Improved nine-month financial results and news on its planned capital raising activities prompted the shares of AC Energy Philippines Inc. (ACEN) to rally last week.
The shares of the listed energy unit of Ayala surged 62 centavos or 11.97 percent to close at its 30-day high of P5.80 each on Friday.
The stock also jumped 38.76-percent week-on-week and gained a spot among top winners last week.
Philstocks Financial Inc. senior research analyst Japhet Tantiangco attributed the double-digit climb of the stock to its improved financial performance year-on-year.
AC Energy posted a net profit of P3.02 billion in the first three quarters of the year, a reversal from the P216.98-million loss it recorded in the same period last year.
The company’s topline likewise climbed by 28.5 percent year-on-year to P15.2 billion during the period.
Tantiangco also said the firm’s planned capital raising activities, which are seen to support the expansion of its energy portfolio, helped boosted its shares.
“It’s currently working on its stock rights offering. It’s aiming for a follow on offering and it has a potential investment from Arran Investment Pte. Ltd,” he said.
Tantiangco added that investors are also pricing in the planned infusion of AC Energy’s international business to ACEN.
Moving forward, AC Energy’s shares might see a pullback as investors book gains after its sharp climb.
“Moving into the long run, catalysts that could boost sentiment towards ACEN include the sustainment of its sound financial performance as well as further plans on the expansion of its energy capacity,” Tantiangco noted.
Government initiatives to support the renewable energy industry of the country is also seen to boost sentiment toward AC Energy in the future.