TUE 25 AUG 2020

Top Stories:

DITO: House OKs bill granting 25-year franchise to DITO

PIZZA: PIZZA brings R&B brand of milk tea to the Philippines
MEG: MEG targets more office spaces despite pandemic (AS OF AUG 24, 2020)
INDICES

Close Points % YTD%

Other News: PSEi 5,943.58 -61.82 -1.03 -23.95
All Shares 3,540.57 -32.49 -0.91 -23.85

Economy: First COVID-19 reinfection gets documented Financials 1,121.78 -9.16 -0.81 -39.81
Holding Firms 6,169.72 -77.33 -1.24 -18.73
Industrial 7,857.78 65.52 0.84 -18.45
Mining & Oil 5,773.89 90.98 1.60 -28.65
COVID-19 Update: Property 2,811.68 -72.95 -2.53 -32.32
Services 1,453.60 3.33 0.23 -5.06

Total Cases Total Deaths Total Recoveries

Dow Jones 27,930.33 191 0.69 -2.13
S&P 500 3,397.16 11.65 0.34 5.15
Philippines 194,252 (+4,686) 3,101 (+13) 132,042 (+729) Nasdaq 11,311.80 46.85 0.42 26.07

USA 5,914,660 (+41,253) 181,094 (+512) 3,215,849 (+51,590)

INDEX GAINERS
Worldwide 23,800,577 (+223,670) 816,514 (+4,355) 16,347,204 (+274,689) Ticker Company Price %
TEL PLDT Inc 1400.00 2.34
URC Universal Robina Corp 140.00 2.04
AC Ayala Corporation 743.00 1.78
FGEN First Gen Corporation 23.65 1.50
Market Summary: JFC Jollibee Foods Corp 141.20 1.22

The local stock market declined on Monday amid heavy foreign selling on several blue-chip INDEX LOSERS
stocks. Ticker Company Price %
SMPH SM Prime Hldgs Inc 30.00 -3.23
SMC San Miguel Corporation 100.00 -2.91
The PSEi lost 61.82 points or 1.02% to close at 5,943.58. The main drags were SMPH ALI Ayala Land Inc 30.60 -2.39
(-3.23%), SMC (-2.91%), ALI (-2.39%), AEV (-2.31%), and JGS (-2.29%). On the other hand, AEV Aboiti Equity Ventures 48.65 -2.31
the top movers were TEL (+2.34%), URC (+2.04%), AC (+1.78%), FGEN (+1.50%), and JFC JGS JG Summit Hldgs Inc 62.00 -2.29

(+1.22%).
TOP 5 MOST ACTIVE STOCKS
Value turnover rose to Php10.3Bil from Php4.1Bil in the previous session. Meanwhile, Ticker Company Turnover
foreigners remained net sellers, disposing Php1.0Bil worth of shares. EMP Emperador Inc 5,202,014,000
SM SM Investments Corp 546,001,000
BDO BDO Unibank Inc 435,377,700
In the US, major stocks indices (DJIA +1.35%; S&P 500 +1.00%; NASDAQ +0.60%) rose. ALI Ayala Land Inc 413,533,400
SMPH SM Prime Hldgs Inc 348,764,500

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.

TUE 25 AUG 2020
Kerwin Malcolm Chan
Research Analyst
DITO CME Holdings Corp.
N/A
N/A
John Martin Luciano, CFA
Senior Research Analyst
Shakey’s Pizza Asia Ventures
BUY
Php7.70
Richard Laneda, CFA
Senior Research Manager
Megaworld Corporation
BUY
Php3.70
COL Financial Group, Inc.
DAILY NOTES I PHILIPPINE EQUITY RESEARCH
Top Stories:
DITO: House OKs bill granting 25-year franchise
to DITO
Last Monday, the House of Representatives approved the 25-year franchise bid of the
third telco player, DITO Telecommunity Corporation. With 240 affirmative votes and only
7 negative votes, lawmakers approved House Bill No. 7332, which renews the original
franchise under Mindanao Islamic Telephone Inc. set to expire on April 24, 2023. If the
bill gets signed into law, then DITO’s franchise shall be extended for a period of 25 years
from its original expiration, unless sooner revoked or cancelled. The franchise will be
deemed ipso facto revoked if the third telco fails to operate continuously for two years.
(Source: Inquirer)
PIZZA: PIZZA brings R&B brand of milk tea to the
Philippines
PIZZA has entered into a master franchise agreement with Singapore-based Koufu Group
Ltd to bring the R&B milk tea brand to the Philippines. R&B is one of the leading milk tea
and bubble tea players in Singapore. It currently has more than 1,000 outlets worldwide
in countries such as China, US, Singapore, Cambodia, Vietnam, Malaysia, and Indonesia.
Under the agreement, PIZZA shall be awarded the territorial rights to sell R&B milk tea,
bubble tea, and other specialty tea drinks in the Philippines, through stand-alone store
formats and co-branding in select Shakey’s and Peri-Peri Charcoal Chicken outlets. (Source:
PIZZA)
MEG: MEG targets more office spaces despite
pandemic
MEG is targeting to launch 110,000 square meters of leasable office space this year,
bringing its total gross leasable space to 1.4 million sq.m. by end-2020. Recall in 2019,
the company completed around 192,300 sq.m. of leasable office space. Management
also disclosed that they cut their FY20 capex by 40% to Php36Bil due to the coronavirus
pandemic. Nevertheless, the company still intends to continue the development of its
master-planned townships as they strengthen their recurring income from office rentals,
offsetting the slowdown in their mall business segment during the lockdown. (Source:
Bworldonline)
2
 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

TUE 25 AUG 2020

Other News:

Research Analysts Economy: First COVID-19 reinfection gets documented

John Martin Luciano, CFA Researchers in Hong Kong reported what appears to be the first documented, COVID-19
Frances Rolfa Nicolas reinfection. This came from a 33-year-old man who first caught COVID-19 in March and
Justin Richmond Cheng
four-and-a-half months later seemingly caught it again while travelling in Europe. This
Adrian Alexander Yu
puts to question the durability of being immune to the virus. While there have been
Kerwin Malcolm Chan
several cases that claimed to be reinfected cases, most of these are based only from
anecdotal evidence. However, in the case mentioned above, researchers in Hong Kong
have sequenced the virus from the patient’s two infections and found that these two did
not match or that the second infection was not tied to the first one. (Source: CNBC)

Changes in Shareholdings
Date of Acquired or Price per
Stock Volume Person (Designation)
Disclosure Disposed share
Maria Cristina C. Gotianun
24-Aug DMC 140,600 A 3.89
(Director & Asst. Treasurer)
Isidro A Consunji
24-Aug DMC 210,400 A 3.89
(Chairman, President & CEO)
Honorio O. Reyes-Lao
24-Aug DMC 10,000 A 3.85
(Independent Director)
Maria Cristina C. Gotianun
25-Aug SCC 120,000 A 9.46
(Director, President & COO)
Isidro A. Consunji
25-Aug SCC 200,000 A 9.46
(Director & Chief Excutive Officer)
Source: PSE

COL Financial Group, Inc. 3

 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

TUE 25 AUG 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.

2402-D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE,
EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
FAX NO. +632 635-4632
WEBSITE: www.colfinancial.com

COL Financial Group, Inc. 5