notes: SCC/SEMIRARA MINING AND POWER CORPORATION (15 MAY 2018)

COL FINANCIAL DAILY NOTES (15 MAY 2018)

"Maintain BUY rating. We reiterate our BUY recommendation on SCC with a FV estimate of Php45.7/sh. Fundamentally, we like SCC since we expect it to be a major beneficiary of the country’s rising power demand given its vertically integrated operations and plans to boost power generation capacity from 850MW currently to 1,200MW in 2021E. Furthermore, the outlook for its coal mining business has improved due to its higher production level and the recent recovery of regional coal prices."