notes: MPI/METRO PACIFIC INVESTMENTS CORP.

COL FINANCIAL DAILY NOTES (11 SEPT 2018)

Maintaining BUY rating. We are maintaining our BUY rating on MPI with a FV estimate of Php8.21/sh. MPI’s share price has declined by 21.9% during the year to date period, underperforming the PSEi which has declined by only 11.2% during the same period. We believe that the underperformance was mainly due to regulatory concerns surrounding its key businesses (water and toll roads). However, we believe that these concerns are overblown. Maynilad has already won its second arbitration case against the government. Meanwhile, although MPTC is still in arbitration against the government, it is currently in talks with the government for the tariff adjustment of its toll road business. Furthermore, MPI is now trading at only 11.7X 2018E P/E, a discount relative to the 18X average P/E of its industry peers. Based on its current market price, upside to our FV estimate of Php8.21/sh is significant at 53.5%.


COL FINANCIAL DAILY NOTES (14 JUN 2018)

Maintaining BUY rating. We are maintaining our BUY rating on MPI with a FV estimate of Php8.21/sh.