Update shared on28 Aug 2025
Fair value Decreased 2.48%Aboitiz Power’s lower net profit margin and higher future P/E signal deteriorating profitability and a more expensive forward valuation, leading to a modest decrease in the consensus fair value from ₱46.70 to ₱45.82.
What's in the News
- Aboitiz Power's joint venture with Scatec ASA (SNAP) received Energy Regulatory Commission approval for an increased rate on long-term ancillary services contracts, raising it from PHP 1.5 to PHP 2.25/kWh effective July 2025.
- The rate adjustment results in a retroactive revenue impact of approximately NOK 231 million for Scatec, to be recognized in Q2 2025 and received over the next 12 months.
- Since September 2023, volumes have been delivered under the new contracts, but payments were made at the lower rate pending regulatory approval.
Valuation Changes
Summary of Valuation Changes for Aboitiz Power
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from ₱46.70 to ₱45.82.
- The Net Profit Margin for Aboitiz Power has significantly fallen from 18.79% to 16.11%.
- The Future P/E for Aboitiz Power has significantly risen from 11.27x to 12.84x.
Disclaimer
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