Philstocks Research 2021 |Page

CLAIRE T. ALVIAR

Senior Research and Engagement Officer

+63 (2) 8588-1925

Ground Floor, East Tower

PSE Center, Tektite Towers

Ortigas Center, Pasig City

PHILIPPINES

JAPHET LOUIS O. TANTIANGCO

Senior Supervisor—Research

+63 (2) 8588-1927

Philstocks Research

DISCLAIMER

The opinion, views and recommendations

contained in this material were prepared by

the Philstocks Research Team, individually

and separately, based on their specific

sector assignments, contextual framework,

personal judgments, biases and prejudices,

time horizons, methods and other factors.

The reader is enjoined to take this into

account when perusing and considering the

contents of the report as a basis for their

stock investment or trading decisions.

Furthermore, projection made and presented

in this report may change or be updated in

between the periods of release. Ergo, the

validity of the projections and/or estimates

mentioned are good as of the date indicated

and may be changed without immediate

notification.

This report is primarily intended for

information purposes only and should not be

considered as an exclusive basis for making

investment decision. The recommendations

contained in this report is not tailored-fit any

particular investor type, situation, or

objective and must not be taken as such.

Determining the suitability of an investment

remains within the province of the investor.

Our estimates are based on information we

believe to be reliable. Nevertheless, nothing

in this report shall be construed as an offer

of a guarantee of a return of any kind and at

any time.

Rating Definitions:

BUY - More than 15% upside base on the target price

in the next 9-12 months

SELL - More than 15% downside base on the target

price in the next 9-12 months

HOLD -

TRADE - A potential 10% and above short-term upside

base on entry price and selling price.

15% or less upside or downside in the next

9-12 months

Key Investment Highlights

Recovery signs seen in IMI’s 2nd half financial perfor-

mance which may continue on the back of the sustained

recuperation seen for the global manufacturing sector.

Rising input costs and supply chain disruptions pose risks

for IMI.

Initial support is seen at the 12.20 - 12.40 range. Initial

resistance is seen at the 10-day EMA.

YTD Net Foreign Transaction (as of March 05, 2021):

Php86.73 Mn

1

Date : March 08 - March 19, 2021

Trading Guide

KEY MARKET STATS

Last Traded Price (PHP) 12.90

Entry Point (PHP) 12.20 - 12.40

Cut-loss Point 5% below acquisition

price

Potential Upside / Downside (%) 6.20% (from current

price)

52 wk low and High (PHP) 3.20 – 14.96

20-day MA Volume 2.67 Mn

P/E Ratio (x) -

P/B Ratio (x) 1.43x

YTD performance (%) 41.76%

IMI

TRADE Initial TP: Php 13.70

AXLM TRADE TP: Php 3.60-3.85

Source: PSE Website

Key Investment Highlights

Recommended for position traders due to its good tech-

nicals and fundamentals.

Foreigners are also supporting the current price move-

ment.

Set a cut loss point, 5-7% below your entry point.

YTD Net Foreign Transaction (as of March 05, 2021): Php

3.43 Mn

Source: Tradingview

KEY MARKET STATS

Last Traded Price (PHP) 3.50

Entry Point (PHP) 3.35

Cut-loss Price (PHP) 3.11

Potential Upside / Downside (%) 7% - 15%

52 wk low and High (PHP) 1.75 - 5.30

20-day MA Volume 4.33 Mn

P/E Ratio (x) 25.00x

P/B Ratio (x) 1.58x

YTD performance (%) 0.00%

Philstocks Research 2021 |Page

PHILSTOCKS ACTION PLAN

Integrated Micro-Electronics, Inc. [PSE: IMI]

Philstocks On-Balance View: TRADE

Initial Target Price: P13.70

Entry Price: P12.20 - P12.40

Cut-loss Point: 5% below acquisition price

Research Analyst: Japhet O. Tantiangco

Trade IMI as we see an upward bias for the share driven primarily by the signs of recovery in its fundamentals which may continue on the back of the sustained

recuperation seen for the global manufacturing sector. The share’s challenge now is to get past its 10-day EMA which serves as an initial dynamic resistance.

Doing so would give it a better chance of reaching the 13.70 resistance level. Best pick up shares of IMI once it confirms the strength of its 12.20 - 12.40 support

range. If the said range would not hold, wait for IMI to confirm the strength of its secondary support at 11.60. Remember to set a cut-loss point 5% below your

acquisition price.

TECHNICAL ANALYSIS

INVESTMENT NARRATIVES

Upside:

IMI is showed signs of recovery in its financial performance in the latter

part of 2020 with 2nd half revenues posting $659 million, including a rec-

ord high quarterly topline in Q4 of $347 million amid the rise in demand

for electronic products. This was 38.4% higher than the 1st half of 2020.

For the 2nd half, IMI registered a net income of $18 million including a

$2.4 million one-off gain in 3Q. This trimmed full year net losses to $3.5

million.

The sustained recuperation seen for the global economy’s manufacturing

sector may help IMI continue its recovery moving forward. According to

IHS Markit’s Manufacturing Purchasing Managers’ Index data, many of

the countries in which IMI operates including the Philippines, China, USA,

Germany, Czech Republic, and the United Kingdom are experiencing

expansion in their manufacturing sector as of February 2021.

Downside:

Manufacturing supply chain disruptions may weigh on the company’s

operations.

Rising input costs in the global market may put pressure on IMI’s profit

margins.

The stock’s 41.76% ytd climb makes it susceptible to profit taking.

IMI is currently trading with an initial support seen at the 12.20 - 12.40 range. This is followed by the 11.60 level. Meanwhile, initial resistance is seen at the

stock’s 10-day exponential moving average. After this is the 13.70 level.

The share is currently trying to sustain its uptrend which has brought it up so far by 41.76% ytd. To do so, it must get past its February 19 peak of 14.96.

Its On Balance Volume is still showing an accumulation bias.

Its MACD however is moving downwards below the signal line implying bearish momentum.

Legend:

Main Chart:

Green straight line - Support level

Green shaded area - Support range

Red straight line - Resistance level

Yellow line - 10-day EMA

Blue line - 50-day EMA

Violet line - 200-day EMA

OBV Chart

Blue Line - On Balance Volume

MACD Chart

Blue Line - MACD line

Red Line - Signal line

Philstocks Research 2021 |Page

PHILSTOCKS ACTION PLAN

Axelum Resources Corp. [PSE: AXLM]

Philstocks On-Balance View: TRADE

Short-term Initial target Price: P3.60 - P3.85

Entry Price: P3.35

Cut-loss Point: P3.11 or 5% - 7% below your acquisition price.

Research Analyst: Claire T. Alviar

For position traders, TRADE AXLM as it shows positive bias and primary movement remains uptrend. Entry point is around P3.35. We may already exit around

P3.60 if it fails to breakout, but if it breaches current resistance, exit at P3.85. In addition, foreigners are also supporting the price movement with month-to-date

and year-to-date net buying. Fundamental-wise, the global recovery is positive for the company as demand for coconut products is expected to increase.

However, a strong peso may negatively affect financials.

TECHNICAL ANALYSIS

INVESTMENT NARRATIVES

Upside:

The chart shows positive bias as the uptrend may continue.

The company is operating business as usual given the stable demand of

coconut products abroad despite the imposed lockdown measures in the

Philippines.

Global recovery is positive for AXLM as being one of the biggest export-

ers of coconut products.

Foreigners are net buyers month-to-date and year-to-date at P6.1 Mn and

3.4 Mn, respectively.

Downside:

Strong peso may negatively affect financials.

Worries over strict lockdown measures due to the rising Covid-19 cases

may still affect sentiment towards the stock.

Current support is at P3.35 while resistance is at P3.60-3.85.

This is still on an uptrend. However, breaching of its current resistance of P3.60 and P3.85 are crucial for the uptrend to continue.

Using Fib Resistance Speed Fan, support is at 0.50, next is at 0.618.

Dynamic supports, meanwhile, are the 50-day and 200-day EMAs.

It shows bullish divergence with the on-balance volume movement.

Set a cut loss point at 3.11 or 5% - 7% below your entry price.

Legend:

Green Straight Line—Support

Red Straight Line—Resistance

Red Dynamic Line—50-day exponential moving

average (EMA)

Yellow Dynamic Line— 200-day exponential

moving average (EMA)

Blue Oscillator— On-balance volume

Diagonal Lines—Fib Resistance Speed Fan.