PH corporate earnings to remain robust - RCBC
MANILA - Major listed companies continued posting better-than-expected net income in the first half led by financial institutions.
Robust profits will remain the norm, allowing several public firms to post an aggregate income growth of 17 percent for the entire 2013 and close to 10 percent next year, RCBC Securities Inc. said in a report.
“First half aggregate corporate earnings continued to beat our forecast,” RCBC Securities said.
Aggregate core net income of the 45 companies covered by the brokerage firm jumped 20 percent to P223.3 billion, exceeding the forecast of 15 percent, RCBC Securities said.
On a per company basis, 14 listed firms fared better than expected in the first semester, while 22 reported earnings in line with expectations but nine entities underperformed.
In terms of sector, banks, consumer and telecommunications companies were above expectations in the first half.
Specifically, banks recorded a 56-percent income surge to P56.26 billion while consumer firms grew profits by 35 percent to P15.14 billion and telecommunications companies posted a seven-percent growth to P25.8 billion.
Financial firms like Banco De Oro Unibank and Metrobank were the top performers for the banking sector. Snacks giant Universal Robina Corp. and fastfood chain Jollibee Foods Corp. led the consumer sector while Globe Telecom Inc. paced the telecommunications segment.
Property (+17 percent to P26.24 billion), holding companies (+17 percent to P57.9 billion) and mining firms (-23 percent to P6.35 billion) were in line with expectations.
Property giant Ayala Land Inc., Alliance Global Group Inc. and Semirara Mining Corp. led the property, holding and mining firms, respectively.
Power and energy companies like Aboitiz Power Corp. and First Gen Corp., and others firms like gaming firm
Bloomberry Resorts Corp. and EEI Corp. fared worse than expected as aggregate net income inched up one percent to P29.69 billion and rose two percent to P5.89 billion, respectively.
Given strong performance in the first half, Philippine companies covered by RCBC Securities will likely post continued growth for the entire 2013 and 2014.
“All together, our aggregate earnings forecast for 2013 rises 1.8 percent from the original forecast to P427.736 billion,” RCBC Securities said. This jacks up the year-on-year growth forecast to 17 percent from the previous 15 percent.