GT Capital Holdings, Inc. (GTCAP) finished the year with a net profit of P8.34 billion. The sales share from their corporate divisions decreased equally by –66.80% year-on-year (y/y). The conglomerates have made smaller earnings year after year in the fourth quarter of 2020 (4Q20), but they did not go as badly. The result slowed by –34.65% y/y to P4.02 billion only in the fourth quarter of 2020 (4Q20).

The Real Estate unit was particularly hard hit, as lockdown regulations suspended building operations. The Automotive Company of GTCAP has also contended with some unprecedented headwinds.

Remember, last year TMP development and activities were hindered by the eruption of the Taal Volcano and the pandemic COVID-19. The market is still slow, while the operations have stabilized. The opinion is that this year the government’s BBB policy is supporting a potentially strong rebound. The ultimate recovery still depends on widespread vaccination, although some doses have been postponed by logistic problems.


We reiterate our BUY recommendation for GTCAP at a Target Price of P784.00 apiece. It offers a +50.77% year-on-year (y/y) upside from its last trading price of P520.00 per share.


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