MON 23 APR 2018

2017 profits of most companies

missed expectations

Slow and below expected earnings growth

The earnings performance of most companies in 2017 was below expectations Out of the 56
listed companies that we monitor, the majority (27 or 48.2%) performed below expectations.
Meanwhile, only a handful outperformed expectations at 9 or 16.1%. Moreover, based on listed
companies’ 2017 earnings results and 2018 guidance, the profit forecast of 21 companies is
expected to be revised downward while the profit forecast of only five companies is expected to
be revised upward.

The same sectors performed well relative to the first nine months of the year. Banks, gaming
and property companies delivered double digit earnings growth. However, despite the strong
profit growth of gaming companies, their performance was disappointing as they suffered from
a low hold rate during the fourth quarter of 2017. Meanwhile cement companies and consumer
companies continued to disappoint as cement companies suffered from weak selling prices and
higher costs while consumer companies suffered from higher costs.

Median 2017 earnings growth of listed companies that we monitor was quite slow at only 6.3%
as growth was pulled down by the power, telecom, media, cement and food manufacturing
sectors.

Note that median earnings growth of the power sector was only 2.1%, as it was dragged by EDC
and FGEN which booked non-recurring expenses. Meanwhile, the telecom sector’s earnings fell
by 19.1% due to the booking of one-off expenses and higher depreciation costs. Profits of media
companies fell by a median rate of 22.4% due to the absence of election spending in 2017. Profits
of cement companies fell significantly (-60.7%) as companies suffered from lower selling prices
and weaker margins brought about by increasing competition from local players and importers.
All food manufacturers registered weaker earnings in 2017 as they suffered from high input
costs. Some also suffered from intense competition.

On the other hand, the gaming sector posted the fastest earnings growth (median growth of
60.8%) driven by the turnaround of gaming revenues. The property sector posted a median
earnings growth of 13.6%. Finally, the banking sector registered a median earnings growth of
11.4%.

APRIL LYNN TAN, CFA

VP & HEAD OF RESEARCH
april.tan@colfinancial.com

Disclaimer: All content provided in COL Reports are meant to be read in the COL Financial website. Accuracy and completeness of content cannot be guaranteed if reports are viewed outside of
the COL Financial website as these may be subject to tampering or unauthorized alterations.
 STRATEGY I 2017 PROFITS OF MOST COMPANIES MISSED EXPECTATIONS

MON 23 APR 2018

Exhibit 1: 2017 Earnings Summary (vs. COL Forecast)

Above Inline Below
EW BDO BPI
PNB CHIB MBT
ABS SECB UBP
CEB EAGLE CHP
GMA7 MWC EEI
DNL AC ICT
AP AGI IMI
FLI DMC NIKL
MEG GTCAP PCOR
MPI PX
CIC SCC
JFC AEV
PIZZA COSCO
URC FPH
BEL JGS
TEL SM
MER CNPF
ALI EMP
VLL PGOLD
SMPH RRHI
BLOOM
MRP
RWM
GLO
EDC
FGEN
RLC
Total 9 20 27
Percentage 16.1% 35.7% 48.2%
Source: COL estimates

Exhibit 2: 2017 Median Earnings Growth (per Sector)

Sector Growth (Y/Y)
Gaming 60.80%
Properties 13.60%
Consumers 7.00%
Conglomerates 4.70%
Banks 11.40%
Power 2.10%
Telcos -19.10%
Cement -60.70%
Media -22.40%
Total 6.30%

Source: Listed companies, COL estimates

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 STRATEGY I 2017 PROFITS OF MOST COMPANIES MISSED EXPECTATIONS

MON 23 APR 2018

Banking Sector: Strong earnings on healthy growth of

recurring revenues

Profits of the nine banks that we monitor increased by a median rate of 11.4% in 2017. This was
largely driven by the strong growth of net interest income (+18%) as all banks reported double
digit growth in their lending portfolio and as net interest margins expanded. In 2017, median
loan growth reached 17.3% while net interest margins expanded by around 12 basis points.
Fee income also increased, although two out of the nine banks that we monitor reported lower
fee income on a year-on-year basis (UBP and RCB). Banks also booked lower provisions in 2017,
helping drive profit growth. Provisions fell by a median rate of 21%, as bank enjoyed low levels
of non-performing loans (NPL) and high levels of NPL cover.

Compared to our estimates, two banks (EW and PNB) performed better than expected.
Meanwhile, three banks (BDO, CHIB, and SECB) performed in line. On the other hand, three
banks (BPI, MBT, and UBP) performed below expectations.

Property Sector: Residential and rental businesses continue to

grow

Property companies registered an average net income growth of 15.9% in 2017 as both
residential and leasing businesses continued to grow. Combined revenues from residential
development and office units for sale increased by 13.6% to Php201.4 Bil, as companies
continued to increase completion of projects, allowing them to realize revenues from past
take up sales. Meanwhile, recurring income from property companies’ leasing businesses
(including offices, retail and hotel) grew by 12.5% to Php129.7 Bil as companies expanded
their leasing portfolio.

Demand for properties picked up during 2017, allowing property companies to grow their take
up sales by 19.2% to Php378.3 Bil. Property companies also increased their project launches
in 2017 by 54.4% to Php243.4 Bil to take advantage of the strong demand. Nevertheless,
inventory levels remain healthy as the value of launches is still less than the value of take up
sales.

All property companies registered higher y/y earnings in 2017. Compared to COL expectations,
ALI, SMPH, and VLL performed in line while MEG and FLI performed better than expected.
However, in terms of core operating results, only MEG outperformed expectations as FLI’s
outperformance was due to higher than expected interest and other income and lower than
expected interest expense and finance charges. Meanwhile, RLC performed below expectations
as it booked weaker real estate revenues.

COL Financial Group, Inc. 3

 STRATEGY I 2017 PROFITS OF MOST COMPANIES MISSED EXPECTATIONS

MON 23 APR 2018

Consumer Sector: Food manufacturers & retailers disappoint

Median earnings growth of consumer companies that we monitor slowed down further to
only 7.0% in 2017 from 8.5% in 9M17 as most food manufacturers reported lower earnings and
as most restaurants and retailers posted weaker margins during the fourth quarter.

Earnings of food manufacturers fell by a median rate of 17.2%. CNPF, EMP, PIP and URC suffered
from rising input costs and intense competition. Profits of all four companies fell in 2017.

Restaurants performed well, with median net income growth reaching 13.9%. However, the
growth pace was slower than the 15.6% increase registered during the first nine months of the
year as JFC and MAXS both suffered from weaker margins during the fourth quarter of the year
as a result of higher input costs.

Retailers delivered disappointing results. Although median profit growth reached 18.5% in
2017, all retailers except for SSI recorded below expected results as they suffered from weaker
margins during the fourth quarter due to higher than expected increase in operating expenses.
Among the nine companies that we monitor, four companies (CIC, JFC, PIZZA, and URC)
performed in line with expectations, one outperformed expectations (DNL) while four
underperformed (CNPF, EMP, PGOLD, and RRHI).

Power sector: Benefiting from higher capacity, more water in

hydro plants

Median increase of power companies’ headline profits was only 2.1% in 2017, dragged by one
off expenses related to the termination of interest swap and debt prepayment by EDC and
FGEN and earthquake related expenses booked by EDC. However, median growth of core
profits was much faster at 8.1% driven by new power generation capacity (AP), and better
water availability of large hydro plants. This was partly offset by unplanned outages of coal
and geothermal plants.

Compared to estimates, earnings results of power companies were mixed. AP and FGEN
performed better than expected while MER performed in line with expectations. SCC’s profits
were weaker than expected as costs of its coal mining business were higher than expected.

Telecom Sector: Profits dragged by weak non-data revenues

and higher depreciation expenses

The telecom sector’s recurring core net income in 2017 fell by 1% to Php35.8Bil. Profits fell
largely due to the 15.4% decline in GLO’s recurring core income as it suffered from a significant
increase in depreciation and finance cost. Meanwhile, TEL reported a 10.6% growth in recurring
core income as it benefited from a significant reduction in operating expenses. Although

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 STRATEGY I 2017 PROFITS OF MOST COMPANIES MISSED EXPECTATIONS

MON 23 APR 2018

recurring core net income was down slightly, EBITDA of both telcos was up as GLO benefited
from higher revenues while TEL benefited from lower cash operating expenses.

Combined service revenues of GLO and TEL were flat at Php279.1 Bil as strong growth in data
revenues (+13.5%) merely offset the steep drop in non-data revenues (-9.5%). On the positive
side, data revenue already accounted for 48.8% of telcos’ total revenues in 2017, up from 43.2%
in 2016. The growing share of data revenues should hopefully allow consolidated revenues to
grow at a faster pace going forward. In 2017, GLO’s revenues were up by 6.1% as data revenues
already accounted for 53.9% of total revenues. On the other hand, data revenues accounted
for 44.5% of TEL’s total revenues.

Both telcos suffered from a significant increase in depreciation expense as a results of higher
network infrastructure investments, pulling down profits despite higher EBITDA. In 2017, GLO’s
depreciation costs increased by 15% while TEL’s normalized depreciation costs grew by 13.3%.

Compared to estimates, GLO performed below expectations while TEL performed in line with
expectations. GLO performed below expectations due to the faster than expected decline
from non-data revenues and higher than expected increase in depreciation and financing
costs. Similar to GLO, TEL suffered from a faster than expected decline in non-data revenues.
However, unlike GLO, TEL’s lower than expected costs enabled it to completely offset the
impact of its lower than expected revenues on profits.

Gaming Sector: Strong volume growth offset by low hold rate

Profits of listed gaming companies increased by a median rate of 60.8% in 2017. This was
despite the entry of Okada Manila as the combined gross gaming revenue of all four integrated
resorts increased by 25.5% in 2017. Growth would have been faster if not for the drop in the
hold rate for both BLOOM and MRP in the fourth quarter of 2017. In 2017, gaming volume of
BLOOM, MRP and RWM increased by 16.0% to Php2,087 Bil. However, gross gaming revenue
or GGR increased by a slower pace of 14.0% to Php98.8 Bil. Consequently, despite the strong
growth in gaming companies’ profits, results were below expected. All three integrated resort
operators (BLOOM, MRP and RWM) performed below expectations.

Similar to the first nine months of the year, BLOOM and MRP continue to perform strongly while
RWM continued to suffer as a consequence of the June 2, 2017 shooting incident. In 2017,
gaming volume of BLOOM’s Solaire increased by 14.5% while gaming volume of MRP’s CoD
jumped by 66.6%. On the other hand, the gaming volume of RWM fell by 32.6% as a result of
lower gaming capacity and lower volume per gaming unit. Gaming volume was strong across
the board – from VIP tables, mass table to slots and ETGs. However, both BLOOM’s Solaire and
MRP’s CoD suffered from weaker hold rates in 4Q17 explaining their weaker than expected
performance.

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 STRATEGY I 2017 PROFITS OF MOST COMPANIES MISSED EXPECTATIONS

MON 23 APR 2018

Cement Sector: Profits weaken on lower selling price and

higher costs

Cement companies performed poorly in 2017, with profits falling by a median rate of 58.6%.
Profits fell mainly due to lower revenues and margins. Average selling prices (ASP) of cement
fell by around 10% based on our estimates. Note that ASP of cement has been declining
consistently since fourth quarter of 2016 due to intense competition from local manufacturers
and independent traders selling imported cement. Among the three listed cement companies,
only EAGLE was able to grow revenues (+12.0%) as growth in sales volume was able to offset
lower selling price. CHP and HLCM were already operating at full capacity limiting their ability
to grow sales volume.

Rising oil and coal prices towards the end of FY17 also negatively affected the earnings of
cement companies. Note that fuel and power account for ~49% of cost of sales. Coupled with
lower ASP, this in turn led to lower operating EBITDA margins, with CHP’s margin declining the
most (by 12.8 pp) followed by HLCM (by 11.1 pp) and lastly EAGLE (by 5.9 pp).

Compared to consensus estimates, CHP performed significantly below expectations while

EAGLE performed in line with expectations.

COL Financial Group, Inc. 6

 STRATEGY I 2017 PROFITS OF MOST COMPANIES MISSED EXPECTATIONS

MON 23 APR 2018

Appendix 1: 2017 Earnings Table

In PhpMil Net Income 2017 Income Estimate 2017 (% of Full Yr Est) 2018 Income Estimate
2016 2017 % Change COL Consensus COL Consensus COL Consensus
Banks and Financials
BDO BANCO DE ORO 26,234 28,070 7.0% 28,633 28,286 98.0% 99.2% 33,473 34,550
BPI BANK OF PHILIPPINE ISLANDS 22,050 22,416 1.7% 23,225 22,843 96.5% 98.1% 26,564 26,928
CHIB CHINA BANKING CORP 6,458 7,514 16.4% 7,391 7,158 101.7% 105.0% 8,528 8,294
EW EAST WEST BANKING CORP 3,408 5,051 48.2% 4,430 4,780 114.0% 105.7% 5,840 5,506
MBT METROPOLITAN BANK & TRUST 18,086 18,223 0.8% 20,166 19,063 90.4% 95.6% 24,257 24,250
PNB PHILIPPINE NATIONAL BANK 7,147 8,161 14.2% 7,036 6,056 116.0% 134.8% 7,939 7,028
RCB RIZAL COMMERCIAL BANKING CORP 3,868 4,308 11.4% - 4,362 - 98.8% - 5,203
SECB SECURITY BANK CORP 8,554 10,265 20.0% 10,098 9,899 101.7% 103.7% 11,521 11,433
UBP UNION BANK OF THE PHILIPPINES 10,058 8,411 -16.4% 8,683 8,197 96.9% 102.6% 9,852 9,715
Commercial and Industrial
ABS ABS-CBN BROADCASTING CORP 3,885 3,300 -15.1% 2,902 3,254 113.7% 101.4% 3,282 3,407
CEB CEBU AIR 11,233 8,595 -23.5% 8,178 9,085 105.1% 94.6% 9,278 9,155
CHP CEMEX HOLDINGS PHILIPPINES, INC. 3,284 952 -71.0% 1,130 1,093 84.2% 87.1% 1,220 1,113
EAGLE EAGLE CEMENT CORPORATION 4,059 4,318 6.4% 4,194 4,187 103.0% 103.1% 5,191 5,282
EEI EEI CORPORATION (848) 832 -198.1% 651 - 127.8% - 1,036 -
GMA7 GMA NETWORK INC 3,626 2,544 -29.8% 2,391 - 106.4% - 2,826 -
HLCM HOLCIM PHILIPPINES, INC. 6,846 2,688 -60.7% - - - - - -
ICT* INTL CONTAINER TERM SVCS 180 149 -17.1% 217 174 68.8% 85.6% 268 204
IMI* INTEGRATED MICRO-ELECTRONICS 28.1 34.0 20.9% 36.2 35.4 94.0% 96.1% 42.9 49.1
MWC MANILA WATER COMPANY 6,065 6,499 7.2% 6,427 5,923 101.1% 109.7% 6,570 6,171
MWIDE MEGAWIDE CONSTRUCTION CORP 1,920 2,248 17.1% - 1,609 - 139.7% - 1,953
NIKL NICKEL ASIA CORP 979 2,620 167.7% 3,506 2,885 74.7% 90.8% 4,022 3,500
PCOR PETRON CORP 5,647 8,233 45.8% 9,885 9,745 83.3% 84.5% 11,065 12,930
PX PHILEX MINING CORPORATION 1,657 1,686 1.7% 2,087 1,870 80.8% 90.2% 2,007 2,201
SCC SEMIRARA MINING 12,041 14,209 18.0% 14,971 15,386 94.9% 92.4% 15,518 16,637
Conglomerates
AEV ABOITIZ EQUITY VENTURES INC 22,474 21,609 -3.8% 24,910 22,961 86.7% 94.1% 28,846 26,806
AC AYALA CORPORATION 24,611 28,897 17.4% 28,781 28,700 100.4% 100.7% 32,024 32,513
AGI ALLIANCE GLOBAL 14,800 14,900 0.7% 14,855 13,805 100.3% 107.9% 15,153 15,694
COSCO COSCO CAPITAL, INC. 4,734 4,920 3.9% 5,279 - 93.2% - 5,790 -
DMC DMCI HOLDINGS INC 12,185 14,765 21.2% 15,620 16,254 94.5% 90.8% 17,131 18,174
FPH FIRST PHILIPPINE HLDGS 9,933 5,854 -41.1% 6,319 6,510 92.6% 89.9% 7,031 7,038
GTCAP GT CAPITAL HOLDINGS INC 14,634 15,030 2.7% 14,950 100.5% 16,923 16,682
JGS JG SUMMIT HOLDINGS 10,918 29,370 169.0% 28,079 30,008 104.6% 97.9% 26,820 30,621
MPI METRO PACIFIC INVESTMENTS 11,456 13,151 14.8% 14,293 13,795 92.0% 95.3% 14,398 14,563
SM SM INVESTMENTS CORP 31,204 32,900 5.4% 33,661 34,800 97.7% 94.5% 37,321 40,115
Consumer
CIC CONCEPCION INDUSTRIAL CORP. 1,401 1,516 8.2% 1,515 - 100.1% - 1,756 -
CNPF CENTURY PACIFIC FOOD, INC. 2,656 2,552 -3.9% 2,674 2,685 95.4% 95.0% 2,686 2,857
DNL DNL INDUSTRIES, INC 2,630 2,907 10.5% 2,830 2,898 102.7% 100.3% 3,285 3,268
EMP EMPERADOR, INC 7,693 6,319 -17.9% 7,037 6,752 89.8% 93.6% 7,338 6,809
JFC JOLLIBEE FOODS CORPORATION 6,165 7,089 15.0% 6,845 6,964 103.6% 101.8% 7,445 7,813
MAXS MAX'S GROUP, INC. 613 629 2.6% - 643 - 97.8% - 658
PIZZA SHAKEY'S PIZZA ASIA VENTURES, INC 669 762 13.9% 749 769 101.7% 99.0% 851 854
PGOLD PUREGOLD PRICE CLUB INC 5,526 5,840 5.7% 6,030 6,070 96.8% 96.2% 6,727 6,781
PIP PEPSI-COLA PRODUCTS PHILS INC 853 541 -36.5% - - - - - -
MRSGI METRO RETAIL STORES GROUP, INC. 789 977 23.8% - - - - - -
RRHI ROBINSONS RETAIL HOLDINGS, INC. 4,830 5,053 4.6% 5,207 5,290 97.0% 95.5% 5,732 5,769
SSI SSI GROUP INC 232 275 18.5% - - - -
URC UNIVERSAL ROBINA CORPORATION 12,872 10,748 -16.5% 10,787 10,858 99.6% 99.0% 11,228 12,391
WLCON WILCON DEPOT, INC. 943 1,385 46.9% - 1,564 - 88.6% 0 1,848
Gaming
BEL BELLE CORP. 2,700 2,873 6.4% 2,800 2,952 102.6% 97.3% 3,299 3,495
BLOOM BLOOMBERRY RESORTS CORP 1,895 5,609 196.0% 6,930 6,781 80.9% 82.7% 8,464 8,351
MRP MELCO CROWN (PHILS) RESORTS (1,797) 274 115.2% 725 1,125 37.8% 24.4% 1,031 1,940
RWM TRAVELLERS INTERNATIONAL HOTEL 3,402 682 -80.0% 1,923 654 35.5% 104.3% 4,606 3,000
Telecoms
GLO GLOBE TELECOM INC 15,888 15,084 -5.1% 16,153 15,099 93.4% 99.9% 15,389 14,739
TEL PHILIPPINE LONG DISTANCE TEL 20,162 13,466 -33.2% 22,880 23,840 58.9% 56.5% 22,581 23,099
Power
AP ABOITIZ POWER CORP 20,003 20,416 2.1% 21,625 20,967 94.4% 97.4% 25,364 23,352
EDC ENERGY DEV CORP 9,353 7,710 -17.6% 8,533 8,877 90.3% 86.8% 9,358 10,270
FGEN* FIRST GEN CORPORATION* 200 134 -32.8% 150 133 89.6% 101.2% 173 149
MER MANILA ELECTRIC COMPANY 19,176 20,384 6.3% 20,649 19,159 98.7% 106.4% 20,872 17,970
Property
ALI AYALA LAND INC 20,908 24,405 16.7% 24,109 24,300 101.2% 100.4% 27,495 28,747
FLI FILINVEST LAND INC 5,247 5,685 8.3% 5,278 5,588 107.7% 101.7% 5,798 5,595
MEG MEGAWORLD CORP 11,250 14,218 26.4% 12,883 12,772 110.4% 111.3% 14,399 14,313
RLC ROBINSONS LAND 5,604 5,884 5.0% 6,067 6,097 97.0% 96.5% 6,482 6,918
VLL VISTA LAND & LIFESCAPES 7,907 8,804 11.3% 8,954 8,933 98.3% 98.6% 9,764 10,100
SMPH SM PRIME HOLDINGS 23,806 27,600 15.9% 27,130 27,500 101.7% 100.4% 31,006 31,901
*In US$ M il
So urce: Listed co mpanies, COL estimates, B lo o mberg

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 STRATEGY I 2017 PROFITS OF MOST COMPANIES MISSED EXPECTATIONS

MON 23 APR 2018

Appendix 2: Potentital Revisions (Up, Down, Unchanged)

In PhpMil 2017 Profits Potential Revisions
Reasons for potential revisions
(vs. Est) Revenues Net Income
Banks and Financials
BDO BANCO DE ORO In Line - -
BPI BANK OF PHILIPPINE ISLANDS Below - Down Higher-than-expected effective tax rate
CHIB CHINA BANKING CORP In Line - -
EW EAST WEST BANKING CORP Above - - Only due to one-off gains
MBT METROPOLITAN BANK & TRUST Below Down Down Higher than expected provisions
PNB PHILIPPINE NATIONAL BANK Above - - Higher-than-expected foreclosed asset sale gains
SECB SECURITY BANK CORP In Line - -
Weaker-than-expected fees and trading gains and higher-than-expected
UBP UNION BANK OF THE PHILIPPINES Below Down Down
operating expenses
Commercial and Industrial
ABS ABS-CBN BROADCASTING CORP Above Up Up Higher-than-expected consumer revenues
CEB CEBU AIR Above Up Down Rising fuel prices and weakening peso
CHP CEMEX HOLDINGS PHILIPPINES, INC Below - Down Higher-than-expected cost of goods sold
EAGLE EAGLE CEMENT CORPORATION In Line - -
EEI EEI CORPORATION Below Down Down Weaker than expected foreign operations
GMA7 GMA NETWORK INC Above - Up Lower-than-expected production costs
ICT* INTL CONTAINER TERM SVCS Below Down Down Weaker than expected performance of port in Colombia
IMI* INTEGRATED MICRO-ELECTRONICS In Line Down Down Loss of contract win with US$200- 300Mil annual revenue potential
MWC MANILA WATER COMPANY In Line - -
NIKL NICKEL ASIA CORP Below Down Down Lower than expected output and price
PCOR PETRON CORP Below - Down Higher-than-expected cost of sales
PX PHILEX MINING CORPORATION Below Down Down Lower than expected output and ore grade
SCC SEMIRARA MINING Below - Down Higher than expected cost of coal mining
Conglomerates
AEV ABOITIZ EQUITY VENTURES INC Below Down Down Republic Cement and Pilmico results weaker than expected
AC AYALA CORPORATION In Line - -
AGI ALLIANCE GLOBAL In Line - -
COSCO COSCO CAPITAL, INC. Below - Down Weaker-than-expected results of PGOLD, real estate, and liquor
DMC DMCI HOLDINGS INC In line - -
Headline profits below expected, but core income stronger than
FPH FIRST PHILIPPINE HLDGS Below - -
expected
GTCAP GT CAPITAL HOLDINGS INC In Line - -
Headline profits below expected, but core income stronger than
JGS JG SUMMIT HOLDINGS Below - -
expected
MPI METRO PACIFIC INVESTMENTS In Line - -
SM SM INVESTMENTS CORP Below - - Underperformance was due to one-time tax adjustment
Consumer
CIC CONCEPCION INDUSTRIAL CORP. In Line - -
Current tuna prices lower, positive for CNPF long term; sales outperform
CNPF CENTURY PACIFIC FOOD, INC. Below Up Up
estimates
DNL DNL INDUSTRIES, INC Above - - -
EMP EMPERADOR, INC Below - Down Gross margin under pressure due to weak peso
JFC JOLLIBEE FOODS CORPORATION In Line Up Up Factored in higher stake in Smashburger and faster store openings
PIZZA SHAKEY'S PIZZA ASIA VENTURES, INC In Line - -
Higher operating expenses from faster store expansion, disappointing
PGOLD PUREGOLD PRICE CLUB INC Below - Down
guidance
RRHI ROBINSONS RETAIL HOLDINGS, INC. Below - Down Department stores continued to disappoint
URC UNIVERSAL ROBINA CORPORATION In Line - -
Gaming
BEL BELLE CORP. In Line - -
BLOOM BLOOMBERRY RESORTS CORP Below - - Undeperformance was due to low hold rate
MRP MELCO CROWN (PHILS) RESORTS Below - - Undeperformance was due to low hold rate
RWM TRAVELLERS INTERNATIONAL HOTEL Below Down Down Table and machine count declined, GGR per unit also declined
Telecoms
GLO GLOBE TELECOM INC Below Down Down Weaker than expected revenues, higher than expected capex guidance

TEL PHILIPPINE LONG DISTANCE TEL In Line Down Down Weaker than expected revenues, higher than expected capex guidance

Power
Core income higher than forecast due to hydro plant's earnings, but not
AP ABOITIZ POWER CORP Above - -
likely sustainable
EDC ENERGY DEV CORP Below - - Core income in line with forecast
FGEN* FIRST GEN CORPORATION* Below - - Core income higher than forecast
MER MANILA ELECTRIC COMPANY In LIne - -
Property
ALI AYALA LAND INC In Line - -
FLI FILINVEST LAND INC Above Down Down Slower real estate sales booking
MEG MEGAWORLD CORP Above Up Up Real estate gross profit was higher than expected
RLC ROBINSONS LAND Below - -
VLL VISTA LAND & LIFESCAPES In Line - -
SMPH SM PRIME HOLDINGS In Line - -

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 STRATEGY I 2017 PROFITS OF MOST COMPANIES MISSED EXPECTATIONS

MON 23 APR 2018

IMPORTANT RATING DEFINITIONS

BUY
Stocks that have a BUY rating have attractive fundamentals and valuations based on our analysis. We expect the share price to outperform the market in the next six to
12 months.

HOLD
Stocks that have a HOLD rating have either 1) attractive fundamentals but expensive valuations 2) attractive valuations but near-term earnings outlook might be poor
or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely in line or underperform in the market in the next six to twelve
months.

SELL
We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to12 months.

IMPORTANT DISCLAIMER
Securities recommended, offered or sold by COL Financial Group, Inc. are subject to investment risks, including the possible loss of the principal amount invested.
Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and said information may be
incomplete or condensed. All opinions and estimates constitute the judgment of COL’s Equity Research Department as of the date of the report and are subject to change
without prior notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. COL Financial and/
or its employees not involved in the preparation of this report may have investments in securities of derivatives of the companies mentioned in this report and may trade
them in ways different from those discussed in this report.

COL RESEARCH TEAM

APRIL LYNN TAN, CFA

VP & HEAD OF RESEARCH
april.tan@colfinancial.com

CHARLES WILLIAM ANG, CFA GEORGE CHING RICHARD LAÑEDA, CFA

DEPUTY HEAD OF RESEARCH SENIOR RESEARCH MANAGER SENIOR RESEARCH MANAGER
charles.ang@colfinancial.com george.ching@colfinancial.com richard.laneda@colfinancial.com

ANDY DELA CRUZ JOHN MARTIN LUCIANO FRANCES ROLFA NICOLAS

SENIOR RESEARCH ANALYST SENIOR RESEARCH ANALYST RESEARCH ANALYST
andy.delacruz@colfinancial.com john.luciano@colfinancial.com rolfa.nicolas@colfinancial.com

JUSTIN RICHMOND CHENG ADRIAN ALEXANDER YU

RESEARCH ANALYST RESEARCH ANALYST
justin.cheng@colfinancial.com adrian.yu@colfinancial.com

COL FINANCIAL GROUP, INC.

2402-D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE,
EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
FAX NO. +632 635-4632
WEBSITE: www.colfinancial.com

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