Stock News 2012: DMCI eyes 20% sales growth

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Stock News 2012: PhilWeb posts record profit in 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Stock News 2012: Universal Robina goes into ethanol

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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