Maybank Forecasts Double-Digit Earnings Growth for Ayala Corp in 2025

Maybank Forecasts Double-Digit Earnings Growth for Ayala Corp in 2025

As we look to the future, one conglomerate that's expected to make waves is none other than Ayala Corp (AC). According to a report by Maybank Investment Banking Group, AC is predicted to have a good year ahead, driven by the strong performances of its four major subsidiaries Bank of the Philippine Islands (BPI), Ayala Land Inc., Globe Telecom, Inc. and ACEN Corp.

The Power of Conglomerates

While conglomerates are often perceived as being slow-moving, Maybank's forecast suggests that AC is poised to buck this trend. The report notes that the company's earnings are projected to rise by 11.4 percent in 2025, a testament to the power of its diversified portfolio.

Growth Driver ACMobility

One subsidiary that's gaining traction is ACMobility, Ayala's automotive arm. In partnership with BYD, the company has sold an impressive 4,780 vehicles in its first year of full operation. This strong performance suggests that ACMobility is on track to make a significant impact in the market.

Market Share and Hybrid Disruption

Maybank notes that BYD's popularity is expected to continue growing, with potential for disruption in the pickup truck and multi-purpose vehicle segment. The introduction of hybrids like Shark and Song Max could be a game-changer for the company.

Dealer Network Expansion

In addition to its strong sales performance, BYD is also building its dealership network at a rapid pace. By the end of 2024, the company had operational dealerships in 25 locations, with 52 more in the pipeline.

Maybank's Verdict A 'Buy' Rating

Despite the current market sentiment, Maybank remains optimistic about AC's prospects. The investment bank has reiterated its buy rating for the company, with a target price of P800 apiece. This represents significant upside potential, especially considering that the stock is trading at a 39-percent discount to its real-time net asset value.

Conclusion A 'Good Year' Ahead

As we look to the future, Maybank's forecast suggests that AC is well-positioned for success in 2025. With earnings expected to rise by double digits and subsidiaries like ACMobility gaining traction, there's reason to believe that the company will have a good year ahead.

Key Takeaways

Ayala Corp is expected to have a good year ahead, driven by the strong performances of its four major subsidiaries.
ACMobility is gaining traction in the automotive market, with potential for disruption and significant growth in 2025.
BYD's popularity is expected to continue growing, with potential for market share gains.

Keywords Ayala Corp, Maybank, earnings growth, conglomerate, ACMobility, BYD, automotive, market share.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.