MEG will invest P36 billion in capital expenditures this year as it realigns project advancement with the restrictions set by stringent quarantine policies that affect construction activities and demand for residential properties, especially in Metro Manila.
Capital spending for the fund has been set at a lower-than-estimated rate of P60 billion per year We believe that, in the face of the ongoing challenges of the pandemic, MEG decided to be less aggressive this year with its expansion plans. This CAPEX might aid the organization in this year’s income recovery, on the other side. The pandemic had a severe impact on earnings of FY2020, which decreased by 45 percent.
In our opinion, we predict low earnings this year, but may see a rebound in 2020. This stock may well be considered undervalued based on a P/E ratio.
Psychological support is at P3.00 while resistance is at P3.20. The stock remains on a downtrend. If it continues, we see strong support around P2.85. For traders, set a cut loss point, 5-7% below your acquisition point.
Material in this article is obtained from sources we believe to be reliable, but its reliability or precision cannot be guaranteed. This is for the sole purpose of providing details and does not provide an offer from us to buy or sell securities mentioned in this document.