Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>We are gradually building a high-conviction coverage of ideas for the mid and small-caps in the Philippines.</li>
<li>We set criteria for high ROCE, reasonable growth (10-15% YoY), strong balance sheets, and reasonable capital allocation (dividend yields), all ingredients for being multi-baggers.</li>
<li>We also offer updates on several companies we met at the PSE conference in Manila, which took place from March 19 to 21.</li>
</ul>


We are gradually building a high-conviction coverage of ideas for the mid and small-caps in the Philippines.
We set criteria for high ROCE, reasonable growth (10-15% YoY), strong balance sheets, and reasonable capital allocation (dividend yields), all ingredients for being multi-baggers.
We also offer updates on several companies we met at the PSE conference in Manila, which took place from March 19 to 21.


Shortlist of High Conviction Philippines Equity Ideas and Updates from PSE Conference - March 2025

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digiplus-interactive-corp" target="_blank" data-smartkarma-citation="entities:23060:1" rel="noopener">DigiPlus Interactive (PLUS PM)</a> has seen remarkable performance lately, with its share price increasing by 20% this month, 32% YTD, and 300% since January 2024.</li>
<li>The share price performance is driven by optimism over the company's shortlisting for a Brazilian operating license and a recent broker upgrade with a bold price target of 55.4 pesos.</li>
<li>Currently trading at 13.7x and 10.5x FY24/25 PE with an ROCE exceeding 35%, we anticipate the next catalyst will be the company’s strong FY24 earnings report in April.</li>
</ul>



DigiPlus Interactive (PLUS PM) has seen remarkable performance lately, with its share price increasing by 20% this month, 32% YTD, and 300% since January 2024.
The share price performance is driven by optimism over the company's shortlisting for a Brazilian operating license and a recent broker upgrade with a bold price target of 55.4 pesos.
Currently trading at 13.7x and 10.5x FY24/25 PE with an ROCE exceeding 35%, we anticipate the next catalyst will be the company’s strong FY24 earnings report in April.


Digiplus Interactive (PLUS PM): FY24 Earnings Preview, Cheap Despite Quadrupling Since Jan 2024

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digiplus-interactive-corp" target="_blank" data-smartkarma-citation="entities:23060:1" rel="noopener">DigiPlus Interactive (PLUS PM)</a> presented PSE Star investor day yesterday and briefly analyzed two game-changing catalysts from the call: a) CasinoPlus acquisition and b) Brazil license. </li>
<li>The expected TAM associated with e-games/Bingo in Brazil is 250 bn pesos (4 bn USD), compared to the Philippines, which is currently cycling at 160 bn pesos (Q3 PAGCOR data). </li>
<li>The stock trades at 7.8x FYPE with 15% of the market cap in cash and a 3.8% dividend yield (30% payout ratio) with a seasonal uptick in Q4 FY24. </li>
</ul>



DigiPlus Interactive (PLUS PM) presented PSE Star investor day yesterday and briefly analyzed two game-changing catalysts from the call: a) CasinoPlus acquisition and b) Brazil license. 
The expected TAM associated with e-games/Bingo in Brazil is 250 bn pesos (4 bn USD), compared to the Philippines, which is currently cycling at 160 bn pesos (Q3 PAGCOR data). 
The stock trades at 7.8x FYPE with 15% of the market cap in cash and a 3.8% dividend yield (30% payout ratio) with a seasonal uptick in Q4 FY24. 


DigiPlus (PLUS PM): Brazil License And CasinoPlus Acquisition Game Changing Catalysts For The Future

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digiplus-interactive-corp" target="_blank" data-smartkarma-citation="entities:23060:1" rel="noopener">DigiPlus Interactive (PLUS PM)</a> reported a solid Q3 2024 with core revenues/profits up 171%/243%YoY.  QoQ revenues remained flat as competition ramped up. </li>
<li>The company paid off all its gross debt, and net cash increased to 12 bn pesos (around 15% of market capitalization) </li>
<li>Trading at 8.2/6.4x FY24/25 PE, with 15% of the market cap in cash and a 5% dividend yield, the stock is worth considering. </li>
</ul>



DigiPlus Interactive (PLUS PM) reported a solid Q3 2024 with core revenues/profits up 171%/243%YoY.  QoQ revenues remained flat as competition ramped up. 
The company paid off all its gross debt, and net cash increased to 12 bn pesos (around 15% of market capitalization) 
Trading at 8.2/6.4x FY24/25 PE, with 15% of the market cap in cash and a 5% dividend yield, the stock is worth considering. 


DigiPlus Interactive Corp (PLUS PM): Solid Q3 2024, Enter the Peak Q4 Season

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digiplus-interactive-corp" target="_blank" data-smartkarma-citation="entities:23060:1" rel="noopener">DigiPlus Interactive (PLUS PM)</a> is the Philippines platform for Bingo Plus and other e-casino games, trading at 7x in the midst of &gt;100% growth in revenue/profitability in 2024. </li>
<li>The company is net cash with a &gt;50% ROE and is in an industry forecast by PAGCOR (regulator) to grow at least 15% CAGR in the future years.</li>
<li>We expect explosive Q2 revenue/profit growth of 226%/298% YoY which would act as a share price catalyst. We calculate a dividend of 0.80-1 peso/share (30-40% payout ratio), equating to a 4-5% yield.</li>
</ul>



DigiPlus Interactive (PLUS PM) is the Philippines platform for Bingo Plus and other e-casino games, trading at 7x in the midst of &gt;100% growth in revenue/profitability in 2024. 
The company is net cash with a &gt;50% ROE and is in an industry forecast by PAGCOR (regulator) to grow at least 15% CAGR in the future years.
We expect explosive Q2 revenue/profit growth of 226%/298% YoY which would act as a share price catalyst. We calculate a dividend of 0.80-1 peso/share (30-40% payout ratio), equating to a 4-5% yield.


Digi Plus Interactive (PLUS PM): Bingo Plus Platform, Trading At 7x PE with >100% Growth In 2024

Philippines

DigiPlus Interactive Corp. provides gaming and leisure facilities. The Company offers multi-gaming platforms, numerous products, and games with a strong distribution network of entertainment facilities in neighborhood sites. DigiPlus Interactive serves customers in the Philippines.

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DigiPlus Interactive (PLUS PM)

Shortlist of High Conviction Philippines Equity Ideas and Updates from PSE Conference - March 2025

We provide pertinent summaries of all our meetings at the PSE conference held on 19-21 March, in addition to our screen of high-quality companies...

Sameer Taneja