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Megaworld stock price to hit P9 per share

MANILA, Philippines—Megaworld, the country’s leading real estate developer and BPO landlord, has received an upgraded stock price target of P9.01 per share and a buy rating by the prestigious online brokerage firm COL Financial Private Clients Group in a recently released report.

Megaworld’s target price represents a 20 percent discount to the COL Financial’s Net Asset Value estimate of P11.26 per share.

COL is estimating that Megaworld will enjoy a net income growth of P7.9 billion in 2013, up from the P7.4 billion earnings in 2012. This gives the real estate giant a price to earnings ratio of about 14.4 this year or way below other real estate properties having a price to earnings ratio of 20x or more.

COL Financial said that the upgraded rating is due to the high prices of the company’s properties located in prime locations such as the Bonifacio Global City (BGC) combined with the country’s strong economic growth, low interest rates and continued infrastructure developments benefitting real estate companies like Megaworld. Likewise, it said that the increase in income for Megaworld will be driven by its P180 billion in sales backlog and strong rental portfolio, assuming a six-year development period and a 16x price to earnings ratio valuation.

They noted that the company’s current stock price is a good buy given the stable source of cash flows coming from its residential, office and commercial developments.

Megaworld is looking to double its rental income from P5 billion in 2012 to P10 billion within the next 5 years. The growing OFW remittances, expanding BPO sector, and increase investments in infrastructure will further jump up the property prices in the company’s landbank.

Megaworld is the only property company in the Philippines that is in a net cash position with P26.8 billion of cash and only P20 billion in debt. Megaworld has also the largest landbank in Fort Bonifacio with 105 hectares.

The company has built and delivered up to 240 buildings that include residential condominiums, office towers and hotel buildings with a total footprint of more than 6 million  sqm.

Megaworld, one of the companies under the holding firm Alliance Global Group Inc. (AGI), pioneered the “live-work-play” township concept in the Philippines. It started the country’s first Cyberpark through the successful Eastwood City in Libis, Quezon City back in 1997. This groundbreaking formula is now being replicated in its other township developments like Newport City, Forbes Town Center, McKinley Hill and McKinley West. Soon to rise are The Mactan Newtown in Lapu Lapu City, Cebu and the Iloilo Business Park in Iloilo City.

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Tags: Megaworld , Real Estate

  • OFW_Investor

    Investors pay a dear price for a cherry consensus. Predicting rain does not count, building the ark does.WB

  • lagalagdude

    Paid advertisement by Andrew Tan

  • Prangka


  • boboposter

    Two questions:

    1.) How long till 9 pesos?
    2.) How bumpy will the road be till 9 pesos?

    You don’t need to be a stock genius to see that this is too good to be true.

    • http://www.businessinsider.com/the-art-of-war-sun-tzu-2011-5?op=1 Sun Tzu

      the self proclaimed stock guru aka BOBOposter is giving stock advice again… nobody listens… yun lang!

      • boboposter

        Self proclaimed Sun Tzu saying nothing but gibberish again!

      • http://www.businessinsider.com/the-art-of-war-sun-tzu-2011-5?op=1 Sun Tzu

        alam mo mr bobo, from your posts obviously you are noob in the stock market, anyone who is experienced in playing stocks hindi ganon mag salita, may respeto sa stock market di tulad mo feeling magaling. I have seen tons of such noobs who don’t survive too long in the stock market arena. uptrend ang market ngayon kaya feeling genius ka… pag lumiko at mag crash yan, doon malalaman sino mga magagalin at sino mga bobo feeling magaling

      • boboposter

        LOL sinong noob? Yung nagkakalat na “uptrend” pa din ang market o yung bobo na nagwa-warn sa mga tao sa impending na bear market???

        Uulitin ko, sinong feeling? Yung ironic ang pangalan o yung Sun Tzu daw kuno??? BWAHAHAHAAHA!

      • http://www.businessinsider.com/the-art-of-war-sun-tzu-2011-5?op=1 Sun Tzu

        like playing piano to a mule…you really don’t get it… you calling me bobo when that is your self confessed name… magsama kayo ng mga taxi drivers at basurero hahahaha

      • boboposter

        HOHOHO! All talk, no walk pa rin yung feeling Sun Tzu!

        Ah oo boboposter… gets ko na… pero yung Sun Tzu? Hindi pa din eh… parang… POSER! HAHAHAHAHA!

      • http://www.businessinsider.com/the-art-of-war-sun-tzu-2011-5?op=1 Sun Tzu

        Ikaw si BOBO! BOBO ay ikaw!

      • boboposter

        HOHOHO wala nang ibang masabi!

      • http://www.businessinsider.com/the-art-of-war-sun-tzu-2011-5?op=1 Sun Tzu

        ayan oh, bagsak na stock market… ano na? BOBO

      • boboposter

        Ano ba sabi ko? To good to be true.

        Ano yang pinagsasabi mo? uptrend ang market???


      • http://www.businessinsider.com/the-art-of-war-sun-tzu-2011-5?op=1 Sun Tzu

        Ayan stock market plunge 6.8%… pota may pa jollibee jollibee ka pa ha… certified t@nga ka sa understanding ng stock market hohoho mo mukha mo hahaha

      • boboposter

        Naiintindihan mo ba yung phrase na “too good to be true”? Halatang hindi HAHAHA! Siguro kasi english HAHAHAHA!

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