DMCI Holdings, Inc. (DMC) issued a press release dated August 23, 2018, stating that DMCI Power delivered extraordinary performance for the first six months of the year.
Rise in Electricity Demand
DMCI Power (DPC) generated consolidated sales of 79.83 GWh for the second quarter as demand for electricity hit all-time highs in Mindoro and Masbate. This figure is a 20 percent rise versus the same period last year.
For the first half of the year, volume rose by 19 percent at 142.91 GWh versus the recorded 120.42 GWh in 2017. A bulk of the sales was from Palawan (43 percent) at 61.57 GWh, Masbate (37 percent) at 53.10 GWh, and Mindoro (20 percent) at 28.24 GWh.
Palawan’s booming tourism industry and Masbate’s commercial business expansion contributed to the rise in electricity demand.
Furthermore, the rehabilitation of Mindoro’s 69Kv transmission line in the north grid allowed DPC to operate at maximum capacity.
The off-takers of DPC include the Palawan Electric Cooperative (PALECO), the Masbate Electric Cooperative (MASELCO), the Oriental Mindoro Electric Cooperative (ORMECO) and the Sultan Kudarat Electric Cooperative.
DMCI Holdings’ Sturdy Construction and Mining Arms
On August 20, 2018, the company made a press release about its construction arm, D.M. Consunji, Inc. (DMCI). The company booked revenues of PHP 7.2 billion for the first half of the year
The figure is 13 percent higher than the recorded PHP 6.4 billion in 2017. The higher number of completed projects in the early months of the year contributed to the leap.
For the first half of the year, DMC booked a net income of PHP 676 million. This figure is 36 percent higher than the recorded PHP 497 million in 2017.
Higher gross profit margins of the business units contributed to the rise. It was also because of the late approval of variation orders which was already accomplished before the period.
In a separate press release dated August 16, 2018, DMCI Holdings reported that the Mining shipments rose by 88 percent in the first half of the year. A total of 482,762 Wet Metric Tons (WMT) was shipped versus the 257,120 WMT in the same period in 2017.
A bulk of the shipments came from the old stockpile of Berong Nickel Corporation accounting for a total of 430,000 WMT.
The remaining shipments came from the Zambales Diversified Metals Corporation (ZDMC).
Average nickel price and nickel grade also improved for the first half of the year. Nickel grade rose to 1.73 percent from 1.56 percent, an 11 percent increase. Selling price averaged to USD 39 from USD 35.
Revenues totaled to PHP 978 million for the first half of the year. The figure is higher by 114 percent versus the recorded PHP 458 million.
Meanwhile, the net income leaped by 731 percent from PHP38 million to PHP 316 million.
Cup and Handle Pattern
As of writing (14:00 hrs), the stock seems to be toppish in the short term.
However, the medium-term trend is already bullish. It even appears to be forming a Cup and Handle Pattern (C&H), a bullish formation with a neckline at 12.40.
The 15 EMA and 20 SMA are acting as support. Nevertheless, the 200 SMA may act as resistance.
Volume profile already appears to be siding with the bulls. MACD is poised for a bullish crossover. RSI is somewhat bullish and is at neutral levels.
Meanwhile, support is estimated at 11.32 followed by 11.00. Resistance is expected at 12.40.
Volume
As of August 24, 2018, at 03:30 PM, the volume of DMC is 263.68% of the previous trading day.
Remember the correlation between price and volume.
- bullish price + high volume = high sustainability (price)
- bullish price + low volume = low sustainability (price)
- bearish price + high volume = high sustainability (price)
- bearish price + low volume = low sustainability (price)
Risk Level
DMC has a MODERATE-RISK level due to its risk percentage of 47.53%.
Foreign Fund Flow
DMC registered a Net Foreign Buying worth P578,312.00 as of August 24, 2018.
On a 30-day trading period, DMC is on a Net Foreign Buying worth PHP208,352,316.00.
Top 10 Players’ Sentiment – August 24, 2018
Trading participants of DMC with a 100% Buying and Selling Activity as of Aug-24-2018 at 03:30 PM:
9 out of 34 participants or 26.47% of all participants registered a 100% BUYING activity
15 out of 34 participants or 44.12% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 11.9540
Top 10 Players’ Selling Average: 11.9536
The psychological average price of the top 10 players as of Aug-24-2018 is from 11.9536 to 11.9536.
Top 10 Players’ Sentiment – August 20-24, 2018
Trading participants of DMC with a 100% Buying and Selling Activity from Aug-20-2018 to Aug-24-2018 at 03:30 PM:
16 out of 62 participants or 25.81% of all participants registered a 100% BUYING activity
13 out of 62 participants or 20.97% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 11.5282
Top 10 Players’ Selling Average: 11.5256
The psychological average price of the top 10 players from Aug-20-2018 to Aug-24-2018 is from 11.5256 to 11.5282.
Top 10 Players’ Sentiment – August 1-24, 2018
Trading participants of DMC with a 100% Buying and Selling Activity from Aug-01-2018 to Aug-24-2018 at 03:30 PM:
10 out of 86 participants or 11.63% of all participants registered a 100% BUYING activity
14 out of 86 participants or 16.28% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 11.8311
Top 10 Players’ Selling Average: 11.7803
The psychological average price of the top 10 players from Aug-01-2018 to Aug-24-2018 is from 11.7803 to 11.7803.
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