Stock News 2013: Tan-Sia property firm ventures into Metro Manila

De La Salle University (Photo credit: Wikipedia)

DoubleDragon Properties Corp., a property venture of fast food magnates Tony Tan Caktiong and Edgar “Injap” Sia II, is breaking into Metro Manila’s competitive property market by bringing P1.52 billion worth of residential inventory in a skyscraper rising beside the De La Salle University in Taft Avenue.

W.H. Taft Residences, DoubleDragon’s first offering in Metro Manila, is a 30-story residential condominium that will have 562 “education-inspired” units, said Sia, who is the company chairman and CEO.

It will rise on a 1,200-square-meter lot right beside the main gate of DLSU and will have a back access to the campus.

This also boosts DoubleDragon’s visibility in the metropolis especially as the company plans to debut on the Philippine Stock Exchange soon. The initial public offering may happen by the third quarter of this year, Sia said.

Being a relatively new player in the property market especially in Metro Manila, Sia said DoubleDragon was picky on its projects and it preferred those that required shorter completion period. The company has committed to turn over to buyers residential units in W.H. Taft Residences by the fourth quarter of 2014.

“Other major property developers are also constructing in the area but the location of WH Taft Residences is far more superior, plus the completion date of WH Taft Residences is already next year, compared to the big players. The others are still in the substructure phase and turnover will be two to three years later,” Sia said in an e-mail.

Sia said 64 percent of this project was already taken up as of end-February. “We just relaunched it. We target to sell the remaining 36 percent, or 198 units, before the project is completed,” he said.

The residential units have floor areas ranging from 15.5 to 35 square meters. They sell for P98,000 and P100,000 per sqm.

The ground and second floors of the building will have commercial retail areas for lease.

DoubleDragon’s earlier projects and landholdings were in Iloilo and Roxas.

“DoubleDragon Properties will continue looking at acquiring existing projects or property companies that will accelerate its growth. It aims to create prime retail sites not just for the Jollibee Group brands (Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King) but also for other major anchor tenants,” Sia said.

http://business.inquirer.net/111565/tan-sia-property-firm-ventures-into-metro-manila-market

Related articles

• No evidence of new faultline across QC, Marikina Valley - Phivolcs (newsinfo.inquirer.net)
• Pagasa sees warm days ahead (newsinfo.inquirer.net)
• Yellow warning lifted in metro, parts of Luzon - Pagasa (newsinfo.inquirer.net)
• Sia Hawa : Sierra Leone (kiva.org)
• Higher sales lift Jollibee 2012 profit by 15% (rappler.com)
• Jaymon and Tin {First Installment} | Metro Manila Engagement Session (yapphotographyblog.com)
• Jaymon and Tin {Second Installment} | Metro Manila Engagement Session (yapphotographyblog.com)

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

Related articles

• Jollibee forays into hotpot dining business in China (business.inquirer.net)
• China's Auto Joint Ventures Failing to Build Local Brands (bloomberg.com)
• Taiwan's future moms defy time by freezing eggs (wantchinatimes.com)
• Jollibee's 1st-semester net profit in rises by 21% to P1.59B (business.inquirer.net)
• Technology › Teijin to establish polyester chemical recycling joint venture in China (japantoday.com)
• James Cameron launches 3D joint venture in China (spacemart.com)
• Further growth for Savills in China with new Taiwan Office (savills.co.uk)
• China, Taiwan linked by first subsea cable (zdnet.com)
• Fiat Enters Chinese Market (autofinancenews.org)

Stock News 2012: Jollibee profit up 8%

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

Related articles

• Jollibee net profit grew 8.1% to P672M in Q1 (business.inquirer.net)
• The Philippine Market Cup (thesilenceofthepitch.wordpress.com)
• Philippine stocks pull back below 5,000 in correction (business.inquirer.net)
• JFC Staffing Companies Makes Inavero's 2012 Best of Staffing™ Client List (prweb.com)
• Meralco to cut rates this month (business.inquirer.net)
• Meralco Q1 core net income up 5% (business.inquirer.net)
• Meralco bill to go down in May as generation charge dips (newsinfo.inquirer.net)

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

Stock News 2011: Jollibee Expects 50-50 Revenue Mix

Image via Wikipedia
ollibee Foods Corp. (JFC) expects a 50-50 ratio in revenues from its foreign and domestic multi-brand food chain business in the next three years.

Tony Tan Caktiong, Chairman and CEO of JFC, told reporters at the sidelines of the Franchise Asia 2011 where he was a speaker that while its international multi-brand food businesses is growing faster than its local business, the ratio is expected to be equally 50-50 ratio in three years time.

In terms of revenues, the foreign business now contributes 20 percent of its total business but is growing faster.

Tan Caktiong said that its China business is growing faster despite difficulties around the world like soaring food prices.

The company has acquired three food restaurants brands in China including a congee and noodle outlet. These franchises are growing fast as franchise concepts in China.

The company is also planning to bring these brands outside of China through franchise concepts.

It has also acquired a Vietnamese restaurant Viet Thai International, which is also being eyed for international franchising.

Locally, Jollibee has a total of 795 stores under franchise arrangements and accounting for 52 percent of its total Jollibee stores in the country.

40 percent of Greenwich stores are also under franchise while 65 percent of Chowking stores are under franchise.

Mang Inasal is now 65 percent under franchising arrangements.

http://mb.com.ph/articles/335315/jollibee-expects-5050-revenue-mix

Related articles

• Inspiring Success Stories of Ten Filipino Entrepreneurs (brighthub.com)

Stock News 2011: Jollibee chalks up P3.1-B net profit in 2010, up 16%, as sales top P70 B

Image via Wikipedia
Jollibee Foods Corporation posted a 16.3 percent improvement in net income last year to P3.1 billion from P2.67 billion in 2009, boosted by higher profit margins and strong fourth quarter sales.

In a disclosure to the Philippine Stock Exchange, JFC said systemwide sales grew 10.2 percent to P70.25 billion from P63.73 billion in the previous year. Systemwide sales meausure all sales by both company-owned and franchised stores.

On the other hand, fourth quarter profits jumped 17.4 percent to P954 million while system-wide sales expanded 11.6 percent to P19.46 billion.

“Practically all our brands in all countries where we operate achieved growth in the fourth quarter of 2010 versus 2009 led by our businesses Yonghe King and Hong Zhuang Yuan in China (up 30 percent), and Jollibee International (up 25 percent),” said JFC chairman Tony Tan Caktiong.

Tan added that “the acquisition of Mang Inasal contributed five percentage points of worldwide sales growth. Its worldwide store network stood at 2,316 stores as of the end of 2010, 23 percent more than 2009 primarily due to the addition of 345 Mang Inasal stores.

“We are able to preserve and even slightly improve our profit margins despite the fast rising cost of labor, power and raw material,” he noted.

http://www.mb.com.ph/node/305627/jollibee-chalk

Stock News 2010: Jollibee buying 70% of Mang Inasal

Image via Wikipedia

FASTFOOD GIANT Jollibee Foods Corp. is buying 70% of the Mang Inasal chain of chicken restaurants for P3 billion.

In a disclosure, Jollibee Foods said it would pay P200 million in downpayment to the owner of Mang Inasal Philippines, Inc., Injap Investments, Inc. led by Edgar Sia III.

The homegrown fastfood chain said Mang Inasal would add the equivalent of 5% of Jollibee Foods' worldwide system sales and 7% of profits. The acquisition will also increase Jollibee Food's worldwide network of stores by 16%.

http://www.bworldonline.com/main/content.php?id=19654

Related articles

• 'Mang Inasal' CEO confirms P3B sale to Jollibee (business.inquirer.net)