Investing Stocks in Philippines: China

Showing posts with label China. Show all posts

Wednesday, June 26, 2013

Stock News 2013: China's Life Insurance Companies

Insurance (Photo credit: Christopher S. Penn)

China’s life insurance companies expect a lower growth on premium in the next year or two. Over the long term, insurance companies will benefit as they adapt to the changes.

Sally Yim of Moody’s said, “For now, the sector is experiencing the constraints from its previous focus on short-term and savings-type products, as well as a significant reliance on the bancassurance channel.”

Some of Moody’s assumptions are:

Premium growth will lag behind China’s GDP growth
Profitability will remain a challenge due to rising expenditures
Insurance companies are exposed to the volatility of equity markets
New businesses will be limited due to low premium growth
In 2012, premiums were at 4.5%. Growth in household incomes will generate premium growths of 7.5% to 8.5% in 2013 and 7.0% to 8.0% in 2014.

The expected single digit low growth is driven by:

Narrow platform for insurance companies
Wealth products sold by banks as alternative to insurance products
Increase in competition as more Chinese banks distribute their own insurance products
Chinese insurance companies are moving toward risk-based liberalization of investments and products. This include moving away from low-margin savings-type products and focus on protection-type products.

http://pinoyfiq.com/pinoyfiq/financial-education/state-of-life-insurance-companies-of-china

Sunday, April 28, 2013

Stock News 2013: SM profit jumps 22% in Q1

SM Prime Holdings (Photo credit: Wikipedia)

SM Investments Corp. (SMIC), the investment holding vehicle of the country’s richest man Henry Sy Sr., will outpace its targeted profit growth this year on the back of a 22-percent jump in first quarter earnings, top company executives said.

“From the figure I saw from the first quarter, I feel that we can have the range of about 15-17 percent (income growth),” said SMIC chief finance officer Jose Sio.

In its 2013-2015 plan, SMIC targets its profits to grow 12-15 percent annually, supported by the company’s continuous expansion.

But in the first quarter this year, its net income climbed 22 percent to P7.4 billion as revenues rose 15 percent to P56.8 billion from P49.6 billion a year ago.

“The growth was driven by the surge in earnings of SM’s banking business, coupled with strong earnings growth from SM’s mall and property businesses,” the company said.

“With the continuing rise in remittances from overseas Filipinos, the expansion of the country’s outsourcing sector and the recent credit upgrade of the Philippines to investment grade, we are confident of achieving even better results in the second quarter and beyond,” said SMIC president Harley T. Sy.

Of the first-quarter profits, SMIC derived 59.7 percent from banking (BDO Unibank Inc.), 15.8 percent from malls (SM Prime Holdings Inc.), 14.1 percent from retail operations (SM Retail Inc.) and 10.4 percent from property (SM Development Corp. and SM Land).

The trend regarding income contribution will continue given the strong financial sector in the Philippines, Sio said.

BDO’s earnings surged 257 percent to P10 billion in the first quarter as net interest income climbed 14 percent to P9.6 billion on the back of a 16-percent growth in customer loans and a nine-percent uptick in total deposits.

The country’s largest bank in terms of assets expects its full-year income to reach P20.4 billion.

Mall developer and operator SM Prime recorded a 15-percent gain in consolidated net income to P2.8 billion in the first three months of the year. Its revenues grew 11 percent to P7.8 billion.

SM Prime said its five malls in China contributed P700 million in revenues, up nine percent from last year.

SM Prime has 46 malls in the Philippines with a total gross floor area of 5.6 million square meters (sqm). In China, it has five malls with a total gross floor area of 0.8 million sqm.

For its part, SM Retail reported an income of P1.2 billion, up four percent from last year as sales rose 5.8 percent to P36.4 billion.

As of end-March, SM Retail had 201 stores consisting of 46 SM Department stores, 37 SM Supermarkets, 37 SM Hypermarkets and 81 SaveMore stores, up from just 176 stores in the same period last year.

SM’s property group recorded a net income of P1.8 billion, up 19 percent from last year. SMDC accounted for 76 percent of earnings.

In the first quarter, SMDC’s consolidated net income rose 12 percent to P1.4 billion.

The developer will launch four new projects this year that will introduce 13,000 condominium units to the market.

http://www.philstar.com/business/2013/04/26/934905/smic-profit-jumps-22-q1

Thursday, March 7, 2013

Stock News 2013: China Bank’s 2012 profit flat at P5 B

y2cary3n6mng-qwfl07-net-profit-formula (Photo credit: NVarchitect)

The Sy family-led China Banking Corp. chalked up a consolidated net profit of P5 billion last year, flat compared to the previous year as its thrift bank subsidiary gnawed at overall profitability.

But China Bank sustained a return on equity of 12.39 percent and return on assets of 1.72 percent for the year.

Last year’s earnings were fueled by a 29 percent increase in loans to P198 billion, which grew 50 percent faster than the industry. Lending grew across all market segments—up 36 percent in commercial, 28 percent in consumer and 27 percent in corporate loans—cushioning the impact of lower yields and thinning margins.

Profits were also boosted by hefty trading and securities gains, expanding by 98.6 percent to P2.92 billion.

http://business.inquirer.net/111057/china-banks-2012-profit-flat-at-p5-b

Thursday, February 28, 2013

Stock News 2013: KFC launches China campaign to rebuild brand

Sanders remains the official face of Kentucky Fried Chicken, and appears on its logo (Photo credit: Wikipedia)

KFC launched a campaign Monday to rebuild its battered brand in China, promising tighter quality control after a scandal over misuse of drugs by its poultry suppliers.

The company, a unit of Yum Brands Inc., promised to test meat for banned drugs, strengthen oversight of farmers and encourage them to improve their technology. It said more than 1,000 small producers used by its 25 poultry suppliers have been eliminated from its network.

KFC is China’s biggest fast-food chain, with more than 4,000 outlets, but was hit hard when state television reported in December that some suppliers violated rules on the use of drugs to fatten chickens. The company estimates January sales plunged 37 percent.

“Starting now, we will stress strict management and the principle of zero tolerance in food safety,” Sam Sun, the chairman of Yum Restaurants China, said at a news conference. “We will immediately drop any supplier that lacks the determination or the ability to manage breeding well.”

The complaint against KFC was less serious than other product scandals in China over the past decade in which infants, hospital patients and others have been killed by phony or adulterated milk powder, drugs and other goods. But KFC’s high profile attracted attention, and its status as a foreign company with less political influence meant Chinese media could publicize its troubles more freely.

Yum, based in Louisville, Kentucky, said it expects sales in China to tumble by up to 25 percent in the current quarter. The company also owns Pizza Hut and Taco Bell.

CEO David Novak said earlier the company would need the “gift of time” for the controversy to die down. KFC has declined to say when it expects the business to fully recover.

The stakes are high for Yum. Even before the chicken scare, growth in China was slowing and fell into negative territory in October.

Executives blamed slower Chinese economic growth and the comparison with earlier explosive expansion. But KFC and other Western fast food chains also face mounting competition from young but ambitious Chinese rivals.

The locals started out copying global brands but are developing their own identity and the elusive skills to manage chains of hundreds of outlets and networks of far-flung suppliers.

One chain, Yonghe Dawang, copied KFC’s Colonel Sanders logo so closely with its image of a smiling, grandfatherly Chinese man that Western tourists did a double-take at its restaurants.

More recently, Yonghe Dawang has developed its own image and switched to a logo of a noodle bowl. Since being acquired by Jollibee Foods Corp., a Philippine fast food upstart that has expanded throughout Southeast Asia, Yonghe Dawang has expanded to 307 restaurants.

Zhen Gong Fu, which sells bowls of rice with beef, pork and other meat, has 479 restaurants nationwide. Other competitors include Master Kong Chef’s Table, with 100 outlets in 30 cities.

Executives note that Yum has bounced back from other troubles, such as an avian flu scare in 2005 that dragged down sales by as much as 40 percent.

http://business.inquirer.net/109339/kfc-launches-china-campaign-to-rebuild-brand

Monday, February 11, 2013

Stock News 2013: Most stock markets closed in Asia for holidays

The New York Mercantile Exhange at 628 Broadway between Bleecker and Houston Streets in the NoHo section of Manhattan, New York City was built in 1882 and designed by Herman J. Schwarzmann with Buchman & Deisler. (Source: AIA4 Guide to NYC (4th ed.)) (Photo credit: Wikipedia)

Stock markets in Hong Kong, mainland China and Seoul were among those closed Monday for the Lunar New Year holiday. Japanese markets were also shut for a public holiday.

Australia’s S&P/ASX 200 was marginally higher at 4,973.20, with a positive earnings report from retailer HB Hi-Fi Ltd. helping to boost retail stocks. JB Hi-Fi surged 15.4 percent after reporting its first half net profit had risen 3 percent to 82 million Australian dollars ($84.6 million). David Jones rose 3.6 percent and Myer Holdings added 3.1 percent.

Key stock indexes in the Philippines and Indonesia also rose while markets in Singapore, Taiwan and Vietnam were closed for holidays.

Benchmark oil for March delivery rose 5 cents to $95.77 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 11 cents on the Nymex on Friday to close at $95.72 a barrel.

http://business.inquirer.net/107021/most-stock-markets-closed-in-asia-for-holidays

Wednesday, January 23, 2013

Stock News 2013: PH to reel in $20B in foreign investments from Japan

Prime Minister Shinzō Abe of Japan, Saturday, Sept. 8, 2007, in Sydney. (Photo credit: Wikipedia)

The Philippines is well poised to profit from Japan Prime Minister Shinzo Abe’s move to steer clear of China and move to Southeast Asia for capital expansion.

Trade and Industry Secretary Gregory L. Domingo told the Philippine Daily Inquirer: “I agree we will benefit, we are already seeing some of it now.”

Japan is the country’s biggest business partner with total trade and investments of $13 billion and the third biggest source of tourists.

Albay Gov. Joey Salceda, an economist, said that Japan’s fear of China’s increasing military and financial might would likely trigger the second massive outflow of Japanese direct investments.

Salceda noted a repeat of the effect of the 1987 Plaza Accord where the United States, France, West Germany, United Kingdom and Japan agreed to force the appreciation of the yen from 248 to 78 per US dollar to help the American economy recover.

“The Philippines was not able to optimize the benefits due to coup-driven political instability post-EDSA and aggressive competitive marketing by Malaysia, Thailand and Indonesia. We cannot afford to lose out again on this FDI (foreign direct investment) bonanza which I consider to be the single most important economic factor in the Philippine horizon,” said Salceda.

Salceda said that if the Philippines played its cards right, it could haul in at least $20 billion in Japanese investments in manufacturing over the next six years.

“I started to be an analyst during 1989, one year after the Plaza Accord. I remember quite distinctly that this was the number the analysts community were projecting,” said Salceda.

“This is the most benevolent economic and external discrete factor ever to happen in favor of the Philippines, only the Asian pivot of the US geopolitics comes second,” said Salceda.

Salceda suggested that given this massive opportunity, the Aquino administration should push for “more articulate ambition in infrastructure and more aggressive visioneering and faster execution.”

Another major concern of Japanese investors is the high cost of electricity in the country.

http://business.inquirer.net/103059/ph-to-reel-in-20b-in-foreign-investments-from-japan-says-economic-analyst

Saturday, November 3, 2012

Stock News 2012: ALI, SM Prime win real estate awards

SM Prime Holdings (Photo credit: Wikipedia)

Ayala Land Inc. and SM Prime Holdings, Inc have been recognised for their high standards by the Asia Pacific Real Estate Association (APREA) in the APREA Best Practices Awards 2012.

The APREA Best Practices Awards are open to all real estate companies and trusts listed on a regional stock exchange. As with previous years, there has been overwhelming response from high-quality organizations from countries around the region, including Australia, India, China, Japan, Malaysia, New Zealand, Singapore and the Philippines. In all, organizations from nine different jurisdictions lodged submissions.

Winners were chosen based on how an organization has contributed to providing greater transparency and comparability in their local market and the region. Submissions were also judged on the extent of which they have adopted recommendations in the APREA Best Practices Handbook in the categories of market disclosures, accounting and financial reporting, property valuation, portfolio performance reporting and corporate governance.

Ayala Land won awards for the best Philippines submission and merit awards in the areas of market disclosure and portfolio performance reporting. It also won an award as the best property development organisation in the Emerging Markets category. SM Prime won a merit award in the area of corporate governance.

Lim Swe Guan, CFA, chairman of the board of APREA says, “We are delighted with the level of best practices demonstrated by the companies who submitted for the awards this year. We continually encourage members to adopt the most up-to-date valuation techniques, adhere to international financial reporting standards and follow good corporate governance. Combined with a greater transparency of portfolio performance and provision of reliable timely information to investors, we believe this will lead to higher investor confidence and wider support for the industry. We are confident that with the support of our members, who are leaders in their field, we can make real estate a crucial part of every investor’s portfolio.”

Peter Mitchell, chief executive officer of APREA said “We would like to extend our congratulations to Ayala Land and SM Prime Holdings as industry leaders in best practices. These awards are held annually to highlight the importance of the recommendations in APREA’s Best Practices Handbook, which has emerged as a clear benchmark for the region for managing and reporting performances since it was first published in 2009.”

APREA has developed best practices to streamline performance measurement and reporting for the real estate investment industry in the region. The APREA Best Practices Handbook, currently in its second edition, is intended to be a living document and will be regularly modified, updated and added to. It contains a series of recommendations for adoption by the industry in the following areas:

• Accounting and financial reporting guidelines

• Property valuation Corporate governance

• Portfolio performance reporting

• Market disclosures

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=866158

Saturday, August 25, 2012

Stock News 2012: Jollibee enters hot pot business in China

Jollibee (Photo credit: Wikipedia)
Fastfood giant Jollibee Foods Corp. (JFC) is breaking into the hot pot business through a partnership with Wowprime Corp., Taiwan’s largest restaurant chain group, to operate the 12 Sabu restaurant brand in China, Hong Kong and Macau.

In a disclosure to the Philippine Stock Exchange yesterday, JFC said its wholly-owned subsidiaries Jollibee Worldwide Pte. Ltd. (JWPL) and Golden Plate Pte. Ltd. signed an agreement with Wowprime unit Hoppime Ltd. to form a joint venture company to own and operate the 12 Sabu chain, known for its low-priced hot pot dishes served in a clean and bright dining environment.

JFC’s subsidiaries and Wowprime will each own 48 percent of the joint venture, giving them equal control and management in the firm. The remaining four percent will be held by certain individuals with experience in the retail sector in China.

JFC is expected to shell out around $8 million this year until 2015 for the joint venture.

As of end 2011, there were 18 12 Sabu stores operating in Taiwan with revenues of about NT$200 million.

This marked the first time for Wowprime to enter into a joint venture.

“The joint venture aims to tap into the very popular hot pot dining market in China with the benefit of the combined experience and expertise of Wowprime and JFC,” JFC said.

Founded in 1990, Wowprime is a publicly-listed company in Taiwan that currently owns and operates 210 stores under 11 brands in Taiwan, 46 stores under two brands in China, and two stores under one brand in Thailand

JFC, on the other hand, is the Philippines’ biggest food service company with 2,022 stores as of end-June 2012. The stores consist of flagship brand Jollibee (756), Chowking (385), Greenwich (201), Red Ribbon (207), Mang Inasal (448) and Burger King (25).

In China, the JFC Group has 367 stores under three brands (Yonghe King, Hong Zhuang Yuan and San Pin Wang). It also owns research and development and food processing facilities in the world’s most populous nation.

Started in northern China during the Tang dynasty, hot pot is a type of dish where soup is boiled in a metal pot of stock. Various meat and vegetables are placed into the hot pot and cooked at the table.

The hot pot dining industry in China has been growing by an average of more than 20 percent in the past five years. Typical hot pot dishes include thinly sliced meat, leafy vegetables, mushrooms, wontons, egg dumplings and seafood.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=840761

Friday, August 3, 2012

Stock News 2012: SM Prime allots P63 B for Phl, China expansion

English: SM Supermalls logo (Photo credit: Wikipedia)SM Prime Holdings Inc., the country’s largest retail landlord, has set a P63-billion three-year capital spending plan to rapidly expand its presence here and in China in its bid to become a regional player.

SM Prime chief financial officer Jeffrey C. Lim said the company is spending P21 billion each year to build four to five new malls at home and one mall annually in China to take advantage of rising consumer spending.

He said the company plans to open up to 18 malls in the next three years.

He said funding for the massive expansion will come from a combination of internally-generated cash and borrowings.

SM Prime expects to end the year with a total of 46 malls across the country and five in China, with an estimated combined gross floor area of 6.3 million square meters.

Earlier this year, it opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga. Three more malls are expected to open in the second half - SM City Gen. Santos in South Cotabato, SM City Lanang in Davao City and SM Chongqing in China.

SM Prime’s four malls in China, located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou, contributed P320 million or seven percent to the company’s aggregate earnings. Combined revenues amounted to P1.27 billion or nine percent of total.

The SM China malls are enjoying healthy increases in rental rates, with average occupancy level now at 95 percent.

SM Prime said it continues to see vast opportunities in China given the world’s second largest economy’s growing population and emerging middle class.

The group is currently looking to acquire five properties in its second biggest market. It wants to reach new markets to further widen its geographical footprint.

The expansion is also in line with the SM Group’s strategy to list its China assets either in Hong Kong or Singapore by 2015 in a public offering that could fetch proceeds worth up to $500 million.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=833992

Monday, July 30, 2012

Stock News 2012: SM Prime posts P2.5-B net earnings in Q2

SM City Cagayan de Oro (Photo credit: Wikipedia)
Shopping mall giant SM Prime Holdings Inc. reported better-than-expected financial results in the second quarter with net earnings rising 16 percent to P2.49 billion.

This brings SM Prime’s six-month net income to P4.92 billion or 15 percent higher than the P4.27 billion recorded the previous period.

Revenues also climbed 15 percent to P14.57 billion while EBITDA (earnings before interest, taxes, depreciation and amortization) went up 12 percent to P9.71 billion

Operating income likewise increased 15 percent to P7.78 billion. The growth was attributed to the eight-percent rise in same-store sales, new store openings, and the improved performance of the group’s malls in China.

SM Prime’s four malls in China are located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou with a total gross floor area of 0.6 million square meters. These contributed P320 million or seven percent of the company’s aggregate earnings.

In terms of gross revenues, these four malls pumped in P1.27 billion, accounting for nine percent of total.

The SM China malls are enjoying healthy increases in rental rates and improvement in occupancy levels. The average occupancy rate for the four malls in China is now at 95 percent.

“We are pleased to reach our targets for the first half of this year on the back of robust consumer spending and strong economic fundamentals. In line with this, we look forward to the second half of the year with more confidence in implementing our expansion plans, especially as we move towards the holiday season,” said SM Prime president Hans T. Sy.

Operating expenses likewise expanded 15 percent to P6.79 billion owing to higher administrative expenses particularly utilities, business taxes and manpower expenses.

SM Prime has 44 supermalls strategically located across the country with a total gross floor area of 5.3 million square meters.

Earlier this year, it opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga. Three more malls are expected to open for the balance of the year -- SM City Gen. Santos in South Cotabato, SM City Lanang in Davao City and SM Chongqing in China.

By the end of the year, SM Prime will have 46 malls in the Philippines and five in China with an estimated combined gross floor area of 6.3 million square meters.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=832927

Thursday, July 19, 2012

Stock News 2012: SMIC taps into $1-B cash pile for new investments

English: SM City Fairview in Quezon City, Metro Manila, Philippines. (Photo credit: Wikipedia)
With a massive cash pile of around $1 billion, retail tycoon Henry Sy’s SM Investments Corp. (SMIC) is in a strong position to take advantage of any interesting opportunities that may crop up, according to a top company official.

SMIC chief finance officer Jose T. Sio said the holding firm is awash with cash, having raised P15 billion from the recent issuance of seven to 10-year fixed rate bonds. “We’re very liquid. We have like P40 billion plus in cash. Aside from that, we still have an untapped credit line,” he said.

Sio said the group has been looking for fresh uses of its huge cash reserves.

SMIC officials said they are still keen on acquiring a significant stake in the private holding firm that owns the 16-hectare Greenhills shopping complex, which would allow the SM Group to capture the lion’s share of the retail market in the fast-growing Ortigas-Pasig-Mandaluyong area.

The interest remains even as the group led by Ignacio R. Ortigas entered into a strategic alliance with property giant Ayala Land Inc., allowing the latter to participate in the development of the family’s various properties which include large residential, office, retail and hotel components

The Ortigas family exercised its right of first refusal over British banking giant HSBC’s stake in OCLP Holdings Inc. in a deal valued at P11 billion.

Meanwhile, Sio said SMIC may do another fund-raising within the year to take advantage of the country’s bright economic prospects following an upgrade to the Philippines’ sovereign credit standing to a notch below investment grade. “It would probably be a combination of equity and debt,” Sio said.

Proceeds from future cash-raising activities will be used to refinance existing obligations and for investments, Sio said.

He said SMIC sustained its growth traction in the second quarter, mainly due to the country’s strong economic fundamentals. “The second quarter is a little better than the first quarter. Traditionally, the second quarter is stronger than the first because of the summer break and the opening of schools,” he said.

Sio also disclosed that the group, through SM Prime and SM Development Corp., is in talks to buy tracts of land in various areas in China. “The property we’re acquiring should be good for the next three to four years,” he said.

SM Prime chief financial officer Jeffrey Lim earlier said they were looking to acquire five more properties in China to support their aggressive expansion in the world’s second biggest economy.

China is the group’s second biggest market next to the Philippines.

For this year, SMIC has set a capital spending of around P54 billion to continue the expansion of its banking, shopping mall, and real estate businesses. The capital budget is higher than what it spent in 2011.

http://www.philstar.com/Article.aspx?articleId=828533&publicationSubCategoryId=66

Sunday, July 8, 2012

Stock News 2012: Local Coca-Cola unit optimistic on growth

Coca-Cola (Photo credit: Wikipedia)
Coca-Cola Bottlers Philippines Inc. (CCBP) is on track to growing faster than the pace of the economy, an executive said.

Growth will be driven by higher consumer spending on the back of government-initiated activities and the approaching election season.

“We are happy to say that our Coca-Cola business is growing well and growing in all sectors of the country, which is exciting for us,” CCBP president and chief executive William Schulz said in a chance interview.

“It has been a good year so far but halfway still to go...we are on track to delivering our internal targets,” Schulz added.

Late in May, Guillermo Aponte, president and general manager of CCBP’s parent firm Coca-Cola Export Corp. (CCEC) said the company expects to “grow faster than the economy” this year.

The government targets a five to six percent growth in gross domestic product (GDP) this year, faster than the 3.7 percent uptick last year.

The country’s GDP climbed 6.4 percent in the first quarter, the fastest in the 10-member countries of the Association of South East Asian Nations and second only to China in the Asian region.

“We are certainly delighted that the government is investing in the economy because economic growth helps consumers to buy more products,” Schulz said.

The government has fast-tracked its spending to stimulate the economy despite the debt crisis in the Eurozone and timid growth in the US.

Furthermore, election spending will bring more growth to CCBP even in the second half this year. The mid-term senatorial election is scheduled in May next year.

“In the Philippines, during the election season there is economic activity,” Schulz said.

“We expect the equity of our brands to drive our business but it is always good for us when the economy is strong,” Schulz said.

The Philippines is now the company’s 10th largest market in the world in terms of sales volume.

Schulz said Coca-Cola is the top softdrinks brand in the Philippines, leading the nearest competitor by 15 to 1.

Last year, CCEC opened a manufacturing plant in Cagayan de Oro to cater to consumers in the region. It also expanded the capacity of its plants in Sta. Rosa Laguna and Cebu.

To date, the company currently has around 22 bottling lines nationwide, with its newest in Cebu that was opened early this year.

CCEC fully owns CCBP after it bought back the 60 percent share held by San Miguel Corp. four years ago.

The company manufactures carbonated beverages Coke, Sprite, Royal, as well as other non-carbonated beverages.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=825112

Monday, June 25, 2012

Stock News 2012: First Pacific eyes agri ventures, with focus on sugar, bananas

Hong Kong-based First Pacific Co. Ltd. is looking to make a push into Philippine agriculture with particular focus on sugar and bananas to create new revenue streams.

First Pacific managing director and chief executive officer Manuel V. Pangilinan said the group is excited about the investment opportunities in agriculture even as the sector’s contribution to gross domestic product remained insignificant.

Pangilinan said the group has commenced negotiations with banana growers and is hoping to partner with someone that has a good distribution capability to help sell Philippine bananas.

The Philippines is currently the world’s second-biggest exporter of bananas next to Ecuador. It is also a major banana supplier to Japan, China, South Korea and New Zealand.

The prospective growth for the industry given the country’s abundant natural resources which include 29.81 million hectares of agricultural land, and 5.7 million hectares of arable land.

Pangilinan said the group is also keen on sugar production, which is forecast grow by 37.5 percent to 2.86 million tons by 2015 or 2016.

With the volatile global demand for almost every plantation crops, the sector is seeing major players increasing their participation and new players entering the market.

In the Philippines, First Pacific is present in the telecommunications, power, tollroads, mining and healthcare services and water distribution sectors.

Building on its 2011 best-ever performance, the group through Philippine flagship Metro Pacific Investments Corp. will continue investing in new tollroads and water distribution outside its existing franchise area.

http://www.philstar.com/Article.aspx?articleId=820592&publicationSubCategoryId=66

Monday, May 7, 2012

Stock News 2012: Ayala's IMI more than doubles net profit in Q1

Ayala-led chipmaker Integrated Micro-Electronics Inc. (IMI) reported a 128 percent jump in its first quarter net income this year to $853,900 on the back of higher revenues and reduced operating expenses.

In a disclosure to the Philippine Stock Exchange yesterday, IMI said consolidated sales revenues climbed 24 percent to $152 million, largely due to its expansion in Europe and Mexico.

Revenues from its operations in Europe and Mexico amounted to $40.9 million.

"With our company’s implementation of a global geographic expansion, we have realized a diversity in markets and operations. A healthy mix of customers and programs has cushioned the effects on our financial performance of the global electronics industry slowdown,” said Arthur Tan, president and chief executive officer of IMI.

IMI’s operations in China and Singapore registered combined revenues of $61.7 million, five percent lower than the year before, largely due to a reduction in turnkey sales to a customer in the telecommunication infrastructure market.

Philippine operations, on the other hand, generated $38.2 million in revenues, up four percent on strong programs in the consumer and automotive segments.

PSi Technologies, Inc., a subsidiary of IMI, raked in $10.9 million in revenues.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=804638

Stock News 2012: Jardine buys 50% of Rustan's Supercenters

Old Office of H.K. Dairy Farm in Pok Fu Lam, Hong Kong 中文: 香港牛奶公司於薄扶林的舊辦事處 (Photo credit: Wikipedia)
The Tantoco family, who successfully turned its modest buy-and-sell venture into a high-end retail store chain, has sold a 36-percent stake in Rustans Supercenters Inc. (RSI) to leading pan-Asian retailer Dairy Farm of the Hong Kong-based Jardine Matheson Group while the Spinnaker Group also sold its 14 percent to the Jardine Group.

RSI operates Rustan’s Supermarkets, which cater to the sophisticated, affluent segment of the consuming public; and Shopwise which targets the middle market.

The purchase will serve as a springboard for Dairy Farm’s strategic plan for long-term growth and further expansion in Asia. It would also mark the group’s entry in the Philippine market.

Dairy Farm offers high quality fresh foods and consumer and durable goods in its supermarkets, hypermarkets, health and beauty stores, and convenience stores under well-known brands such as Giant, Shop ’N Save, Foodworld, Mannings, Wellcome, Hero, Guardian, and Health Glow.

For its home furnishings, Dairy Farms operates under the IKEA brand in Hong Kong and Taiwan.

The Tantoco family’s partnership with Dairy Farm is expected to accelerate the expansion of Rustan’s Supercenters and heat up competition in the multi-billion peso industry, which is currently dominated by retailing giant SM Group.

Puregold Price Club Inc. ranked second in the supermarket/hypermart industry.

RSI earlier announced plans to step up its presence outside Metro Manila, by opening branches in Cebu and Cagayan De Oro this year. The group intends to be the most preferred one-stop shop destination for fulfilling the basic needs of the Filipino family.

The move is aimed at capitalizing on the rising middle-class and increasing value consciousness across various income levels.

RSI currently has 10 hypermarkets across the country.

Aside from the supermarkets and the department stores, the Tantocos also owns the Marks & Spencer and Starbucks franhises as well as other companies including Store Specialists Inc. which brought luxury brands Gucci, Salvatore Ferragamo, Tod’s, Prada, Louis Vuitton, Bottega Venetta and Marc jacobs to the Philippines.

Dairy Farm, on the other hand, has presence in Hong Kong, Taiwan, Vietnam, Singapore, Malaysia, Indonesia, Brunei, India, Macau, and mainland China.

It also has a 50% interest in Maxim’s, Hong Kong’s leading restaurant chain.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=804636

Pages

Wednesday, June 26, 2013

Related articles

Sunday, April 28, 2013

Related articles

Thursday, March 7, 2013

Related articles

Thursday, February 28, 2013

Related articles

Monday, February 11, 2013

Related articles

Wednesday, January 23, 2013

Related articles

Saturday, November 3, 2012

Related articles

Saturday, August 25, 2012

Related articles

Friday, August 3, 2012

Related articles

Monday, July 30, 2012

Related articles

Thursday, July 19, 2012

Related articles

Sunday, July 8, 2012

Related articles

Monday, June 25, 2012

Related articles

Monday, May 7, 2012

Related articles

Related articles