• JG Summit’s net income for the fiscal year was 20.2 billion pesos, exceeding the estimate of 19.8 billion pesos.
• The company’s revenue reached 343.8 billion pesos.
• The core net income was 19.6 billion pesos, a significant increase from the previous year’s 6.2 billion pesos.
• The airline rebound and group-wide margin gains tripled JG Summit’s 2023 core profit.
• The company’s 2023 revenues rose 14% due to growth in the real estate unit and improved food and petrochemical sales.
• The consolidated debt-to-equity ratio stood at 0.68 and the net gearing ratio was at 0.57 at the end of 2023.
• At the parent level, long-term debt decreased by 35% from 2022 after the company settled its $750m bond in January 2023.
• The company expects easing inflation and potential rate cuts to boost consumer demand and lower input prices.
• JG Summit plans to recover lost volume and market shares in the food business, expand the portfolio in the real estate sector, increase airline capacity, and benefit from the petrochemical transformation program.
• The company expects core profits to approach pre-pandemic record levels within the next 12 months.
• Cebu Air, part of the JG Summit, had a fleet of 85 aircraft and operates in 60 destinations by the end of 2023.
• The company has received more buy recommendations (3) than holds (2), with no sell recommendations.
A look at JG Summit Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to the Smartkarma Smart Scores, JG Summit Holdings has a positive long-term outlook. With a value score of 3, the company is considered to have good potential for growth and profitability. This is further supported by a growth score of 4, indicating strong potential for expansion and development. However, the company’s resilience score of 2 suggests that it may face some challenges and risks in the future. In terms of dividend, JG Summit Holdings received a score of 2, indicating a moderate outlook for its dividend payouts.
JG Summit Holdings is a diversified company that operates in various industries including consumer foods, agro-industrial and commodity food products, textiles, real estate, banking and financial services, telecommunications, petrochemicals, and air transportation. With a momentum score of 3, the company is expected to maintain a stable and consistent performance in the long run. Overall, the company’s scores suggest that it has a good potential for growth and profitability, but may face some challenges and risks along the way.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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