Robinsons Retail seen gaining from acquisition
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
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.