THURSDAY, 21 FEBRUARY 2013

(Asof February 20, 2012)

Headlines:

SMDC: Earnings reaches Php4.9Bil, in line with estimate

Mining Industry: Mine tax rule tightened

Market Summary

The index continued to rise, increasing by 27.85 points or 0.42% to close at 6,648.57.

Index gainers led decliners 15 to 12 while 3 issues remained unchanged. The Mining and Oil
(-1.63%) and Industrial (-0.35%) sectors were the weakest last trading session while others
were up. Index gainers were led by AGI (+3.88%), SMDC (+3.87%), BDO (+1.84%), JFC
(+1.22%), and SMPH (+1.14%). On the other hand, significant decliners were PX (-2.63%) and
MWC (-2.38%).

Value turnover decreased to Php9.9Bil from Php10.3Bil last Tuesday. Foreigners were net
buyers, acquiring Php306Mil worth of shares.

INDICES
INDICES
Close Points
% YTD%
Close Points
YTD%
PSEi
6,648.57
27.85 0.42 % 52.07
PSEi
5,210.89 4.16
21.52 0.10
0.41 36.14
19.19
All Shares
4,145.45
All
Shares
3,459.02 4.37
14.18 0.25
0.41 82.25
13.60
Financials
1,765.86
Holding Firms 5,778.79
Financials
1,304.87 39.41
5.26 0.69
0.40 64.94
34.67
Industrial
Holding
Firms 9,921.88
4,369.45 -34.50
10.57 -0.35
0.24 40.25
24.71
Mining & Oil 21,566.55
Industrial
7,907.14-357.67
21.75 -1.63
0.28 -8.25
11.77
Property
2,766.81 14.28 0.52 86.79
Mining & Oil 23,177.28 -59.86 -0.26
-1.39
Services
1,939.92 12.08 0.63 20.02

Property
Services

1,908.65
1,783.59

31.58 1.68
-1.00 -0.06

28.85
10.35

INDEX
INDEXGAINERS
GAINERS
Ticker
Ticker
SMPH
AGI
SMDC
RLC
BDO
MPI
JFC
MEG
SMPH
ICT

Company
Company
SM
Prime
Hldgs
Alliance
Global
Inc
SM Dev't Corp
Robinsons
Land Corp
BDO Unibank
Metro
Pacific Inc
Inv Corp
Jollibee Foods Corp
Megaworld
SM Prime Hldgs Inc
Int'l Container Term

Price
Price
13.60
21.40
8.85
18.46
91.55
4.20
116.40
2.15
19.50
71.70

%%
4.29
3.88
3.87
2.56
1.84
1.94
1.22
1.90
1.14

1.85

INDEX
INDEXLOSERS
LOSERS
Ticker
Ticker
PX
URC
MWC
SCC
SMC
DMC
RLC
GLO
JGS
JFC

Company
Price
Company
Price % %
Philex Mining
CorpCorp
17.80
Universal
Robina
59.45 -2.63
-3.25
Manila Water
Co
34.90
Semirara
Mining
220.00 -2.38
-2.65
San Miguel Corp
120.60 -2.19
DMCI Hldgs, Inc
57.90 -1.53
Robinsons Land Corp
21.70 -1.36
Globe Telecom, Inc
1,135.00 -1.13
JG Summit Hldgs
38.90 -1.27
Jollibee Foods Corp
105.80 -1.12

TOP
TOP55MOST
MOSTACTIVE
ACTIVESTOCKS
STOCKS

EVENTS CALENDAR
DATE
4-Feb-13
5-Feb-13
8-Feb-13
15-Feb-13
19-Feb-13
20-Feb-13
25-Feb-13
25-Feb-13
26-Feb-13
27-Feb-13
27-Feb-13
28-Feb-13

TICKER
PRIM
VMC
MIC
CA
MIH
ROX
LR
RPL
CAT
RCI
ASIA
MRC

COMPANY
EVENTS
Prime Media Holdings Inc
Annual Shareholdings Meeting
Victorias Milling Co Inc
Annual Shareholdings Meeting
Minerales Industrias Corp
Annual Shareholdings Meeting
Concrete Aggregates Corp
Annual Shareholdings Meeting
Manchester International Hldgs Unlimited CorpAnnual Shareholdings Meeting
Roxas Holdings Inc
Annual Shareholdings Meeting
Leisure & Resorts World Corp
Ex-date Php0.035 Cash Dividend
iRipple Inc
Ex-date Php0.15 Cash Dividend
Central Azucarera de Tarlac
Annual Shareholdings Meeting
Roxas and Co Inc
Annual Shareholdings Meeting
Asiatrust Development Bank Inc
Annual Shareholdings Meeting
MRC Allied Inc
Annual Shareholdings Meeting

Ticker
Ticker
SM
AC
MEG
ALI
BDO
RLC
SMDC
BDO
MBT
TEL

Company
Company
SM
InvCorporation
Corp
Ayala
Megaworld
Ayala LandCorp
Inc
BDO Unibank Inc
Robinsons Land Corp
SM Dev't Corp
BDO Unibank, Inc
Metrobank

Turnover
Turnover
982,137,100
378,414,800
613,218,000
232,134,500
470,049,500
207,296,400
432,090,100
192,199,500
397,612,400
Phil Long Distance Co 183,260,600

PHILIPPINE EQUITY RESEARCH

SM Development Corporation:
Earnings reaches Php4.9Bil, in line with estimate

Earnings above estimate on strong 4Q12. SM Development Corporation disclosed that full-year
earnings reached Php4.9Bil, up by 17.5% from the previous year. This is in line with our estimate but
above consensus as it accounts for 99% of COL forecasts and 103% of consensus forecasts.

Exhibit 1: Results Summary

in PhpMil
Real Estate Revenues
EBITDA

2011

2012

% Change

% of Consensus

16,184

21,600

33.5

103.6

4,292

5,600

30.5

106.6

EBITDA Margin (%)

Net Income

26.5

25.9

-2.2

4,175

4,900

17.4

103.3

25.8

22.7

-12.1

Net Income Margin (%)

Focus Stock
Ticker
COL Rating
Fair Value
Current Price

: SMDC
: N/A
: N/A
: Php8.85

Source: SMDC, Bloomberg

Earnings were mostly pushed higher by its strong 4Q12 performance. Net income in 4Q12 was
around Php1.6Bil, well above 3Q12s net income of only Php607Mil. However, EBITDA margins
slightly declined to 25.9% from 26.5% last year.
Units sold increased by 7.6%. SMDC reported that units sold reached 12,614 in 2012, up by 7.6%
last year. In addition, reservation sales increased by 20.8% to Php31.7Bil. This has helped push
real estate revenue higher by 33.3% to Php21.6Bil for the year. As of yearend 2012, SMDC has 15
residential projects that could help improve sales in the near-term.
Consensus BUY rating. There is a consensus BUY rating for SMDC with a FV of Php5.22. However,
SMDCs current price has already shot up to Php8.85/sh due to talks about SMDC and SM Land will
be merged with SM Prime.

RICHARD LAEDA, CFA

richard.laneda@colfinancial.com

Mining Industry:
Mine tax rule tightened
BIR issued a new provision last February 15 stating that mining firms operating under financial or
technical assistance agreements (FTAA) are required to pay taxes due under the NIRC(National
Internal Revenue Code) even during the cost recovery period indicated in the Mining Act of
1995. The only exemptions are those provided under the Mining Act, such as income tax holidays.
Meanwhile, the collection of government share in FTAA shall commence once the contractor has fully
recovered its pre-operating expenses, exploration, and development expenditure or until five years
from commercial production, whichever comes first.

Thursday, 21 February 2013

EDMUND LEE
edmund.lee@colfinancial.com

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PHILIPPINE EQUITY RESEARCH

Investment Rating Definitions

BUY

HOLD

SELL

Stocks that have a BUY rating have attractive

fundamentals and valuations, based on
our analysis. We expect the share price
to outperform the market in the next six to
twelve months.

Stocks that have a HOLD rating have either

1.) attractive fundamentals but expensive
valuations; 2.) attractive valuations but
near term earnings outlook might be poor
or vulnerable to numerous risks. Given the
said factors, the share price of the stock may
perform merely inline or underperform the
market in the next six to twelve months.

We dislike both the valuations and

fundamentals of stocks with a SELL rating.
We expect the share price to underperform in
the next six to twelve months.

Important Disclaimers
Securities recommended, offered or sold by COL Financial Group, Inc.are subject to investment risks, including the possible loss of the principal amount
invested. Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and it may
be incomplete or condensed. All opinions and estimates constitute the judgment of COLs Equity Research Department as of the date of the report and are
subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a
security. COL Financial ans/or its employees not involved in the preparation of this report may have investments in securities or derivatives of securities of
securities of the companies mentioned in this report, and may trade them in ways different from those discussed in this report.

2401-B East Tower, Philippine Stock Exchange Centre, Exchange Road, Ortigas Center, Pasig City 1605 Philippines
Tel: +632 636-5411

Thursday, 21 February 2013

Fax: +632 635-4632

Website: http://www.colfinancial.com

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