previous guidance, operation of the Melbourne port will start in 1Q17.
Target Price

Maintain BUY rating. We have a BUY rating on ICT with a FV estimate of Php89.9/sh. Given
the recovery in the organic throughput growth over the past two quarters and management’s
improving outlook on ICT’s greenfield ports in Australia and Congo, we believe that downside
risk to ICT’s earnings has abated. With the exception of its port in Argentina, we now believe
that ICT’s major greenfield ports (Australia, Congo, and Columbia) will be the key earnings
growth drivers for the company in the next few years as these new ports will have a combined
capacity of 1.3Mil TEU, equivalent to 16.7% of ICT’s total volume in 2015. Based on our its
current market price of Php71.8/sh, upside to our FV estimate of Php89.9/sh, is significant at
25.2%.

Other News:

Research Analysts JFC: Jollibee says to sell stake in China-based noodle restaurant
Frances Rolfa Nicolas
Andy Dela Cruz Jolibee Foods Corp. is divesting from Guangxi San Pin Wang Food and Beverage Management
Justin Richmond Cheng Co. Ltd. to focus on larger businesses in China. In a statement issued on Monday, the fast
Kyle Velasco
food giant said its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) will dispose its
55% stake in San Pin Wang in favor of partner Guangxi Zong Kai Food Beverage Investment
Co. Ltd. (GZK) for CNY 90Mil. In 2012, JFC acquired its 55% stake in San Pin Wang, a
local Chinese restaurant chain focused on serving low-priced beef noodle. San Pin Wang
has since grown 71 branches from the 34 existing stores at the time of the acquisition. San
Pin Wang remains profitable and, in fact, plans to continue expanding next year and beyond.
The company, however, resolved to divest from San Pin Wang to concentrate its resources
on businesses with greater potential in China, particularly Yonghe King whose store network
spanned 315 branches as of end-November. In late November, JWPL bought its partner out
of Happy Bee Goods Processing Pte. Ltd., which owns the operator of a facility producing
the food requirements of Yonghe King. The acquisition also allowed JFC to divest from a
business line producing and selling food products for third-party institutions in China. (source:
BusinessWorld)

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 2
of the COL Financial website as these may be subject to tampering or unauthorized alterations.
 D ai l y N o t es I P h i l i p i ne Equi ty Resear ch

W ED 14 DEC 2016

SHLPH: To add 50-70 stations next year

SHLPH is targeting to build 50-70 stations next year, bringing total count to exceed a thousand
by the end of 2017. SHLPH President Cesar Romero said that the new stations will be
company owned because of the company’s high standards which will require higher cost for
building each station. Moreover, 40% of the planned stations would be in Luzon while 60% will
be in the Visayas and Mindanao. (source: Businessworld)

Economy: Php3.35Tril budget for 2017 approved and ratified

The Php3.35Tril national budget for 2017 was approved and ratified yesterday. The budget is
in line with the President’s 10-point socioeconomic agenda. Funds will be sent to necessary
services needed by the citizens such as universal health care, free tuition for all state
universities and colleges, social services, as well as free irrigation and additional funds for
prisoners, among others. Furthermore, the funds for infrastructure are at 5.4% of GDP mostly
owing to the importance of the construction of roads, railways, buildings, and bridges that
would largely benefit the economy. (source: BusinessWorld)

Economy: ADB expects Philippines to outdo most major Asian economies

The Asian Development Bank (ADB) expects the Philippines to continue to outperform most
of its Asia-Pacific counterparts in both 2016 and 2017 as a stronger infrastructure push would
add to the country’s robust domestic demand, which has long been a driver of economic
growth. For 2016, ADB recently revised its projection to 6.8%, up 40 bps, as 3Q presented
strong results after seeing a rebound in agricultural output as well a pickup in its construction
and manufacturing. Note that the country’s agricultural output has experienced contractions
for five straight quarters due to the drought brought by El Nino. Meanwhile, ADB expects
Philippine GDP to slow down to 6.4% next year, which is still 20 bps higher than its 2017
projection made last September. With this, ADB expects the Philippines to outperform regional
averages for Southeast Asia and developing Asia, which are projected to grow by 4.6% and
5.7% in 2017, respectively. (source: BusinessWorld)

SUMMARY OF CHANGES IN SHAREHOLDINGS:

Acquired or Price per

Stock Volume Person (Designation)
Disposed share
20,000 19.10 Josephine Gotianun-Yap
EW D
30,000 19.19 (Director)
source: PSE

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 3
of the COL Financial website as these may be subject to tampering or unauthorized alterations.
 Cale nd a r o f Ev e nts
NOVEMBER D ai l y N o t es I P h i l i p i ne Equi ty Resear ch

WED 14 DEC 2016

S M T W TH F S

29 1 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 27 28 29

3301 2315 26 27 28 29 30

Key E vents Hol i day

N OV 3 N OV 10 N OV 2 3
LOTO : E x-d a te Php 0.38 C a s h D iv id e n d AT N : An n u al S h ar eh ol der s M eet i n g M ED: A n n u al S h ar eh ol der s M eet i ng

N OV 4 N OV 11 N OV 2 8
PSB: Ex- d a te Php 0.75 Cas h D iv id e n d C IP : E x -d a t e Ph p1 7. 2 36 C ash Di v i den d A R A : A n n u al S h ar eh ol ders M eet i ng

N OV 7 N OV 15 N OV 2 9
L BC: E x- d a te Php0.2 2 C a s h D iv id e n d W IN : An n u al S h ar eh ol der s M eet i n g PO PI : A n n u al S h ar eh ol der s M eet i ng
SE CB : E x-d a te Php1.00 C a s h D iv id e n d
N OV 21
N OV 8 P H C : An nu al S h ar eh ol der s M eet i n g
UP M: An nua l Sha reholde rs Me e tin g
N OW: Annua l Sha reho ld e r s Me e tin g N OV 22
F P I : An nua l Sha rehold er s Me e tin g MAH : An nu al S h ar eh ol der s M eet i n g

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 4
of the COL Financial website as these may be subject to tampering or unauthorized alterations.
 D ai l y N o t es I P h i l i p i ne Equi ty Resear ch

W ED 14 DEC 2016

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 Velasco
Research Analyst
kyle.velasco@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

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 5
of the COL Financial website as these may be subject to tampering or unauthorized alterations.