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Wednesday, October 31, 2012

Stock News 2012: Nat'l Bookstore buys into Vulcan

Vulcan
Vulcan (Photo credit: jk_scotland)

National Bookstore Inc., which is owned by the family of businessman Alfredo Ramos, is acquiring P12.86 million worth of shares of listed mining firm Vulcan Industrial & Mining Corp.

In separate disclosures to the Philippine Stock Exchange, Anglo Philippine Holdings Corp. and Philodrill said they were selling to NBS 12.25 million shares and 610,000 shares, respectively, in Vulcan at P1 each share.

The sale will be crossed on the Philippine Stock Exchange on Nov. 5.

Vulcan is increasing its authorized capital to P4 billion from only P500 million to facilitate the entry of the NBS, while Vulcan prepares to exit the mining business.

The country’s leading bookstore chain, which is considering a backdoor listing on the exchange via Vulcan, will subscribe to up to P2.9 billion worth of shares in the mining firm.

The capital increase will also accommodate the conversion into equity of advances of about P500 million from NBS and its affiliates.

Newly-elected Vulcan treasurer Adrian Ramos said the company is considering all options but stressed that nothing has been finalized yet.

Vulcan’s board approved the possibility of exiting the mining sector and formed formed a committee to look into alternative exit strategies.

Alfredo, the president of NBS is the incumbent chairman and president of Vulcan.

http://www.philstar.com/Article.aspx?articleId=865166&publicationSubCategoryId=66

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Tuesday, October 30, 2012

Stock News 2012: BPI profit rises 37% to P13.2B

Philippine 100 peso bill
Philippine 100 peso bill (Photo credit: Wikipedia)

Higher interest income drove Bank of the Philippine Islandsnet income 37 percent higher to P13.2 billion in the first nine months of the year, the bank said in a disclosure to the Philippine Stock Exchange.

BPI attributed the solid performance to strong revenues, which were up 17.6 percent, coming from both net interest income and non-interest income.

Despite the prevailing low interest rate environment, net interest income was higher by 7.8 percent as the average asset base expanded by almost P50 billion or 6.4 percent.

Net interest spread was relatively flattish notwithstanding the full recognition of the non-remuneration on statutory and liquidity reserves maintained as deposits with the Bangko Sentral ng Pilipinas (BSP).

BPI also continued to fund its lending growth with low cost funds.

Non-interest income was 34 percent higher, mainly driven by higher securities trading gain.

Other income and fees and commissions also posted increases.

Operating expense went up a manageable 4.8 percent, with increments mainly on premises and technology related costs as well as other operating expenses.

Impairment losses were up 54 percent as provisions were set up for the strengthening of the actuarial reserves for the pre-need subsidiary.

For the third quarter, impairment losses were 1.2 times the previous year. Revenues were, however, up five percent, thereby resulting in a nine percent improvement in net income to P3.8 billion.

Loans reached P475 billion as the growth rate of 18 percent was sustained through the third quarter. Corporate and consumer loans continued with their double-digit momentum with 18 percent and 16 percent, respectively, on a year on year basis.

Asset quality as reflected in the net 30-day NPL ratio improved to 1.7 percent from last year’s 2.3 percent, with reserve coverage at 137.9 percent.

Deposits reached P697 billion or a 12 percent increase from last year. In addition, assets under management increased 15 percent to P760 billion.

At end-September, BPI’s market capitalization stood at P284 billion, the highest among domestic banks.

 “Normalizing the impact of the opportunistic recognition of securities trading gains, BPI’s adjusted return on equity and return on assets as of September 2012 would be 16.9 percent and 1.9 percent, respectively,” BPI president and CEO Aurelio R. Montinola III said.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=865169

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Monday, October 29, 2012

Stock News 2012: JG Summit eyes more overseas acquisitions

The Paragon, a high-end shopping mall, along O...
The Paragon, a high-end shopping mall, along Orchard Road, Singapore. (3mp version) (Photo credit: Wikipedia)

Taipan John Gokongwei’s investment vehicle JG Summit Holdings Inc. is seeking to expand its presence overseas with plans to acquire food and beverage firms within ASEAN as well as real estate properties across the globe.

BJ Sebastian, senior vice-president at JG Summit, said the conglomerate is on the lookout for real estate assets elsewhere in the world which it can develop as part of efforts to shore up its land bank to ensure a steady stream of projects.

The Gokongwei Group, through its 36.1 percent controlling interest in United Industrial Corp. Ltd., has a presence in the improving real estate sector in Singapore and China, particularly in Chengdu, Tianjin, Shanghai and Beijing.

UIC has a portfolio of 2.2 million square feet of office space and one million square feet of retail space in Singapore.

Among UIC’s best known commercial landmarks include the UIC Building, Singapore Land Tower, SGX Centre, The Gateway, Stamford Court, Marina Square (a massive shopping and hotel complex in the Marina Bay) and West Mall (a suburban shopping complex).

UIC also has major residential projects such as The Belleforte, The Paterson, and Stevens Loft in Orchard Road, as well as One Amber and Grand Duchess at St. Patrick’s in the popular East Coast area.

Sebastian said demand in the Singapore retail and hospitality sectors is seen to be resilient due to the influx of international retailers and buoyant visitor arrivals. He also sees the office rental market to continue to be competitive amid a tough global business environment.

On the homefront, the group’s property arm Robinsons Land Corp. will continue its expansion program, targeting to open four new malls, two office buildings and at least three new Gohotels for its fiscal year ending September 2013.

Sebastian said RLC has increased its landbank by 111 hectares year-on-year to 534 hectares as of end-June this year, good for four to five years of development. “The higher landbank will give each business unit a medium-term project pipeline visibility,” he said.

The group’s food and beverage unit Univesal Robina Corp. is scouring Asia for possible acquisition targets. “We’re looking at firms with strong brands and a wide distribution network, Sebastian said.

He noted that URC’s international revenues increased five-fold in nine years from $84 million in 2003 to $443 million in 2011. In the nine months of its fiscal year ending September this year, revenues rose six percent as most countries posted growth except for Thailand.

From 29 percent contribution to total branded consumer foods group sales in 2003, URC overseas operations’ share increased to 39 percent last year.

URC’s products are available in China, Vietnam, Indonesia, Malaysia and Thailand. Plans are now underway to set up shop in Burma as it expects international operations to grow as big as its domestic business in five years.

URC is also the dominant market leader in candies, chocolates, biscuits, cup noodles and tea beverage. It grew the local non-carbonated beverage market with the successful launch of C2 Cool & Clean Green Tea, building on the global trend towards health and wellness.

URC later forayed into other areas of the non-carbonated beverage market, such as juices, energy drinks and ready-to-drink coffee, among others.

Meanwhile, the group is on track to complete the construction of its $800 million naptha cracker plant - the first in the country – by late 2013. Located in Batangas, the plant will produce 320,000 metric tons of ethylene annually when it starts commercial operations by early 2014.

The naptha facility is estimated to generate annual sales of around $1 billion on full production and at current prices.

http://www.philstar.com/Article.aspx?articleId=864442&publicationSubCategoryId=66

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Sunday, October 28, 2012

Stock News 2012: 7-11 reinvents retail shopping

7 Eleven sign in L.A.
7 Eleven sign in L.A. (Photo credit: Tommy Ironic)

In an effort to meet and bridge the needs of changing lifestyles, world-renowned convenience store 7-Eleven reinvents retail shopping with a new design along with a brand re-imaging campaign that aims to boost the chain’s sales and customer traffic.

Following the same success of its Taiwan prototype, the c-store’s recent upgrade came after more than 25 years since it first arrived in the country through its exclusive licensee, Philippine Seven Corp. (PSC).

According to the company’s research, the reinvention of the store, which includes re-layouting, improved display visuals and inclusion of energy-efficient technology as part of the “store of the future” design principles, makes it easier for customers to shop, and enjoy the whole shopping experience.

“By elevating the shopping ambiance in our stores, customers are attracted to spend more time, thus are more likely to buy more items. Our island food table, for example, is very helpful in motivating and informing our patrons of the latest food products while optimizing space,” said Francis Medina, Business Development Division Manager for PSC.

The sleeker floor space design -- which is patterned after 7-Eleven Taiwan c-stores but with customized functional features that fit Filipino consumers’ preferences – transformed the entire area into an efficient work and customer space.

The new “de-cluttered” format will also prevent customers from feeling like they are in a cramped store and gives them more room to browse and shop at ease, he noted.

Besides the maximized space, the new store layout has also allotted a significant area for in-store dining, complete with wider tables and more seats. Improved graphic food banners were also utilized, as well as an island food table that makes quick viewing of perishables, fresh foods and other quick-serve offerings.

“The island food table is a very new concept, and indeed worked best in bringing the food products closer to people, and the image of 7-Eleven as not just a convenience store but as a viable food shop,” Medina added.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=864464

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Thursday, October 25, 2012

Stock News 2012: Union Bank profit up 17% to P6.3B in Jan-Sept

English: A logo for the Union Bank of the Phil...
English: A logo for the Union Bank of the Philippines (Photo credit: Wikipedia)

Union Bank of the Philippines, the financial arm of the Aboitizes, has posted a net income of P6.3 billion in the first nine months of 2012, up 17 percent from P5.4 billion in the same period in 2011, a company report said.

In its report submitted to the Philippine Stock Exchange (PSE), UnionBank’s net income for the third quarter declined to P2.2 billion from P2.5 billion last year.

Net interest income rose to P5.4 billion in the first three quarters of the year compared to P5.2 billion last year. However, net interest income for the quarter alone dropped to P1.78 billion from P1.82 billion in 2011.

UnionBank’s gains from trading increased to P5.28 billion as against P4.45 billion in the comparative period last year.

The bank’s basic earnings per share stood at P13.13 in January to September 2012 from P11.24 in the same period 2011.

This year, the bank is expecting its income to grow 10 to 15 percent from last year.

Loan growth for the year is likely to hit 20 to 25 percent, said UnionBank president and COO Vic Valdepeñas.

UnionBank started operations in 1981 and became a commercial bank by Jan. 19, 1982.

In July 1992, it was granted the license to operate as a universal bank.

The bank acquired the International Corporate Bank (Interbank) in 1994.

At present, it has multiple channels that are available for transaction and information access such as through its 190 branches nation wide, 224 ATMs as of January 2012), a call center and Internet bank.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=863405

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Saturday, October 20, 2012

Stock News 2012: ICTSI completes Pakistan port deal

Pier T Container Terminal in Long Beach, Calif...
Pier T Container Terminal in Long Beach, California with intermodal rail in the foreground and gantry cranes behind that (Photo credit: Wikipedia)

International Container Terminal Services, Inc. (ICTSI) has completed the purchase of 35-percent stake in Pakistan International Container Terminal Ltd. (PICT).

PICT is a container cargo terminal located at the Karachi Port in Pakistan with a maximum handling capacity of 750,000 20-foot equivalent container units (TEUs).

The acquisition was made by ICTSI’s indirect wholly-owned unit ICTSI Mauritius Ltd.

ICTSI Mauritius earlier launched a tender offer to acquire all the shares of PICT at a price of 150 Pakistan rupees per share (about P65.04).

The company is expected to gain control of 55 percent of PICT after the tender offer.

Premier Mercantile Services Ltd., currently the controlling shareholder of PICT, is seen to keep a 40 percent stake. It was awarded a 21-year concession to build and operate a dedicated container terminal at Berths 6-9 in Karachi Port in April 2002.

PICT was subsequently formed to serve as the corporate vehicle for the project.

ICTSI earlier said it was ready to invest $95 million in PICT, which handled a total of 669,806 TEUs for the fiscal year ending June 30.

ICTSI is a leading port management company involved in the operations of 24 maritime terminals and port projects in 17 countries with six ports in the Philippines, and one terminal each in Indonesia, Brunei, India, China, Japan, United States, Ecuador, Brazil, Poland, Georgia, Croatia, Syria and Madagascar.

It also has ongoing port development projects in Mexico, Colombia and Argentina.

ICTSI recently completed the acquisition of a port facility located in Jakarta’s Tanjung Priok area, adding it to its growing terminal portfolio. It also acquired stakes in major cargo ports in the Middle East and Nigeria in Africa.

The company has earmarked $550 million this year for its capital expenditures- more than double what it spent in 2011.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=861273

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Thursday, October 4, 2012

Stock News 2012: SMB expects better results this year

San Miguel Beermen logo
San Miguel Beermen logo (Photo credit: Wikipedia)

San Miguel Brewery Inc. expects to top last year’s performance, mainly driven by sustained efforts to increase patronage of its products and enhancements in productivity, according to a top company official.

The beer unit of Southeast Asia’s largest food and beverage conglomerate San Miguel Corp. jacked up its net earnings last year by 17 percent to P12 billion on the back of higher volume and selling prices.

During SMB’s P3-billion fixed-rate bonds listing ceremony at the Philippine Dealing & Exchange Corp. yesterday, company president Roberto Huang said the firm remains “steadfast in besting our 2011 performance and commit ourselves to achieving higher volume and profability this year.”

Huang said SMB has exhibited strong financial performance over the past nine months despite difficult market conditions brought about by recent natural calamities.

He said that while the third quarter financial results were a bit soft, the company remains on track to meeting its financial targets especially with the onset of Christmas season.

Huang said the company’s existing capacity of 200 million cases is enough to last for some three or five years.

SMB intends to grow organically and is looking at opportunities in the local and international markets to add value to the company.

With the deadline for listed firms’ compliance with the minimum public float requirement of 10 percent nearing, the company is continuously holding talks with its Japanese partner Kirin Brewery to try to find a mutually acceptable solution to the local bourse’s directive. “We’re trying to work out a compromise to avoid delisting,” he said.

Errant firms have until the end of the year to boost their public ownership level or face monetary sanctions and suspension of trading in their shares for up to six months beginning the first trading day next year.

Huang said SMB might also ask the Philippine Stock Exchange (PSE) to extend the deadline for compliance.

If all else fails, parent firm San Miguel will have no choice but to take SMB private, Huang said.

SMB is currently the dominant player in the domestic beer market at 96 percent last year. Its contribution to the total alcoholic beverage category also exceeded targets, hitting 67 percent in 2011.

Last year, the company registered sales volumes of 223.8 million cases, translating to revenues of P72 billion or an increase of 6.4 percent from 2010.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=855595

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