How Expensive is East West Banking Corp (EW) now fundamentally based on their June 2017 Quarterly Report?

East West Banking Corporation (EW) was registered with the Securities and Exchange Commission on March 22, 1993. The Company was granted authority by the Bangko Sentral ng Pilipinas (BSP) to operate as a commercial bank in 1994 and commenced operations on July 8 of the same year.

EW's principal banking products and services include deposit-taking, loan and trade finance, treasury, trust services, credit cards, cash management and custodial services. The Company offers the financial services to consumer and corporate clients. On January 25, 2012, EW obtained from BSP the approval to operate as a universal bank.

On May 6, 2016, EastWest and Standard Chartered Bank Philippines (SCB PH) entered into an agreement for SCB PH’s retail business. Under the agreement, the credit cards, personal loans, wealth management and deposits of SCB in the Philippines will be migrated to EastWest.

The Company’s current subsidiaries are East West Rural Bank, Inc., East West Insurance Brokerage, Inc., East West Leasing and Finance Corporation, Price Solution Philippines, Inc., Assurance Solutions Insurance Agency, and East West Ageas Life Insurance Corporation. EW is also part of a joint venture – East West Ageas Life Insurance Corporation, a life insurance firm formed with Ageas Insurance International N.V.

As of December 31, 2016, EW has a network of 378 branches and 580 automated teller machines, majority of which are located within Metro Manila. 

As of Sept 22, 2017, EW was last traded price at 31.6Php. This is just 1.3 times higher compared to their recorded book value as according to their June 2017 quarterly report. Most value investor, they may find the market price to be still in a bargain. 

In terms of P/E, the company recorded a trailing P/E of 13.92 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 13.92Php. With a P/E value and with a growth rate of 57.64% from 2015 to 2016, the company trailing PEG ratio would only be 0.24 which means, investors of this company are paying 13.92Php for every 1PHP income last 2016 for a growth rate of 57.64%. In terms of this parameter, a value investor may found this share to be undervalued since the PEG ratio is less than 1.

In terms of income, the first 6 months net income attributable to parents this year increases by 60% in comparison to last year first 6months net income.

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How Expensive is Jollibee (JFC) now fundamentally based on their June 2017 Quarterly Report?

Jollibee Foods Corporation (JFC) was incorporated on January 11, 1978. JFC and its subsidiaries and affiliates are involved primarily in the development, operation and franchising of quick service restaurants (QSR) under the trade names "Jollibee", "Chowking", "Greenwich", "Red Ribbon", "Yong He King", "Hong Zhuang Yuan", "Mang Inasal", "Burger King", "Highlands Coffee", "Pho24", "12 Hotpot", "Dunkin' Donuts", and "Smashburger".

On November 18, 2016, JFC disclosed that it entered into an agreement through its subsidiary, JSF Investments Pte. Ltd. (JSF), with its JV partner, Viet Thai International Joint Stock Company (VTI), to make its JV company, Superfoods Group, a public company by listing it in the Vietnam Stock Exchange with an initial public offering (IPO) on or before July 2019. As part of the agreement to the IPO, the ownership of Superfoods Group will be adjusted with JFC, through JSF, owning 60% of the JV while VTI will own 40%.

Aside from the subsidiaries and affiliates which own and operate the JFC’s QSR trade names, the Company's other subsidiaries include Freemont Foods Corporation, a wholly-owned subsidiary which owns and operates Jollibee stores in Visayas and Mindanao, and Grandworth Resources Corporation, a real estate company which owns or leases some of the properties used as store sites.

By the end of 2016, there were 978 Jollibee stores nationwide, of which 483 were franchised and 495 are Company-owned. In international operations, Jollibee had 167 stores with 35 stores in the US, 84 in Vietnam, 26 in the Middle East, 14 in Brunei, four in Singapore, three in Hong Kong, and one in Canada.

As of Sept 19, 2017, JFC was last traded price at 244Php. This is 7 times higher compared to their recorded book value as according to their June 2017 quarterly report. A value investor may found this quite overvalued. But, perhaps because of its popularity, investors of this share perceived that the net worth of the company should be 7 times more than its current value. 

In terms of P/E, the company recorded a trailing P/E of 42.4 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 42.4PHP. With a P/E value and with a growth rate of 24.4% from 2015 to 2016, the company trailing PEG ratio would also be 1.7 which means, investors of this company are paying 40.24PHP for every 1PHP income last 2016 for a growth rate of 24.4%. A fair valued stock usually has PEG ratio of 1 meaning, what you are paying for that earning- the P/E is equivalent to the growth rate- increase in EPS.

In terms of income, the first 6 months net income attributable to parents this year increases by 14% in comparison to last year first 6months net income.

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How Expensive is Double Dragon (DD) now fundamentally based on their June 2017 Quarterly Report?

DoubleDragon Properties Corp. (DD), formerly Injap Land Corporation, was established on December 9, 2009 to primarily engage in the business of real estate development and other real estate-related business ventures. The Company started commercial operations in November 2010. DD was originally 100%-owned by Injap Investments, Inc. (IJI), a holding company owned by the Sia family. In June 2012, DD became a joint venture between IJI and Honeystar Holdings Corporation, the holding company of the Tan and Ang families. The Securities and Exchange Commission approved the Company's change in name to its present one on August 1, 2012.

DD and its subsidiaries own, lease, and enter into joint venture agreements covering several tracts of land for community malls, office, residential and other types of developments. As of December 31, 2016, DD has eight subsidiaries including DoubleDragon Sales Corp., DoubleDragon Property Management Corp., DD Happyhomes Residential Centers, Inc., DD-Meridian Park Development Corp., CityMall Commercial Centers Inc., Piccadilly Circus Landing Inc., Iloilo-Guimaras Ferry Terminal Corp. and Hotel of Asia, Inc.

At present, the Company has acquired a total of 54 sites for its community malls. Ten (10) CityMalls have commenced commercial operations while 29 are under construction, of which majority will be opening in 2017. Meanwhile, 15 will be completed and majority thereof will be operational by 2018.

The Company’s core projects include CityMall, DD Meridian Park, Jollibee Tower, The SkySuites Tower, Dragon8 Mall, and W.H. Taft Residences. DD also has several projects in Iloilo, namely, Injap Tower, The Uptown Place, People’s Condominium, FirstHomes Subdivision, and HappyHomes – Mandurriao.

As of Sept 15, 2017, DD was last traded price at 40Php, even though the market price dropped, it's still 8.7 times higher compared to the recorded book on their June 2017 quarterly report. A value investor may found this quite overvalued. On the other hand, investors of this share perceived that the net worth of the company should be 8.7 times more than its current value, perhaps because of the potential earning in the future, the trust on the company management or any other else like, effective marketing approach to attract investors.

In terms of P/E, the company recorded a trailing P/E of 154 meaning, for every 1Php earning last 2016, investors of this company are willing or is paying 154Php which, may be expensive. With a 154 P/E and with a growth rate of 4% from 2015 to 2016, the company trailing PEG ratio would be 38.4 which means, investors of this company are paying 154Php for every 1Php income last 2016 for a 4% growth rate from 2015 to 2016. A fair valued stock usually has PEG ratio of 1 meaning, what you are paying for that earning- the P/E is equivalent to the growth rate- increase in EPS.

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