Aboitiz Power Corporation (AP) made a disclosure today regarding the second tranche of their PHP 30 billion debt. The company filed the request under the debt securities program of the Securities and Exchange Commission (SEC).
The request was registered with the SEC under its shelf registration program on June 19, 2017. It is equivalent to PHP 10 billion and an additional oversubscription of up to PHP 5 billion.
AP will offer it to the public in the fourth quarter of 2018.
The proceeds will be used to:
- Refinance the medium term loan of Therma Power Inc., a wholly owned subsidiary
- Repay its short-term loan obligations
- For general corporate purposes
The Second Tranche Bonds has a credit rating of “PRS Aaa,” with a stable outlook from the Philippine Ratings Services Corporation. Apparently, it is of the highest quality with minimal credit risk — an indication of firm capacity to repay its obligation.
A stable outlook also means that the company can retain the rating within the next 12 months.
Aboitiz Power had a net income of PHP 9.12 billion for 2018. This figure is 6 percent lower than the PHP 9.72 billion recorded in the same period in 2017.
Furthermore, the one-time non-recurring loss of PHP 1.39 billion during the period was brought about by net foreign exchange losses.
If this one-time loss were not included, the core net income would have been flat at PHP 10.51 billion versus the recorded PHP 10.46 billion in 2017.
Consolidating Inside a Triangle
AP appears to consolidate inside a triangle. The 15 EMA, 20 SMA, and 50 SMA are alternating as support and resistance.
Volume appears to favor the bulls. MACD shows consolidation as well.
Nevertheless, RSI is moving sideways and is at neutral levels. Estimated support is at 35.66 while expected resistance is 37.16.
As of August 30, 2018, at 03:30 PM, the volume of AP is 2,860.79% of the previous trading day.
Remember the correlation between price and volume.
- bullish price + high volume = high sustainability (price)
- bullish price + low volume = low sustainability (price)
- bearish price + high volume = high sustainability (price)
- bearish price + low volume = low sustainability (price)
AP has a LOW-RISK level due to its risk percentage of 23.22%.
Foreign Fund Flow
AP registered a Net Foreign Selling worth P34,976,985.00 as of August 30, 2018.
On a 30-day trading period, AP is on a Net Foreign Selling worth PHP165,829,905.00.
Top 10 Players’ Sentiment – August 29, 2018
Trading participants of AP with a 100% Buying and Selling Activity as of Aug-30-2018 at 03:30 PM:
20 out of 32 participants or 62.50% of all participants registered a 100% BUYING activity
3 out of 32 participants or 9.38% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 35.9730
Top 10 Players’ Selling Average: 36.0700
The psychological average price of the top 10 players as of Aug-30-2018 is from 35.9730 to 36.0700.
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