First Read: Ayala Corp "Q126: Mixed results within the group" (Buy) Abaquita

研报英文原文证据摘录

First Read: Ayala Corp "Q126: Mixed results within the group" (Buy) Abaquita

S Cons.

variable costs and exited unprofitable contracts, signaling improving earnings quality 12/25E 75.79 94.72

and operational discipline. Its net loss further narrowed YoY to P167mn (from P322mn). 12/26E 89.46 86.94

AC Health's revenue grew 24% led by the provider group (+29%), but its net loss 12/27E 105.53 103.07

widened to P143mn (from P59mn in Q125) due to one-off manpower costs

Mica Abaquita

Analyst

Q: Has the company's outlook/guidance changed?

mica.abaquita@ubs.com

According to management, despite AC Health's wider loss in Q126, it remains on track +632-8784 8827

to reach profitability by year-end, as margins normalize while its provider and pharma

groups continue to grow. In ACMo, management noted a strong pick-up in demand for

NEVs as oil prices rose. It expects to further grow its portfolio's market share to 12% by

year-end. ACMo recognizes margin risks amid PHP weakness and while selective price

increases have been implemented, pricing remains a carefully managed lever. IMI does

not expect any material impact from the Middle East conflict, as it proactively

coordinates with customers and suppliers to mitigate any disruption.

Valuation: We have a BUY rating on AC.

AC reiterated its shift toward cash flow generation and capital discipline amid a more

uncertain macro environment. The group emphasized tighter hurdle rates, reduced

capex intensity, and a willingness to pause projects that do not quickly convert to cash.

This approach is evident across business units, from inventory sell-through and delayed

launches in real estate to more measured expansion in power ans well as restructuring

and cost initiatives in emerging segments.