Converge ICT (CNVRG) has sustained impressive income growth, outperforming market consensus. It continues to dominate in quarterly broadband net additions, with its year-to-date figures surpassing the combined total of its competitors by 69%.
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Converge ICT (CNVRG) has sustained impressive income growth, outperforming market consensus. It continues to dominate in quarterly broadband net additions, with its year-to-date figures surpassing the combined total of its competitors by 69%.
For the second half of 2024, staying in liquid and quality names shall be the core strategy given the fragile but improving economic outlook. From a stock-picking standpoint, companies with robust economic moats, exposure to resilient segments of consumption, earnings visibility, and strong cash flow generation to combat high inflation and interest rates are strongly favored. Given recent developments, we favor banks, utilities, shipping, and select consumer names.
Stock | Call | Index Weight | Remarks |
---|---|---|---|
Converge ICT (CNVRG) | Overweight | 1.0% | The retailer is poised to benefit not only from the pent-up demand driven by the upcoming holiday season, but also from persistent downtrading consumers through its wide network of sari-sari stores. Furthermore, PGOLD’s index deletion resolution has lifted investor confidence. |
Aboitiz Equity Ventures (AEV) | Neutral | 2.4% | Core profit in 3Q 2024 rose 19% year-on-year, driven by gains in power generation, Coca-Cola earnings, and improved margins from Pilmico. Overall results met market expectations. Union Bank’s performance partially offset these gains, missing consensus due to elevated credit cost. |
Bloomberry Resorts (BLOOM) | Underweight | 0.61% | Gross gaming revenue grew due to the Solaire North ramp-up. However, demand at Solaire Entertainment City remains fragile, partly due to weak VIP demand and the absence of Chinese players after the POGO exodus. This could pose a lingering overhang on the stock. |