Philippine Stock Market Research

October 31, 2016

The Pilipinas Shell Petroleum Corp. (SHLPH) IPO

SHLPH is a good alternative to the bigger oil refiner Petron Corp. (PCOR).  SHLPH has a more stable balance sheet and is also enjoying the benefits of a refinery upgrade that allowed it to produce and sell more high-value middle distillate products such as diesel, kerosene and jet fuel.

With its policy of paying 75% of previous year’s net income as cash dividends, SHLPH also has a superior cash dividend yield based on its offer price that ranks high along with GMA7, TEL and GLO.  SHLPH lists in the exchange on November 3 and has upside to PER, Fair Value and PEG.