SEMIRARA Mining and Power Corp. (SMPC) saw its shares rise last week following news of high coal shipments and higher capital spending for 2025.
The Consunji-led energy company was the 15th most actively traded stock last week, with a total of 10.75 million shares worth P388.45 million changing hands from Jan. 20 to 24, data from the Philippine Stock Exchange showed.
Shares of the company closed at P36.40 apiece, 2% higher than the P35.70 close a week prior. For the year, the stock’s price rose 4.3% from its P34.90 close on the last trading day of 2024.
Positive investor sentiment following news on SMPC hitting a record high on coal shipments in 2024 made the Consunji-led energy company one of the most active stocks traded last week, analysts said.
“We think flows for SMPC in recent weeks are mainly due to positive investor sentiment following their press release on hitting record-high coal shipments in 2024, which should help offset concerns regarding the impact of stabilizing coal selling prices over the past years,” said Rastine Mackie D. Mercado, research director at China Bank Securities Corp., in an e-mail.
Mr. Mercado added that the capex (capital expenditure) guidance reinforces SMPC’s commitment to its coal business despite stabilizing global coal prices, and another major upside catalyst is the potential development of its 700-megawatt San Rafael coal power plant.
“SMPC made record shipments last year as it increased both foreign and domestic shipments by 4% even though it was a volatile year for coal prices. The company gained investors’ confidence as directors were buying the stock as well,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message.
Mr. See added that the company plans to extend the mining life for their current mining sites Molave Pit and Narra Pit, then eventually Acacia Pit.
In a press release, SMPC reported 16.5 million metric tons (MT) in coal shipments for 2024, a 4.4% increase from the previous year, surpassing the previous year’s all-time high of 15.8 million, driven by stronger demand from China and domestic markets.
Broken down, foreign shipments rose by 4% to 8.4 million MT, with exports to China increasing by 46% to 7.6 million MT. Domestic shipments of coal also grew by 4% to 8.0 million MT, driven by increased sales to local cement producers and Calaca power plants.
Peter Louise D. Garnace, equity research analyst at Unicapital Securities, Inc., said in an e-mail that the company’s higher 2025 capex guidance boosted positive sentiment on the stock.
“Management’s higher 2025 capex guidance boosted positive sentiment on the stock as the company allotted over P5.8 billion for the coal segment for re-fleeting initiatives and additional mining and support equipment,” said Mr. Garnace.
“With this additional capex, we see SMPC sustaining a strong coal production target, mitigating the negative impact of weak coal prices on the company’s topline,” he added.
Last week, SMPC reported that it expects its capex budget for this year to reach P6.9 billion, with a significant portion going to its coal business. SMPC said that P5.8 billion is allocated to the coal segment for “re-fleeting initiatives and additional acquisition of mining and support equipment.”
SMPC’s subsidiary SEM-Calaca Power Corp. accounted for P0.7 billion, while P0.4 billion is allocated to Southwest Luzon Power Generation Corp.
For the third quarter, SMPC posted a net income of P3.11 billion, down 8.3% from P3.40 billion in the same period last year. Revenues grew by 12.5% to P13.08 billion from P11.63 billion in the previous year.
Meanwhile, for the first nine months, SMPC’s net income fell by 30.5% to P15.71 billion from P22.62 billion in the same period last year. Year to date, SMPC’s gross revenue amounted to P49.67 billion, declining 11.6% from P56.20 billion reported in 2023.
“For full year 2024, our revenue and net income forecasts are at P64 billion and P20.2 billion, respectively,” Mr. Mercado added.
He gave initial support and resistance at P35.70 per share and P37.00 per share, respectively.
Mr. See said that SMPC will report a lower net income after taxes in 2024 compared to 2023. He gave support and resistance levels of P37.75 per share and P40.70 per share.
“We project SMPC’s fourth-quarter revenue to be higher quarter on quarter amid strong demand from China as well as increased sales to local cement producers and power plants. However, on a year-on-year basis, we expect lower revenues primarily driven by an almost 30% decline in global coal prices,” said Mr. Garnace.
He pegged SMPC’s resistance around P37.00 apiece, while support at P35.00 apiece. — Lourdes O. Pilar
Semirara shares rise on higher coal shipments and capex
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