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Showing posts with label Southeast Asia. Show all posts
Showing posts with label Southeast Asia. Show all posts

Wednesday, January 23, 2013

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

Prime Minister Shinzō Abe of Japan, Saturday, ...
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

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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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Thursday, May 17, 2012

Stock News 2012: Jollibee profit up 8%

Jollibee!Jollibee! (Photo credit: swilkes)
Fastfood giant Jollibee Foods Corp. (JFC) posted a net income of P672 million in the first quarter this year, up 8.1 percent from the previous level on strong sales growth of all brands and network expansion.

In a disclosure to the Philippine Stock Exchange, JFC said system-wide sales, a measure of all sales to consumers, both company-owned and franchised stores, climbed 15 percent to P21.55 billion on the strength its local brands.

JFC said its restaurants continued to experience very healthy same-store sales growth from increases in volume resulting from more customers. This was attributed to new products, improving services, a slight reduction in prices, and the decreasing inflation rate.

JFC said its foreign business registered a 20.5 percent growth in system-wide sales, with China operations growing 26.9 percent, Southeast Asia and the Middle East 22.6 percent, and the US 6.9 percent.

Revenues amounted to P16.49 billion, 18 percent higher than the 2011 figure of P13.97 billion.

JFC chief financial officer Ysmael Y. Baysa said the strong Philippine operations were partially offset by lower China profit margins as labor and rent expenses outpaced sales growth.

The first quarter profit also reflected the financial results of SuperFoods, a joint venture based in Vietnam of which JFC owns 50 percent, with Highlands Coffee and Pho 24 Vietnamese noodles as primary businesses.

Using the equity method of accounting, the P23.1 million equity in net losses of SuperFoods sliced JFC’s consolidated net income by 3.7 percent.

The group opened 39 new stores in the first quarter, 26 of which are in the Philippines and 13 overseas.

This brings the group’s total restaurant network to 2,513 worldwide as of end-March 2012. Of the total, 2004 are located in the Philippines (Jollibee 752, Chowking 381, Greenwich 204, Red Ribbon 207, Mang Inasal 436 and Burger King 24).

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=807323

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Saturday, October 29, 2011

Stock News 2011: CEB passenger traffic up 30%

Cebu Pacific Airbus A???Image via Wikipedia
Cebu Pacific (CEB) has posted a 30 percent growth in passenger traffic between the Philippines and ASEAN destinations in the third quarter of 2011 compared to the same period last year.

From July to September 2011, CEB flew close to 286,000 passengers to and from ASEAN destinations with an average load factor of 81 percent.

“There are 10 member states in the Association of Southeast Asian Nations (ASEAN), and we look forward to expanding Cebu Pacific’s network further in this region. We believe our neighboring Southeast Asian countries can benefit greatly from direct access and additional connectivity to the Philippines, especially with our trademark low fares,” said CEB VP for Marketing and Distribution Candice Iyog.

The airline took delivery of one brand-new Airbus A320 last October 26, 2011, and will take another A320 in December 2011. This provides additional capacity for network, flight and route expansion.

“CEB’s combination of low fares, fun service, new planes and extensive network stimulates demand for tourism and trade, and grows the market. We want to continue doing this for the ASEAN region where we fly the most passengers to and from the Philippines,” she added.

http://mb.com.ph/articles/339354/ceb-passenger-traffic-30


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Tuesday, October 26, 2010

Stock News 2010: Cebu Air Jumps 6.8% on Listing Debut, Raises Total of $611 Million from IPO

Logo of 'Let's make Cebu Pacific better!'Image via Wikipedia
MANILA, Philippines – Budget airline Cebu Air Inc. jumped as much as 6.8 percent on its debut Tuesday, as the country's largest public offering rode on the back of a broader market that hit a fresh record high.

The airline, a unit of conglomerate JG Summit Holdings Corp and the second biggest Asian budget carrier by market value, raised $611 million in its IPO including a greenshoe option, making it a record amount in dollar terms for a Philippine listing.

Cebu Air's debut takes place amid a boom in IPOs in Asia as well as strong foreign demand for high-yielding emerging markets such as the Philippines.

Upbeat sentiment following presidential elections in May have helped lift the index about 40 percent this year and it is the second best performer in Southeast Asia after Indonesia.

This backdrop bodes well for upcoming listings in the Philippines, analysts said. Philippine miner Nickel Asia plans to raise $162 million in an IPO next month.

''Having launched successfully, the ones apprehensive on the sidelines are now emboldened to come in,'' said Alejandro Yu, president of R.S. Lim and Company, a local stock brokerage.

Cebu Air's shares opened at 132 pesos after a ceremony that included flight attendants dancing the flight safety routine to a Lady Gaga pop song on the stock exchange trading floor, peppered with tube balloons carrying the airline's yellow orange colours. The safety routine dance was a big hit on YouTube earlier this month.

The stock rose as high as 133.5 pesos, before closing at 133 pesos. The airline had sold about 215 million shares at its IPO at 125 pesos each, Cebu Air's parent said late on Monday.

At Tuesday's close, Cebu Pacific was valued at nearly 97 billion pesos or $2.2 billion, larger than rival Tiger Airways at about $723 million but smaller than Malaysia's AirAsia, valued at about $2.3 billion.

Cebu Air CEO and President Lance Gokongwei said he expects the company's international business to overtake its domestic operations in four to five years as it seeks to increase its international capacity by 25 percent yearly via new foreign routes and flight frequencies.


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Sunday, February 3, 2008

Stock News 2008: Ladylove gets her wish, meets man of her dreams

Xavier Hall in the Ateneo de Manila University.Image via WikipediaMANILA, Philippines -- If there was one person you would, figuratively speaking, give your life to meet, who would it be?
For 18-year-old Ladylove Torsiende of Cotabato City, it was not a popular heartthrob-movie star but 81-year-old business tycoon John L. Gokongwei.
Last week, the Inquirer made her dream come true.
“Ladylove, what an unusual name,” Gokongwei, one of the richest men in the country, said when she was introduced to him at his penthouse office in Ortigas Center last Jan. 31.
Ladylove, a bright girl who was forced to drop out of high school because of her family’s financial difficulties, was one of 22 Inquirer letter-writers chosen to have their wishes granted during the paper’s 22nd anniversary last December.
Clad in blue jeans and a printed blouse, Ladylove said she “just knew” that the meeting with her idol—which lasted about 30 minutes—would somehow change her life.
Her bet was good.
At the end of the chat, not only did Ladylove receive a gift check from the taipan, she also got a promise from him to pay for her tuition should she pass the entrance exams to her dream school, the Ateneo de Manila University (ADMU), which hosts the John Gokongwei School of Management.
“When you are able to accomplish the test required by Ateneo, then I will help,” Gokongwei said.
Ladylove was ecstatic. She said her dream to meet Gokongwei began when she read about his inspiring rags-to-riches story in the Sunday Inquirer Magazine.
When she learned about the Inquirer contest, Ladylove said she had thought about asking for a bunch of material things. But inexplicably, her instincts told her that she should write about the Chinese-Filipino businessman and wish to meet him.
She said her hunch was so strong that she had anticipated the call from the Inquirer on Jan. 22 telling her she had won. The Inquirer provided a round-trip plane ticket to Ladylove.
Gokongwei, on the other hand, said he was surprised that somebody picked him as a “wish.” His assistants said he laughed out loud and heartily when he heard about it.
34th richest in SEA
Gokongwei is chairman emeritus of JG Summit Holdings Inc., one of the largest conglomerates in the country with interests in retail, manufacturing, real estate, media, aviation and financial services, among others. According to Forbes magazine, he is the 34th wealthiest businessman in Southeast Asia, with assets valued at over $400 million.
Two years ago, Gokongwei made his name in the philanthropy world after he announced, on his 80th birthday, that he would donate half of his personal fortune, estimated at about P20 billion, to the Gokongwei Brothers Foundation, the company’s charity.
Source of inspiration
According to the soft-spoken Ladylove, Gokongwei’s journey from humble beginnings in Cebu province to the top echelon of Philippine business has become her source of inspiration.
She said she always assumed the famous Gokongwei, whose big Robinsons malls are spread all over the Philippines, came from a rich family.
“I was amazed to read his rags-to-riches story. I did not know that he faced many hardships,” Ladylove said, adding that the image of a young Gokongwei riding his bicycle to sell goods in the market struck a chord in her.
“I learned that success was within our reach if we just tried hard,” she added.
Dreaming big
The billionaire and the simple Cotabato lass initially appeared to have nothing in common. But like Gokongwei, Ladylove also lost a parent at a young age and she had to make sacrifices to help her family.
According to the girl, her mother, Florife, died two years ago, leaving her and five other siblings. Her father, Armando, is a retired policeman. The family lives on their father’s modest pension and the remittances of her sister in Dubai.
Four years ago, in her second year in high school, Ladylove’s parents asked her to quit school because they could not afford it anymore. Ladylove said she cried but did not rebel.
She was sad, though, because she was doing well in school. She graduated valedictorian of her elementary school and felt she had a great chance of duplicating the feat in high school. After she stopped going to school, she helped out in her parents’ small sari-sari store.
Gokongwei’s beginnings
Gokongwei’s own story is that when he was 13, his father died leaving him the family’s breadwinner and forcing him to stop school and find work. To make ends meet, Gokongwei said he sold goods at the market using an old bike.
Last year, Ladylove was finally able to return to school. She enrolled for a six-month computer vocational course at the Notre Dame University and is set to take the Department of Education’s high school equivalency test this month.
If she passes the exam, she will be eligible to enroll in a regular college, something that she is determined to do. She said she dreams of entering the corporate world and having her own company to run in the future. And yes, she dreams of enrolling in ADMU’s John Gokongwei School of Management.
When questioned by her idol—“Ateneo is a tough school to get in,” he said—Torsiende simply replied: “I dream big.”
This earned immediate approval from Gokongwei: “Oooh, that’s what I said. It’s good to dream.”
Leadership skills
Ladylove made her pitch: “I think I have great leadership skills.” Just last month, she said, she was one of several students chosen to represent her school at The Young Partners Meeting organized by the Consuelo Foundation in Laguna.
After the meeting, Ladylove confided that Gokongwei, with his booming voice and laughter, intimidated her. “But he was a nice man,” she added.
The taipan gave Ladylove a copy of his biography “John L. Gokongwei Jr.: The Path to Entrepreneurship.” Everything you need to become a success is in it, he told her.
“It’s a lonely road. You just have to do it,” he added.
Then at the end of their chat, he gave his young fan his calling card, saying that if she needs something, she knows where to reach him.
Kristine L. Alave
February 03, 2008
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