Robin­sons Re­tail seen gain­ing from ac­qui­si­tion

Manila Times - - Stock Watch - BY TY­RONE JASPER C. PIAD PHOTO FROM WIKI­ME­DIA COM­MONS HIGH

ROBIN­SONS Re­tail Hold­ings, Inc.’ s prospects for 2019 ap­pear bright with in­vestors up­beat on the firm’s prospects fol­low­ing ad­di­tions to its port­fo­lio, an­a­lysts said.

The Gokong­wei- led firm’s share price is up just over P5 apiece since the start of 2019, on Fri­day adding P2.05 or 2.41 per­cent to P87.05 from pre­vi­ous day and buck­ing the bench­mark’s Philip­pine Stock Ex­change in­dex’s 1.02-per­cent dive.

The lat­est close is still well below last year’s above P100/share peak but Phil­stocks Fi­nan­cials, Inc. re­search as­so­ci­ate Piper Chaucer Tan claimed that in­vestors were bet­ting on con­tri­bu­tions to be re­al­ized this year from Robin­sons Re­tail’s pur­chase of Rus­tan’s su­per­mar­ket chain.

Rus­tan Su­per­centers, Inc., which op­er­ates Mar­ket­place by Rus­tan’s, Rus­tan’s Su­per­mar­ket, Shop­wise Hy­per­mar­ket, Shop­wise Ex­press and Well­come, was ac­quired in March last year via an P18-bil­lion share swap. Com­pe­ti­tion reg­u­la­tors ap­proved the pur­chase in Au­gust and the deal was com­pleted in Novem­ber.

“For the cat­a­lysts, num­ber one, as well we know, Robin­sons bought Rus­tans ... and the in­te­gra­tion of its earn­ings and prospects go­ing for­ward will be in 2019,” Tan said. Robin­sons Place Las Piñas.

He claimed the “stock mar­ket has not been pric­ing in” devel­op­ments re­gard­ing Robin­sons have a pos­i­tive im­pact on the op­er­a­tions of Robin­sons given their ex­per­tise in the re­tail sec­tor; they can yield bet­ter mar­gins prob­a­bly in the next 3-5 years,” he said.

De Celis, how­ever, warned that the share for share swap would have “di­lu­tive ef­fect” on Robin­sons Re­tail’s earn­ings per share (EPS).

“In­vestors can ex­pect higher

man­aged

to make op­er­a­tional - pany’s EPS growth is pegged to grow at least 4.04 per­cent to 4.55 per­cent in 2019 to 2020,” he added.

For Regina Cap­i­tal De­vel­op­ment Corp. head of sales Luis Lim­lin­gan, in­creased sales would drive

“In­fla­tion is trend­ing lower. Rus­tans has higher-end prod­ucts so peo­ple may now buy into them,” he ex­plained.

Robin­sons Re­tail saw ninemonth earn­ings grow by 9.8 per­cent to P3.8 bil­lion as of end- Septem­ber last year, at­trib­uted to a 10.2- per­cent hike in op­er­at­ing in­come.

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