Top Story: Other News: Market Summary: THU 20 JULY Gaming sector: Negative impact from AMLA not expected

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Charlene Garrett
5 years ago
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Top Story: Gaming sector: Negative impact from AMLA not expected Other News: AC: AC Energy eyes partnerships in Vietnam Economy: Balance of payments deficit widens to US$569Mil in June Market

1 Top Story: Gaming sector: Negative impact from AMLA not expected Other News: AC: AC Energy eyes partnerships in Vietnam Economy: Balance of payments deficit widens to US$569Mil in June Market Summary: The PSEi advanced on Wednesday, gaining points or 0.25% to close at 7, Index gainers led decliners 19 to 8 while 3 issues remained unchanged. Likewise, most sectors ended in green with Services (+1.01%) leading the gainers and Financials (-0.21%) leading the decliners. Significant index gainers were DMC (+3.15%), SMPH (+1.62%), JFC (+1.57%), ICT (+1.55%) and SCC (+1.37%). Meanwhile, significant index decliners were MPI (-1.44%), MBT (-1.34%) and RLC (-1.20%) Value turnover increased to Php7.9Bil from Php6.5Bil the previous session. Meanwhile, foreigners continue to net buyers for the third consecutive day, accumulating Php158Mil worth of shares. (AS OF JULY 19, 2017) INDICES Close Points % YTD% PSEi 7, All Shares 4, Financials 1, Holding Firms 7, Industrial 11, Mining & Oil 12, Property 3, Services 1, Dow Jones 21, S&P 500 2, Nasdaq 6, INDEX GAINERS Ticker Company Price % DMC DMCI Hldgs Inc SMPH SM Prime Hldgs Inc JFC Jollibee Foods Corp ICT Int'l Container Term SCC Semirara Mining INDEX LOSERS Ticker Company Price % MPI Metro Pacific Inv Corp MBT Metrobank RLC Robinsons Land Corp SECB Security Bank Corp AEV Aboitiz Equity Ventures TOP 5 MOST ACTIVE STOCKS Ticker Company Turnover MBT Metrobank 725,867,400 SCC Semirara Mining 413,153,500 BDO BDO Unibank inc 402,351,600 ICT Int'l Container Term 328,414,400 DMC DMCI Hldgs Inc 320,457,300 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.

10927, or An Act Designating Casinos as Covered Persons under Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act of 2001 (AMLA), as amended.

2 Top Story: RICHARD LAÑEDA, CFA SENIOR RESEARCH MANAGER BLOOMBERRY RESORTS CORP. PHP12.30 MELCO RESORTS & ENTERTAINMENT PHP11.28 Gaming sector: Negative impact from AMLA not expected Casinos to be covered by the AMLA. Yesterday the President signed into law Republic Act (RA) No , or An Act Designating Casinos as Covered Persons under Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act of 2001 (AMLA), as amended. The law now counts casinos -- including Internet and ship-based casinos with respect to their casino cash transactions related to their gaming operations -- as covered persons under AMLA. Moreover, the threshold amount for coverage was set at a minimum of Php5Mil, or its equivalent in any foreign currency, per transaction. Negative impact not expected. We spoke to gaming companies regarding this matter and they said they are supportive of putting casinos under the AML framework. When asked about how this would affect operations, they said this just means more administrative work for them. In addition, VIP volume are unlikely to suffer as AML reporting for casinos is something VIP players are used to as it is practiced in Macau and other gaming hubs. We also note that the threshold amount of Php5.0 Mil is less restrictive than in Macau. In Macau the threshold amount is MOP500,000 or the equivalent of US$62,300 or Php3.1 Mil. Maintaining estimates and recommendations. We are not adjusting our revenue and net income estimates for now and we are maintaining our recommendation for both BLOOM and MRP with fair value estimates of Php12.30 and Php11.28 respectively. Other News: RESEARCH ANALYSTS FRANCES ROLFA NICOLAS ANDY DELA CRUZ JUSTIN RICHMOND CHENG KYLE JEMMRIC VELASCO JOHN MARTIN LUCIANO AC: AC Energy eyes partnerships in Vietnam AC Energy President John Eric Francia said that they are currently talking to potential partners in Vietnam for renewable energy projects. The company is exploring Vietnam because of its feed-in-tariff (FiT) incentive for solar and wind projects. Mr. Francia noted that Vietnam is offering a solar FiT of 9.35US cents per kilowatt-hour and nearly 8US cents for wind. The plan to develop energy projects locally and internationally is in line with AC Energy s goal to develop by 2020 up to 2,000 MW of capacity, of which half is targeted to come from renewable energy. (source: Businessworld) COL Financial Group, Inc. 2

3 Economy: Balance of payments deficit widens to US$569Mil in June According to the BSP, the country s balance of payments position widened to a deficit of US$569Mil in June, significantly higher than the US$59Mil deficit booked last May and a reversal of the US$418Mil surplus recorded in June Furthermore, the latest figure brought the 1H17 tally to a deficit of US$706Mil, also in contrast to the US$634 surplus logged in 1H16. The BSP attributed the wider deficit for the month of June to stronger demand for the dollar among companies, the government s foreign debt payments, and a persistent trade gap. While trade data for June is not yet available, the BSP believed that exports continued to recover; however, the growing economy brought imports of capital goods and raw materials much higher. (source: BusinessWorld) SUMMARY OF CHANGES IN SHAREHOLDINGS: MPI COL COL source: PSE 25, , D 50, , , A , A 4, , MPI 430,000 A 4.60 Edward S. Go (Independent Director) Edward K. Lee (Chairman of the Board) Caesar A. Guerzon (Corporate Secretary) Antonio A. Picazo (Corporate Secretary) COL Financial Group, Inc. 3

4 CALENDAR OF EVENTS JULY SUN MON TUE WED THU FRI SAT DAILY NOTES I KEY EVENTS HOLIDAY JULY 3 BPI: Ex-date Php0.90 Cash Dividend JULY 4 AUB: Ex-date Php1.00 Cash Dividend AC: Ex-date Php3.46 Cash Dividend JULY 5 I: Ex-date Php Cash Dividend CIC: Stock Dividend JULY 6 PTC: Ex-date Php0.20 Cash Dividend JULY 7 I: Annual Shareholders Meeting JULY 11 STN: Annual Shareholders Meeting JULY 12 RRHI: Ex-date Php0.70 Cash Dividend JGS: Ex-date Php0.28 Cash Dividend TFHI: Annual Shareholders Meeting JULY 13 MJC: Ex-date Php0.05 Cash Dividend DNL: Annual Shareholders Meeting ECP: Annual Shareholders Meeting IMP: Annual Shareholders Meeting MB: Annual Shareholders Meeting JULY 17 ISM: Annual Shareholders Meeting JULY 20 PIZZA: Annual Shareholders Meeting JULY 21 MAC: Annual Shareholders Meeting HI: Annual Shareholders Meeting JULY 25 CNPF: Ex-date Php0.18 Cash Dividend IPO: Ex-date Php0.06 Cash Dividend RFM: Annual Shareholders Meeting CEU: Annual Shareholders Meeting JULY 26 PERC: Annual Shareholders Meeting JULY 27 AT: Annual Shareholders Meeting MHC: Annual Shareholders Meeting IRC: Annual Shareholders Meeting MFIN: Annual Shareholders Meeting JULY 28 DFNN: Annual Shareholders Meeting LR: Annual Shareholders Meeting JULY 31 HOUSE: Annual Shareholders Meeting FJP: Annual Shareholders Meeting ABA: Annual Shareholders Meeting COL Financial Group, Inc. 4

5 IMPORTANT RATING DEFINITIONS Stocks that have a 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 RESEARCH ANALYST kyle.velasco@colfinancial.com JOHN MARTIN LUCIANO RESEARCH ANALYST john.luciano@colfinancial.com COL FINANCIAL GROUP, INC D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE, EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY PHILIPPINES 1605 TEL NO FAX NO WEBSITE: COL Financial Group, Inc. 5

Lock in gains on MER; switch from RRHI to DNL

Lock in gains on MER; switch from RRHI to DNL Since we last wrote our COLing the Shots report, the market rallied to as high as 8,605.15, but eventually corrected to its current level of 8,343.23. We think