Aboitiz Power Corporation: Steady expansion plans with margin stability – Reiterate Buy

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Aboitiz Power Corporation: Steady expansion plans with margin stability – Reiterate Buy

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Aboitiz Power Corporation

Steady expansion plans with margin

stability – Reiterate Buy

Reiterate Rating: BUY | PO: 50.50 PHP | Price: 43.40 PHP

Reiterate Buy with revised PO of P50.5 25 May 2026

We reiterate our Buy rating on AP and increase our DCF based PO by 5% to P50.50 Equity

(from P48) with this increase underpinned by continued capacity expansion and steady

generation margins. Based on its current pipeline, AP’s attributable capacity should

Key Changesreach ~8GW by end-2029E (from 6.3GW as of end-2025) following the additions of CBK

hydro, VCPL and their continued RE pipeline backed by awarded GEAP contracts. (PHP) Previous Current

Meanwhile, with contracted capacity at roughly 90% that includes fuel-pass through Price Obj. 48.00 50.50

provisions (or fuel hedges), generation margins should remain stable with a modest 2026E EPS 4.81 5.20

boost from rising spot prices. AP should deliver core profit growth of +13%/+5% in 2027E EPS 5.10 5.47

FY26/27E with an implied dividend yield of 6% in 2027E. 2028E EPS NA 5.49

Modest estimate upgrade, PO raised 5% Julian Roxas ^^

Research Analyst

We raise our FY26-28E core profit by 5% on average to factor in (1) 2025 and 1Q26 Philippine Equity Partners

actual results, (2) updated capacity pipeline that includes CBK, VCPL and RE projects, (3) +63 2 8640 6780 julian.roxas@pep.com.ph

slightly better generation margins from an improved WESM price outlook and (4) higher

Jojo Gonzales ^^

net debt following drawdowns related to recent acquisitions. WACC was unchanged at Research Analyst

7.9% as an updated RFR of 6% (from 5%), the 5-year average of the 10-year Philippine Equity Partners +63 2 8640 6767