PLDT Inc. is a telecommunications and digital services provider. The company offers fixed line, wireless, and fiber-optic communication technology services in The Philippines.
Market Cap.: P274B
Products:
- Broadband
- Value-added services
- Landline
Potential Catalysts:
- Google announced that it is bringing Google WiFi to the Philippines, in an exclusive partnership with PLDT
Earnings Highlights:
- Revenue for the current year decreased by 3.34% from P165B to P160B
- Q1’s revenue for the current year increased by 3.26% from P39B to P41B
- Net income for the current year decreased from P20B to P13B
TEL’s press release today stated that PLDT failed to submit an appeal to the Court of Appeals (CA) in line with DOLE’s order to regularize over 7,300 service contract personnel. DOLE ordered 38 of PLDT’s service contracts to stop from further engaging in contracting and subcontracting activities.
If DOLE’s orders prospered, it would result in mass layoffs, affecting employees from subcontracting companies. The company is now coordinating with DOLE in processing the proper identification of individuals.
For the year ended December 31, 2017, TEL had revenues of PHP 159.93 billion, a decrease of PHP 5 billion versus the previous year 2016. Net income drastically dropped to PHP 13.47 billion from PHP 20.00 billion in the year 2016, a 33.21 percent decrease. Net profit margin stood at 8.36 percent.
For the first quarter of 2018, recurring profits of the company is higher by 14 percent to PHP 6.1 billion due to a boost from non-operating gains. This is above consensus estimates.
The company’s headline profits grew by 41 percent at PHP 6.9 billion.
Demand for data and home broadband has been picking up and has so far contributed to an increase in data revenues which is up by 12.8 percent at PHP 18.3 billion. This was enough to counteract the weakness in non-data revenues which dropped by 5.4 percent at PHP 20.30 billion.
Mobile revenues of the company remain sluggish, which saw a drop of 2.2 percent at PHP 20.6 billion. On a year-to-year basis, subscriber count continued to decline. There were 57.7 million subscribers as of March 2018 versus the 57.90 million subscribers at the end of 2017.
TEL, on the other hand, has dropped from 1593 to just around 1250 — a loss of 21.53 percent year to date. From the peak of roughly 3,476, the stock is now down to about 63.52 percent.
The 15 EMA and 20 SMA are bearishly aligned and are acting as immediate resistance on the monthly chart. The 50 SMA is also poised for a bearish crossover with the 200 SMA.
Volume still seems to support a bearish outlook. MACD and RSI are bearish as well. Support is estimated at 1156 while resistance is expected in 1593.
Foreign Fund Flow
TEL registered a Net Foreign Selling worth P10,384,975.00 as of July 05, 2018. On a 30-day trading period, TEL is on a Net Foreign Selling worth PHP318,518,075.00.
Risk Level
TEL has a MODERATE RISK level due to its risk percentage of 49.06%.
Volume
As of July 5, 2018, at 03:30PM, the volume of TEL is 146.05% of the previous trading day.
Top 10 Players Sentiment – June 1 to 29, 2018
Trading participants of TEL with a 100% Buying and Selling Activity from Jun-01-2018 to Jun-29-2018 at 03:30PM:
21 out of 104 participants or 20.19% of all participants registered a 100% BUYING activity
2 out of 104 participants or 1.92% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 1249.7622
Top 10 Players’ Selling Average: 1238.9120
The psychological average price of the top 10 players from Jun-01-2018 to Jun-29-2018 is from 1238.9120 to 1238.9120.
Recommendation
Continue monitoring TEL for now. Stay in a cash position.
Please read: Should You Invest in GLO or TEL?
- Key Prices for PH Bluechip Stocks 30% Above 52-Week Low - June 4, 2024
- May 2024 Market Sentiment Rating of 30 PH Bluechip Stocks - June 3, 2024
- EquiTalks: ICT, BPI, AEV Updates – 5.29.2024 - May 29, 2024
