Philippine Stock Market Research

The Market Leaders in the Philippines

December 6, 2010

Market dominance in a sector or market segment is one of the favorable key elements of stocks chosen in an investment portfolio.  Below is a helpful and handy list of stocks that lead their respective markets.

Food and Beverages

Fastfood – JFC

Beer – SMB, SMC

Liquor – GSMI, SMC

Hotdogs – PF, SMC

Flour – PF, SMC

Spaghetti – RFM

Ice Cream – RFM

Snack Foods – URC

Canned Beans – URC

Ready-to-Drink Tea – URC

Liquid Milk – AMC

Property

Malls – SMPH, SM

Broad-based Horizontal and Vertical Residential Units – ALI, AC

Socialized to Low-cost Housing – FLI

Affordable Housing – VLL

Power and Utilities

Power Distribution – MER

Power Generation – AP, AEV

Geothermal Power Generation – EDC

Water Utilities – MWC

Other Sectors

Retail – SM

Banking – BDO, SM

Telecom – TEL

Broadcasting – GMA7

Port Operations – ICT

Water Transportation – ATS

Bio-diesel – COAT

Resins – COAT

Personal Care Products – SPH

With the Nenaco acquisition of ATS, we are not certain as of this time if this is also a way of Nenaco to be listed again in the PSE.  We are not certain also if ATS gets delisted and ATS minority shareholders become Nenaco shareholders.  More info is required on this.  Nevertheless, the combination of the two companies makes them the leading water transport company in the Philippines in the list above.

In addition, SMC is diversifying into less-cyclical, capital-intensive infrastructure projects.  However, food and beverages is still significant in SMC’s profitability.  ALI also has the most residential product offerings among all the property companies of 8,396 units as of 9M10.  GMA7, on the other hand, is the leader in Mega Manila where bulk of the Philippine population is.

Now that the market leaders are identified, all the value-investor needs to do is to assess financial performance and valuation.  We are very, very picky.  In terms of financial performance in no particular order, we like COAT, GMA7, RFM, MWC, AMC, URC, JFC, SM, AEV, and AP.

In terms of market value in this particular order, we like COAT, VLL, ATS, FLI, GMA7, RFM, MWC, AC and GSMI.  Hopefully, SMC falls down a bit to be liked again.  To note, this was a quiet bargain stock before we reported it as such last October 20, 2010.

In terms of value we see beyond earnings and book value, we like COAT, GSMI, GMA7, ATS, VLL, RFM, AMC, JFC, URC, AC, SMC, FLI, MER, MWC, TEL and SMPH.  We like them in that particular order as well.

Disclaimer

The Philippine Stock Market Research report is solely for information. It should not be constituted as an offer for solicitation for the purchase or sale of securities mentioned. The information herein has been obtained from sources believed to be reliable. Whilst every effort has been made to ensure accuracy, we do not guarantee the accuracy or completeness of the report. All opinions and estimates expressed herein constitute our judgment as of this date made on a reasonable basis and are subject to change without notice. No liability can be expected for any loss arising from the use of this report or its contents. As this is general information, it does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may obtain this report.