EARNINGS UPLIFT AYALA LAND STOCKS | Marvin Germo

EARNINGS UPLIFT AYALA LAND STOCKS

By: Marvin Germo | August 27, 2019

Most Actively Traded Stocks

Ayala Land, Inc. (ALI) was named as the most actively traded stock last week as investors continue to react positively to its second-quarter earnings and the launching of its office-for-sale project worth P16.1 billion located in Quezon City. Last Friday, ALI shares closed at P48.90, down by 0.25 or 0.51% from the preceding day. If we take a look at it on a week on week basis, the shares are down by 0.71% from P49.25 last August 16. Per year basis, an 18.40% gain was achieved by ALI stocks. From August 19-23, a total of 48.57 million shares or worth P2.37 billion were traded as per the record of PSE.

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Stock Smarts UAE – August 30 – September 3, 2019
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Growth Boosts The Stocks

ALI thinks that one key factor why it became the most actively traded stocks is the good earnings of the company during the second quarter. You can see it on my previous post that Ayala Land had its net income grew by 12% to P15.2 billion following the 4% hike in its revenues to P83.2 billion. This was just during the first half of this year. On the second quarter, it generated a net income attributable to its equity holders of P7.834 billion or 11.6% higher than the same period last year. This can also be attributed to all of ALI’s segments including real estate, retail mall space, and office leasing.

Advantage of Valuation 

Apart from the earnings during the second quarter, ALI is considered cheap in terms of valuation. It’s also a factor on the results of its earnings and although there was a net foreign selling on the stock, local investors of ALI took advantage of its value. The launch of Ayala Land Premier’s (ALP) first-ever office-for-sale project—the One Vertis Plaza located in Quezon City, affected the movement of the stocks. This news made the investors react positively as it contributed to the bounce-back of the shares from as low as P46.30 per share last August 13 to P48.45 per share last August 16.

Sales of ALP

ALP disclosed that after the launching of its project, it has already sold 65% of its 43-story office tower. This is worth P10.6 billion. From its launch price of P269,000 per SQM in June 2018, the average selling price went up to P352,000 or 20% higher per SQM this August. The office spaces of the tower range from 101 to 325 SQM and each unit is valued at P28 million to P114 million. The building of One Vertis Plaza is still in-progress and it is expected to be completed by the second quarter of 2024.

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