‘Underappreciated’ Puregold seen to post steady profits
Puregold Price Club Inc. is expected to post steady profit growth over the next two years as store expansion and higher contributions from its S&R business support earnings.
This is according to a report by First Metro Securities and DBS Bank, which forecast the retailer’s net income to rise by 6 percent to P12 billion in 2026 from P11.34 billion last year, before growing another 7.1 percent to P12.86 billion next year.
The report reiterated a “buy” recommendation on Puregold and raised their 12-month target price to P60 per share from P49 previously, implying a potential upside of about 37 percent from its May 28 closing price of P43.85.
The report said the tycoon Lucio Co-led retailer offers a rare combination of broad exposure to household spending, earnings resilience and a strong balance sheet, making it their preferred proxy for domestic consumption.
“For a business that combines pure domestic consumption exposure, resilient earnings and a top-tier balance sheet, these positives remain underappreciated by the market,” the report said.
Unlike many listed consumer firms with overseas operations or more discretionary product offerings, Puregold generates all of its revenues from the Philippine market.
The report also highlighted Puregold’s dual-format strategy, which allows it to serve a broad customer base.
Its Puregold supermarkets cater largely to mass-market consumers and sari-sari store operators, while S&R Warehouse Club targets upper middle-income and premium households.
The report said Puregold remains well-positioned to withstand rising competition due to its nationwide footprint, supplier relationships and continued store expansion.
The company plans to add about 60 Puregold stores this year, while S&R is expected to open two to three new warehouse clubs annually.
First Metro and DBS also pointed to the company’s financial strength.
Puregold ended 2025 with net cash of P36.9 billion.
