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Summary of Broker’s Recommendation
| Stock Code | KEEPR |
| Company Name | The Keepers Holdings, Inc. |
| Broker | Regina Capital Development Corp. |
| Opinion Issued on | 19 Dec 2024 |
| Recommendation | Buy |
| 1-Year Target Price | PHP 2.80 |
Given KEEPRâs strong 9-months (9M) 2024 performance and expectation of improving economic landscape and consumer expenditure, we reaffirm a BUY recommendation with a Target Price of P2.80/share, representing an upside potential of +26.13% from its last traded price.
Analysis and Opinion
The Keepers Holdings, Inc. (KEEPR) continues to lead and dominate imported spirits distribution segment in the Philippines, backed by its strong performance across product segments. The Keepers Holdings, Inc. reported robust growth in its consolidated net sales for 9M 2024, reaching P11.7 billion, representing a +14.6% y/y, driven by an +18% rise in total cases sold.
Highlighting the brandy category exhibited strong performance with a +25% growth in value and volume. Cost of sales rose by +13.9% y/y, aligning with sales growth, while operating expenses grew by +17.7% y/y to P900.4 million, primarily due to higher logistics, promotional activities, and additional employee-related costs. Net income climbed by +20.1% y/y to P2.2 billion, reflecting efficiency improvements in investees and overall operational growth.
Recent household consumption prints reflected recovering consumer spending and confidence rising to 5.1%. This was primarily attributed to easing interest rates and lower interest rate that boosts economic spending. With that said, real income rises in contrast to previous year, thus, boosting spending going forward not only for essential goods, but also for non-essential goods like spirits.
Moreover, premiumization trend in spirits and beverage continues to prevail of which consumers shift to premium offers. Given the economic and industry trend, KEEPR is in position to capitalize these improvements and is expected to grow further.
Highlights for FY24 would be KEEPRâs intention of acquisition of 100% outstanding shares of Philippineâs largest imported beer distributor, Booze On-line. This investment should enable KEEPR to increase its product offerings while strengthening its position in the industry.
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