Emipire East Land Holdings, Inc.
ELI - EMPIRE EAST LAND HOLDINGS, INC.


SECTOR: PROPERTY
SUBSECTOR: PROPERTY


LAST TRADE PRICE = PHP 1.0100
LAST TRADE DATE: 06/07/13


P/E RATIO TEST:

2010 Earnings-per-share = PHP 0.0170
2011 Earnings-per-share = PHP 0.0170
2012 Earnings-per-share = PHP 0.0210
2013 Interim Earnings-per-share (3 months ending March 2013) = PHP 0.0037

Average earnings-per-share (based on the past 3 years and 1 quarter) = PHP 0.0175
Average price earnings ratio (based on the past 3 years and 1 quarter) = 57.88

Result of Graham's price-earnings ratio test: FAILED
Benjamin Graham recommends current price no more than 15 times average earnings.
However, P/E <15 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.


PRICE-TO-BOOK RATIO TEST:

Total Equity = PHP 22,849,268,000
Outstanding Shares = 13,476,199,167
Book-Value per Share = 1.70
Price-to-Book ratio (PB) = 0.60

Result of Graham's price-to-book ratio test: PASSED
Graham recommends that current price should not be more than 1.5 times the book value last reported.
However, P/B <1.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.

Moreover, average earnings to book ratio (similar to return on equity) = 1.03%


NET-WORKING-CAPITAL OR "RARE BARGAIN" TEST:

Current Asset = PHP 21,595,659,000
Total Liabilities = PHP 9,390,216,000
Net Working Capital = PHP 12,205,443,000
Current Asset to Total Liabilities ratio = 2.30

* By "net-working-capital", Graham means current assets (such as cash, marketable securities, and inventories) minus total liabilities (including preferred stock and long-term debt).

Result of Graham's net-working-capital or "RARE BARGAIN" test: PASSED
Current asset is greater than total liabilities.
Graham recommends issues with positive net-working-capital.

Moreover, equity is greater than total liabilities.
Total liabilities to equity ratio = 0.41
This company is relatively low leveraged.


GRAHAM'S "BLENDED MULTIPLIER" TEST:

P/E = 57.88
P/B = 0.60
P/E*P/B = 34.48

Result of Graham's "blended multiplier" test: FAILED
Graham suggests that the product of P/E and P/B should not exceed 22.5.
However, P/E*P/B <22.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.


LIMITATION OF ANALYSIS:

1. EPS calculation does not isolate "extra-ordinary income".
2. Analysis does not cover earnings stability, dividend records, earnings growth and futures earnings (or forward P/E ratio).
3. For future plans and prospects, read below reference.


REFERENCE:

http://www.pse.com.ph/resource/corpt/201...ec2012.pdf
http://www.pse.com.ph/resource/corpt/201...ar2013.pdf


DISCLAIMER:

The content of this material is for informational, educational and discussion purposes only.

The author/ writer is not a professional or registered investment adviser and as such nothing in this material should be considered as investment advice or a recommendation to buy, sell or hold an equity.

The opinions/ analysis expressed in this material are written in good faith, but absolutely no representation or warranty, expressed or implied, is made as to their accuracy or completeness.

This material may contain significant errors or significant omissions. The author's/ writer's investment thesis could be significantly flawed or his/ her assumptions could be significantly inaccurate or maybe disregarding certain significant risks. The author/ writer hereby expressly disclaims any responsibility for error, omission or inaccuracy in the information, misinterpretation and any all loss, disappointment, negligence or damage caused by reliance on this information.

All information should be independently verified. Investors should always perform their own due diligence when investing. The author/ writer shall not be responsible or liable for any trading or investment decisions made based on this information. Readers are solely responsible for their own investment decisions.
If You're So Smart, Why Aren't You Rich? - BATMAN The Animated Series: Season 1, Episode 41
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significant disclosure:

http://www.pse.com.ph/resource/disclosur...98_ELI.pdf

but probably not much effect on immediate share price.

i will sell half though when price reaches 1.05
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Kawawa naman ito. Napag iwanan na. Di na makabalik sa piso. Sana mag 0.80 na lang para sagad na.
“If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.”
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Lagay ko na rin dito...

Megaworld unit nears deal on Pasig property

Property developer Empire East Land Holdings Inc. (ELI) is finalizing a deal to take over a 23-hectare abandoned factory in Pasig City which it will groom into its biggest mixed-use development—bigger than its parent company’s pioneering cyberpark Eastwood City.

The upcoming mixed-use development to be called “Empire East City” is part of the P25-billion expansion program planned by ELI, the middle-income unit of Megaworld Corp., for the next five years, ELI president Anthony Charlemagne Yu told reporters after the company’s annual stockholders’ meeting Tuesday.

Remaining bullish on the middle-income segment of the residential market, Yu said ELI could sustain a double-digit growth this year: 10-20 percent in terms of net profit on the back of a likely 15-30 percent jump in revenues. Coming from a high base of P20 billion, Yu said that based on a conservative assumption, ELI could still grow reservation sales by 10-15 percent this year.

http://business.inquirer.net/172624/mega...g-property
Technicals + Fundamentals is the way forward.

My favorites
Fundamental Analysis: http://fundamentalenthusiast.wordpress.com
Technical Analysis: http://www.tradingphoenix.net
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6-14

Empire East expanding into luxury projects

PROPERTY developer Empire East Land Holdings, Inc. is adding 1,900 units to its residential portfolio this year, as it sees rising demand for its luxury projects.

“Our properties that carry the luxury brand of Empire East Elite cater to a more high-end market, and are designed to cater to the segment’s discriminating lifestyle requirements,” Empire East President and Chief Excutive Officer Anthony Charlemagne C. Yu said in a statement.

“While our leadership in the middle-income segment remains strong, we have always been receptive to new growth opportunities, allowing us to further expand our reach and capture a new breed of customers,” he added.

The new residential units are located in Kasara Urban Resort and The Paddington Palace, which are under the Empire East Elite brand.

Construction of the six-tower Kasara Urban Resort, located in Pasig City, and four-tower The Paddington Palace in Mandaluyong City, are currently underway.

The company said Kasara is now 74% sold, with Towers 1 and 2 of the resort-inspired residence are 90% and 80% completed, respectively. On the other hand, Tower 1 of The Paddington Palace is 71% sold.

Empire East currently has a land bank of 404 hectares worth P2.9 billion. Mr. Yu said the company has properties outside Metro Manila, but there are no plans to expand for now.

“We’ll wait for it to ripen, the price will be better, the developments will be better. There’s a lot of potential outside Manila. Hopefully we get the right price,” Mr. Yu told reporters after the company’s annual stockholders’ meeting.

Mr. Yu noted the Duterte administration’s massive infrastructure program is a big boost to developers looking to expand in provinces.

“If they just continue the ‘Build, Build, Build’ and really invest in infrastructure, it’s a big help to all of us, not only because the economy grows, but also because infrastructure in those remote areas give us opportunities,” Mr. Yu said.

Empire East, a subsidiary of the Andrew Tan-led Megaworld Corp., is set to complete and turn over around five to seven towers this year.

Its projects, Convent Garden in Sta. Mesa, Manila, and Mango Tree Residences in San Juan City, are 90% and 66% sold, respectively. The four-tower San Lorenzo Place in the Makati central business district is also nearly sold out.


source: http://bworldonline.com/empire-east-expa...-projects/


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