Investing Stocks in Philippines: April 2012

Monday, April 30, 2012

Stock News 2012: UCPB posts 34% profit growth in Q1

The new logo of United Coconut Planters Bank (Photo credit: Wikipedia)
The United Coconut Planters Bank (UCPB) has reported a 34-percent increase in net income to P883.7 million for the first quarter of 2012.

UCPB president and chief executive officer Jeronimo Kilayko attributed the increase to the bank’s ability to take advantage of the volatile fixed income market.

“The bank took advantage of the volatile fixed income market thus expanding its trading gains by more than three hundred folds during the first three months of the year to P486.9 million from P111.2 million in the same period last year,” Kilayko said.

He further explained that despite the normally weak banking activities in the first three months of a given year, UCPB surmounted this by taking advantage of all opportunities.

“Businesses normally slows down during this period but we still managed to sustain our growth in 2012. Our strong first quarter performance bodes well for the future of the bank,” he said, refusing to make a new forecast regarding the bank’s income prospects.

Kilayko said that UCPB would remain focused on its original full year 2012 target of P3.5 to P4 billion in net income.

Net income in 2011 amounted to P3.05 billion and P2.45 billion in 2010.

Meanwhile, interest income from loans rose 15 percent as the bank expanded its loan portfolio to P73.6 million by end of March 2012 from P62.1 as of March 2011.

Consumer loans, mainly the mortgage loans, rose at a faster rate primarily due to the bank’s tie-ups with major real estate developers. This provided bank access to more clients who would like to borrow to build their dream house.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801988

Stock News 2012: FLI allots P5 B for Cebu BPO project

PBCom Tower, the tallest skyscraper in the Philippines, at the heart of Ayala Avenue in Makati City. (Photo credit: Wikipedia)
Gotianun-led Filinvest Land Inc. (FLI) is pouring in P5 billion to convert a 1.2 hectare property in Cebu into a modern office complex catering to the business process outsourcing (BPO) sector in the area.

FLI president Joseph Yap said the complex, which would rise on a lot that used to be occupied by the Bagong Buhay Rehabilitation Center and the Cebu City Treatment and Rehabilitation Center in Salinas Drive, Lahug, would comprise four buildings which are expected to provide an additional 87,000 square meters to its office portfolio when completed.

The company is spending P640 million to construct the first building.

Yap said the company remains bullish on the BPO sector and is rapidly expanding its office portfolio to meet the needs of the industry.

By 2012, FLI will have an office portfolio of over 178,000 sqm in terms of gross leasable area, making it one of the biggest office landlords in the country. The figure is expected to increase further to 371,000 sqm by 2016 or 108 percent higher.

As of the end of 2011, FLI’s BPO office building portfolio had over 170,000 square meters of gross leasable area (GLA) from 12 buildings in Northgate Cyberzone in Filinvest Corporate City in Muntinlupa City and PBCom Tower in Makati City.

At Northgate Cyberzone, another building is currently under construction and would add close to 20,000 square meters of GLA in the first half of 2013, while a 14th building is targeted to break ground within the year with a GLA of 13,000 square meters.

Vector Two, which was completed in the fourth quarter of 2011, is fully taken-up and has been turned over for tenant fit-outs.

Aside from this, FLI is constructing a five-story building along EDSA across the Asian Development Bank building, and it is expected to be completed within the year.

Cebu has become one of the major hubs for FLI projects. It is currently developing the 50.6-hectare Citta di Mare in the South Road Properties

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801979

Stock News 2012: Union Bank posts 300% profit growth in Q1

A logo for the Union Bank of the Philippines (Photo credit: Wikipedia)
Union Bank of the Philippines (UBP) has recorded its highest quarterly growth in terms of net earnings with a 300 percent growth in the first three months of 2012.

From P708 million in the first three months of 2011, earnings ballooned to P2.84 billion this year.

UBP president and chief operating officer Victor B. Valdepenas said it is not only the bank’s highest growth recorded in a given quarter, but “it is also a third of the P6.59 billion net income recorded for the whole of 2011, and we are only in the first quarter of 2012.”

He explained that the universal bank of the Aboitiz Group took advantage of the volatility of the fixed income market due to the low interest rate regime and the strong performance of the equities market.

Barring any dramatic change in the direction of the country’s capital markets as well as economy in general, the bank may surpass its original target of a 10- to 15-percent growth in net earnings this year compared to the previous year.

Valdepenas said that with the kind of growth in the first three months of the year, “we may surpass all targets and all expectations.”

Trading gains in the first three months of 2012 grew to P2.6 billion from P186 million in the same period last year.

Total loans expanded to P115 billion by the end of March, surpassing the P105 billion as of end 2011.

“Consumer loans outpaced all the rest of the segments, while corporate lending was basically flatish as they went to the capital markets,” the UBP chief executive explained.

Net interest income rose slightly to P1.77 billion in the first quarter this year, from the P1.76 billion in the same period last year.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801980

Sunday, April 29, 2012

Stock News 2012: Ayala Corp kicks off P10-B bond offer

The bonds due 2027 bear an interest rate of 6.875 percent per annum.

Tapped as underwriters for the bond issue are BPI Capital Corp., BDO Capital & Investment Corp., First Metro Investment Corp., Hongkong and Shanghai Banking Corp., ING Bank Manila, RCBC Capital Corp., SB Capital Investment Corp. and Standard Chartered Bank.

Ayala is raising funds to support its expansion both through organic growth of its existing business lines as well as value-accretive acquisitions. This includes opportunities presented by various domestic infrastructure projects.

“We always ensure that we maintain a highly flexible funding position at the holding company level that will allow us to invest in sizable projects without impeding other value-enhancing initiatives we are currently undertaking,” Ayala treasurer Ramon Opulencia said.

“The low-interest rate environment and the robust liquidity in the system provide an ideal environment for us to be able to stretch our tenors and match the anticipated long gestation period of the investments that Ayala envisions,” he added.

Ayala earlier won the bid for the Daang Hari connector road project under the government’s Public-Private Partnership (PPP) program.

It also recently forged an agreement with Metro Pacific to jointly pursue and develop light rail transit projects in Metro Manila.

Part of the proceeds of the bond offer will also be used to prepay the company’s debt.

Ayala has been a consistent and innovative issuer in the domestic capital market over the past few years. It has pioneered investment products in the local market that provided the broader investing public, particularly retail investors, with alternative investment choices.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801615

Saturday, April 28, 2012

Stock News 2012: SMC to pour $750-M investment in PAL

Air Phillipines Boeing 737 (Photo credit: Wikipedia)
San Miguel Corp. (SMC) is investing $750 million in Philippine Airlines (PAL) and affiliate Air Philippines Corp. to help finance a $1-billion refleeting plan for the flag carrier.

In an interview with The STAR, SMC and soon to be PAL president Ramon S. Ang said they plan to order at least 100 new planes for PAL and Air Philippines.

The 100 new planes, including single-aisle and twin-aisle models, will be divided across PAL and Air Philippines. Ang didn’t say how many aircraft the carriers would retire.

Ang also disclosed that they will be doing more business with Boeing Co.

PAL also plans to resume flights to Europe and bolster services to the United States, although the latter will have to wait until after US federal aviation authorities return the Philippines to Category I from its current Category 2 status.

PAL’s long-haul expansion plans depend on the Philippines improving safety standards, Ang said. The country is blacklisted by the European Union and has a Category 2 rating from the US Federal Aviation Administration, meaning it does not meet international regulations.

PAL will “immediately” resume flights to Europe once Philippine carriers are allowed in, Ang said, listing Paris, London and Spain as possible destinations. In the U.S., the carrier is looking at New York, Chicago and Florida, he said. It already flies to San Francisco, Los Angeles, Las Vegas and Vancouver in North America.

SMC and PAL majority owner Lucio Tan earlier signed investment agreements that will result in the issuance of new shares to the former for a minority stake in PAL and low-cost partner Air Phil.

Under the agreement, Trustmark Holdings Corp. and Zuma Holdings and Management Corp., the holding companies of PAL and Air Phil will issue new shares to San Miguel Equity Investments Inc., a wholly-owned subsidiary of SMC.

Trustmark and Zuma are majority owned by Tan.

The agreement will result in SMC owning more than 40 percent of PAL.

http://www.philstar.com/Article.aspx?articleId=801320&publicationSubCategoryId=66

Stock News 2012: Ayala to invest in Vietnamese firms

Tâm Đức hospital, 7th district, Ho Chi Minh City. (Photo credit: Wikipedia)
Reflecting its optimism on Vietnam’s economic outlook, conglomerate Ayala Corp. is investing in two infrastructure companies based in Ho Chi Minh, the largest city in Vietnam.

In a disclosure to the Philippine Stock Exchange (PSE), Ayala said it is acquiring a 10-percent stake in leading infrastructure firm Ho Chi Minh City Infrastructure Investment Joint Stock Co. (CII) as well as a 49-percent stake in Kenh Dong Water Supply Joint Stock Co. through subsidiary Manila Water Corp.

The move is in line with the group’s strategy to shore up its presence in Vietnam, which is expected to emerge as a major manufacturing hub in the ASEAN region due to improving business climate, increased trade and investment cooperation and low labor cost.

CII holds business interests in water treatment plants and toll roads serving the city and surrounding areas.

It also holds a stake in Thu Duc Water BOO Corp., a water treatment company which is now 49-percent-owned by Manila Water Corp.

In addition to water infrastructure, CII holds toll road concession agreements such as the 15.7-kilometer expansion of the existing Ha Noi Highway which connects the northeastern part of Ho Chi Minh City to Bien Hoa, an industrial center located in the southern part of Vietnam.

CII is looking to invest further in new water infrastructure initiatives and is eyeing expansion into other types of infrastructure projects such as public transportation terminals.

Kenh Dong, on the other hand, has a water treatment plant, with a projected capacity of 200 million liters a day, which is expected to start commercial operations by the second half of the year.

The facility is expected to benefit the suburban districts of District 12, Tan Phu and Binh Tan, where water coverage is very low, averaging at about 50 percent of the population.

At present, Kenh Dong has a bulk water supply contract with Saigon Water Corp. for a guaranteed volume of 150 million liters per day.

Saigon is the state-owned enterprise managing the water supply system in Ho Chi Minh City.

Ayala president and Manila Water chairman Fernando Zobel de Ayala said: “This investment primarily supports and complements the expansion of Manila Water as it gradually builds its presence in Vietnam. At the same time, this also provides strategic access to other related infrastructure opportunities which may be of value to the group.”

“We recognize Vietnam is a high growth area in the region and there is strong demand for infrastructure investments. This may potentially present opportunities for the Ayala group to establish presence across several sectors,” Zobel de Ayala said.

The Ayala Group is making a strong push in the infrastructure space to diversify revenue streams to spur faster growth.

http://www.philstar.com/Article.aspx?articleId=801321&publicationSubCategoryId=66

Stock News 2012: FLI ramps up residential line with P14.5-B projects

Gotianun-led Filinvest Land Inc. is ramping up residential construction with plans to roll out 12,100 units valued at P14.5 billion as it sees continued strong demand for the socialized, affordable and middle-income segments of the market.

In a briefing following the company’s annual stockholders’ meeting yesterday, FLI president and chief executive officer Joseph Yap said they remain focused on strengthening their position as one of the top housing suppliers to the majority of Filipino families.

Bulk of this year’s unit launches will come from 14 projects and 19 additional phases as against 11 projects and 22 expansion phases in 2011.

Last year, the company made available a total of 6,503 fresh units worth around P12.1 billion.

With the acute homes shortage in the country, FLI is looking to build 4,500 socialized housing units valued at P1.85 billion. Each unit is priced at P400,000 and below.

Yap noted that the company’s sales reservations have grown by three-fold in the past five years from P3.8 billion to P11.4 billion. Around 91 percent of its real estate sales come from the three segments with the balance of nine percent coming from the high-end market.

FLI is expanding its base of mid-rise buildings, which Yap believes are the best housing alternative for the urban Filipino family, from 11 to 16 by 2013.

The company is also enlarging its geographical footprint to reach 43 towns and cities nationwide by 2013.

Aside from this, FLI is also beefing up its office portfolio with gross leasable area increasing to 371,000 square meters by 2016, up 108 percent from the yearend foreast of 178,000 sqm.

FLI is issuing P11 billion in fixed-rate bonds to support its expansion initiatives.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801322

Stock News 2012: Ex-Yahoo CEO got $16.4M package in final year

SAN FRANCISCO, CA - JULY 19: A Yahoo! billboard is visible through trees on July 19, 2011 in San Francisco, California. Yahoo Inc. reported second quarter earnings of $237 million, or 18 cents per share, compared to $213 million, or 15 cents per share, compared to one year ago. (Image credit: Getty Images via @daylife)
Former Yahoo CEO Carol Bartz received a compensation package valued at $16.4 million in her final year on the job, including a $3 million severance payment after the troubled Internet company abruptly fired her last September.

Bartz, now 63, stands to make even more from the nearly 386,000 shares of restricted stock and nearly 416,000 stock options that vested upon her ouster, according to a Friday regulatory filing from Yahoo Inc. Options and awards she got earlier in the year tallied at $12 million.

She also could still reap a windfall from 5 million stock options that she received when the company hired her in January 2009. None of those 5 million options have vested because Yahoo's stock hasn't yet hit any of the required price targets.

Retaining the rights to that restricted stock and stock options means Bartz has a huge incentive to root for her successor, Scott Thompson, to come up with a turnaround plan that lifts Yahoo's long-slumping shares.

Yahoo disclosed in previous filings with the Securities and Exchange Commission that Thompson is starting his first year as CEO with a pay package likely to be valued at $27 million to $28 million, depending on the size of his bonus.

Most companies set the date for their annual shareholder meetings when they file the documents detailing their executives' compensation. But Yahoo didn't do that because it is facing a challenge to its board of directors from one if its largest shareholders, hedge fund Third Point.

The fund's manager, Daniel Loeb, is seeking a board seat for himself and two allies who contend they would serve shareholders better than Yahoo's appointees. Yahoo contends it already has ushered in a new era by adding six directors, including Thompson, since the beginning of the year.

Company co-founder Jerry Yang left the board in January, and four other directors, including Chairman Roy Bostock, intend to step down whenever the annual meeting is held.

The last time Yahoo faced a disgruntled shareholder's attempt to shake up its board in 2008, it delayed the meeting until August. The company, which is based in Sunnyvale, California, usually holds its annual meeting in late June.

Bartz's inability to snap Yahoo out of its financial funk is one of the reasons Loeb and other shareholders are frustrated. Despite her foibles, Bartz received compensation packages valued at nearly $76 million in all during less than three years as CEO.

Last year's package of $16.4 million represented a 37 percent increase from 2010's package of $11.9 million.

In 2009, Bartz ranked among corporate America's best-paid CEOs with a package valued at $47.2 million.

Most of her pay has hinged on Yahoo's stock price. For instance, Yahoo estimated the 5 million unvested stock options that Bartz received in 2009 could eventually be worth $27.2 million.

But they won't vest unless Yahoo's reaches at least one of several goals before 2013. About one-third will vest if Yahoo's closing stock price averages at least $17.60 for 20 consecutive trading days. The rest of the options will vest at average prices from $20.53 to $35.19.

Yahoo shares added four cents Friday to close at $15.57. The stock hasn't traded above $20 since September 2008.

http://www.philstar.com/Article.aspx?articleId=801555&publicationSubCategoryId=200

Friday, April 27, 2012

Stock News 2012: Meralco net profit surges 58% in Q1

Meralco (Photo credit: Wikipedia)
First quarter consolidated earnings of power utility giant Manila Electric Co. (Meralco) surged 58 percent to P3.37 billion on the back of higher sales from a record number of consumers.

Core net income, which strips out currency and derivatives-related items, rose by five percent to P3.42 billion from a year ago.

Amid favorable results in the first three months of the year, the country’s largest power distributor is maintaining its P15-billion core profit guidance for this year that is higher than the P14.9 billion a year ago, Meralco president and chief executive Manuel V. Pangilinan said.

“Consolidated electric revenues for the three months that ended March 2012 was at P65.1 billion, a 16-percent increase over the same period in 2011,” Meralco said.

Energy sales in the first quarter jumped 9.9 percent to 7,687 gigawatt-hours compared with the same period last year, said Meralco chief operating officer Oscar S. Reyes.

“Our net income went up mainly due to higher sales volume and customer count,” said Meralco chief financial Officer Betty Siy-Yap.

Meralco added 40,000 new customers in the first quarter, bringing the total to a record 5.07 million as of end-March.

Meralco, which is indirectly controlled by Hong Kong-based First Pacific Co. Ltd. and partly owned by San Miguel Corp., said industrial energy sales were driven by the businesses that are into food and beverage, steel and cement, and plastic and plastic products.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801009

Stock News 2012: SMIC net income up 13% to P6B in Q1

SM Investments Corporation (Photo credit: Wikipedia)
SM Investments Corp. (SMIC), the listed flagship of the country’s wealthiest man Henry Sy, said its first quarter net earnings rose 13 percent to P6 billion, mainly driven by a 16-percent rise in revenues to P49.7 billion, owing to the robust performance across all core businesses.

“With the prevailing positive outlook on the domestic economy, together with the expected resilience of our subsidiaries, we remain optimistic that SM will attain its growth and expansion targets for the rest of the year,” said SMIC president Harley T. Sy.

“Our vision for the company remains focused on the long-term prospects in our five core businesses as they could further benefit from expectations of a stronger Philippine economy. Better governance in the public sector and the continued productivity of the Filipino people both in and outside of the country offers much room for steady growth in the consumer sector,” Sy added.

The banking business accounted for the bulk of this quarter’s income, contributing 32.3 percent to the total. This was followed by the retail group with a 26.7-percent share, shopping malls (25.3 percent) and real estate (15.7 percent).

BDO Unibank earned P2.8 billion, 15 percent higher than the P2.4 billion recorded in 2011 as gross customer loans continued to expand by 23 percent year-on-year.

SM Retail reported a 20-percent growth in net income to P1.1 billion as sales climbed by 10 percent to P34.4 billion on sustained expansion, particularly through SaveMore, which opened five new branches during the period under review.

The retail group opened to the public eight new stores, raising its total network to 176 as of end-March this year. This is broken down as follows 42 department stores, 33 supermarkets, 69 SaveMore branches, and 32 hypermarkets.

SMIC chief financial officer Jose T. Sio said the conglomerate hopes to sustain its upward momentum with net earnings seen to grow by 12 to 14 percent.

The company declared a cash dividend amounting to P10.40 each share to shareholders of record as of May 26. The dividends are payable on or before June 21.

The SM Group is aiming to list its China mall operations/assets either in Hong Kong or Singapore by 2015 to raise around $500 million.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801012

Stock News 2012: Vista Land ties up with Puregold

Official seal of Antipolo (Photo credit: Wikipedia)
Villar-led home builder Vista Land & Lifescapes, Inc., signed two long-term lease agreements with Puregold Price Club Inc., which will be the anchore store in its master-planned community projects in San Fernando, Pampanga and Antipolo City, Rizal.

In a statement, Vista Land said these agreements form part of a long-term partnership established between the two parties. Businessman Lucio Co’s Puregold currently operates a highly successful supermarket in Vista Land’s 60-hectare Lakefront Development in Sucat, Muntinlupa City.

Manuel Paolo Villar, chief executive officer of Vista Land, said, “We have had a mutually beneficial relationship with Puregold and we are extremely grateful that they have agreed to partner with us. Our company looks forward to strengthening our alliance with Puregold and we will certainly continue to seek opportunities to work with Puregold on other ventures around the country,” he said.

According to Vista Land’s head of commercial operations Ma. Leni Damasco-Luya, the community malls would be located in front of established Vista Land communities in densely populated areas surrounding Mille Luce in Antipolo, Rizal and Andalusia in San Fernando, Pampanga.

Merchants in these areas would cater to the basic needs of an existing broad and underserved market. The spaces would be premium spaces, with lots of greens and fronting the parking lot, convenient access and flexible mall hours.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801015

Stock News 2012: GT Capital IPO raised to P24.4 B

UBS Investment Bank's Offices at 299 Park Avenue in New York City (Photo credit: Wikipedia)
GT Capital Holdings Inc., the listed flagship firm of taipan George S.K. Ty, announced yesterday that UBS, the global coordinator for its recently completed initial public offering exercised in full its option to purchase an additional 6.182 million shares to meet the strong demand from global investors.

This would generate an additional P2.8 billion, raising total proceeds to $505 million or P24.4 billion.

The stock has performed strongly since listing on April 20, rising 13 percent to P513/share as of April 25.

“We are pleased with the overwhelming response to GT Capital’s IPO in the aftermarket performance such that we are able to exercise the over allotment option within three days after the listing,” said company president Carmelo Bautista.

The foreign tranche of the IPO was more than five times oversubscribed, attracting prestigious long-term institutional investors and sovereign wealth funds.

GT Capital is the primary vehicle for the management of the various interests of the Ty family in banking (Metropolitan Bank & Trust Co.), real estate (Federal Land), power generation (Global Business Power), automotive (Toyota Motor Philippines) and insurance (Phil AXA Life Insurance Corp.). Proceeds from the offering will be used to fund the expansion of various units such as the hotel and residential projects of its real estate arm Federal Land and power businesses under Global Business Power.

The IPO is the first on the Philippine Stock Exchange this year and the biggest in more than a year since Cebu Air raised $611 million in October 2010.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801013

Thursday, April 26, 2012

Stock News 2012: Arthur Ty is new Metrobank chairman

Metropolitan Bank and Trust Company (Photo credit: Wikipedia)
The Metropolitan Bank and Trust Co. (Metrobank) has a new board chairman in Arthur Ty, erstwhile bank president. He replaces his father, Dr. George S.K. Ty as bank chairman.

The new bank president is Fabian S. Dee, erstwhile senior vice president while Francis C. Sebastian was retained as vice chairman.

The new board is still in a meeting as of presstime, as they were still deciding on management positions.

Likewise, the present board decided to expand the 2012 board to 14 seats from the present 12.

The new members of the board are Fabian S. Dee, Antonio Viray, Amelia Cabal and Vy Tonne So. Out of the new board are Antonio S. Abacan Jr. and Jose P. de Jesus (independent director).

Abacan was named Metrobank Group chairman.

Sources said that the patriach of the Ty conglomerate would remain as the guiding light of the Metrobank Group as it has been expanding its corporate reach to new ventures such as energy generation.

The change was expected as Arthur Ty has agreed to be bank president only for a five-year period.

Younger brother Alfred remains at the board as corporate secretary. He is also the president of Federal Land Inc., Toyota Motor Philippines Corp., and an independent director of the Philippine Long Distance Telephone Co. (PLDT).

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=800777

Stock News 2012: SMDC rolling out over 70,000 new units this year

One e-CommCenter, SM Mall of Asia Complex Picture taken by Exec8 December 4, 2007 (Photo credit: Wikipedia)
Amid threats of an oversupply in the residential sector, SM Development Corp. (SMDC) is rolling out more than 70,000 new units this year, valued at P37 billion to sustain the robust take up in sales in the first quarter.

In a briefing following the company’s annual stockholders’ meeting yesterday, SMDC vice-chairman and chief executive officer Henry Sy Jr. said the company is “fully committed to address the needs of the market that is seen to grow even further with the expected improvement in the economy.”

Rosaline Qua, president of SMDC, said the company is launching five new projects this year that will translate to 73,000 fresh residential units, a sharp increase from the 9,000 units developed in 2011.

In the first quarter this year, SMDC grew its net earnings by 33 percent to P1.21 billion as the number of units sold grew 51 percent to 3,684 valued at P8.97 billion or more than double the company’s sales target for the period under review.

Consolidated revenues surged 72 percent to P5.83 billion, of which revenues from real estate operations amounted to P5.61 billion, rising by 72 percent.

EBITDA went up by 38 percent to P1.49 billion for an EBITDA margin of 27 percent.

The sustained strong interest of numerous homebuyers in SMDC’s various residential condominium projects was matched by a new supply of attractive projects launched last year namely Green Residences along Taft Avenue, Shell Residences in Mall of Asia Complex, M Place @ Ortigas in Pasig, and Mezza II Residences in Sta. Mesa.

“ It reinforces our belief that the Philippines continues to have a huge underserved residential market that longs for affordable homes, a better lifestyle, and the conveniences of strategically located residences,” Sy said.

The company has set a capital spending this year of P20.7 billion this year, significantly higher than the P13 billion spent in 2011. Bulk of the programmed capital budget will go to the construction of ongoing and new projects while about P4 billion has been earmarked for landbanking.

SMDC recently raised around P6.3 billion from the issuance of five-year, fixed rate corporate notes, jointly arranged by BDO Capital and Investment Corporation and Standard Chartered Bank. The issue was oversubscribed, clearly indicating the trust and confidence in SMDC of institutional investors, which were composed of banks, trust companies, and insurance firms.

The company currently has 15 residential projects under its SM Residences brand and two projects under its M Place brand. For the rest of 2012, five more new residential condominium projects will be launched in Metro Manila.

SMDC currently has a landbank of 85 hectares in Metro Manila and 113 hectares in the provinces.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=800775

Stock News 2012: SMDC rolling out over 70,000 new units this year

Wednesday, April 25, 2012

Stock News 2012: SM Prime net profit up 15% to P2.43B in Q1

Facade of SM City Tarlac (Photo credit: Wikipedia)
SM Prime Holdings Inc., the country’s larger retail landlord, said its net earnings increased by 15 percent in the first quarter of the year to P2.43 billion on the back of higher revenues arising from the addition of new malls and the strong growth of its China operations.

In a briefing following the company’s annual stockholders meeting yesterday, SM Prime president Hans T. Sy said the firm’s “better-than-expected performance is a welcome development and reinforces its confidence in the local economy. He expects the company to sustain its positive momentum for the rest of the year.

Sy said the results also show SM’s ability to thrive in competitive environments in China.

Jeffrey C. Lim, chief financial officer of SM Prime, said consolidated revenues went up by 16 percent to P7.03 billion while EBITDA rose 13 percent to P4.76 billion, resulting in an EBITDA margin of 68 percent. Same store rental growth climbed eight percent, an improvement from the seven-percent growth reported the previous year.

The results include the operations of the four SM malls in China, which are located in the cities of Xiamen and Jinjiang in Southern China, Chengdu in Central China, and Suzhou in Eastern China, Lim said.

The four China malls performed remarkably, with net income growing 44 percent to P140 million on the back of a 34.8 percent jump in gross revenues to P620 million. Lim attributed the robust growth to an increase in average occupancy rate, lease renewals and the opening of a lifestyle mall in Shanghai.

Lim said the malls in China currently have an average occupancy rate of 96 percent.

Consolidated rental revenues contributed 86 percent to the total, increasing by 15 percent to P6.03 billion. Additional rental space came from SM City Tarlac, SM City San Pablo, SM City Calamba, SM City Novaliches, SM City Masinag and the recently opened SM City Olongapo. These malls put in 427,000 square meters (sqm) to the company’s total gross floor area and presently register an average occupancy rate of 93 percent.

http://208.184.76.174//Article.aspx?publicationSubCategoryId=66&articleId=800327

Tuesday, April 24, 2012

Stock News 2012: SM expects to close Ortigas deal in H1

Picture of the Greenhills Shopping Center (Photo credit: Wikipedia)
The SM Group owned by the family of the country’s wealthiest man Henry Sy, said it hopes to finalize a deal to take over the property holding firm of the Ortigas family in the first half this year.

“Negotiations are ongoing but talks are getting nearer and nearer to finalizing a deal, hopefully in the first half. Financing is ready. We’re just waiting for further instructions,” said Sy’s eldest son and namesake, Henry Sy Jr.

The SM Group is in talks with the Ortigas family and British banking giant HSBC, the single biggest shareholder in OCLP Holdings with a 34 percent stake.

SM Investments Corp. (SMIC) executive vice-president Jose T. Sio said the amount and details of the transaction are still under discussion and subject to finalization.

Organized in 2010, OCLP Holdings’s crown jewel is the 16-hectare Greenhills shopping complex.

The deal, when completed, will allow the SM Group to corner the lion’s share of the retail market in the burgeoning Ortigas-Pasig-Mandaluyong area.

The acquisition of a controlling stake in OCLP will also allow the SM Group to tap into the Ortigas family’s vast land in Mandaluyong, San Juan and Quezon City, further broadening its reach in Metro Manila.

The Ortigas district, which encompasses at least 100 hectares, is home to many shopping malls like Robinsons Galleria, Shangri-La, SM Megamall, Podium and St. Francis Square.

Megamall, developed and operated by shopping mall giant SM Prime Holdings Inc., sits on 18 hectares of prime land with a total floor area of about 348,000 square meters. It is currently undergoing renovation and expansion with the three-hectare parking lot in front of EDSA being converted into a commercial and office space for business process outsourcing (BPO) companies.

The expansion will give Megamall an additional 100,000 sqm of gross leasable area and will make it the largest shopping mall in the country, surpassing SM City North Edsa.

The Greenhills shopping center, on the other hand, has become a popular destination for buying gadgets and affordable imported clothes and merchandise. Its main mall, V-Mall (formerly known as Virra Mall), houses five franchises from the SM Group – Toy Kingdom, SM Appliance Center, Our Home, Watsons and Ace Hardware.

The Ortigases, whose historic roots date back to the 300-year Spanish colonial rule, are among the largest landowners in the country. They developed upscale residential subdivisions Valle Verde and Wack-Wack as well as the 77-unit Luntala townhouse project within Valle Verde 6.

Aside from the Greenhills shopping center, the group’s retail portfolio also includes the 18-hectare Tiendesitas in Pasig.

Ongoing projects by the Ortigas Group include Circulo Verde, a 15-tower residential development located on a 12-hectare property in Calle Industria in Bagumbayan in Quezon City, and the P25-billion Capitol Commons, which will rise on a 10-hectare property previously occupied by the Rizal Provincial Capitol.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=799998

Stock News 2012: Puregold profit rises 24.5% in Q1

Front of Puregold Dau taken from an angle. (Photo credit: Wikipedia)
Puregold Price Club Inc. grew its net income by 24.5 percent in the first quarter this year to P469 million as it registered higher sales.

In a financial report submitted to regulators yesterday, Puregold said net sales rose 30.3 percent to P10.74 billion, primarily due to higher turnover as a result of new store openings in the last three quarters of 2011.

Puregold had a total branch network of 101 as of March 31, 2012, comprising 62 hypermarkets, 28 supermarkets and 11 discounters. These new stores accounted for 17.7 percent of total net sales for the period under review.

Operating income amounted to P633 million, up 18.6 percent from P534 million. Other income jumped 27.9 percent to P288 million.

On the other hand, operating expenses shot up 38 percent to P1.4 billion from P1.01 billion, largely due to the company’s expansion and renovation of old stores.

Puregold is expected to sustain its upward trajectory for the rest of the year, especially with the acquisition of the upscale S&R Membership Shopping Club through a P16.5-billion share swap transaction.

The move was intended to consolidate Chinese-Filipino businessman Lucio Co.’s retailing businesses under one umbrella.

Under the deal, the Co family will own approximately 77 percent of Puregold’s outstanding shares.

The planned consolidation will expand Puregold’s current market base, enhance shareholder value, and achieve economies of scale.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=800003

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Monday, April 30, 2012

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