Philippine Stock Market Research

Manila Water: Has Modest Growth But is an Essential Stock

February 27, 2017


MWC is one of the best performers in the 51-stock coverage.  It grew its revenues by 5% to PHP17.7 bn and its net income by 2% to PHP6.1 bn in 2016.  These are modest growth rates, however, MWC is currently one of the best stock picks in the stock market right now.  It has a less-cyclical business that has strong organic growth and demand in many parts of the Philippines and the Southeast Asian region.  It is resilient against current concerns such as interest rate hikes and US President Trump’s protectionist policies.  MWC is also trading in bargain territory with favorable upside in terms of market and fair value.  Cash dividend yield is likewise at 3%.


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