Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Philippine Stock Exchange / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> is a monopoly making &gt;60%&gt;/45% EBITDA/NPAT margins across its history with ex-cash ROCE's &gt;30% (cash at five bn pesos is 33% of market cap).</li>
<li>With a relatively low penetration of brokerage accounts (1.5%), an underowned market with 100mn USD volume, and low fee structures, there is ample low-hanging fruit on earnings growth.</li>
<li>The stock trades at 18x PE (9x ex-cash and real estate). With an 80-100% payout, the dividend yield is 5-6%, so you are paid to wait for future catalysts. Our meeting with management in Manila last week gives us added confidence. </li>
</ul>



Philippine Stock Exchange (PSE PM) is a monopoly making &gt;60%&gt;/45% EBITDA/NPAT margins across its history with ex-cash ROCE's &gt;30% (cash at five bn pesos is 33% of market cap).
With a relatively low penetration of brokerage accounts (1.5%), an underowned market with 100mn USD volume, and low fee structures, there is ample low-hanging fruit on earnings growth.
The stock trades at 18x PE (9x ex-cash and real estate). With an 80-100% payout, the dividend yield is 5-6%, so you are paid to wait for future catalysts. Our meeting with management in Manila last week gives us added confidence. 


Philippines Exchange (PSE PM): Deep Value Exchange With Growth Option Embedded

<ul>
<li>We are gradually building a high-conviction coverage of ideas for mid and small-cap companies in the Philippines.</li>
<li>We established metrics focusing on high ROCE, sustainable growth of 10-15% year-over-year, robust balance sheets, and prudent capital allocation, essential elements for identifying potential multi-bagger opportunities.</li>
<li>We add <a href="https://www.smartkarma.com/entities/intl-container-term-svcs-inc" target="_blank" data-smartkarma-citation="entities:20001:1" rel="noopener">ICTSI (ICT PM)</a>  and <a href="https://www.smartkarma.com/entities/asian-terminals-inc" target="_blank" data-smartkarma-citation="entities:22959:1" rel="noopener">Asian Terminals (ATI PM)</a> to our Philippines high-conviction list, which we will be initiating coverage on shortly. </li>
</ul>


We are gradually building a high-conviction coverage of ideas for mid and small-cap companies in the Philippines.
We established metrics focusing on high ROCE, sustainable growth of 10-15% year-over-year, robust balance sheets, and prudent capital allocation, essential elements for identifying potential multi-bagger opportunities.
We add ICTSI (ICT PM)  and Asian Terminals (ATI PM) to our Philippines high-conviction list, which we will be initiating coverage on shortly. 


Shortlist of High Conviction Philippines Equity Ideas - April 2025

<ul>
<li>We summarize the <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" rel="noopener">Philippine Stock Exchange (PSE PM)</a> earnings for FY24. Revenues/core earnings declined 1.2%/2.9% YoY. Inclusive of the gain in the stake of PDS, profits were up 56% YoY.</li>
<li>The outlook for 2025 is strong, bolstered by the completed acquisition of a 78.3% stake in PDS and a 75% increase in listing maintenance fees, which contribute 18% of revenues.</li>
<li>With a FY25 PE of 13.6x, over 10% cash in the market, more than 50% EBITDA, and a 7.4% dividend yield, the stock presents an attractive investment opportunity.</li>
</ul>


We summarize the Philippine Stock Exchange (PSE PM) earnings for FY24. Revenues/core earnings declined 1.2%/2.9% YoY. Inclusive of the gain in the stake of PDS, profits were up 56% YoY.
The outlook for 2025 is strong, bolstered by the completed acquisition of a 78.3% stake in PDS and a 75% increase in listing maintenance fees, which contribute 18% of revenues.
With a FY25 PE of 13.6x, over 10% cash in the market, more than 50% EBITDA, and a 7.4% dividend yield, the stock presents an attractive investment opportunity.


Philippines Exchange (PSE PM): Steady FY24 Sets The Stage For Catalyst-Filled FY25

<ul>
<li>We are gradually building a high-conviction coverage of ideas for the mid and small-caps in the Philippines.</li>
<li>We set criteria for high ROCE, reasonable growth (10-15% YoY), strong balance sheets, and reasonable capital allocation (dividend yields), all ingredients for being multi-baggers.</li>
<li>Figaro Coffee (FCG PM) has been added due to its &gt;20% ROCE, 7x PE, and strong growth potential. We will initiate coverage on it shortly with an insight.</li>
</ul>


We are gradually building a high-conviction coverage of ideas for the mid and small-caps in the Philippines.
We set criteria for high ROCE, reasonable growth (10-15% YoY), strong balance sheets, and reasonable capital allocation (dividend yields), all ingredients for being multi-baggers.
Figaro Coffee (FCG PM) has been added due to its &gt;20% ROCE, 7x PE, and strong growth potential. We will initiate coverage on it shortly with an insight.


Shortlist of High Conviction Philippines Equity Ideas - February 2025

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Bolsa Mexicana De Valores Sab / Equity Bottom-Up

<ul>
<li>We upgrade BolsaMex to a buy rating; we believe that it is too cheap to ignore and that it has sound growth credentials with its healthy share of post-trade revenues</li>
<li>We downgrade B3 Exchange to a neutral from buy, after its strong share price performance since mid-October lows; we feel it is still attractive but not as compelling as BolsaMex</li>
<li>We upgrade BSE to a neutral rating from sell despite it trading on rich fundamental valuations; India’s strong IPO pipeline is one major factor in de-railing our sell recommendation</li>
</ul>


We upgrade BolsaMex to a buy rating; we believe that it is too cheap to ignore and that it has sound growth credentials with its healthy share of post-trade revenues
We downgrade B3 Exchange to a neutral from buy, after its strong share price performance since mid-October lows; we feel it is still attractive but not as compelling as BolsaMex
We upgrade BSE to a neutral rating from sell despite it trading on rich fundamental valuations; India’s strong IPO pipeline is one major factor in de-railing our sell recommendation


GEM Exchanges –Bolsa Mexicana (BOLSAA MM) Is Our Top Pick

Philippines

Philippine Stock Exchange Inc. is a self-regulatory organization that provides a fair, efficient, transparent and orderly market for the buying and selling of securities.

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Philippine Stock Exchange (PSE PM)

Philippines Exchange (PSE PM): Deep Value Exchange With Growth Option Embedded

Exchanges are monopolies. PSE PM is no exception. Trading at 18x with more than 50% of its market cap in cash/real estate and 6% dividend yield,...

Sameer Taneja

Shortlist of High Conviction Philippines Equity Ideas - April 2025

We compile our selection of small and mid-cap names for the Philippines with our desired characteristics of high dividend yields, value, and margin...

Sameer Taneja

Philippines Exchange (PSE PM): Steady FY24 Sets The Stage For Catalyst-Filled FY25

PSE PM is trading at a PE of 13.6x for FY25e, with over 10% of the market in cash, more than 50% net margins, and a 7.4% dividend yield, making the...

Sameer Taneja

Shortlist of High Conviction Philippines Equity Ideas - February 2025

We compile our selection of small and mid-cap names for the Philippines with our desired characteristics of high dividend yields, value, and margin...

Sameer Taneja

GEM Exchanges –Bolsa Mexicana (BOLSAA MM) Is Our Top Pick

We Upgrade BolsaMex to buy for its deep value, strong post-trade revenues, more attractive than downgraded-to-neutral B3; BSE upgraded to neutral...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Philippines Exchange (PSE PM): Deep Value Exchange With Growth Option Embedded

Exchanges are monopolies. PSE PM is no exception. Trading at 18x with more than 50% of its market cap in cash/real estate and 6% dividend yield,...

Sameer Taneja

Shortlist of High Conviction Philippines Equity Ideas - April 2025

We compile our selection of small and mid-cap names for the Philippines with our desired characteristics of high dividend yields, value, and margin...

Sameer Taneja

Philippines Exchange (PSE PM): Steady FY24 Sets The Stage For Catalyst-Filled FY25

PSE PM is trading at a PE of 13.6x for FY25e, with over 10% of the market in cash, more than 50% net margins, and a 7.4% dividend yield, making the...

Sameer Taneja

Shortlist of High Conviction Philippines Equity Ideas - February 2025

We compile our selection of small and mid-cap names for the Philippines with our desired characteristics of high dividend yields, value, and margin...

Sameer Taneja

GEM Exchanges –Bolsa Mexicana (BOLSAA MM) Is Our Top Pick

​We Upgrade BolsaMex to buy for its deep value, strong post-trade revenues, more attractive than downgraded-to-neutral B3; BSE upgraded to neutral...

Victor Galliano

We Upgrade BolsaMex to buy for its deep value, strong post-trade revenues, more attractive than downgraded-to-neutral B3; BSE upgraded to neutral...