TRADERS’ TAKEDOWN

08 June 2020

Stories for the Day WATCHLIST

 PAL net loss balloons to Php9.4B 7-Jun CHG (%)
 Fruitas income up 20% in 2019 on store expansion PSEi 6,465.13 (0.80%)
 Roxas Holdings sells sugar mill, other assets to URC DJIA 27,110.98 3.15%
 Pandemic drives up jobless rate to 15-year record S&P 500 3,193.93 2.62%
 May Inflation eases to six-month low amid pandemic
NASDAQ 9,814.08 2.06%
 Auto sales plunge 66% in March after dealerships shut down
USDPHP 49.82 (0.35%)
Source: PSE, Bloomberg, BSP

Stock Feature: BDO Unibank

We view BDO's recent move to boost its loan loss provisions by INDEX MOVERS
Php20Bdevelopment as negative to our view on the stock. BDO's anticipated INDEX GAINERS INDEX LOSERS
provisions to account for the pandemic (170bp) exceeds our total provisions for SCC 8.50% ICT (5.30%)
the next three years (c. 45bp p.a. of total loans from FY20-22F, vs. 30bp p.a. in GTCAP 8.11% MBT (3.49%)
FY18-19F). Based on our initial estimates, the larger than anticipated provisions AGI 7.94% TEL (3.28%)
could also accelerate the need for BDO to raise capital (we currently assume BLOOM 5.33% SMPH (3.09%)
capital is enough until 2024). All told, these factors could suggest downside risk BDO 4.59% SM (2.96%)
to our current PT of Php112/shr, which is below that of consensus (Php128/shr).
Source: PSE, Bloomberg, BSP

Daily Trading View

The PSEi (-0.8%) pared gains last Friday on Php9.0B of turnover as investors
began to take profits following five consecutive days of advancing. We see the
index posting slight gains today on the back of positive sentiment surrounding
last Friday’s US jobs report. From a technical standpoint, we view 6,500 to 6,950
as the key resistance.

BPITRADE TOP PICKS (TOP BUY RECOMMENDATIONS)

12 Month Short-Term Technical 3 MO

STOCK
LAST PRICE % Upside Perf REASONS
PICK
Price Target Entry Exit (%)

CNPF 15.22 20.00 31.4% 10.00 16.52 6.4% Resilient demand for shelf staples

PGOLD 46.40 51.50 11.0% 26.00 54.55 30.7% Beneficiary of resilient demand

Recovery on track, defensive fixed line business vs.

TEL 1,180.00 1,500.00 27.1% 1,170.00 1,358.00 13.1%
Dito, attractive dividend yield

*Entry and Exit Prices are based on the recommendations of BPI Securities Active Advisory Group
*Ratings and Price Targets are based on the recommendations of BPI Securities Research Department

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 1
BPI Traders’ Takedown – 08 June 2020
BPI SECURITIES VALUATION TABLE
LAST % UPSIDE / FY20F Div FY20F ROE FY20F EPS
TICKER RATING TARGET PRICE FY20F P/E FY19F P/B
PRICE (DOWNSIDE) Yield (%) (%) Growth
ALI 38.00
AP BUY 42.60 29.00 46.9% 9.5 1.5 4.4% 15.1% 15.6%
BDO BUY 112.00 114.00 (1.8%) 13.2 1.4 1.1% 9.9% (13.6%)
BLOOM BUY 12.00 7.11 68.8% 0 2.6 2.9% (0.2%) (100.8%)
CHIB BUY 36.50 20.30 79.8% 5.5 0.6 4.6% 10.0% 18.4%
CIC BUY 54.00 23.00 134.8% 7.5 1.1 3.8% 19.2% 13.4%
CLI BUY 6.00 3.90 53.8% 2.6 0.5 6.4% 28.2% 22.3%
CNPF BUY 20.00 15.22 31.4% 14.8 2.8 1.4% 17.7% 14.4%
DMC HOLD 16.10 4.59 250.8% 6.4 0.6 7.0% 16.1% 12.2%
DMW BUY 11.50 6.60 74.2% 10.5 1.1 3.0% 10.0% 23.5%
DNL BUY 9.70 5.45 78.0% 12.1 2.2 1.8% 17.9% 9.8%
EMP HOLD 6.70 7.90 (15.2%) 17.6 1.9 1.9% 10.5% 5.9%
EW BUY 14.00 7.65 83.0% 3.5 0.4 3.6% 10.0% 15.6%
FB HOLD 115.00 70.00 64.3% 17.1 2.7 3.6% 14.5% 13.3%
GLO HOLD 2,150.00 2,170.00 (0.9%) 13.9 3.6 4.8% 25.7% 7.4%
GTCAP BUY 1,025.00 480.00 113.5% 6.0 0.6 4.9% 9.7% 17.9%
ICT BUY 163.50 100.00 63.5% 12.2 2.2 2.7% 17.8% 38.4%
IMI HOLD 13.50 6.05 123.1% 6.7 0.6 3.5% 8.4% 27.4%
JFC HOLD 240.00 130.00 84.6% 20.4 2.7 1.5% 18.2% 15.0%
LTG BUY 24.00 8.70 175.9% 4.2 0.4 2.3% 9.1% 11.2%
MAC BUY 22.80 5.95 283.2% 7.3 1.4 2.7% 17.9% 17.7%
MAXS BUY 18.00 6.05 197.5% 5.8 0.8 3.3% 12.7% 11.7%
MBT BUY 48.20 41.50 16.1% 8.0 0.6 2.1% 7.3% (17.1%)
MEG BUY 5.40 3.18 69.8% 5.6 0.6 2.6% 10.3% 7.5%
MER HOLD 375.00 288.40 30.0% 13.4 3.7 5.8% 26.5% 3.0%
MPI BUY 6.35 3.38 87.9% 6.3 0.4 3.7% 9.4% 10.2%
MRSGI BUY 3.00 1.61 86.3% 7.3 0.6 3.7% 7.7% 35.6%
MWC HOLD 28.90 12.54 130.5% 3.9 0.4 8.0% 11.0% 11.6%
MWIDE BUY 21.85 7.00 212.1% 7.4 0.7 0.0% 15.0% (9.0%)
PIZZA BUY 15.15 6.77 123.8% 10.0 1.9 1.9% 18.1% 13.3%
PGOLD BUY 51.50 46.40 11.0% 17.6 2.1 0.9% 11.2% 14.8%
PNB BUY 60.00 23.45 155.9% 2.8 0.2 0.0% 7.4% 18.6%
RCB HOLD 27.00 19.80 36.4% 7.0 0.4 2.3% 6.0% 24.1%
RLC BUY 28.00 18.24 53.5% 9.5 0.9 2.3% 9.6% 13.5%
RRHI BUY 90.00 69.00 30.4% 20.2 1.4 1.0% 6.7% 16.0%
SCC BUY 27.50 12.76 115.5% 3.7 1.3 6.3% 28.7% 19.9%
SECB HOLD 185.00 102.50 80.5% 6.6 0.7 2.9% 9.6% 12.8%
SM HOLD 900.00 967.50 (7.0%) 23.4 3.0 1.1% 12.3% 17.8%
SMPH BUY 42.50 32.90 29.2% 21.8 3.1 1.2% 13.4% 12.7%
SHLPH HOLD 50.50 18.02 180.2% 5.3 0.7 12.6% 13.2% 12.5%
TEL BUY 1,500.00 1,180.00 27.1% 11.7 2.3 6.1% 16.9% 2.1%
UBP HOLD 68.00 54.00 25.9% 7.8 0.7 3.5% 8.6% 7.9%
URC HOLD 145.00 134.00 8.2% 25.6 3.3 2.1% 12.4% 6.5%
WLCON HOLD 19.00 16.30 16.6% 27.6 4.5 0.7% 15.3% 18.0%
Average 34.8% 10.7 2.3 2.2% 11.7% 9.6%
Source: PSE, Bloomberg, BSP
Rating System: Buy (>10% Upside); Hold (-10% Downside to +10% Upside); Sell (>10% Downside)

SECTOR VALUATION
FY20F
% Upside / PT Implied PT Implied Forward Current FY20F Div FY19A
SECTOR Rating YoY
(Downside) FY20F P/E P/B P/E P/B Yield ROE
Growth
Banking BUY 23.4% 13.3 1.1 9.2 1.1 1.9% 9.5% 25.2%
Conglomerate BUY 30.1% 24.5 2.4 19.9 2.4 1.6% 11.2% 16.1%
Consumer BUY 37.7% 31.2 3.6 22.0 3.0 3.5% 13.4% 6.3%
Gaming BUY 68.8% 18.5 4.4 7.9 3.2 0.0% 21.5% 38.9%
Infrastructure BUY 212.1% 23.2 2.2 6.7 0.8 0.0% 13.8% 10.6%
Power BUY 60.8% 13.0 2.3 9.7 1.5 7.7% 21.1% (8.9%)
Property BUY 35.8% 31.7 3.7 19.9 3.0 1.1% 13.3% 19.9%
Services BUY 76.3% 26.2 3.6 12.8 1.9 2.5% 13.6% 25.3%
Telco ADD 12.2% 16.1 3.3 13.5 3.1 5.2% 22.0% 7.4%
Utility BUY 37.4% 18.3 4.5 13.1 3.7 6.2% 27.9% 5.4%

RESEARCH TEAM
Miguel Sevidal – Telco, Transport, Gaming, Consumer
Colleen Gatchalian

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 2
BPI Traders’ Takedown – 08 June 2020
CORPORATE NEWS
PAL net loss balloons to Php9.4B
The listed operator of flag carrier Philippine Airlines (PAL) reported a net loss of Php9.38B in the first quarter, more than 10 times higher
than the previous year’s losses as as travel restrictions caused by the coronavirus pandemic “severely” hit its operations. In the same
quarter last year, its net loss attributable to equity holders of the parent company was at Php838.17M. In a regulatory filing, PAL Holdings,
Inc. placed revenues in the first quarter at Php32.07B, 18.3% lower than the Php39.24B posted a year ago. Broken down, passenger
revenues dropped 21.4% to Php27.01B, cargo revenues decreased 14.1% to Php1.9B, while ancillary revenues grew 18.4% to Php3.16B
as well as other sources of revenues, which surged 137.6% to Php3.43M. PAL attributed the drop in passenger revenues to flight
cancellations in March 2020 prompted by the pandemic. PAL’s total expenses increased 5.2% to Php38.63B from last year’s Php36.71B.
The company said the amount was “mainly due to the increase in flying operations expenses particularly fuel expenses as a result of
hedging losses.” “This however was offset by the decrease in other group’s operating expenses due to reduced flight operations during
the quarter,” it added. PAL’s total other charges went down by almost 10% to Php2.73B from Php3.03B. The company said its
performance in the first quarter “was severely affected by the economic condition of the country.” “Nevertheless, the group is committed
to keep the flag carrier continuously flying in the safest condition even in the midst of COVID-19 pandemic,” it added. PAL said further
that it will continue to assess possibilities available to mitigate the increasing risks it is currently facing.

Fruitas income up 20% in 2019 on store expansion

Fruitas Holdings, Inc. saw its reported income rose by 20% in 2019 on the back of revenue growth from added stores. The food and
beverage kiosk operator said its income grew to Php121M last year over Php100M in 2018. Excluding some public offering expenses,
its core net income went up 34% to Php125M, compared with Php94M in the preceding year. “We are pleased with our 2019 results,
with sales and net income increasing above 20%. Our acquisitions and investments in store network development contributed
positively,” Fruitas President and Chief Executive Officer Lester C. Yu said. A “strong” same-store sales growth and an expanded store
network of 1,068 by end-2019 from 930 in 2018 boosted the listed food retailer’s total revenue last year by 23% to Php1.95B over
Php1.58B in the previous year. Negril Trading, which Fruitas acquired in 2015 and owns the food brands De Original Jamaican Pattie
and Sabroso Lechon, posted revenue growth of 43% to Php423M despite being impacted by the swine flu crisis that hit some parts of
the country in the latter half of 2019. Further, the contribution to net sales of the company’s Visayas and Mindanao businesses increased
by 39%. “We look forward to regaining momentum in increasing our sales and profits as effects from the imposed quarantine due to
the COVID-19 (coronavirus disease 2019) pandemic subside,” Mr. Yu said. The food operator is taking several initiatives to keep its
business afloat during the pandemic crisis with setting aside Php270M for capital expenditure this year. It is focused on investing in
delivery, opening new multi-product stores in communities, as well as continuing network expansion through strategic development,
partnerships, and “disciplined” acquisitions.

Roxas Holdings sells sugar mill, other assets to URC

Roxas Holdings, Inc. and its subsidiaries have agreed to sell a sugar mill and other assets to consumer goods company Universal Robina
Corp. (URC) as part of the sugar miller’s efforts to reduce its debt. Roxas Holdings said the sale of the assets, which include an ethanol
plant and other investment properties in La Carlota City, Negros Occidental, is subject to the approval of the Philippine Competition
Commission and creditor banks. Roxas Holdings and URC did not disclose the value of the deal. Celso T. Dimarucut, executive vice-
president and chief financial officer of Roxas Holdings, said the sale came after the company’s decision to de-risk the business by cutting
existing debts. “Our plan is to prepay all long-term debt and reduce short-term debt to levels sufficient for our working capital needs,”
he said. Roxas Holdings President and Chief Executive Officer Hubert D. Tubio said the sale of the La Carlota assets would allow the
company to refocus its resources on rebuilding its Nasugbu sugar milling and refining facilities, among others. “Over the years, demand
for quality Central Azucarera Don Pedro (CADP) refined sugar has not waned even with the influx of imports. Industrial customers still
prefer sourcing their requirements from CADP considering its proximity to the National Capital Region,” he said. Chairman Pedro E.
Roxas said the transaction would not raise significant competition concerns for the company as there are many players in Negros, which
is considered the country’s sugar capital. “We are hopeful that we can get the necessary approvals before the start of the next Crop
Year,” he said. On May 21, the company said that it had reduced its losses attributable to equity holders to Php92.75M during the second
quarter of its fiscal year, ending March. Roxas Holdings revenues during the quarter fell 8.03% to Php2.52B. Separately, URC said the
deal would achieve “operational synergies” between La Carlota and the Gokongwei-led company’s operations in sugar. “[T]his
acquisition is also intended to help sugarcane planters increase their productivity, as well as help local communities in Negros by
providing more opportunities,” it said. URC also said that the acquisition would allow it to continue in its efforts to support the
development of the sugar industry.

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 3
BPI Traders’ Takedown – 08 June 2020
CORPORATE NEWS
Pandemic drives up jobless rate to 15-year record
More than seven million Filipinos were jobless amid a coronavirus pandemic in April, driving up the country’s jobless rate to a 15-year
record. The unemployment rate quickened to 17.7% from 5.1% a year earlier, the fastest since the Philippine government adopted new
definitions for its labor force survey in 2005, the Philippine Statistics Authority (PSA) said. The agency said about 7.25M Filipinos were
jobless, more than three times more than 2.27M a year earlier. Underemployed Filipinos — those already working but still looking for
more work — also rose to 6.39M from 5.61M a year earlier, pushing the underemployment rate to 18.9% from 13.4%. This was the
fastest since the 19.2% underemployment rate posted in April 2013, the statistics agency said. The size of the labor force was about
41.02M out of 73.7M Filipinos aged at least 15 years, yielding a labor force participation rate of 55.6%, the “lowest in the history of the
Philippine labor market.” The employment rate — the ratio of people with jobs to the total labor force — dropped to 82.3% in April
from 94.9% a year earlier. This was equivalent to about 33.76M Filipinos, eight million fewer than 41.76M employed people in April 2019,
the PSA said. By sector, services made up the largest share of the employed population at 57.1% in April. Industry accounted for 17%
and agriculture 25.9%. Meanwhile, employed people “with job, but not at work” swelled to 38.4% of the total, or almost 13M from 1.1%
a year earlier.

May Inflation eases to six-month low amid pandemic

Philippine inflation eased to a six-month low in May, slower than analysts expected as food and transport prices dropped amid a
lockdown imposed in many parts of the country to contain a coronavirus pandemic. The increase in consumer prices slowed to 2.1%
from 2.2% in April and 3.2% a year earlier, according to the Philippine Statistics Authority. The rate fell within the 1.9-2.7% forecast by
the Philippine central bank and was also the slowest since November’s 1.3%. This brought the average inflation to 2.5% so far, still within
the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target for the year and its 1.75-3.75% projection when the global health crisis is taken into
account. “Inflation is expected to remain benign over the policy horizon due largely to the potential adverse impact of COVID-19 on the
domestic and global economic environment,” the central bank said. It said volatile oil prices were a key source of inflation risk, and
flagged rising rice prices due to lower production among major producers in Southeast Asia. The National Economic and Development
Authority (NEDA) said the May inflation showed prices have remained low and stable, especially that of rice due to a law that liberalized
rice imports. “Efforts of the government to improve the supply chain of essential goods, notably food, during the enhanced community
quarantine also helped significantly,” acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said. “The price freeze order to
make sure that no unscrupulous trader would take advantage of the crisis also contributed to low inflation,” he added. The rice index
declined by 2.7% year on year, slower than the 3.8% drop in April. The statistics agency said the May slowdown was mainly driven by
the transport index, which posted an annual decline of 5.6%. This was however slower than the revised 6.2% decline posted in the sector
in April. “The slower annual rate in the Food and Non-Alcoholic Beverages index also pushed down the overall inflation in May,” it said.
The PSA noted slower annual increases in the prices of food and non-alcoholic beverages (2.9% from 3.4% in April); clothing and
footwear (2.4% from 2.6%); furnishing, household equipment (4.1% from 4.2%); and recreation and culture (1.4% from 1.6%). Among
the food groups, annual decreases were noted in the indices of rice at 2.7%, corn at 0.7%, and sugar, jam, honey, chocolate and
confectionery at 0.8%. Meanwhile, the PSA noted a faster annual increase of 18% in the index of alcoholic beverages and tobacco from
17.9% in April. On the other hand, the prices of cereals, flour, cereal preparation, bread, pasta and other bakery products rose faster at
2.7%, and oils and fats at 2.1%, the statistics agency said. The indices of the rest of the commodity groups such as housing, water,
electricity, gas, and other fuels; health; communication; education; and restaurant and miscellaneous goods and services were
unchanged from a month earlier. Stripping out volatile items such as food and fuel prices, core inflation remained unchanged at 2.9%
in May. It averaged 3.1% in the five months through May. For low-income households in Metro Manila, inflation quickened to 2.9% last
month from 1.7% in April. In areas outside the capital region, it was steady at 2.9%. The consumer price index for the bottom 30%
changes the model basket of goods, putting a heavier weight on basic goods such as food to reflect the spending patterns of the poor.
The central bank’s Monetary Board will meet on June 25 to review its policy settings. The BSP has cut a total of 125 basis points (bps) in
benchmark interest rates this year.

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 4
BPI Traders’ Takedown – 08 June 2020
CORPORATE NEWS
Auto sales plunge 66% in March after dealerships shut down
The automobile industry said auto sales by volume fell 66% year-on-year in March after the Luzon lockdown shuttered car dealerships
over the second half of the month. According to the joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc.
(CAMPI) and Truck Manufacturers Association (TMA) issued Friday, sales volume in March was 11,029 vehicles, against the year-earlier
total of 32,173 units. Month-on-month, sales volume fell 63%. Dealerships were shut down startingy mid-March after the government
imposed enhanced community quarantine (ECQ) over Luzon, CAMPI President Rommel Gutierrez said. “The impact of the COVID-19
pandemic was felt as early as March. We will continue to assess further effects as the community quarantine continues to be in place,”
he added. Volumes recorded in March volume brought year-to-date sales to 64,542 units, down 24%. Commercial vehicles sold in
March totaled 7,879, down 64% from February. Toyota Motors Philippines, Inc., which had a posted a 39% market share in March,
reported a 23% year-on-year decline in volume to 25,696 units. “Indeed, challenging times ahead for the industry. For now, the industry
remains hopeful for the containment of the virus at the soonest possible time while being resilient amid this crisis,” Mr. Gutierrez said.

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 5
BPI Traders’ Takedown – 08 June 2020

DIVIDENDS SCHEDULE
Type of Ex-Dividend Payment
Ticker Company Name Dividend Rate
Dividend Date Date
T FB San Miguel Food and Beverage, Inc. Cash Php0.40 06/08/2020 06/26/2020

JGS JG Summit Holdings, Inc. Cash Php0.38 06/08/2020 07/08/2020

GSMI Ginebra San Miguel, Inc. Cash Php0.25 06/09/2020 06/25/2020

SMC2I San Miguel Corporation Cash Php1.18790625 06/16/2020 07/03/2020

SMC2H San Miguel Corporation Cash Php1.1854125 06/16/2020 07/03/2020

SMC2G San Miguel Corporation Cash Php1.23361875 06/16/2020 07/03/2020

SMC2F San Miguel Corporation Cash Php1.27635 06/16/2020 07/03/2020

SMC2E San Miguel Corporation Cash Php1.8603125 06/16/2020 07/03/2020

SMC2D San Miguel Corporation Cash Php1.11433125 06/16/2020 07/03/2020

SMC2C San Miguel Corporation Cash Php1.50 06/16/2020 07/03/2020

GTPPB GT Capital Holdings, Inc. Cash Php12.73725 06/30/2020 07/27/2020

GTPPA GT Capital Holdings, Inc. Cash Php11.57475 06/30/2020 07/27/2020

ACPB1 Ayala Corporation Cash Php6.56250 07/17/2020 08/15/2020

APB2R Ayala Corporation Cash Php6.02675 07/30/2020 08/29/2020

PRF2B Petron Corporation Cash Php17.14575 07/06/2020 08/03/2020

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 6
BPI Traders’ Takedown – 08 June 2020
APPENDIX | GENERAL DISCLAIMER
The information contained herein is based on information obtained from sources considered to be reliable, but does
not make any representation or warranty, express or implied, as to its accuracy, completeness, timeliness or
correctness for any purpose. All the charts and graphs are taken from publicly available sources or derived from
proprietary data. Expressed opinions may be subject to change without prior notice. Any recommendation contained
herein does not pertain to any specific investment objectives, financial situation and the particular needs of any
addressee.

The information herein is published for the information of addressees only and is not to be taken in substitution for
the exercise of judgment by addressees who should obtain separate legal or financial advice. The Company or any
of its related companies or any individuals connected with the group accepts no liability for any direct, special,
indirect, consequential, incidental damages or any other loss or damages of any kind arising from any use of the
information herein (including any error, omission or misstatement herein, negligent or otherwise) or further
communication thereof, even if the Company or any other person has been advised of the possibility thereof.

The information herein is not to be construed as a solicitation to buy or sell any securities, or currency mentioned
therein. The information herein is not intended for distribution to, or use by, any person or entity in any jurisdiction
or country where such distribution or use would be contrary to law or regulation.

Sources:

www.bloomberg.com, www.cnn.com, www.cnbc.com, www.bsp.gov.ph, www.pse.com.ph, www.inquirer.net,

www.bworldonline.com, www.philstar.com, www.interaksyon.com, www.abs-cbnnews.com,
www.thestandard.com.ph, www.mb.com.ph, www.manilatimes.net, www.malaya.com.ph, www.gmanetwork.com,
www.businessmirror.com.ph

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 7
BPI Traders’ Takedown – 08 June 2020
APPENDIX | SALES DISCLAIMER
This report was prepared
APPENDIX | SALESbyDISCLAIMER
a sales function within BPI Securities Corporation (“BSC”). Any opinions expressed
herein are solely those of the author and may be different from the views expressed by BSC itself and its other
departments, including the research department. Sales functions are subject to potential conflicts of interest which
the other BSC departments, including the research department, do not encounter.

This report is published for the information of the recipients only. This report is not to be construed as a solicitation
to buy or sell any securities, futures, options or other financial instruments, to participate in any particular trading
strategy or to provide any investment advice or services. Any recommendation contained herein does not pertain
to any specific investment objectives, financial situation and the particular needs of any recipient.

BSC is not a deposit-taking institution and their obligations or liabilities do not represent the obligations or liabilities
of the Bank of the Philippine Islands ("BPI"). Securities and other financial instruments discussed, recommended,
offered, or sold by BSC: (a) are not insured by the Philippine Deposit Insurance Corporation; (b) are not deposits or
other obligations of any insured depository institution (including BPI); and (c) are subject to investment risks,
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BSC may deal or transact in a manner inconsistent with the views discussed in this report. BSC trades or may trade
as principal in the instruments mentioned herein. BSC, its directors, officers and/or employees may have positions
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The assumptions, estimates and opinions expressed in this report are the author's judgment as of the date hereof
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BPI Traders’ Takedown – 08 June 2020
APPENDIX | RESEARCH DISCLAIMER
This report was prepared by an analyst(s) of BSC. Any opinions expressed herein are solely those of the author and
may be different from the views expressed by BSC itself and its other departments.

This report is published for the information of the recipients only. This report is not to be construed as a solicitation
to buy or sell any securities, futures, options or other financial instruments, to participate in any particular trading
strategy or to provide any investment advice or services. Any recommendation contained herein does not pertain to
any specific investment objectives, financial situation and the particular needs of any recipient.

BSC is not a deposit-taking institution and their obligations or liabilities do not represent the obligations or liabilities
of the Bank of the Philippine Islands ("BPI").

Securities and other financial instruments discussed, recommended, offered, or sold by BSC: (a) are not insured by the
Philippine Deposit Insurance Corporation; (b) are not deposits or other obligations of any insured depository
institution (including BPI); and (c) are subject to investment risks, including the possible loss of the principal amount
invested.

BSC may deal or transact in a manner inconsistent with the views discussed in this report. BSC trades or may trade as
principal in the instruments mentioned herein. BSC, its directors, officers and/or employees may have positions or
other interests in, and may effect transactions in, securities mentioned in this report. BSC may make a market in the
instruments discussed herein. The author of this report may know the nature of such positions and strategies.

The author(s) has received assistance from the subject company in this report including but not limited to meetings
with the management of the company. The analysts and/or associates from time to time seek to establish business
or financial relationships with companies covered in their research reports. Consequently, investors should be aware
that BSC and/or the analysts/associates may have one or more conflicts of interests that could affect the objectivity
of this report.

The assumptions, estimates and opinions expressed in this report are the author’s judgment as of the date hereof and
are subject to change without notice. Although this report is based on information obtained from sources considered
to be reliable as of the date hereof, the author does not make any representation or warranty, express or implied, as
to its accuracy, timeliness or completeness for any purpose. Any information is subject to change without notice and
the author is not under any obligation to update or keep current the information contained herein.

Certain transactions or securities in this report are subject to substantial risk and are not appropriate for all investors.
Past performance is not necessarily a guide to future performance. BSC deals with counterparties on an arm’s length
basis. BSC assumes that each counterparty is capable of making an independent evaluation of the merits and risks of
each, and an independent decision on any, transaction.

BSC does not render legal, tax or financial advice, and the information contained in this report should not be
considered as such and should not be taken in substitution for the exercise of judgment by the recipient who should
obtain separate legal, tax or financial advice. No liability whatsoever is accepted for any direct, special, indirect,
consequential, incidental damages or any other loss or damages of any kind arising from any use of the information
herein (including any error, omission or misstatement herein, negligent or otherwise) or further communication
thereof.

This is a product of the BPITrade Sales and BPITrade Research Team. See Appendices for Analyst Certification and important disclosures. 9