Philippines Strategy

Research evidence excerpt

Philippines Strategy

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Figure 2 - Philippines top picks, BSP target range of 2-4%. Note that our revised growth and inflation PCOMP: valuations

forecasts already factor in the recently announced wage hikes, which

PER eps gr P/B ROE Yield

could have both a positive and negative impact on the macro situation. Stock 2027E (x) 2027E (%) 2027E (x) 2027E (%) 2027E (%)

Finally, meetings during our ASEAN banks tour last week provided even BDO PM 6.9 6.0 0.81 12.5 5.0

more reasons to be positive on the Philippines. Hybrid investor meetings PGOLD PM 8.9 9.7 1.01 11.5 5.1

with the five largest banks and the regulator had a unanimously positive CNPF PM 14.1 9.0 2.42 17.8 3.9 SM PM 7.7 4.7 0.87 11.8 3.6

outlook overall for a key sector which acts as a proxy for the entire ICT PM 22.6 8.1 9.04 44.9 1.9

market. JFC PM 13.6 22.8 1.68 13.0 2.8

URC PM 10.3 8.7 1.06 10.0 7.0

• More names looking good - adding domestic growth ideas. Given a MWC PM 7.4 0.5 0.86 12.1 6.7

more optimistic economic picture, we expand our list of top Outperform- GLO PM 10.8 12.5 1.25 11.9 5.3

rated names in the Philippines market, with the addition of domestically- TEL PM 6.7 6.3 1.54 24.1 8.4

PCOMP 9.5 6.4 3.95 20.7 3.5

driven growth ideas to complement our previous list that was more

focused on defensive picks. We add four Outperform ideas: BDO, JFC, Source: Bloomberg, Macquarie Research July 2026

URC, and SM to the list with ICT, PGOLD, CNPF, MWC, GLO, and TEL, prices as of 30 June 2026

which we still like. Note that, except the overseas-growth driven ICT,

most of our earlier picks continue to offer above-Phlippines market

dividend yields. The names added now offer a growth story that we

expect will play out in 2027E, when we expect a tangible recovery to

materialise especially from a bottom-up perspective.