PROPERTY SECTOR

From 1990 to 2014, the East Asia and Pacific attracted $285 billion in
infrastructure investment with private sector participation. In 2014, this investment
amounted to $11.5 billion, or 3% of total infrastructure spending. China accounts for
a major share of the regions public-private partnerships while significant growth is
seen in Malaysia and the Philippines. Given that the share for Philippines in the East
Asia and Pacific for the investment of infrastructure projects is significantly large,
which places third at 14%; it will definitely imply that the property sector of the
Philippines is a good industry to venture and invest. Higher investments entail
better investor prospects for profit, thus making the sector a gold mine for
investments.

Security Name
AYALA LAND,
INC.
2
BELLE
CORPORATION
3
CROWN
EQUITIES, INC.
4
CENTURY
PROPERTIES
GROUP INC.
5
CYBER BAY
CORPORATION
6
FILINVEST
LAND, INC.
7 GLOBAL-ESTATE
RESORTS, INC.
8 8990 HOLDINGS,
INC.
9
IRC
PROPERTIES,
INC
10 MEGAWORLD
CORPORATION
11
ROBINSONS
LAND
CORPORATION
12
ROCKWELL
LAND
CORPORATION
13
STA. LUCIA
LAND, INC.
14
SM PRIME
HOLDINGS, INC.
15
SUNTRUST
HOME
DEVELOPERS,
INC.
16 VISTA LAND &
LIFESCAPES,
INC.
1

Symbol
ALI

Free Float
Last Trade Date Last Trade Price Outstanding Shares Level(%)

Free Float Market

Capitalization

Oct 08, 2015

36.35

14,695,631,367

52.00

277,776,824,104.85

%Weight
43.73

BEL

Oct 08, 2015

3.05

10,522,348,799

41.00

13,158,197,174.40

2.07

CEI

Oct 08, 2015

0.101

13,599,999,960

66.00

906,575,997.37

0.14

CPG

Oct 08, 2015

0.61

11,599,600,690

33.00

2,334,999,619.08

0.37

CYBR

Oct 08, 2015

0.425

6,806,878,853

37.00

1,070,381,699.80

0.17

FLI

Oct 08, 2015

1.73

24,249,759,506

39.00

16,361,312,739.84

2.58

GERI

Oct 08, 2015

1.26

10,986,000,000

11.00

1,522,659,600.00

0.24

HOUSE

Oct 08, 2015

6.47

5,517,990,720

25.00

8,925,349,989.60

1.41

IRC

Oct 08, 2015

1.30

1,127,088,964

40.00

586,086,261.80

0.09

MEG

Oct 08, 2015

4.69

32,239,445,872

34.00

51,409,020,389.93

8.09

RLC

Oct 08, 2015

28.95

4,093,830,685

39.00

46,221,395,373.60

7.28

ROCK

Oct 08, 2015

1.57

6,116,762,198

13.00

1,248,431,165.02

0.20

SLI

Oct 08, 2015

0.72

8,546,450,000

13.00

799,947,720.00

0.13

SMPH

Oct 08, 2015

21.40

28,879,231,694

31.00

191,584,823,076.40

30.16

SUN

Oct 08, 2015

1.50

2,250,000,000

39.00

1,316,250,000.00

0.21

VLL

Oct 08, 2015

5.17

8,404,028,614

46.00

19,986,460,852.71

3.15

Among the top companies in the property sector of the Philippine Stock
Exchange (PSE), Ayala Land, Inc. (ALI), SM Prime Holdings, Inc. (SMPH), and
Megaworld

Corporation

(MEG)

are

ranked

among

the

heaviest

and

most

experienced companies. Also, according to capex budget, these companies became

industry leaders having ALI announced a capex budget for this year to around P8090 billion, SM Prime Holdings at number two with a planned capex of nearly P80
billion, followed by Megaworld Corporation with a capex budget of P65 billion.

Fundamental Analysis
Ratios
Price to Earnings
Price to Sales
Price to Book Value
Return on Investment
Return on Equity

ALI
31.28
5.16
4.07
7.67
14.12

SMPH
22.54
9.03
3.04
9.06
14.51

MEG
14.72
3.50
1.34
6.34
9.23

Industry Average
18.48
5.28
1.59
8.52
12.48

Having the high P/E ratio, ALI has more pesos invested for each dollar earning
compared to its competitors. ALIs P/S ratio is fairly close to the industry average
which makes it neither overvalued nor undervalued. However, SMPH stock is well
above the average making it likely to be overvalued while MEG is way below making
it truly an undervalued stock. However, P/B ratio shows that both ALI and SMPH
have higher than average ratio making both stocks overvalued as to its book. But,
the MEG stock remains to be undervalued by being slightly below the average.
SMPH exemplifies the highest return for investing since it surpassed not only its
major competitors but also the industry average. Return on Equity refers to the
companys capacity to generate profit from the equity provided by the shareholders.
ROE are about the same for ALI and SMPH both above the average while MEG being
below to both competitors and the average.

TECHNICAL ANALYSIS
AYALA LAND INC.

As of October 8, 2015
Closing Price: P36.35

Based on the 1 year trend of the stocks of ALI, the company was on its peak on the
month of April 2015 with the closing price of P 41.40. The month of October 2014
has the lowest closing price of P 31.30 and on October 08, 2015, the price has
ranged between P 35.55 to P 36.50 with the latest closing price of P 36.35 gaining
1.11% from the previous trading day.

In the MACD indicator, the chart shows that the MACD is above the signal line, EMA,
which indicates a bullish signal on ALIs stocks. The MACD line of -0.14 runs above
the signal line of -0.47 with a divergence of 0.33. This shows that there is an upward
momentum showing that investors are controlling the upward trend of the company.
The RSI at 55.18 shows that ALI is trading between the bullish and bearish zone;
ALIs stock price is still at the neutral zone, not yet overbought nor oversold.

Consensus forecast amongst 14 polled investment analysts covering Ayala Land,

Inc. advises that the company will outperform the market. Ultimately, the
recommendation suggests a strong buy since not only will the company outperform
the market but it will most likely continue to be in the uptrend in 3 years time.

SM PRIME HOLDINGS

As of October 8, 2015
Closing Price: P21.40

Based on the 1 year trend of the stocks of SMPH, the company was on its peak on
the month of July 2015 with the closing price of P 22.50. The month of January 2014
has the lowest closing price of P 15.72 and on October 08, 2015, the price has
ranged between P 21.10 to P 21.90 with the latest closing price of P 21.40 losing
0.40% from the previous trading day.

In the MACD indicator, the chart shows that the MACD is above the signal line, EMA,
which indicates a bullish signal on SMPHs stocks. The MACD line of 0.30 runs above
the signal line of 0.18 with a divergence of 0.12. This shows that there is an upward
momentum showing that investors are controlling the upward trend of the company.
The RSI at 56.67 shows that SMPH is trading between the bullish and bearish zone;
SMPHs stock price is still at the neutral zone, not yet overbought nor oversold.

Consensus forecast amongst 12 polled investment analysts covering SM Prime

Holdings advises that the company will outperform the market. Hence, most of the
analysts recommend the buying of the stock since the company is found to be
outperforming the market.

MEGAWORLD CORP.

As of October 8, 2015
Closing Price: P4.69

Based on the 1 year trend of the stocks of MEG, the company was on its peak on the
month of April 2015 with the closing price of P 5.94. The month of December 2013
has the lowest closing price of P 3.15 and on October 08, 2015, the price has
ranged between P 4.65 to P 4.75 with the latest closing price of P 4.69 gaining 21%
from the previous trading day.

In the MACD indicator, the chart shows that the MACD is above the signal line, EMA,
which indicates a bullish signal on MEGs stocks. The MACD line of 0.05 runs above
the signal line of 0.00 with a divergence of 0.05. This shows that there is an upward
momentum showing that investors are controlling the upward trend of the company.
The RSI at 59.45 shows that MEG is trading between the bullish and bearish zone;
MEGs stock price is still at the neutral zone, not yet overbought nor oversold.

Consensus forecast amongst 12 polled investment analysts covering Megaworld

Corp advises that the company will outperform the market. Although, a significant
number also suggests for a hold on the stock but the buying signal is still higher.

POWER SECTOR

News in the papers says that the power industry plays a huge role in the
Philippine economy. It is a major driver to the GDP growth. The Market share of the
Philippine power industries are increasing at a high pace. Some of the recent market
updates mentions the following:
Mindanao could have access to about 500 megawatts (MW) of solar power if all
31 projects now pending are approved and implemented, data from the Mindanao
Development Authority (MinDA) and the Department of Energy (DoE) showed.

ABOITIZ Power Corp. will build plants in Indonesia and scout for ventures in Vietnam and
Myanmar as the Philippines second-largest electricity producer expands in Southeast Asia
while expecting an oversupply at home.

The demand for power continues to increase exponentially making the power
industry expand more and more. Thus, the income generated in the industry is
continually increasing as well as making the investment venture in such industry
profitable.

Last Trade Date Last Trade Price Outstanding Shares

Free Float
Level(%)

Free Float Market

Capitilization

Security Name

Symbol

ABOITIZ POWER
CORP.

AP

Oct 08, 2015

43.40

7,358,604,307

20.00

63,872,685,410.80

9.78

DA VINCI CAPITAL
HOLDINGS, INC.

DAVIN

Oct 08, 2015

1.83

1,124,999,969

15.00

308,812,492.68

0.05

DEL MONTE PACIFIC

LIMITED

DMPL

Oct 08, 2015

9.85

1,943,737,506

8.50

1,627,394,236.65

0.25

D&L INDUSTRIES,
INC.

DNL

Oct 08, 2015

10.30

7,142,857,990

31.00

22,807,145,563.10

3.49

EEI CORPORATION

EEI

Oct 08, 2015

7.82

1,036,281,485

44.00

3,565,637,338.28

0.55

FIRST GEN
CORPORATION

FGEN

Oct 08, 2015

23.40

3,660,943,557

33.00

28,269,806,151.60

4.33

ENERGY
DEVELOPMENT
CORPORATION

EDC

Oct 08, 2015

5.99

18,750,000,000

49.00

55,033,125,000.00

8.43

8 INTEGRATED MICROELECTRONICS, INC.

IMI

Oct 08, 2015

5.72

1,856,899,921

19.00

2,018,078,834.20

0.31

LAFARGE REPUBLIC,
INC.

LRI

Sep 15, 2015

9.00

5,823,801,537

10.00

5,241,421,386.00

0.80

10

Max's Group, Inc.

MAXS

Oct 08, 2015

22.50

1,087,082,024

31.00

7,582,397,130.00

1.16

11

MANILA ELECTRIC
COMPANY

MER

Oct 08, 2015

303.20

1,127,098,705

19.00

64,929,902,212.80

9.94

12

PETRON
CORPORATION

PCOR

Oct 08, 2015

7.00

9,375,104,497

24.00

15,750,175,560.00

2.41

13

PHOENIX
PETROLEUM
PHILIPPINES, INC.

PNX

Oct 08, 2015

3.50

1,428,777,232

36.00

1,800,259,314.00

0.28

TA

Oct 08, 2015

1.93

4,865,146,089

45.00

4,225,379,380.13

0.65

14 TRANS-ASIA OIL AND

ENERGY
DEVELOPMENT
CORP.

%Weight

The top companies in the power sector of the Philippine Stock Exchange
(PSE) based on the weight they have are mainly Manila Electric Company (MER),
Aboitiz Power Corporation (AP), and Energy Development Corporation (EDC)
respectively.

Fundamental Analysis
Ratios
Price to Earnings
Price to Sales
Price to Book Value
Return on Investment
Return on Equity

MER
16.94
1.27
4.19
10.97
25.39

AP
20.46
3.81
3.68
9.32
18.46

EDC
11.20
3.45
2.50
9.93
23.96

Industry Average
14.10

1.60
1.37

3.85
16.36

Both MER and AP have high P/E ratio, exceeding the industry average with AP
having a slight advantage in the P/E ratio. Only MER have low P/S ratio which means
the price investors are willing to pay for every peso of sale is less. However, being
an undervalued stock has given the stock a better growth potential. P/B ratios are
all above the average being MER as the lead, followed by AP and then EDC. When it
comes to the companys book value, none of the three are undervalued. Return for
the investments are all way above the average and are very closely similar.
Nevertheless, MER proved to be incurring high returns for its investments. Return on
Equity refers to the companys capacity to generate profit from the equity provided
by the shareholders. ROE are about the same for all the three companies being
above the average while MER again has the highest return for utilizing equities
followed by EDC and then AP.

TECHNICAL ANALYSIS
MANILA ELECTRIC CO.

As of October 8, 2015
Closing Price: P303.20

Based on the 1 year trend of the stocks of MER, the company was on its peak on the
month of August 2015 with the closing price of P 310.00. The month of January
2014 has the lowest closing price of P 250.20 and on October 08, 2015, the price
has ranged between P 302.40 to P 304.80 with the latest closing price of P 303.20
gaining 0.07% from the previous trading day.
In the MACD indicator, the chart shows that the MACD is above the signal line, EMA,
which indicates a bullish signal on MERs stocks. The MACD line of 3.57 runs above

the signal line of 2.61 with a divergence of 0.96. This shows that there is an upward
momentum showing that investors are controlling the upward trend of the company.
The RSI at 60.74 shows that MER is trading between the bullish and bearish zone;
MERs stock price is still at the neutral zone, not yet overbought nor oversold.

Consensus forecast amongst 14 polled investment analysts covering Manila Electric Company advises investors to
hold their position in the company.

MER stocks are not seen to be bullish by the analysts, but

nor is it bearish. The stock is basically recommended to be held for its behavior
uncertain.

ABOITIZ POWER CORP.

As of October 8, 2015
Closing Price: 43.40

Based on the 1 year trend of the stocks of AP, the company was on its peak on the
month of March 2015 with the closing price of P 47.00. The month of April 2014 has
the lowest closing price of P 38.45 and on October 08, 2015, the price has ranged
between P 43.15 to P 43.45 with the latest closing price of P 43.40 losing 0.12%
from the previous trading day.

In the MACD indicator, the chart shows that the MACD is above the signal line, EMA,
which indicates a bullish signal on APs stocks. The MACD line of 0.07 runs above
the signal line of 0.00 with a divergence of 0.07. This shows that there is an upward
momentum showing that investors are controlling the upward trend of the company.
The RSI at 51.00 shows that AP is trading between the bullish and bearish zone;
APs stock price is still at the neutral zone, not yet overbought nor oversold.

Consensus forecast amongst 10 polled investment analysts covering Aboitiz Power

Corporation advises investors to hold their position in the company. Additionally, the
investors believe that the stock to be underperforming and therefore decides that
the stock to best be held.

ENERGY DEVELOPMENT CORP.

As of October 8, 2015
Closing Price: P5.99

Based on the 1 year trend of the stocks of EDC, the company was on its peak on the
month of February 2015 with the closing price of P 9.13. The month of November
2013 has the lowest closing price of P 5.14 and on October 08, 2015, the price has
ranged between P 5.93 to P 6.05 with the latest closing price of P 5.99 gaining
0.34%% from the previous trading day.

In the MACD indicator, the chart shows that the MACD is above the signal line, EMA,
which indicates a bullish signal on EDCs stocks. The MACD line of -0.07 runs above
the signal line of -12.00 with a divergence of 0.06. This shows that there is an
upward momentum showing that investors are controlling the upward trend of the
company.
The RSI at 48.09 shows that EDC is trading between the bullish and bearish zone;
EDCs stock price is still at the neutral zone, not yet overbought nor oversold.

consensus forecast amongst 15 polled investment analysts covering Energy

Development Corp advises that the company will outperform the market. Therefore,
The buy in the EDC stock is certainly recommended for the analysts.