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>PAGCOR forecasts a strong FY25 industry GGR of 450 bn pesos (20% YoY), of which the share of bingo/casino games is expected to be 50% (~225 bn pesos).</li>
<li>If <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>  maintains a share of 45% (vs last year's 47%), revenue will increase by 33% to 100 bn pesos. </li>
<li>With the recent correction due to the current geopolitical situation, the stock trades at 12.2x/9.5x FY24/FY25e, 35% ROCE, with multiple catalysts, e.g, a great Q1FY25 and expansion in Brazil.</li>
</ul>


PAGCOR forecasts a strong FY25 industry GGR of 450 bn pesos (20% YoY), of which the share of bingo/casino games is expected to be 50% (~225 bn pesos).
If DigiPlus Interactive (PLUS PM)  maintains a share of 45% (vs last year's 47%), revenue will increase by 33% to 100 bn pesos. 
With the recent correction due to the current geopolitical situation, the stock trades at 12.2x/9.5x FY24/FY25e, 35% ROCE, with multiple catalysts, e.g, a great Q1FY25 and expansion in Brazil.


DigiPlus Interactive (PLUS PM): Gleanings From the Annual Report FY24 and Management Meeting

<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

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

DigiPlus Interactive (PLUS PM)