Pryce H1 net income: P1.3B (up 61% y/y)

Pryce Corporation [PPC 7.85 ?8.4%; 148% avgVol] [link] teased its Q2 Quarterly Report by revealing that its H1 net income was P1.32 billion, up 61% y/y from its H1/23 net income of P0.82 billion. PPC noted that its consolidated revenues were “flat”, but that its gross profit went up by 29% due to “improvement of LPG margins in Luzon.” PPC said that its H1 performance was a company record. On a quarterly basis, the H1 net income implies a Q2 net income of P607 million, up 97% y/y from its Q2/23 net income of P308 million, but down 15% q/q from its Q1/24 net income of P713 million.

MB BOTTOM-LINE: Pryce has several business segments (including real estate and pharmaceutical products) but its revenue is dominated (>93%) by its LPG business, Pryce Gases. PPC has been one of those frustrating stocks where the company has a good business in a high-demand sector, but the stock price just doesn’t seem to move in a way that feels commensurate with that positioning. Things are changing. PPC’s stock is now trading above its 2017 peak and is up around 50% year-to-date. It’s up 105% from its COVID low. PPC used to be sleepy, but now it’s moving! Long-time holders are finally getting their rewards. Perhaps the interest in the last quarter is part of the broader pump in oil exploration stocks like PXP [PXP 3.71 ?7.0%; 95% avgVol] and ENEX Energy [ENEX 5.80 ?5.1%; 76% avgVol]; PPC has an interest in Palawan55 with rights to explore and drill Service Contract 55 in the West Philippine Sea.

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