APS Daily Market Insights August 7

 Ayala’s IMI Revenues Up 22%. IMI (Buy, P 15.10*) recorded 22% increase in 1H2017 revenues to $ 501 Mn, mainly driven by robust international operations. Revenues from Europe and Mexico grew by 12% on the back of ongoing capacity expansions and new programs. IMI’s recent acquisitions Via Optronics GmbH (VIA) and Surface Technology International, Ltd. (STI Ltd.) delivered $73 Mn, accounting for 14% of the total 1H2017 revenues. We reiterate our positive outlook for IMI amid its recent won businesses, with aggregate value of $ 475 Mn, in Bulgaria, Czech Republic, China and Philippines. Full year contribution of its recent acquisitions and expansions will drive higher earnings growth this year.

 MPI Core Income Rises to P7.8 Bn. MPI reported 17% increase in its core net income for 1H2017, amounting to P7.8 Bn. The increase in the core net income of MPI was mainly attributed to its acquisition of the remaining 25% in Beacon Electric amounting to P21.8 Bn, along with the strong volume growth of its tollroads and hospital segments. In addition, the power, tollroads, water, and hospital segment of MPI contributed P5.3 Bn, P2.1 Bn, P1.8 Bn, and P0.93 Bn respectively.