TRADERS’ TAKEDOWN

10 June 2020

Stories for the Day WATCHLIST

 PLDT says first-half performance to surpass last year’s 8-Jun CHG (%)
 Chelsea defers capex, studies job cuts PSEi 6,583.00 1.07%
 AllHome gearing for store expansion with relaxed lockdown DJIA 27,272.30 (1.09%)
 World Bank sees Philippine economy contracting by 1.9% S&P 500 3,207.18 (0.78%)
 Banks’ bad loans surge to Php253B
NASDAQ 9,953.75 0.29%
 BSP gradually lifts extraordinary measures
USDPHP 49.93 0.02%
Source: PSE, Bloomberg, BSP

Stock Feature: BDO Unibank

We view BDO's recent move to boost its loan loss provisions by INDEX MOVERS
Php20Bdevelopment as negative to our view on the stock. BDO's anticipated INDEX GAINERS INDEX LOSERS
provisions to account for the pandemic (170bp) exceeds our total provisions for SMC 6.72% PGOLD (3.60%)
the next three years (c. 45bp p.a. of total loans from FY20-22F, vs. 30bp p.a. in BLOOM 5.96% MEG (3.51%)
FY18-19F). Based on our initial estimates, the larger than anticipated provisions RLC 5.79% SECB (3.05%)
could also accelerate the need for BDO to raise capital (we currently assume URC 4.93% AGI (2.67%)
capital is enough until 2024). All told, these factors could suggest downside risk ICT 4.90% DMC (1.91%)
to our current PT of Php112/shr, which is below that of consensus (Php128/shr).
Source: PSE, Bloomberg, BSP

Daily Trading View

The PSEi (+1.1%) gained again yesterday on Php7.8B of volume, with foreigners
closing the day as net buyers (Php63.2M). We expect the index to retreat today
after retesting levels seen prior to the enhanced community quarantine (March
17). From a technical standpoint, we see 6,950 as the next key resistance.

BPITRADE TOP PICKS (TOP BUY RECOMMENDATIONS)

12 Month Short-Term Technical 3 MO

STOCK
LAST PRICE % Upside Perf REASONS
PICK
Price Target Entry Exit (%)

CNPF 15.10 20.00 32.5% 10.00 16.52 7.9% Resilient demand for shelf staples

PGOLD 45.55 51.50 13.1% 26.00 54.55 33.8% Beneficiary of resilient demand

Recovery on track, defensive fixed line business vs. Dito,

TEL 1,194.00 1,500.00 25.6% 1,170.00 1,358.00 16.9%
attractive dividend yield

*Entry and Exit Prices are based on the recommendations of BPI Securities Active Advisory Group
*Ratings and Price Targets are based on the recommendations of BPI Securities Research Department

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 1
BPI Traders’ Takedown – 10 June 2020
BPI SECURITIES VALUATION TABLE
LAST % UPSIDE / FY20F Div FY20F ROE FY20F EPS
TICKER RATING TARGET PRICE FY20F P/E FY19F P/B
PRICE (DOWNSIDE) Yield (%) (%) Growth
ALI 38.00
AP BUY 42.60 28.80 47.9% 9.4 1.5 4.4% 15.1% 15.6%
BDO BUY 112.00 110.50 1.4% 12.8 1.3 1.1% 9.9% (13.6%)
BLOOM BUY 6.30 8.00 (21.3%) 0 3.0 2.6% (0.2%) (100.8%)
CHIB BUY 36.50 20.90 74.6% 5.7 0.6 4.5% 10.0% 18.4%
CIC BUY 54.00 22.50 140.0% 7.4 1.1 3.9% 19.2% 13.4%
CLI BUY 6.00 3.96 51.5% 2.7 0.5 6.3% 28.2% 22.3%
CNPF BUY 20.00 15.10 32.5% 14.7 2.8 1.5% 17.7% 14.4%
DMC HOLD 16.10 4.62 248.5% 6.4 0.6 7.0% 16.1% 12.2%
DMW BUY 11.50 6.65 72.9% 10.6 1.1 3.0% 10.0% 23.5%
DNL BUY 9.70 5.60 73.2% 12.4 2.3 1.8% 17.9% 9.8%
EMP HOLD 6.70 8.29 (19.2%) 18.5 2.0 1.8% 10.5% 5.9%
EW BUY 14.00 8.08 73.3% 3.7 0.4 3.4% 10.0% 15.6%
FB HOLD 115.00 72.10 59.5% 17.6 2.8 3.5% 14.5% 13.3%
GLO HOLD 2,150.00 2,170.00 (0.9%) 13.9 3.6 4.8% 25.7% 7.4%
GTCAP BUY 1,025.00 530.00 93.4% 6.6 0.7 4.4% 9.7% 17.9%
ICT BUY 163.50 107.00 52.8% 13.1 2.4 2.6% 17.8% 38.4%
IMI HOLD 13.50 6.00 125.0% 6.7 0.6 3.5% 8.4% 27.4%
JFC HOLD 240.00 138.90 72.8% 21.8 2.9 1.4% 18.2% 15.0%
LTG BUY 24.00 9.53 151.8% 4.6 0.4 2.1% 9.1% 11.2%
MAC BUY 22.80 7.06 222.9% 8.7 1.7 2.3% 17.9% 17.7%
MAXS BUY 18.00 6.30 185.7% 6.0 0.8 3.2% 12.7% 11.7%
MBT BUY 48.20 42.00 14.8% 8.1 0.6 2.1% 7.3% (17.1%)
MEG BUY 5.40 3.30 63.6% 5.8 0.6 2.5% 10.3% 7.5%
MER HOLD 375.00 291.00 28.9% 13.5 3.7 5.8% 26.5% 3.0%
MPI BUY 6.35 3.55 78.9% 6.6 0.4 3.5% 9.4% 10.2%
MRSGI BUY 3.00 1.75 71.4% 7.9 0.6 3.4% 7.7% 35.6%
MWC HOLD 28.90 12.50 131.2% 3.9 0.4 8.0% 11.0% 11.6%
MWIDE BUY 21.85 7.90 176.6% 8.4 0.8 0.0% 15.0% (9.0%)
PIZZA BUY 15.15 6.92 118.9% 10.2 2.0 1.9% 18.1% 13.3%
PGOLD BUY 51.50 45.55 13.1% 17.3 2.0 0.9% 11.2% 14.8%
PNB BUY 60.00 23.20 158.6% 2.8 0.2 0.0% 7.4% 18.6%
RCB HOLD 27.00 19.10 41.4% 6.7 0.4 2.4% 6.0% 24.1%
RLC BUY 28.00 20.10 39.3% 10.4 1.0 2.1% 9.6% 13.5%
RRHI BUY 90.00 70.00 28.6% 20.5 1.4 1.0% 6.7% 16.0%
SCC BUY 27.50 14.00 96.4% 4.0 1.5 6.3% 28.7% 19.9%
SECB HOLD 185.00 108.10 71.1% 7.0 0.7 2.8% 9.6% 12.8%
SM HOLD 900.00 950.00 (5.3%) 23.0 3.0 1.1% 12.3% 17.8%
SMPH BUY 42.50 33.50 26.9% 22.2 3.1 1.2% 13.4% 12.7%
SHLPH HOLD 50.50 20.65 144.6% 6.1 0.8 11.0% 13.2% 12.5%
TEL BUY 1,500.00 1,194.00 25.6% 11.8 2.4 6.0% 16.9% 2.1%
UBP HOLD 68.00 55.50 22.5% 8.1 0.7 3.4% 8.6% 7.9%
URC HOLD 145.00 149.00 (2.7%) 28.4 3.7 1.9% 12.4% 6.5%
WLCON HOLD 19.00 16.32 16.4% 27.7 4.5 0.7% 15.3% 18.0%
Average 32.5% 11.0 2.3 2.1% 11.8% 9.7%
Source: PSE, Bloomberg, BSP
Rating System: Buy (>10% Upside); Hold (-10% Downside to +10% Upside); Sell (>10% Downside)

SECTOR VALUATION
FY20F
% Upside / PT Implied PT Implied Forward Current FY20F Div FY19A
SECTOR Rating YoY
(Downside) FY20F P/E P/B P/E P/B Yield ROE
Growth
Banking BUY 24.2% 13.3 1.1 9.0 1.0 1.9% 9.5% 25.0%
Conglomerate BUY 29.5% 24.3 2.4 19.5 2.4 1.6% 11.2% 16.1%
Consumer BUY 31.8% 31.2 3.6 23.2 3.1 3.4% 13.3% 6.3%
Gaming BUY 50.0% 18.5 4.4 8.9 3.6 0.0% 21.5% 38.9%
Infrastructure BUY 176.6% 23.2 2.2 7.6 0.9 0.0% 13.8% 10.6%
Power BUY 58.6% 13.0 2.3 9.6 1.5 7.6% 21.3% (8.2%)
Property BUY 33.4% 31.6 3.7 20.2 3.0 1.1% 13.3% 19.9%
Services BUY 64.8% 26.2 3.6 13.7 2.0 2.3% 13.6% 25.3%
Telco ADD 11.6% 16.1 3.3 13.6 3.2 5.2% 22.0% 7.5%
Utility BUY 36.3% 18.3 4.5 13.2 3.7 6.1% 27.9% 5.4%

RESEARCH TEAM
Miguel Sevidal – Telco, Transport, Gaming, Consumer
Colleen Gatchalian

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BPI Traders’ Takedown – 10 June 2020
CORPORATE NEWS
PLDT says first-half performance to surpass last year’s
PLDT Inc. said that its revenues had been doing well since April, making it possible that its performance for the first half of the year will
surpass last year’s despite the coronavirus crisis. “Our revenues in the first four weeks of the lockdown — spanning the last half of March
and the first half of April —were hardest hit. However, starting the week of Easter Sunday in April, following the balance of April, then
May, and onwards to June, we have seen a steady upward march of our revenues, especially in wireless and home broadband,” PLDT
Chairman and Chief Executive Officer Manuel V. Pangilinan said. He also said revenues in April and May this year are ahead of last year.
“Given this momentum, it is likely that service revenues for the first six months this year will improve over last year’s despite the
pandemic,” Mr. Pangilinan said. PLDT, he noted, also expects that its first half telco core income will rise above last year’s despite the
crisis. “I can assure you that we have steady hands on the tiller, and the ship itself is sturdy. I can add that PLDT is, in fact, emerging
stronger from this pandemic,” Mr. Pangilinan said. Last month, the company announced that it would reduce its capital spending for
the year by 24% to Php63B from the planned Php83B as movement and travel restrictions under the government-imposed enhanced
community quarantine disrupted its network rollout. The Pangilinan-led company’s first-quarter net income had decreased 12% to
Php5.91B because of losses on its investment in German-based Internet company Rocket Internet and ramped-up investment in its
digital arm Voyager Innovations, Inc. PLDT’s core income was also down 5% to Php6.9B from Php7.2B. Total revenues went up 7% to
Php43.65B, of which service revenues increased 8% to Php41.8B and non-service revenues inched up 1.25% to Php1.85B. Meanwhile,
Fitch Ratings said that the leverage profiles of PLDT and its rival Globe Telecom, Inc. are “likely to converge” this year. Fitch Ratings noted
that operating cash flow continues to lag behind investment amid the coronavirus crisis. “Our projections envisage PLDT’s revenue
growing by a low- to mid-single-digit percentage in 2020 (2019: 3%), slightly ahead of Globe’s low-single-digit rate decline (2019: 10%
growth),” Fitch Ratings said. “We consider PLDT’s broader service diversification and entrenched fixed-line position to be advantageous
in mitigating revenue pressure in its wireless business, compared with Globe. However, the investments needed to support PLDT’s
expansion in mobile revenue and broadband installations are likely to moderate EBITDA growth and delay deleveraging,” it said. It also
noted that the continued travel restrictions “will delay infrastructure network rollout, including new competition from third mobile
network operator, Dito Telecommunity Corp.”

Chelsea defers capex, studies job cuts

Chelsea Logistics and Infrastructure Holdings Corp. said it was looking to cut jobs “in phases” in the next six months as a way to cushion
the impact of the coronavirus pandemic on its business. Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V.
Damuy said one of the strategies that “the company looks to do in the next six months” is “right-sizing” its workforce. “We will implement
it in phases,” he added. As for the company’s capital expenditures (capex) for 2020, he said: “We are deferring except for those [that are]
committed.” To recall, the group had signed two shipbuilding agreements for the delivery of 98-meter and 123-meter bed/seat roll-
on/roll-off passenger ferry ships from Japan. The total contract price for such vessels amounts to approximately Php2.35B. The total
amount paid as of Dec. 31 last year amounted to Php367.3M, the company said. The listed company noted that the pandemic has
disrupted the momentum it gained in the first two months of 2020 where it showed “significant growth.” “As a response, the company
immediately revisited its future strategies, including strengthening its balance sheet and aggressive fixed asset management by slashing
planned capital expenditures and disposing of aging and underperforming vessels,” it said. “To scale up work efficiencies, the group is
now undergoing workforce rationalization to restructure support functions and right-size existing workforce,” the company added.
Chelsea Logistics also said it intensified its logistics services during the lockdown period which started in March. The group said further
that it remains keen on its planned airport and port modernization projects in Davao. “From strengthening its core businesses in the
first three years of operation, Chelsea Logistics is now poised to take advantage of the opportunities in sectors with positive and resilient
economic outlook, including e-commerce which is seen to grow four times in the next five years and infrastructure projects related to
the Government’s Build, Build, Build Program,” it said. The Dennis A. Uy-led firm’s net loss ballooned by 51% to Php832M last year as
the company suffered from its share in the losses of some units and expenses for new vessels and a warehouse complex.

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BPI Traders’ Takedown – 10 June 2020
CORPORATE NEWS
AllHome gearing for store expansion with relaxed lockdown
AllHome Corp. is planning to open a new branch in Isabela in the third quarter as it boosts its presence across the country. The Villar-
led retailer of home improvement products said it is continuing to work on increasing its store network from 45 stores at present. “We
have a solid pipeline of new stores around the country and have the ability to fast track construction of those stores given our affiliation
with the Villar Group’s commercial and residential companies,” AllHome President Benjamarie Therese N. Serrano said. The company
has set opening a new branch in Santiago, Isabela within the third quarter. This would be the latest addition after the four stores AllHome
opened in Gapan, Nueva Ecija; San Ildefonso, Bulacan; Ampayon, Butuan; and Koronadal City, South Cotabato. Currently, the company’s
45-store network is distributed in Mega Manila (35 stores), other areas in Luzon (5), and Visayas and Mindanao (5). When it did its public
offer in October last year, AllHome said its target was to have 70 stores by the end of 2020. “We are confident with the pipeline of
AllHome especially with the easing of community restrictions. AllHome’s strength of being close to residential communities makes it a
go-to place during quarantine periods and even after the community quarantine,” AllHome Vice-Chairman Camille A. Villar said. The
company said it caters not only to homeowners of Villar-led properties, but also interior designers, architects and contractors as its
portfolio of products range from construction materials, hardware, tiles and sanitary wares, furniture, appliances, homewares and linens.
“Consumers now deem it important to shop closer to home and in a space that’s not overly crowded for their own safety. Being a home
essential provider, AllHome will continue to provide service to those who are fixing their own homes or contractors who have resumed
construction activities,” Ms. Villar said. New revenue streams, amounting to 22 new stores to be exact, lifted the company’s topline by
41% to Php3.37B.

World Bank sees Philippine economy contracting by 1.9%

The World Bank expects the Philippine economy to contract by 1.9% this year, reflecting the disruptions caused by the coronavirus
pandemic as well as multiple economic shocks in the beginning of the year. This will be the first annual contraction for the economy
since the Asian financial crisis when the economy shrank by 0.5%. The World Bank said the Philippines, along with Malaysia and Thailand,
is expected to experience the fastest contractions in economic output in Asia this year due to the lockdowns, reductions in tourism
activity, as well as disruptions in trade and manufacturing. “Part of the reason is that the Philippines is one of the first to impose a very
strict community quarantine, which shut down the economy for almost two months. Other countries are not doing that,” said World
Bank senior economist Rong Qian. This, she said, contrasted with the approach of other countries like Vietnam that did not enforce
severe lockdowns, but placed more importance on contact tracing and mass testing. She also said that even before the declaration of
the pandemic, the Philippines was rattled by several shocks including the eruption of Taal Volcano, which affected a major industrial
region in the country, as well as the decline in tourism in February as a result of travel bans imposed worldwide to control the
transmission of the virus. Qian said that the cumulative impact of these events on the economy has been broad-based and deep, halting
investment activity and leading to the lowest consumption growth in three decades. “Those already had an impact on the economy
before COVID,” she said. Following a contraction of 0.2% in the gross domestic product (GDP) in the first quarter, Qian said a deeper
economic decline may happen in the second quarter that would likely continue into the third quarter before a “muted growth” in the
fourth quarter is realized. These projections are rooted in assumption that restrictions in mobility are gradually relaxed in the second
half. As the economy eases into the so-called “new normal”, economic growth may recover to 6.2% in 2021 as consumption and
investment recovers. Increased economic activity surrounding the national elections in 2022, meanwhile, would boost economic growth
by 7.2% in 2022, the World Bank said. Qin also noted that the downside risks to the projections are “elevated” as recovery would still
largely depends on how the government can contain the transmission and provision of effective social protection policies. As these
uncertainties weigh heavily on the growth outlook, lower than projected rates may be realized. Qian, said supportive policies would be
crucial for economic recovery under the new normal, especially on improving digital infrastructure to help ensure the continuity of
businesses and provide more affordable internet service to the public. “Measures that restrict mobility, regulate physical contact, and
limit business activity have forced more businesses and families to use the internet for transactions,” she said.

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 4
BPI Traders’ Takedown – 10 June 2020
CORPORATE NEWS
Banks’ bad loans surge to Php253B
Banks’ bad loans went up by 18.3% to Php252.64B as of end-April from Php213.51B in the same period last year amid the sharp rise in
past due as well as restructured loans due to the coronavirus disease 2019 or COVID-19 pandemic, according to the Bangko Sentral ng
Pilipinas. Data from the BSP showed the increase in non-performing loans (NPLs) held by banks was faster than the 8.1% rise in the
industry’s loan book to Php11T from Php10.17T. NPLs or bad debts refer to past due loan accounts where the principal or interest is
unpaid for 30 days or more after due date. As a result, the banking industry’s gross NPL ratio increased for the fourth straight month to
2.3% of total loans as of end-April compared to a year-ago level of 2.1%. Past due loans referring to all types of loans left unsettled
beyond payment date surged by 41% to Php414.41B from Php293.63B, while restructured loans increased by 20.2% to Php47.5B from
Php39.52B. Month-on-month, past due loans jumped by 21.5% to Php414.14B as of end-April from Php341.12B a month ago as
Malacañang imposed the enhanced community quarantine in Luzon on March 16 to limit the spread of COVID-19. This prompted banks
to jack up the allowance of credit losses to Php235.78B as of end-April, 19.6% higher than the Php197.17B earmarked in the same period
last year. This translated to a higher NPL coverage ratio of 93.33% from 92.34% For one, BDO Unibank – the country’s largest bank –
beefed up its war chest versus bad loans to a record Php22.1B in anticipation of the expected disruptive economic impact of the
outbreak. Other big banks that earmarked higher provisions in the first quarter include Security Bank with Php5.7B, Metropolitan Bank
& Trust Co. with Php5B, Bank of the Philippine Islands with Php4.23B, Philippine National Bank with Php3.4B, Rizal Commercial Banking
Corp. with Php1.6B, Union Bank with Php1.3B, among others. The BSP data showed the NPL ratio of universal and commercial banks
increased for the fourth straight month to 1.91% as of end-April from 1.56% a year ago, while the NPL ratio of thrift or mid-sized banks
improved to 5.58% from 5.81%. BSP Governor Benjamin Diokno said earlier the country’s banking system is in a strong financial position
and capable of managing the crisis even if the NPL ratio is increased to 5%. “We have prepared our banking system well,” Diokno said.

BSP gradually lifts extraordinary measures

The Bangko Sentral ng Pilipinas (BSP) has started gradually withdrawing extraordinary measures introduced during the height of the
community quarantine to limit the spread of the coronavirus disease 2019 or COVID-19 outbreak almost three months ago. The central
bank announced the normalization of its monetary operations by resuming the auction of 14-day tenor at the term deposit facility (TDF)
auction starting today as liquidity conditions continued to stabilize over the past weeks as the country starts to restart the economy
amid the pandemic. The BSP suspended the once a week TDF auction on March 18, two days after Malacañang placed the entire Luzon
under the enhanced community quarantine to ensure sufficient liquidity in the financial system. The auction committee resumed the
auction of the seven-day term deposits last April 15 and is set to offer the 14-day tenor today, while the sale of the 28-day term deposits
remains suspended. The BSP is scheduled to offer Php120B worth of seven-day term deposits and Php20B worth of 14-day term
deposits today. “Consistent with its practice of assessing current financial system liquidity and market conditions in the conduct of its
monetary operations, the BSP will gradually re-offer other tenors in its TDF,” it said. Similarly, the central bank said it would double the
volume of the overnight reverse repurchase (RRP) facility to Php200B from the current level of Php100B. “The continued stabilization of
liquidity conditions has been observed over the past weeks. Sustained high oversubscriptions in the TDF and RRP auctions indicate that
financial market conditions are in place for a gradual normalization in the BSP’s monetary operations,” the central bank said. As part of
the extraordinary measures to mitigate the impact of COVID-19, the BSP also scaled down its overnight RRP volume offering by about
Php200B on April 8 to encourage counterparties to lend in the interbank market or re-channel their funds into other assets such as
government securities or loans. According to the BSP, the measured rescaling in the conduct of monetary policy implementation would
also provide better guidance to short-term interest rates as the domestic economy slowly reopens. “The reconfiguration in the auction
volumes and tenors in the TDF and RRP are purely operational measures and remain in line with the stance of monetary policy. Moreover,
the BSP stands ready to adjust the details of its operations based on market developments and liquidity conditions,” the central bank
said.

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BPI Traders’ Takedown – 10 June 2020

DIVIDENDS SCHEDULE
Type of Ex-Dividend Payment
Ticker Company Name Dividend Rate
Dividend Date Date
T SMC2I San Miguel Corporation Cash Php1.18790625 06/16/2020 07/03/2020

SMC2H San Miguel Corporation Cash Php1.1854125 06/16/2020 07/03/2020

SMC2G San Miguel Corporation Cash Php1.23361875 06/16/2020 07/03/2020

SMC2F San Miguel Corporation Cash Php1.27635 06/16/2020 07/03/2020

SMC2E San Miguel Corporation Cash Php1.8603125 06/16/2020 07/03/2020

SMC2D San Miguel Corporation Cash Php1.11433125 06/16/2020 07/03/2020

SMC2C San Miguel Corporation Cash Php1.50 06/16/2020 07/03/2020

GTPPB GT Capital Holdings, Inc. Cash Php12.73725 06/30/2020 07/27/2020

GTPPA GT Capital Holdings, Inc. Cash Php11.57475 06/30/2020 07/27/2020

ACPB1 Ayala Corporation Cash Php6.56250 07/17/2020 08/15/2020

APB2R Ayala Corporation Cash Php6.02675 07/30/2020 08/29/2020

PRF2B Petron Corporation Cash Php17.14575 07/06/2020 08/03/2020

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 6
BPI Traders’ Takedown – 10 June 2020
APPENDIX | GENERAL DISCLAIMER
The information contained herein is based on information obtained from sources considered to be reliable, but does
not make any representation or warranty, express or implied, as to its accuracy, completeness, timeliness or
correctness for any purpose. All the charts and graphs are taken from publicly available sources or derived from
proprietary data. Expressed opinions may be subject to change without prior notice. Any recommendation contained
herein does not pertain to any specific investment objectives, financial situation and the particular needs of any
addressee.

The information herein is published for the information of addressees only and is not to be taken in substitution for
the exercise of judgment by addressees who should obtain separate legal or financial advice. The Company or any
of its related companies or any individuals connected with the group accepts no liability for any direct, special,
indirect, consequential, incidental damages or any other loss or damages of any kind arising from any use of the
information herein (including any error, omission or misstatement herein, negligent or otherwise) or further
communication thereof, even if the Company or any other person has been advised of the possibility thereof.

The information herein is not to be construed as a solicitation to buy or sell any securities, or currency mentioned
therein. The information herein is not intended for distribution to, or use by, any person or entity in any jurisdiction
or country where such distribution or use would be contrary to law or regulation.

Sources:

www.bloomberg.com, www.cnn.com, www.cnbc.com, www.bsp.gov.ph, www.pse.com.ph, www.inquirer.net,

www.bworldonline.com, www.philstar.com, www.interaksyon.com, www.abs-cbnnews.com,
www.thestandard.com.ph, www.mb.com.ph, www.manilatimes.net, www.malaya.com.ph, www.gmanetwork.com,
www.businessmirror.com.ph

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BPI Traders’ Takedown – 10 June 2020
APPENDIX | SALES DISCLAIMER
This report was prepared
APPENDIX | SALESbyDISCLAIMER
a sales function within BPI Securities Corporation (“BSC”). Any opinions expressed
herein are solely those of the author and may be different from the views expressed by BSC itself and its other
departments, including the research department. Sales functions are subject to potential conflicts of interest which
the other BSC departments, including the research department, do not encounter.

This report is published for the information of the recipients only. This report is not to be construed as a solicitation
to buy or sell any securities, futures, options or other financial instruments, to participate in any particular trading
strategy or to provide any investment advice or services. Any recommendation contained herein does not pertain
to any specific investment objectives, financial situation and the particular needs of any recipient.

BSC is not a deposit-taking institution and their obligations or liabilities do not represent the obligations or liabilities
of the Bank of the Philippine Islands ("BPI"). Securities and other financial instruments discussed, recommended,
offered, or sold by BSC: (a) are not insured by the Philippine Deposit Insurance Corporation; (b) are not deposits or
other obligations of any insured depository institution (including BPI); and (c) are subject to investment risks,
including the possible loss of the principal amount invested.

BSC may deal or transact in a manner inconsistent with the views discussed in this report. BSC trades or may trade
as principal in the instruments mentioned herein. BSC, its directors, officers and/or employees may have positions
or other interests in, and may effect transactions in, securities mentioned in this report. BSC may make a market in
the instruments discussed herein. The author of this report may know the nature of such positions and strategies.

The assumptions, estimates and opinions expressed in this report are the author's judgment as of the date hereof
and are subject to change without notice. Although this report is based on information obtained from sources
considered to be reliable as of the date hereof, the author does not make any representation or warranty, express
or implied, as to its accuracy, timeliness or completeness for any purpose. Any information is subject to change
without notice and the author is not under any obligation to update or keep current the information contained
herein.

Certain transactions or securities in this report are subject to substantial risk and are not appropriate for all investors.
Past performance is not necessarily a guide to future performance. BSC deals with counterparties on an arm's length
basis. BSC assumes that each counterparty is capable of making an independent evaluation of the merits and risks
of each, and an independent decision on any, transaction.

BSC does not render legal, tax or financial advice, and the information contained in this report should not be
considered as such and should not be taken in substitution for the exercise of judgment by the recipient who should
obtain separate legal, tax or financial advice. No liability whatsoever is accepted for any direct, special, indirect,
consequential, incidental damages or any other loss or damages of any kind arising from any use of the information
herein (including any error, omission or misstatement herein, negligent or otherwise) or further communication
thereof.

This report contains confidential and privileged information for the sole use of the intended recipients. Any review,
retransmission, dissemination or other use of, or taking of any action in reliance upon, this report by persons or
entities other than the intended recipients is strictly prohibited. Receipt and review of this report constitutes your
agreement not to redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information
contained in this report (including any investment recommendations, estimates or price targets) without first
obtaining expressed permission from an authorized officer of BSC. If you are not the intended recipient, please
contact the sender, immediately delete this communication and maintain the confidentiality of what you may have
read.

E-mail transmission cannot be guaranteed to be secure or error-free. BSC reserves the right to monitor all e-mail
communications. If you would like to stop receiving this report, please contact the sender.

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 8
BPI Traders’ Takedown – 10 June 2020
APPENDIX | RESEARCH DISCLAIMER
This report was prepared by an analyst(s) of BSC. Any opinions expressed herein are solely those of the author and
may be different from the views expressed by BSC itself and its other departments.

This report is published for the information of the recipients only. This report is not to be construed as a solicitation
to buy or sell any securities, futures, options or other financial instruments, to participate in any particular trading
strategy or to provide any investment advice or services. Any recommendation contained herein does not pertain to
any specific investment objectives, financial situation and the particular needs of any recipient.

BSC is not a deposit-taking institution and their obligations or liabilities do not represent the obligations or liabilities
of the Bank of the Philippine Islands ("BPI").

Securities and other financial instruments discussed, recommended, offered, or sold by BSC: (a) are not insured by the
Philippine Deposit Insurance Corporation; (b) are not deposits or other obligations of any insured depository
institution (including BPI); and (c) are subject to investment risks, including the possible loss of the principal amount
invested.

BSC may deal or transact in a manner inconsistent with the views discussed in this report. BSC trades or may trade as
principal in the instruments mentioned herein. BSC, its directors, officers and/or employees may have positions or
other interests in, and may effect transactions in, securities mentioned in this report. BSC may make a market in the
instruments discussed herein. The author of this report may know the nature of such positions and strategies.

The author(s) has received assistance from the subject company in this report including but not limited to meetings
with the management of the company. The analysts and/or associates from time to time seek to establish business
or financial relationships with companies covered in their research reports. Consequently, investors should be aware
that BSC and/or the analysts/associates may have one or more conflicts of interests that could affect the objectivity
of this report.

The assumptions, estimates and opinions expressed in this report are the author’s judgment as of the date hereof and
are subject to change without notice. Although this report is based on information obtained from sources considered
to be reliable as of the date hereof, the author does not make any representation or warranty, express or implied, as
to its accuracy, timeliness or completeness for any purpose. Any information is subject to change without notice and
the author is not under any obligation to update or keep current the information contained herein.

Certain transactions or securities in this report are subject to substantial risk and are not appropriate for all investors.
Past performance is not necessarily a guide to future performance. BSC deals with counterparties on an arm’s length
basis. BSC assumes that each counterparty is capable of making an independent evaluation of the merits and risks of
each, and an independent decision on any, transaction.

BSC does not render legal, tax or financial advice, and the information contained in this report should not be
considered as such and should not be taken in substitution for the exercise of judgment by the recipient who should
obtain separate legal, tax or financial advice. No liability whatsoever is accepted for any direct, special, indirect,
consequential, incidental damages or any other loss or damages of any kind arising from any use of the information
herein (including any error, omission or misstatement herein, negligent or otherwise) or further communication
thereof.

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 9