A key advantage of Ayala Land is that its diversified portfolio of businesses allows it to participate in each of the key macroeconomic drivers of the Philippines. |
Indications are positive towards stronger loans growth this year, which is becoming quite important in sustaining net profits amid the possibility of declining net interest margins. |
Our recommendation would be to go for companies that are seen benefiting most from the likely end-result of all these developments -- lower interest rates and improving consumption. |
The slight earnings disappointment is compensated by the positive outlook on dividends, where management guidance is moving towards our more aggressive dividend payment assumptions. |