Just got an email from DA Market Securities tonight regarding their updates on DNL. It says “As DNL rises within our target range of P5.40 – P6.00 per share, we put a HOLD recommendation as we await earnings to be released in February. The company noted that it is on track for est. net earnings target of Php1.15 billion or may even outpace expectations.
We are optimistic on DNL improving year-on-year net earnings for 2013, thereby need revaluation of targets amid the following growth prospects – new MRI plant, focus on higher-margin products, core strategy of dynamic innovation and timely adaptability.
Furthermore, the company maintains a dividend policy of declaring 25% of prior year’s consolidated net income est. at Php 287.5 million or Php0.08/share.”
Congratulations to those who are holding this stock. The report also says that “JFC’s expansion outside the country (i.e. recently reported – Indonesia) may continue to benefit D&L for some specialty products that D&L developed for the company. However, eventually, JFC may source domestically-made ingredients in the country of expansion. Conversely, foreign companies that look to set up in the Philippines will look for a local supplier such as in the case of Krispy Kreme sourcing from DNL for lower-cost ingredients while maintaining franchise quality.”
To read more about this report, visit their site itrade.ph