Outline

A. Industry Analysis
B. Sector and Allocation Analysis
C. Company Profile
D. Business Analysis
E. Forecasting and Valuation
F. Conclusion

A. INDUSTRY ANALYSIS

Stock is a type of security that signifies ownership in a corporation and represents a claim on part of the
corporation's assets and earnings. There are two main types of stock: common and preferred. The Philippine Stock
Exchange (PSE) is the only stock exchange in the Philippines. It is one of the oldest stock exchanges in Asia, having
been in continuous operation since the establishment of the Manila Stock Exchange in 1927. It currently maintains a
trading floor at the PSE Tower in Bonifacio Global City, Taguig City. The PSE is composed of a 15-man Board of
Directors with Jose T. Pardo as Chairman.The main index for PSE is the PSEi, which is composed of a fixed basket of
thirty (30) listed companies. The PSEi measures the relative changes in the free float-adjusted market capitalization of
the 30 largest and most active common stocks listed at the PSE. The selection of companies in the PSEi is based on
a specific set of public float, liquidity and market capitalization criteria. There are also seven sector-based indices which
are Financial, Industrial, Holding firm, Property, Services, Mining and Oil, Small, Medium & Emerging Board, and ETF
as well as a broader all shares index. Trading in the PSE is a continuous session from 9:30AM to 3:30PM daily with a
recess from 12:00PM to 1:30PM.

According to Andreo Calonzo and Cecilia yap from Bloomberg.com/News/Articles, The Philippines will open
up its telecommunications sector to more foreign investors, and an invitation by President Rodrigo Duterte isn’t just for
Chinese companies, Economic Planning Secretary Ernesto Pernia said.“The best offer would be picked from other
offers as well,” Pernia told reporters on Saturday at a forum in Manila, when asked if only Chinese companies would
be considered by the government. “China is in the frontline now because no other country has sounded out or expressed
interest to come in.”Duterte, who has sought warmer ties with Beijing amid a territorial dispute between the two
countries, offered China the right to operate in the Southeast Asian nation during bilateral talks with Chinese Premier
Li Keqiang last month, Duterte’s spokesman Harry Roque said on Nov. 20.Duterte’s commitment to open up the sector
has prompted local companies such as Philippine Telegraph & Telephone Corp. to start talks with China’s two biggest
telecommunications provider to help challenge PLDT Inc. andGlobe Telecom Inc.’s dominance. The two became the
nation’s only wireless carriers when the San Miguel Corp. conglomerate sold its nascent wireless phone carrier to those
companies for 70 billion pesos ($1.4 billion).The president’s order for government agencies to act swiftly to ease
foreign-investment limits is a first step toward opening up the telecommunications sector, according to Pernia. “There’s
a lot of urgency to this,” he said, adding that better connectivity was a promise Duterte made during his election
campaign.

According to Investopedia, the distinction is much easier for the vast majority of stocks in the
telecommunications sector due to its importance in the global economy. One powerful secular trend in the economy is
the increasing amount of data and content being consumed and created on wireless devices such as phones, tablets
and computers. Thus, the task is simplified for value investors who can focus more on valuation rather than the viability
of the business. Additionally, most telecommunications stocks pay a healthy dividend, providing investors income while
they wait for the share price to improve. Value investing requires a catalyst to change perceptions about a stock. This
requires patience and is one factor that makes value investing difficult despite its long-term track record of
outperformance.

For continuous development of technology not only here in the Philippines but as well as in the world, the
financial analysts believed that investing in a particular telecommunication services such as Now Corporation could
make your investment grow more. The analysts believes that Now Corporation could effectively catch up to the
expansion of technology in the Philippines given their growing company financial statements and prices, whose overall
could help to carefully analyze the greatest potential of a certain stock to maximize investment profits while minimizing
losses and risks.
B. SECTOR AND ALLOCATION ANALYSIS

According to Philpad- a website serving different topics about the Philippines and the world inspired to give
useful information to all Filipinos, the Best Stocks in the Philippines 2018 could be on the two leading sectors which are
Industrials and Services having 20% each. The financial analysts believes that Now Corporation is the best projected
telecommunication sector for allocating the P1, 000,000.00 capital investment of the client. According to edge pse,
Globe Telecom and PLDT Incorporation are the two leading telecommunication services which are the competitors of
Now Corporation as well as the Philippine Telegraph and Telephone Corporation. To carefully differentiate the four
companies to each other the table consists the price growth percentage of each stock. It is clearly stated that Now
Corporation technical charts for a month, 6-month, and a year is the leading company in terms of price growth. Currently
the percentage increase for a month of the company is 68.35%, for 6-month is 429.99% and 261.02% increase for a
year. Among the four companies, Now Corporation has the greatest growth in which it could be one of the reason that
the company is vying to be the third Telecommunication in the Philippines.

C. COMPANY PROFILE

Now Corporation provides telecommunications, media, and information technology products and services
such as the research, development, production, management, marketing and operation of telecommunications value
added services. An active corporation since 1996. Communication and Telecommunication services are its sector and
industry name. Could be seen at 100 C. Palanca St. corner Dela Rosa and Gil Streets Unit 5-I, 5th Floor, CPL Building,
1229. Could be contact in their web address http://www.now-corp.com and their telephone and fax: +6327500211 and
+6327500461. Now Corporation has a consolidated subsidiary with iResource Consulting, Inc., affiliated with NOW
Telecom & Asian Institute of Journalism and Communication (AIJC), with three business partners which are IBM,
Microsoft and TATA Communications, and their industrial partners which are News and Entertainment Network and
GHT Broadcasting Company.

The top three board members of Now Corporation are Dr. Thomas G. Aquino, Atty. Jose S. Alejandro and Mel
V. Velarde.Dr. Thomas G. Aquino is the Chairman of the Board of Directors of the Company. He was elected as member
of the Board on June 2, 2016. He is currently the President of NOW Telecom Company Inc. (formerly Next Mobile,
Inc.). He is an Independent Member of the Board of Directors of ACR Corporation and A Brown Company Inc., publicly
listed firms at the Philippine Stock Exchange. He is a Member of the Board of Trustees of Asian Institute of Journalism
and Communication, Chairman of the Board of Trustees of REID Foundation as well as Senior Fellow at the Center for
Research and Communication of the University of Asia and the Pacific.Atty. Jose S. Alejandro is the Vice-Chairman of
the Company. He also served as Chairman of the Board of Directors of the Company on June 2, 2006 until March 22,
2007 when he resigned from said position and was elected as the Company’s President. He served as President until
January 21, 2008.Atty. Alejandro has also been a Member of the Board of Directors of NOW Telecom Company, Inc.
(formerly Next Mobile, Inc.) since 1989 and he now serves as the Board’s Chairman. He is a business and management
professional and leader with over 25 years of corporate experience.Mel V. Velarde is the President and Chief Executive
Officer of the Company. He was previously elected Vice Chairman of the Company’s Board of Directors on June 2,
2006 and served as such until March 22, 2007 when he was elected as Chairman of the Board of Directors. He obtained
his Bachelor of Arts in Liberal Studies Major in Interdisciplinary Studies (Summa Cum Laude) at Boston University,
Massachusetts, US. He completed the Owner/President Management Program at the Harvard Business School,
Harvard University, and Cambridge, Massachusetts. He has also completed courses leading to a Master’s Degree in
Business Economics at the University of Asia and the Pacific. He has taken Strategic Planning, Marketing and Finance
at the Asian Institute of Management.

D. BUSINESS ANALYSIS

The Corporation’s mission is to enable customers operate at international levels of competitiveness – leaping
ahead of the competition by leveraging on Now Corporation’s suite of TMT products and services including software,
cloud services, wireless infrastructure, managed services and provisioning of knowledge professionals and resources.

The main products and services of the company are Software Licenses and Services, Guaranteed Wireless
Internet, Live stream Technical Services, Website Development and IT Manpower. Software Licenses and Services
specializes in custom software development, packaged software applications, consulting and training services. They
also deliver the technical competencies that run the collaboration software of companies primarily the financial
institutions and utility sector. The collaborative software is in partnership with IBM offering enterprise-grade email and
collaboration in one platform. Collaboration such as: Email, Meetings, Chat, Audio-Video Conferencing, Office
productivity Docs, Content Management and Social Networking. Guaranteed: is an excellent Internet connection is
necessary for any company to work efficiently. Their broadband services make sure that there is no interruption in your
daily operations. They have offered and provided wireless Fiber Internet to organizations that are large enough and
have high demand from their customers and business relations such as Healthcare, Education, Hospitality, Offices and
BPOs, Residential Buildings, and Media. Livestream Technical Services show what you’ve got live on the Internet with
NOW’s live streaming services using state-of-the- art, industry-standard digital video equipment and up-link connectivity
that will broadcast your events to millions of viewers. Stream any event such as: Graduation Ceremonies, Company
Launches, Conventions, Conferences, Workshops, and Live Lectures. Website Development, Now Corporation
believes that everyone deserves a beautiful website with all the features that will grow online presence. But purchasing
a website is not so simple, especially for a budding entrepreneur – premium pricing, lump sum payments, dealing with
multiple service providers, the technical language barrier and the risk of being abandoned by your developer. It
demands too much money, effort and time away from your core business. So they created a service that offers powerful
websites, built on 3 principles: Easy Setup, Express Websites, and Affordable Packages IT Manpower, the constant
hunt for world-class talents has become a continuing critical nightmare for both small and big business enterprises. In
fact, the presence of online job web sites and online ‘head-hunters’ have even created more difficulty in finding the real
world-class talents. Now Corporation offer value, opportunity and advancement in both fulfilling IT manpower needs of
enterprises. They believe in enhancing skills and developing careers of highly driven and competent IT knowledge
professionals.

In the engagement of people in the use of technology, Now Telecom which is about 19 percent owned by
publicly-traded Now Corp., is among those vying to become the country’s third telco firm, which the Duterte
administration hopes will soon break the PLDT Inc. and Globe Telecom duopoly. The Department of Information and
Communications Technology had announced some of the requirements needed to qualify for the slot: having a net
worth of at least P10 billion, no liabilities, and being a 60% Filipino-owned company. Also, they had set the tentative
bid deadline for the country’s third telecommunications player on May 18, 2018. Now Corporation affiliate said in a
disclosure to the stock exchange that on Feb. 22, President Rodrigo R. Duterte signed into law Republic Act No. 10972
which extends Now Telecom’s franchise until 2043.The act will take effect 15 days after it is published either in the
Official Gazette or any general circulation newspaper. The analysts presumed that Now Telecom which is from Now
Corporation would be the massive help that would make your investment grow more. Thus, this company could make
your life calmer, and proportionate to what clients are paying for than any other telecommunication company that most
of them ended up paying more but receiving less.

E. FORECASTING AND VALUATION

The total return percentage of Now Coporation continuously increasing from -55.56 from the year of 2008
becoming 371.53 YTD. According to Morningstar Philippines Index graph, the analysts believe that Now Corporation
is the best telecommunication company to invest, forecasting that its growth will develop more as well as the client’s
investment in this company. Multiplying the company’s closing price for that day, 13.30, and total return percentage the
price would be P49.43, the product is P3,716,417. Almost 4 million would be the projected return for a million capital
investment in this company (Exhibit 1).

Trailing returns is just like first exhibit, however, it is historical basis. For a day Now Corporation’s performance
is less than 2.92%, last week return was 1.68%, last month’s performance return was 84.72%, for the past three-month
was 369.96% and as of now is 371.63% return and so on… Trailing return could help financial analysts’ investors to
look back what is the price performance of a certain stock, also it includes both capital gain and dividend growth (Exhibit
2).

PSR is a valuation metric for stocks, it is calculated by company’s market capitalization by sales in the most
recent year. Positively, from 2012 until now, Now Corporation has the good price to sales percentage. With this kind of
company current price-to-sale, the company is willing to pay P125.62 for P1 in sales. This indicates that the company
becoming higher sales overtime and this kind of ratio is useful to use when valuing stock’s sale in analysis and valuation.
(Exhibit 3).

Price-earnings ratio is for valuing a company that measure its current share price relative to its per-share
earnings, it is also known as price multiples or earnings multiples. The table indicating that 722.83 price-earning is the
investor’s basis for anticipating higher earnings growth in the future. This kind of ratio could help differentiating different
companies with the same sector to know the best yield productive insight. As of March 12, the current P/E ratio of PLDT
is 25.32, Globe with a ratio of 16.11 and Philippine Telegram having no record of P/E ratio. According to investopedia,
the average ratio is 20 to 25 and the companies that losing money do not have a P/E ratio. Clearly stated, Now
Corporation P/E ratio could be one the best factor to consider in selecting a non-blue chip stocks that would provide
clients better earnings for their investment (Exhibit 3).

Price-to-book ratio is used to compare stock’s market value to the company’s book value. Calculating by
dividing current closing price of the stock by the latest quarter book value per share. The P/B ratio reflects the value
that market participants attach to a company's equity relative to its book value of equity. A stock's market value is a
forward-looking metric that reflects a company's future cash flows. The book value of equity is an accounting measure
that is based on the historic cost principle, and reflects past issuances of equity, augmented by any profits or losses,
and reduced by dividends and share buybacks. Thus, having 14.92 price-to-book ratio is better than the past years
(Exhibit 3).

Now Corporation ROA’s percentage is continuously increasing that is greater than 1 as of March 8. This
indicated that today the company is effectively converting the money they invests into net income, the company also
earning more money on less investments. Thus, 1.79% Return on Assets indicated how profitable the company relative
to its total assets compare than before (Exhibit 4).

After 6 years of comparison, Now Corporation Return on Equity increased by merely 14%. ROE is a useful
signal of financial success. Since the company’s ROE might indicate whether the company is growing profits without
pouring new equity capital into the business. Thus, 2.07% ROE indicates how well the company’s management is
employing the investor’s capital invested in the company (Exhibit 4).

ROIC gives a sense of how well a company is using its money to generate returns. Therefore, 2.11% which
is historically increased means that the company is efficient at allocating the capital under its control to profitable
investment (Exhibit 4).

According to the graphs and table, among the four companies of Now Corporation, Globe Telco, PLDT
Incorporation and Philippine Telecommunication, only Now Corporation has the massive increase in price growth
percentage for the past 6-month, 1 year and 5 years. According to Bloomberg, since 2016 Now Corporation is
continuously increasing from almost 700-800% until now which is 2,993% increase for the past 5 years. Now
Corporation is the only the telecommunication company who has positive percentage and hundred percentage of
growth. Thus, financial analysts believe that with this kind of sector and company, the client (Exhibit 5-9).
 INDEX

Exhibit 1: Price vs. Fair Value, March 08, 2018 (Morningstar Philippines)

Exhibit 2: Trailing Returns, March 08, 2018 (Morningstar Philippines)

Exhibit 3: Valuation, March 08, 2018 (Morningstar Philippines)

 Exhibit 4: Operating Performance, March 08, 2018 (Morningstar Philippines)

Exhibit 5: Price Percentage Comparison – 6Month, March 08, 2018 (Morningstar Philippines)
 Exhibit 6: Price Percentage Comparison – 1 year, March 08, 2018 (Morningstar Philippines)

Exhibit 7: Price Percentage Comparison – 5 year, March 08, 2018 (Morningstar Philippines)

NOW GLO TEL PTT

6-month 415% -12% -7% 0%
1 year 315% -9% 2% 0%
5 year 2,993% 43% -45% 0%
Exhibit 8: Price Percentage Comparison, March 08, 2018 (Morningstar Philippines)
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