Pryce H1 net income: P1.3B (up 61% y/y)

Pryce Corporation [PPC 7.85 ?8.4%; 148% avgVol] [link] teased its Q2 Quarterly Report by revealing that its H1 net income was P1.32 billion, up 61% y/y from its H1/23 net income of P0.82 billion. PPC noted that its consolidated revenues were “flat”, but that its gross profit went up by 29% due to “improvement of LPG margins in Luzon.” PPC said that its H1 performance was a company record. On a quarterly basis, the H1 net income implies a Q2 net income of P607 million, up 97% y/y from its Q2/23 net income of P308 million, but down 15% q/q from its Q1/24 net income of P713 million.

MB BOTTOM-LINE: Pryce has several business segments (including real estate and pharmaceutical products) but its revenue is dominated (>93%) by its LPG business, Pryce Gases. PPC has been one of those frustrating stocks where the company has a good business in a high-demand sector, but the stock price just doesn’t seem to move in a way that feels commensurate with that positioning. Things are changing. PPC’s stock is now trading above its 2017 peak and is up around 50% year-to-date. It’s up 105% from its COVID low. PPC used to be sleepy, but now it’s moving! Long-time holders are finally getting their rewards. Perhaps the interest in the last quarter is part of the broader pump in oil exploration stocks like PXP [PXP 3.71 ?7.0%; 95% avgVol] and ENEX Energy [ENEX 5.80 ?5.1%; 76% avgVol]; PPC has an interest in Palawan55 with rights to explore and drill Service Contract 55 in the West Philippine Sea.

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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