Stock News 2012: DMCI eyes 20% sales growth

Map of Quezon City's legislative districts. (Photo credit: Wikipedia)
DMCI Homes, the property development unit of Consunji-led firm DMCI Holdings Inc., is eyeing a 20 percent growth in sales and reservations this year, according to a top company official.

DMCI president Isidro A. Consunji said the company is accelerating product launches this year to take advantage of the flourishing property sector, supported by low interest rates.

“Sales and reservations are forecast to rise 20 percent this year from P17 billion in 2011,” Consunji said.

DMCI Homes has earmarked P13 billion this year for the launch of seven new residential projects equivalent to 5,800 units.

The new projects will be a mix of mid-to high-rise vertical community developments, located in key strategic areas within Metro Manila.

Among these new projects include One Castilla Place in Valencia, Quezon City, Zinnia Towers (located along North Edsa, Quezon City), a high-rise development in another prime Quezon City location along A. Bonifacio Street; Verawood Residences in Acacia Estates, Taguig; Torre de Manila a high-rise development in Taft Avenue in Ermita, Manila and Serissa Residences, a medium-rise community along Alabang-Zapote Road in Las Piñas.

The housing segment contributed P1.245 billion to DMCI Holdings’ total net income in the nine months ending September 2011, up 23 percent from P1.01 billion the previous level.

DMCI Homes registered a 25 percent rise in revenues to P5 billion with sales coming from existing projects - East Raya, Magnolia Place, Mahogany Place 3, Ohana Residences and Rosewood Pointe.

http://www.philstar.com/Article.aspx?articleId=781505&publicationSubCategoryId=66

Stock News 2012: SMDC Full-Year 2011 Net Income Up Sharply by 38% to Php4.18 Billion

Residential developer SM Development Corporation (SMDC) posted a consolidated net income of Php4.18 billion in 2011, increasing sharply by 38% from Php3.02 billion in 2010. Of the total, net profit from real estate operations amounted to Php4.04 billion, for a robust 58% growth from Php2.56 billion posted during the same period in 2010. Consolidated revenues amounted to Php16.99 billion, higher by 70% year-on-year. EBITDA amounted to Php4.95 billion, for a healthy EBITDA margin of 30%. Net earnings over the past 5-years have grown by an average of 44.6%.

SMDC’s revenues from real estate operations during the year soared 79% to Php16.18 billion from Php9.12 billion in 2010. The market continues to show strong acceptance of SM Residences and M Place products, backed by a deeper confidence on the company’s proven ability to complete its projects, thereby fueling to a large extent SMDC’s notable 2011 results. The consistent offerings of high-quality and well-designed residential units built by an experienced team composed of the country’s top contractors, engineers, architects, and interior designers also allowed SMDC to gain further traction and brand recognition.

For the whole of 2011, SMDC pre-sold 11,726 residential condominium units worth approximately Php26.27 billion. Compared to the same period in 2010, the number of units presold increased by 14% and exceeded the company’s sales target of Php23.57 billion by 11%.

Meanwhile, the company’s total assets for the period reached Php54.77 billion, 25% higher than Php43.70 billion attained in 2010, while its total liabilities stood t Php19.36 billion. SMDC’s stockholders equity amounted to Php35.41 billion, up 38% from Php25.66 billion during the previous year.

SMDC vice chairman and chief executive officer Henry Sy, Jr. said, “SMDC’s strong performance last year confirms the sustainability of its past successes. The company has already become one of the preferred brands in condominium living, thus attaining the necessary momentum to continue delivering positive results. We are also heartened by the firm support of SMDC’s shareholders and clients. Moving forward, SMDC’s commitment lies in responsible governance, sound financial management, and continued innovation to ensure the long-term sustainability of your company.”

In a recent study done by the Advisory and Research Services of Colliers International Philippines, SMDC captured the top spot corresponding to a 24% market share of the more than 25,000 residential condominium units that were sold by the industry during the second half of 2011, when SMDC sold more than 6,000 units. The company has consistently been number one in Colliers’ property surveys since July 2009. This trend continues for the entire 2011, during which the Metro Manila condominium market was characterized by strong competition.

http://smdevelopment.com/smdc/index.php?p=898&type=2&sec=90&aid=11419

Stock News 2012: Metrobank earnings rise 32% to P11 B

One of the country’s top lenders Metropolitan Bank & Trust Co. (Metrobank) registered its fourth straight year of strong income growth as it reported a 32 percent increase in net earnings in 2011 to P11 billion.

In a statement, Metrobank said total deposits grew 4.6 percent year-on-year to P681 billion while net loans and receivables rose 16.5 percent to P457.4 billion, with strong growth coming from both the consumer and commercial segments.

Thus, operating income growth was supported by the 11.4-percent increase in net interest income to P29.4 billion which, in turn, was driven by the 7.3-percent growth in low cost deposits and the 16.5 percent hike in net loans and receivables.

Metrobank likewise recorded a return on average equity of 11.2 percent in 2011, from 10.3 percent the previous year.

Meanwhile, its healthy growth in assets and improved deposit mix pushed net interest margin 11 basis points higher to 3.5 percent.

In addition, service charges, fees and commissions registered a healthy 12.5 percent increase to P7.7 billion, while income from trading and foreign exchange grew to P7.7 billion.

Operating expenses grew 10.3 percent year-on-year to P30.7 billion, driven by higher manpower and occupancy-related costs.

Provisions for credit and impairment losses declined 47.5 percent to P3.8 billion, as gross non-performing loans (NPLs) were reduced by 8.3 percent, settling at P10.1 billion by the end of 2011.

Thus, the NPL ratio further declined to 2.2 percent at yearend, from 2.9 percent in 2010, while the NPL coverage was comfortably higher at 99.5 percent, from 92.3 percent in 2010.

Consolidated assets ballooned further to P958.4 billion, or eight percent more than the P887.3 billion in 2010.

Total equity reached P109.8 billion, up 25.3 percent from the previous year’s P87.6 billion.

At the end of 2011, Metrobank’s capital adequacy ratio (CAR) further improved to 17.4 percent from 16.4 percent in 2010, well above the 10 percent regulatory minimum. Tier 1 capital ratio likewise rose to 13.7 percent, from 12 percent in the previous year.

http://www.philstar.com/ArticleListBySubCategory.aspx?publicationSubCategoryId=66

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Stock News 2012: PhilWeb posts record profit in 2011

PhilWeb Corp., the country’s first and largest listed online technology firm, reported a record net income of P914 million last year, 45 percent higher than the previous year’s level, on the back of strong growth in its core e-Games Cafe business as well as new businesses in Asia Pacific.

PhilWeb president Dennis Valdes noted that this marked the sixth consecutive year of income growth and that they are now just shy of cracking the billion-peso mark in earnings.

He also noted that this performance had been recognized by Forbes Asia magazine which included PhilWeb in its 2011 Best Under a Billion list, the publication’s annual listing of the 200 best performing publicly-listed companies in Asia Pacific with sales under $1 billion.

Additionally, PhilWeb was one of only three companies to garner an additional special award, as the Most Profitable Company, among those that made the list. This is the second year in a row that PhilWeb has been recognized for both awards by Forbes Asia. PhilWeb’s net income represents a profit margin of 60 percent as measured against its revenues of P1.2 billion.

Valdes noted that PhilWeb is now one of the most significant revenue contributors to state-run gaming agency Philippine Arrangement Gaming Corp. (Pagcor). Last year, PhilWeb remitted a total of P1.7 billion to the agency, 34 percent more than in 2010. This amount comes without a single centavo of capital expenditure or operating expense on Pagcor’s part, and therefore flows directly to its bottom line.

The real excitement in PhilWeb, Valdes said, comes from their new endeavors in Asia Pacific. These include The Sweeps Center, a cafe in Guam, and scratch cards businesses in Timor Leste and Cambodia. “We are also hopeful to gain new licenses in other Asia Pacific countries this year,” he said.

PhilWeb declared dividends twice in 2011, doubling the amount that was paid out in the previous year. Valdes said that the company fully expects to continue declaring dividends in 2012 and beyond.

http://www.philstar.com/Article.aspx?articleId=777957&publicationSubCategoryId=66

Stock News 2012: Gokongwei property, food firms post strong income growth

Universal Robina (Photo credit: Wikipedia)
The property and food manufacturing units of tycoon John Gokongwei showed strong growth in the first quarter of their fiscal year ending September 2012 with their net earnings growing 13 percent and 79 percent, respectively.

Based on separate financial reports submitted to securities regulators, Robinsons Land Corp. and Universal Robina Corp. chalked in net income of P1.15 billion and P2.22 billion, respectively, from October to December 2011.

RLC’s revenues rose 12.6 percent to P3.58 billion, P1.8 billion of which came from the shopping mall business which represented a 14_percent spike from the previous level.

The residential division contributed P1.1 billion while the office building segment, accounting for a tenth of revenues, chipped in P347.7 million.

The hotels division comprising Crowne Plaza, Galleria Manila, Holiday Inn Galleria, Summit Circle Cebu, Summit Ridge Hotel and gohotel.ph, pumped in P341 million.

Meanwhile, URC registered consolidated sales of P18.2 billion, 8.7 percent higher than the P16.74 billion recorded a year before. Taking out the packaging division. Branded consumer Foods Group (BCFG) sales grew 14.6 percent to P13.96 billion.

BCFG domestic sales expanded 12.9 percent to P8.38 billion, mainly due to the strong performance of its beverage division which grew by 28 percent on account of growth in sales volume and increase in prices.

http://www.philstar.com/Article.aspx?articleId=777586&publicationSubCategoryId=66

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Stock News 2012: Universal Robina goes into ethanol

Universal Robina (Photo credit: Wikipedia)
Universal Robina Corp. (URC), the food manufacturing unit of tycoon John Gokongwei’s JG Summit Holdings Inc., is diversifying into fuel ethanol development.

In a disclosure to the stock exchange yesterday, URC said its board approved to “amend the secondary purpose in its articles of incorporation in order to include the production of fuel ethanol and engage in such activity.”

Bioethanol is a form of renewable energy intended to provide a more environmentally and economically friendly alternative fossil fuels such as diesel and gasoline. It can be made from very common crops such as sugar cane, potato and corn.

URC is reportedly looking at putting up a bioethanol plant, using sugar molasses as feedstock from its sugar mills in Negros Occidental.

URC engages in sugar milling and refining through Universal Robina Sugar Milling Corp. (the flagship sugar refinery of the JG Summit Group), Cagayan Robina Sugar Milling Co. and Southern Negros Development Corp.

The government is promoting the use of ethanol as an alternative source of energy to reduce the country’s dependence on imported fuel.

Aside from sugar milling, URC also produces a diverse mix of snack food, chocolate, candy, biscuit, bakery, beverage, noodles and tomato based products.

http://www.philstar.com/Article.aspx?articleId=777200&publicationSubCategoryId=66

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Stock News 2012: Puregold IPO cited as 2011 Best Mid-Cap IPO by FinanceAsia

FinanceAsia, Asia’s authoritative source for finance and investment banking, has chosen $172 million initial public offering (IPO) of Puregold Price Club, Inc. (PGOLD) as the Best Mid-Cap Equity Deal for 2011.

Puregold chairman Lucio Co accepted the award last Feb. 2 at the Four Seasons Hotel in Hong Kong together with other Puregold officials, including vice chairman/treasurer  Susan P. Co, director Ferdinand Vincent P. Co and president Leonardo B. Dayao.

“Mid-cap IPO candidates in any market have had a tough time convincing investors to part with their money this year, which makes Puregold’s listing in the Philippines even more eye-catching,” FinanceAsia said on its website last Dec. 13, 2011 when it released the list of honorees for its Achievement Award 2011.

The FinanceAsia added that “in a country that has only a marginal weighting in regional indices and where the stock market trades less than $100 million a day, Puregold raised $172 million from its IPO and allocated 70 percent of the shares to international investors, including sovereign wealth funds.”

FinanceAsia added that the offering was multiple-times covered despite a challenging market that saw more than $7 billion of Asian deals being postponed or delayed during the marketing period, but priced at the bottom of the range at a fairly undemanding 2012 P/E multiple of 11.8.

Since its debut in early October, the stock has gained 37 percent, it noted.

“The successful execution of its IPO, which was in fact the only internationally distributed IPO in the Philippines this year, also makes it a worthy winner of our mid-cap deal award,” FinanceAsia said.

Since Puregold’s listing in the Philippine Stock Exchange on Oct. 5, 2011, the company’s shares enjoyed buoyant trading among local and foreign investors. Puregold shares closed at P20.45 per share on Feb. 6, 2012, compared to its IPO price of P12.50 per share.

http://www.philstar.com/Article.aspx?articleId=776923&publicationSubCategoryId=66

Stock News 2012: RCBC nets P5 billion in 2011

Rcbc plaza (Photo credit: Wikipedia)
Rizal Commercial Banking Corp. (RCBC) registered an 18-percent increase in net earnings in 2011 to P5.01 billion from P4.25 billion in 2010.

In a statement, the bank said huge gains were realized from trading, service fees, commissions and trust fees which grew to P7.11 billion, representing 74 percent of non-interest income.

Meanwhile, net interest income stood at P10.75 billion, slightly lower than the P10.8 billion in 2010.

RCBC officials said the bank continued to build on its financial strength following a deliberate strategy of prudent balance sheet management.

Total consolidated resources reached P345.77 billion, or 8.06 percent higher than the prior year.

Loans grew to P184.67 billion with corporate accounts rising 30 percent, SME loans by 37 percent, and consumer loans by 15 percent. Net interest margin was high at 4.09 percent.

Its non-performing loan (NPL) ratio dropped to 1.47 percent from the previous year’s 3.10 percent. Likewise, NPL provisioning coverage improved to 103.4 percent.

Capital funds grew 25.10 percent to P40.55 billion from P32.41 billion a year ago on the back of higher earnings and the P5.8-billion Tier 1 equity investments by the World Bank’s International Finance Corp. (IFC) and CVC Capital Partners, one of the top five largest private equity firms in the world.

The consolidated capital adequacy ratio (CAR), an international measure of estimating the general health of a bank, stood at 19.31 percent as of end-2011, with much leeway for asset growth from the minimum regulatory requirement of 10 percent. The CAR Tier 1 ratio of 14.58 percent also exceeded the BSP’s six percent requirement.

Total deposits ballooned to P255.46 billion as the bank continued to focus on growing its low cost deposits, which grew 20.33 percent, while prudently reducing higher costing time deposits.

Operating expenses reached P12.15 billion as the bank continued to expand its branch and ATM network in order to increase reach and improve customer convenience.

http://www.philstar.com/ArticleListBySubCategory.aspx?publicationSubCategoryId=66

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Stock News 2012: Century Properties forges jv for 142-ha Batangas

Seal of Makati City, Philippines (Photo credit: Wikipedia)
In a disclosure to the stock exchange yesterday, Century Properties said its wholly-owned unit Century Communities Corp. has signed an agreement with Group Developers Inc., Caylaway Development Corp. and Batulao Bio-loop Farms Inc. to develop a tourism-oriented project catering to both the local and foreign markets.

Century Properties did not disclose other details but nevertheless committed to report any relevant and material information on developments regarding the joint venture.

The project marks Century Properties’ entry into the tourism-related business, seen as the next big thing in the Philippines, especially with the government putting great effort in promoting the industry.

Bullish on the property sector, Century Properties has earmarked up to P8.3 billion for its capital expenditures this year, more than twice the P2.6 billion spent in 2011.

Century Properties is accelerating the development of new and existing projects within its four master-planned developments, namely Century City in Makati City, Canyon Ranch in Cavite, Azure Urban Residences in Parañaque City and Acqua Residences in Mandaluyong City.

These new developments, when completed, will make available 23 condominium buildings with 15,703 condominium and office units and 955 single-detached homes, with a gross floor area of 1.18 million square meters.

Century Properties, through subsidiary Century Limitless Inc., is also developing a P4.8- billion mid-rise condominium, located on a 4.4-hectare lot along Commonwealth Ave. The project will comprise a total of 2,000 affordable housing units.

The group had pre-sold P18.8 billion worth of residential units last year, more than double the P8 billion recorded in 2010. On a unit basis, it pre-sold 5,367 units in 2011, more than twice the 2,325 units sold a year earlier.

Century Properties is the developer of the posh Essensa East Forbes in Fort Bonifacio and the Pacific Star building.   Its portfolio also includes the country’s first fully-fitted and fully-furnished condominium South of Market (SOMA) in Fort Bonifacio, SOHO Central in the Greenfield district of Mandaluyong City, Pacific Place in Ortigas, and a collection of French-inspired condominiums in Makati City called Le Triomphe, Le Domaine and Le Metropole.

http://www.philstar.com/Article.aspx?articleId=775284&publicationSubCategoryId=66

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Stock News 2012: Araneta Group, Accor launch Novotel Manila Araneta Center proj

Smart Araneta Coliseum (Photo credit: Wikipedia)
The Araneta Group, led by its chairman and CEO Jorge L. Araneta and Michael Issenberg, chairman and COO of Accor Asia-Pacific, led the launch of the Novotel Manila Araneta Center with a ceremonial lowering of the time capsule and presentation of the hotel’s features.

The occasion marks the first time that Accor, acknowledged as the world’s leading “hotel manager,” will jointly invest in a Philippine based hotel. Issenberg expressed excitement that Novotel Manila Araneta Center will be part of the integration of hotels into the Accor Asia Pacific network.

Novotel Manila Araneta Center will be the only upscale hotel in Quezon City. With 415 rooms, a 600-sqm ballroom and large meeting facilities, the hotel is well positioned to cater to the needs of the 56,000 registered businesses in Quezon City and to the MICE (both domestic and international) market.

Its strategic location, at the intersection of two major thoroughfares (EDSA and Aurora Boulevard) and major mass railway lines (MRT 3 and LRT 2) will allow the hotel to position itself as the preferred venue for MICE events in Quezon City.

According to design consultant Sudhakar Thakurdesai, the Novotel Manila Araneta Center is the “crown jewel, a garden city within a city” in the overall master plan of redevelopment at the Araneta Center. Its interiors manifest a cutting edge high tech approach without losing its charm and bits of indigenous flavor.

Particularly exciting is the lush wedding garden, all-day dining areas that offer breath-taking views of the city and relaxing garden terraces. Overall, the composition of the hotel breathes elegance and functionality that will serve as a further catalyst for business in the area.

The hotel is directly adjacent to the world famous Smart Araneta Coliseum and connected to the Gateway Mall. The Novotel Manila Araneta Center will also showcase multiple function rooms, a gym and pool bar, upscale restaurants, and 250 parking slots spread out in a total floor area of 40,000 square meters.

The Araneta Group brings to the project more than half a century’s worth of expertise in food, retail, and leisure and property development. Parts of the group are Philippine Pizza Inc., franchisee and owner of Pizza Hut, Taco Bell and Dairy queen outlets in the Philippines, Uniprom Inc., leisure and entertainment company managing the 20,000-seat Smart Araneta Coliseum and Gateway Mall’s state of the art Cineplex 10, and Progressive Development Corp., responsible for new business and other investments of the group.

Together, the unique strengths of these two giants fuse into a collaboration of capabilities that will be imaged in the Novotel Manila Araneta Center.

The Novotel Manila Araneta Center is just one part of the Redevelopment Plan that is now in full swing at the Araneta Center. Almost simultaneously, the Coliseum Parking Building, the 18-tower Manhattan Garden City residential project and the Gateway Tower are rapidly rising from the ground and reshaping the Quezon City skyline.

http://www.philstar.com/Article.aspx?articleId=775307&publicationSubCategoryId=66

Stock News 2012: SMDC eyes P5-billion sales from 50-story Green Residences along Taft Ave

Sjsu swimming pool (Photo credit: Wikipedia)
SMDC vice-president Jose Gabionza said the company is spending about P2.5 billion to P3 billion to construct the building, which will offer 3,000 studio suites and one-bedroom units with or without a balcony. The units, with an average size of 15 to 35 square meters, would sell for between P1.5 million to P3.5 million.

Construction of Green Residences, SMDC’s newest project, started late last year, with target completion estimated by the first half of 2016.

Including Green Residences, SMDC currently has 15 residential projects under its SM Residences brand and two projects under the M Place brand, which caters to the affordable segment of the market.

Green Residences is conveniently located along Taft Ave. near the corner of Vito Cruz St., just a short distance away from De La Salle University, College of St.Benilde, St. Scholastica’s College, and the Vito Cruz station of LRT Line 1.

The planned amenities of Green Residences include a library with Wi-Fi hotspots, a gym, a game room, function rooms, and a swimming pool. There will also be an SM SaveMore branch together with a selection of other shops and restaurants at the ground floor of the building.

SMDC is looking at a 10 percent growth in reservation sales this year on the back of new product launches.

http://www.philstar.com/Article.aspx?articleId=773430&publicationSubCategoryId=66