ALI shares rise after merger approval

INVESTORS snapped up Ayala Land, Inc. (ALI) shares last week after the real estate company received regulatory approval to consolidate and absorb 29 companies as part of its restructuring program.

ALI was the sixth most traded share on the stock exchange last week, with value turnover hitting P1.01 billion and 43.51 million shares traded from March 31 to April 4, data from the Philippine Stock Exchange (PSE) showed.

ALI shares rose 6.3% week-on-week to P23.70 on Friday, surpassing the 1.6% growth of the property index. It even outperformed the PSE index, which saw a week-on-week decline of 1%.

However, ALI shares were down by 9.5% year-to-date.

Analysts said the week-on-week jump in ALI stock was due to the consolidation of its subsidiaries under its name.

“It shows that Ayala Land is improving efficiency and simplifying its structure by combining the 29 companies, which makes it attractive for investors,” Juan Alfonso G. Teodoro, an equity analyst at Timson Securities, Inc., said in a Viber message.

“Additionally, it demonstrates that the business is on course with its long-term goals, which builds investor confidence,” he added.

“If the merger results in actual operational synergies and enhanced efficiency, ALI could see higher profitability in the upcoming months,” Alexandra Margaux Denise G. Yatco, an equity analyst at Regina Capital Development Corp., said in an e-mail interview.

ALI’s restructuring efforts have had positive sentiments on the stock, as this should improve valuation, Aniceto K. Pangan, a trader at Diversified Securities, Inc., said in a Viber message.

In a disclosure to the local bourse, the Securities and Exchange Commission approved ALI’s articles and plan of merger on March 31, which took effect on April 1. The plan to merge was approved during ALI’s 2024 annual stockholders’ meeting.

The entities are either directly owned by ALI or by its subsidiaries, AyalaLand Estates, Inc. and AyalaLand Hotels and Resorts Corp.

“The stock [Ayala Land] continues to perform well as their premium property segment remains resilient with regard to demand, as shown by their full-year performance with double-digit percentage growth in the mid-20s,” Mr. Pangan said.

Latest audited financial statements showed ALI’s consolidated revenue climbed by 21.4% to P180.74 billion in 2024, boosted by real estate sales, which rose by 21.3% to P176.53 billion. Attributable net income reached P28.23 billion last year, 15.2% higher than P24.51 billion in 2023.

For this week, Ms. Yatco placed ALI’s support levels at P21.60, while its resistance levels are at P24.30.

“The outlook remains positive for Ayala Land, with inflation trending downwards. This will likely prompt the [Bangko Sentral ng Pilipinas] to lower lending rates, which will further boost the property market, especially Ayala Land, as it continues to grow despite headwinds,” Mr. Pangan said.

He placed his immediate support and resistance levels for ALI at P22.80 and P23.90, respectively. His next support level is at P22, while the next resistance level is at P24.80 per share.

“With the stock being at a discounted price, it makes it more interesting for investors to buy,” Mr. Teodoro said.

“Overall, both the fundamentals and technicals are aligned to support the stock’s upward movement,” he added.

Mr. Teodoro placed support levels around P22.60-P21.80 and resistance levels at P24.80-P25 for the stock. — J.P.G. Villanueva