Manila, Philippines – In its quarterly filing to the Exchange, Arthaland Corporation (PSE:ALCO) posted lower revenues for the 9-month earnings report, which ended on September 30, 2016.
Revenues decreased from P1.4 billion to P325.4 million of the same period last year, which is a 76 percent decline. However, net income jumped from P134.8 million to P767.4 million, representing a 469 percent increase.
The increase was traced back to a P931.8 million worth of other income, which is comprised of the following:
- unrealized gain in fair value of investment property amounting to P795.4 million
- “Day 1” difference on loan discounting of P80.9 million
- realized gain on sales of financial assets at FVL of P11.6 million
- interest income amounting to P7.9 million
- unrealized gain on changes in fair value of financial assets at FVPL of P4.4 million
- other revenue streams worth P31.4 million.
If the other income was not included, ALCO would have suffered a loss amounting to roughly P200 million for the said period.
Assets of the company are at P6.9 billion, while liabilities is at P4.27 billion. Equity totaled to P2.65 billion with retained earnings where the company could draw a dividend from (amounting to P1.6 billion).
Earnings Per Share (EPS), as computed by the company, is at P0.144. Note that EPS would have been negative if other income was not included. Using an EPS of P0.144, ALCO is now trading at around 0.305, which makes Price-to-Earnings (P/E) ratio at only 2.11. That makes ALCO appear as an undervalued stock. Due diligence is advised for the re-computation of P/E using adjusted net income since other income is not recurring and may not repeat in the future.
ALCO is currently 50% up year to date.
Know these additional pieces of information about ALCO’s top 10 players’ sentiment, foreign fund flow, volatility, and volume.
Top 10 Players’ Sentiment
Participants with a 100% Buying and Selling Activity from Nov-02-2016 to Nov-16-2016 at 03:30PM:
- 5 out of 37 participants or 13.51% of all participants registered a 100% BUYING activity
- 16 out of 37 participants or 43.24% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 0.3015
- Top 10 Players’ Selling Average: 0.3005
Foreign Fund Flow
On a 30-day trading period, ALCO is on a Net Foreign Buying worth PHP2,172,499.000.
ALCO has a low risk level based on my proprietary risk level indicator.
ALCO appears to be in a consolidation mode.
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