Quick Take: PAL's first quaarter and 2 more market updates
Philippine Airlines [PAL 5.50 4.2%; 21% avgVol] [link] reported a Q1 net income attributable of P4.65 billion, up 329% y/y from its Q1/22 net income attributable of P1.08 billion, and up 232% q/q from its Q4/22 net income attributable of P1.4 billion. PAL said that passenger revenue increased 112% y/y on a 156% y/y increase in passenger volume. PAL said its passenger load factor increased from 54% to 81%. The company said that its operating expenses were up 59%, mostly due to the increase in fuel prices, but also as a result of simply operating more flights.
MB Quick Take: It’s “hot girl summer” for the airlines right now, as they’re getting the chance to compare this quarter’s bump in domestic and international travel against Q1/22’s suppressed travel data thanks to the Omicron scare and the associated movement restrictions. Like with y/y inflation figures, the “growth” is going to start to drop mathematically as the denominator begins to more and more resemble PAL’s “new normal” profitability. So far, Captain Stan has done a reasonable job of holding the stick steady while PAL tries to gain some altitude. We’ll see how things go if rates remain high for a while, and PAL’s operations continue to be hampered by a failure to source replacement parts and planes.
Premiere Horizon Alliance [PHA 0.26 1.9%; 48% avgVol] [link] disclosed that someone named Ernest Yeung acquired 24.35% of PHA by winning an auction of PHA’s delinquent shares. An additional 68 million delinquent PHA shares, representing 1.19% of the company, were also up for auction but failed to attract any bids and are still considered delinquent.
MB Quick Take: The disclosure did not provide any context for who Ernest Yeung is, only that he’s a “private investor”. The disclosure also did not mention the price of the winning bid. Mr. Yeung is now PHA’s single largest shareholder, which is a totally normal thing to become through an auction. Totally normal.
Repower Energy Development [REDC 5.00 pre-IPO] was approved by the PSE for a June 26 IPO. The renewable energy company will go forward with its listing process, with its pricing on May 30, and an offer period that will run from June 6 through June 16.
MB Quick Take: This one surprised me, not because REDC’s application is bad, but because the PSE website and the EDGE disclosure server were entirely silent about the approval. I saw a couple of articles surface on Friday saying that the IPO was PSE-approved, but none of them quoted any statement directly. REDC’s dates have been added to the MB Market Calendar now that the IPO is fully-approved!
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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