Ayala Corp（AC.PS）H124： Strong results across all core subsidiaries

Investment Rating - The report maintains a "Buy" rating for Ayala Corporation with a 12-month price target of P850.00 [7][5]. Core Insights - Ayala Corporation reported a core net profit of P12.5 billion for Q224, reflecting a 6% quarter-over-quarter and 12% year-over-year increase, leading to a total of P24.3 billion for H124, which is an 18% year-over-year growth [2][3]. - The growth was primarily driven by strong performances from its core subsidiaries, including BPI (+22%), ALI (+15%), GLO (+18%), and ACEN (+21%) [2][3]. - The residential property and power generation segments showed significant improvement, with ALI's residential revenue up 40% year-over-year in H124 and ACEN's generation output expanding 42% year-over-year [3][4]. Summary by Sections Financial Performance - Ayala Corporation's revenues for H124 reached P202.2 billion, with net earnings of P28.3 billion and an EPS of P45.43 for the year ending 2022 [6]. - The company expects continued strong trends in its core businesses, particularly in residential and renewable energy sectors [4][3]. Business Outlook - ALI has adjusted its 2024 launch target to P85 billion from P115 billion to focus on reducing inventory levels [4]. - ACEN anticipates strong performance for the remainder of the year, although H2 is typically weaker due to seasonal factors [4]. Valuation and Market Metrics - The report highlights a forecast price appreciation of 37.5% and a forecast stock return of 38.6% [9]. - Ayala Corporation's market capitalization is noted at P383 billion (approximately US$6.72 billion) with a free float of 40% [7]. Key Business Segments - The banking segment (BPI) is benefiting from higher net interest margins and above-industry loan growth, while the real estate segment (ALI) is experiencing robust residential revenue growth [2][3]. - The telecommunications segment (GLO) is seeing improved earnings driven by Mynt, and ACEN is expanding its renewable energy capacity significantly [2][3].