ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Equity Bottom-Up

<ul>
<li>Conference call with the IR of <a href="https://www.smartkarma.com/entities/13890" target="_blank" data-smartkarma-citation="entities:13890:1">Puregold Price Club (PGOLD PM)</a> reveals that SSSG grew healthily at 6.5% YoY in 9M18, thanks to personal income tax cut.</li>
<li>The bigger growth driver is provincial expansion (outside Metro Manila), which would allow PGOLD to achieve mid-teen sales growth.</li>
<li>There has been little to no sales impact from e-commerce as e-commerce penetration in Philippines is lagging even in the ASEAN context. </li>
<li>PGOLD trades at 18.3x 2019E PE, a 15% discount to peers average of 21.6x</li>
</ul>


Conference call with the IR of Puregold Price Club (PGOLD PM) reveals that SSSG grew healthily at 6.5% YoY in 9M18, thanks to personal income tax cut.
The bigger growth driver is provincial expansion (outside Metro Manila), which would allow PGOLD to achieve mid-teen sales growth.
There has been little to no sales impact from e-commerce as e-commerce penetration in Philippines is lagging even in the ASEAN context. 
PGOLD trades at 18.3x 2019E PE, a 15% discount to peers average of 21.6x


Puregold Price Club: Steady Grower with Provincial Expansion Story