Emperador shares jump after Singapore debut

July 18, 2022

INVESTORS snatched up Emperador, Inc. after it debuted on the Singapore stock exchange last week.

Data from the Philippine Stock Exchange showed a total of 32.24 million shares worth P562.55 million were traded from July 11 to 15.

Shares in Emperador jumped by 6.5% week on week, finishing at P18.40 apiece on Friday from its P17.28 closing on July 8. Since the start of the year, the stock has fallen by 9.4%.

Analysts said Emperador’s secondary listing in Singapore helped draw market players to the company last week.

“The run-up of the stock starting April 13 was due to positive reactive moves following disclosures in relation to its secondary listing on SGX,” China Bank Securities Corp. Research Associate Lance Gabriel U. Soledad said in a separate e-mail.

He said trading in more than one stock exchange helps a company shore up its liquidity and diversify its capital-raising options.

“It will be important to watch out for how Emperador will capitalize on such benefits moving forward,” Mr. Soledad added.

“EMI’s international base is one of its strongest suits, so expanding this segment would greatly benefit the company in the long run,” Regina Capital Development Corp. Equity Analyst Anna Corenne M. Agravio said in an e-mail, referring to the ticker symbol of Emperador for both bourses.

“Building on its already existing customer base for its scotch whiskey segment, for example, would definitely be value-accretive in the longer scheme of things,” she added.

Mr. Soledad said that Emperador’s performance in Singapore will depend on both its fundamentals and the growth trajectory of the alcoholic beverages sector.

Boosting its presence in the international markets, the Andrew L. Tan-led manufacturer of brandy and other alcoholic beverages made its debut in the Singapore Exchange Securities Trading Ltd. (SGX-ST) last Thursday.

Emperador opened the trading at S$0.435 apiece and finished at S$0.450 (about P18.06 per share). On Friday, it ended at S$0.455.

Emperador is the first Philippine-listed company that conducted a secondary listing in the Singapore stock exchange.

Its product portfolio is composed of domestic and foreign brands which include Emperador and Fundador brandies as well as Andy Player whisky, Smirnoff Mule, The Bar, The Dalmore and Jura single malt whiskies.

Emperador’s attributable net income in the first quarter amounted to P2.10 billion, a bit higher than P2.08 billion in the same period last year.

Ms. Agravio expects Emperador’s second-quarter income to reach P2 billion to P2.5 billion, and its full-year bottom line to hit P11 billion to P13 billion.

She placed the company’s support and resistance levels at P17.00 and P19.00, “as long as Emperador’s buying momentum continues to pick up” this week.

“Over the near term, we think EMI will consolidate within the P17.30-P20 range,” Mr. Soledad said.

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