Philippine Stock Market Research

Philippine Stocks’ First Half 2010 Net Income Performance

August 11, 2010

Below is a compilation of first half 2010 net income results as of this date.

Our 2010 projections are still suitable on the revenue level; however, five are off on the net income level.  They are AMC, ALI, MER, AGI and ATS. Of the five, ATS may be up for a downgrade due to its 1H10 loss resulting from the dry-docking of some of its vessels in the period.  Meanwhile, AMC is benefiting from low SMP (Skimmed Milk Products) prices and a stronger peso, and we have over-compensated for SMP fluctuations by assuming an average 2010 price of USD3,000 per MT.  Current and hedged SMP prices are around USD2,800 per MT.  Lastly, ALI, AGI and MER costs, expenses and other income and expenses will be evaluated for potential net income upgrade.