USI IN FOCUS

VISTA LAND AND LIFESCAPES, INC (VLL)

INVESTMENT HIGHLIGHTS
On track to beating our FY11 estimates Vista Land and Lifescapes, Inc. reported that its net profit grew by 20% to P2.61 Bln in 9M11 from P2.17 Bln in 9M10. With this result, the Company can easily beat our full year forecast of P3.14 Bln net earnings in 2011. Total real estate revenues increased by 21% y/y to P9.90 Bln in 9M11. This growth was driven by the Companys market leadership in the industry and the progress on the construction of recently launched projects. Based on the Companys data and other industry studies, VLL remains the top player in the House and Lot Market segment in 9M11. The positive growth of revenues was complemented by the enhancement of the Companys margins. Gross profit margin (GPM) for the first nine months of the year registered at 50.5% as compared to 49% last year. We believe that the Companys GPM will remain around 50% level as we expect no significant changes on the Companys product mix. We are also expecting stable prices of construction materials due to the continued weakness of global construction activity. Looking ahead, we are confident that VLLs favorable performance will be sustained on the back of the Companys sizeable sales take-up, aggressive project launches, and strong market leadership. Sales take-up increased by 21% to P9.91 Bln in 9M11 from P8.20 Bln a year ago. Assuming steady completion of projects, this should translate into higher cash flows and profits on the following years. Meanwhile, the Companys aggressive expansion activities, especially in the provinces, will further strengthen the Companys competitive position. In 9M11, the Company has already established presence in 22 provinces (52 cities & municipalities) in the country. It has launched 19 projects with an aggregate value of P13 Bln. We maintain our BUY rating on VLL with a target price of P4.26/share. In our view, the recent dips on the stocks price provide good entry point to investors. The stock is currently trading at 8x FY11E earnings and 54% discount to NAV. Joanna M. Capiral jmc@unicapital-inc.com

BUY

11.14.11

Stock Chart

Source: Technistock Trading Data Last date traded Last Closing Price (P) 12-month Price Target (P) Upside(+)/Downside(-) Shares Outstanding (Mn) 52-wk Price Range (P) Market Capitalization (Pmn) Ave. Daily Market TO (3 month) Volume TO (Nov 14, 2011)
Source: Technistock, USI estimates

Nov 14, 2011 P2.99/share P4.26/share +42.47% 8,499.40 2.30-3.50/share 25,413.20 6,929,283 768,000

Financial Highlights FYE 12/31 Real estate sales Other revenues Total net revenues EBIT Net Income (Loss) EPS EPS Growth PER P/BV ROA 2008 10,436 1,175 11,611 3,754 2,834 0.34 -30.52% 8.88 0.75 5.38% 2009 9,630 1,137 10,767 2,813 2,299 0.27 -19% 10.95 0.71 4.18% 2010 11,339 1,145 12,483 3,234 3,013 0.36 30.32% 8.40 0.66 4.98% 7.89% 2011E 13,032 1,524 14,556 3,876 3,139 0.37 4.76% 8.02 0.61 4.86% 7.62%

ROE 8.58% 6.50% Source: VLL financials, USI estimates

Unicapital Securities, Inc.

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Equity Research Report

Vista Land and Lifescapes, Inc. (VLL)

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Unicapital Securities Inc

3/F Majalco Bldg, Benavidez cor. Trasierra Sts. Legaspi Village, Makati City, Philippines 1229 Tel: +632-892-0991 Fax: +632-818-2127
Sales Team Rommel M. Macapagal RMacapagal@unicapital-inc.com Ma. Concepcion G. Yao- Fernandez mgy@unicapital-inc.com Juan Paolo G. Martirez jgm@unicapital-inc.com Research Team Jan Michael B. Acebo jma@unicapital-inc.com Joanna M. Capiral jmc@unicapital-inc.com

Unicapital Securities, Inc.

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