BUY
Term: Medium
Target Price: PHP 129.00

Last Traded Price: PHP 120.00
P/E Ratio: 46.09x
P/B Ratio: 1.27x
Support: PHP 114.00
Resistance: PHP 120.00
MTD Performance: 3.54 %
YTD Performance: -6.32 %

  • SMC anticipates that the recovery will continue this year.
  • Currently going sideways, however, it might hit P129.00 if it breaks the P120 resistance.

The firm believes it will continue to turn things around this year following its pandemic strategy is expected to reverse losses during the first half of 2020.

SMC’s recovery and rebound plan includes restricting capital expenditures to important projects, implementing cost-cutting measures across all of its businesses, and leveraging new selling channels and enhanced distribution.

We anticipate a comeback for the firm because of the improving demand for oil. Petron Corporation, the company’s oil refinery business, has been the one pulling the most on the company’s consolidated profits. SMC’s total top line may improve as a result of its comeback. Additionally, its food industry is improving.

Meanwhile, its infrastructure division is projected to generate revenue once those infrastructure projects are completed and functioning.

Chart-wise, the medium-term trend is on a sideways movement after it fails to form another lower lows. It is trying to break the immediate resistance of P120.00. 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.

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