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Thursday, May 16, 2013

Stock News 2013: SM inaugurates SM Aura at Global City

English: SM Supermalls logo
English: SM Supermalls logo (Photo credit: Wikipedia)

Tycoon Henry’s Sy’s SM Prime Holdings has debuted in Bonifacio Global City with the launch of SM Aura, a state-of-the-art civic center with office and retail space that was built as a partnership with the City of Taguig.

SM Aura, which has a gross floor area of 234,892 square meters, is an integrated development that incorporates office towers, a chapel, a convention center, and a mini-coliseum, supported by a retail podium with an upscale look and feel.

“We are glad to be given this opportunity to work with the city of Taguig in building a state-of-the-art civic center which will redefine the city’s landscape. We support Taguig’s bid to be a world-class city as SM Aura is an innovative concept with its fashion, dining, entertainment, business and lifestyle selections and ground-breaking architecture and first-rate design that will appeal to other cities that want to showcase their best for the world to see,” SM Prime president Hans Sy said in a press statement on Thursday, during the blessing of the new structure.

With this new complex, the SM group said it aimed to transform Taguig’s town center into a “landmark and prestigious address, showcasing the best in building design and environmental sustainability, with superior engineering, cutting-edge technology and modern facilities for conventions, exhibits and other community events.”

SM Aura also aims to be one of the first civic centers in the country to be certified Gold under the US Green Building Council Leadership in Energy and Environmental Design (LEED) program, an internationally recognized green building program established in 135 countries.

Designed by the Miami-based architectural firm Arquitectonica, the design of this building forms three curvilinear ribbons evocative of a tree extending its roots. Each ribbon is subdivided to form large staggered windows at the northern end. At the southern end, the three ribbons turn vertically to form the office towers, with each ribbon being slightly angled and finishing at different levels.

A dome-shaped, state-of-the-art, 1,000-seat event hall to be named “Samsung Hall” will serve as a  venue for concerts, stage performances, plays, and product launches. A modern arched structure forms the roof of The Chapel of San Pedro Calungsod, which can seat 250 people.

For anchor tenants, the civic center has SM Department Store and SM Supermarket, as well as the Trade Hall, Foodcourt, two regular Cinemas, two Director’s Clubs and an IMAX Theater. It will also house a convention center that has three main function rooms and eight meeting rooms.

NBA Café is also making its first entry into the Philippines in this structure. SM Aura will also have Trattoria Chef Chris of the famed My Kitchen By Chef Chris at Paco Park, as well as well-known restaurant brands like Lugang Café and Yabu.

In cooperation with Manila Hotel, SM Aura also plans to bring in the Champagne Room at the terrace of SM Aura’s Sky Park, a favorite venue for elegant gatherings and celebrations.

Aside from the NBA Café, Boulangerie Paul, and Todd English Food Hall will be making their debut at SM Aura. To enhance the shopping experience, SM Aura will also provide a host of global brands opening in the Philippines for the first time such as Suiteblanco, Stefanel, Minelli, TM Lewin, J. Lindberg, B.B. Dakota and River Island for fashion.

“SM Prime, through SM Aura, has a remarkable opportunity to lead the shift to sustainability in buildings. SM Aura has set a higher standard with high performance technologies that use less energy, consume less water, and leave a smaller footprint on the city’s resources,” Sy said.



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Stock News 2013: Metro Pacific joins MSCI Philippines index, replaces San Miguel

Deutsch: Logo Altes Pepsi Cola-Logo
Deutsch: Logo Altes Pepsi Cola-Logo (Photo credit: Wikipedia)

Infrastructure holding firm Metro Pacific Investments has joined the closely tracked MSCI Philippines index, replacing conglomerate San Miguel Corp. effective May 31 this year.

MSCI also realigned the MSCI Global Small Cap Indices, with five new companies joining the index, all of which are not part of the main-share Philippine Stock Exchange index: D&L Industries, EEI Corp., Pepsi-Cola Products Philippines Corp., RFM Corp. and San Miguel Purefoods.

Deleted from the small cap index were GT Capital Holdings, Megaworld Corp., Puregold Price Club, Robinsons Land Corp. and Security Bank Corp.

Any adjustment in a country’s weight could be attributed to the dynamics of prices, number of shares, movement in prices and free float factor of component companies. A cap of foreign ownership also has an impact of reducing maximum amount of shares that investors can buy.

As such, whenever the level of foreign ownership gets too close to the threshhold such that it’s impossible to buy new shares, MCSI mitigates the effect by cutting the weight of that company in the index.


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Friday, May 3, 2013

Stock News 2013: Philweb says corner-store gaming format to thrive alongside integrated casinos

Casino logo
Casino logo (Photo credit: Wikipedia)

Philweb Corp on Tuesday said it plans to expand its online gaming business to at least six countries across the Asia Pacific this year, even as it shrugged off competition coming from new integrated casinos.

"Asia in general is booming. We are looking at Thailand, Myanmar, Palau, Nepal, Sri Lanka and Mongolia as new areas of opportunity," Dennis Valdes, Philweb president told reporters on the sidelines of the company's stockholders' meeting.

Valdes expects majority of Philweb's future revenues to come from operations abroad. At present, the company's Asia Pacific business contributes nine percent.

Philweb recorded consolidated revenues of P1.5 billion in 2012, up 27 percent year-on-year.  Its net income rose 20 percent to P1.1 billion last year.

Philweb operates scratch card businesses in Cambodia, Timor Leste and Indonesia, as well as a sweepstakes business in Guam.

For its domestic operations, Valdes is bullish about the company's outlook despite the opening of new casinos in Metro Manila.

"We found that the gamers are very different. You see in our track records or revenue that there has been no effect on e-games. The reason for that is the Resorts World Manila and Solaire are in a very small section of the entire country, which is the city of Manila and Paranaque, while e-games is in every island," he said.

Resorts World Manila is a stand-alone casino across from the Ninoy Aquino International Airport Terminal 3, while Solaire is one of four integrated casino complexes rising on reclaimed land along Manila Bay in what is known as Philippine Amusement and Gaming Corp's (Pagcor) Entertainment City.

"We are the 7-11 of gaming. It's your corner convenience store," Valdes said, referring to the convenience store chain.

http://www.interaksyon.com/business/58486/philweb-says-corner-store-gaming-format-to-thrive-alongside-integrated-casinos

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Thursday, May 2, 2013

Stock News 2013: Ayala Land to take over Boulevard’s landbank

English: Map of Batangas showing the location ...
English: Map of Batangas showing the location of Nasugbu (Photo credit: Wikipedia)

Property giant Ayala Land Inc. is expanding its beachfront landbank for leisure estate development south of Metro Manila through a property deal with Boulevard Holdings Inc., owner of the Puerto Azul complex in Cavite.

In a disclosure to the Philippine Stock Exchange on Friday, ALI said it had agreed to acquire certain landholding assets of BHI, subject to due diligence.

In a separate disclosure, BHI said the company’s board had authorized the company’s chair and chief executive officer Jose Marcel Panlilio to sign the terms of reference with respect to an arrangement to “sell to a prospective buyer/investor, an operating unit and/or assets of BHI, wholly or in part.”

A final agreement with the new investor is targeted for signing on or before May 10. Panlilio was authorized to execute other separate agreements relating to “other areas of cooperation” as soon as definitive agreements are reached, the BHI disclosure said.

Later in the day, ALI disclosed that it was the “investor” referred to by BHI but no other details were available.

Asked how many hectares of property were involved, ALI executive vice president Bobby Dy said: “We have to go through due diligence to finalize areas.”

BHI has long been scouting for a new investor to unlock values out of its vast seaside landbank. Biz Buzz reported last Monday that ALI was in discussions involving BHI’s landbank such as the 3,000-hectare Puerto Azul complex in Ternate, Cavite.

This deal with BHI is widely believed to be a strategic move for ALI,  especially since rival SM group has already established its own beachfront leisure empire in the south with the 5,000-ha Hamilo Coast in neighboring Nasugbu, Batangas.


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Wednesday, May 1, 2013

Stock News 2013: Union Bank profit jumps by 41%

English: A logo for the Union Bank of the Phil...
English: A logo for the Union Bank of the Philippines (Photo credit: Wikipedia)
Aboitiz-led Union Bank of the Philippines grew its first-quarter net profit by 40.8 percent year on year to P4 billion, the best quarterly bottom line in its history, mainly due to the double-digit expansion in trading gains and interest earnings.

The first-quarter performance translated to a return on equity of 29 percent. The bank also managed to hit early in the year nearly half of its P8.5-billion net profit goal for the full year, which means the bank would have to readjust targets, Union Bank president Victor Valdepeñas said in an interview.

“We thought we’ll grow by 15 percent this year but it now seems to be a conservative target given our first-quarter performance. As the market continues to be quite positive in terms of flow of funds, I will not be surprised if we’ll see our income growing by 20 percent,” he said. However, the bank would have to wait for the second -quarter results before overhauling its targets for 2013, he added.

Valdepeñas said the bank’s three-month results, which topped what was already a strong performance in the same period last year, could be attributed to stable margins, lower cost of funds, improved productivity and strong contribution from subsidiaries. The first-quarter results already included the contribution of newly acquired thrift bank City Savings.

Based on the bank’s regulatory filing, net interest income went up by 15.8 percent to P2.05 billion from year-ago level.

Valdepeñas estimated that margins had stabilized at more than 3.4 percent.

“While the yields have been under pressure, our cost of funding has gone down much slower,” Valdepeñas said.

The bank’s loan book declined to P98.13 billion from P115.17 billion a year ago. He said this was because certain loan accounts, particularly auto loans, had matured faster than the bank’s new bookings of this type of loans. He said the bank was rationalizing its auto lending business while the credit card segment remained flat as Union Bank had become very “selective.”

“When demand from household continues to increase, we have to be wary,” he said. “Nonetheless, we’re still pushing that because I think consumer financing will grow faster than corporate loans. Corporations can now go directly to the public and raise equity given very good prices and the very good environment.”

For the full year, Union Bank aims to grow its loan book by 15 to 20 percent, Valdepeñas said.

http://business.inquirer.net/119189/union-bank-profit-jumps-by-41

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Tuesday, April 30, 2013

Stock News 2013: Del Monte eyes dual listing in Philippines, Singapore markets

Del Monte Fresh Produce Pineapple
Del Monte Fresh Produce Pineapple (Photo credit: Del Monte Fresh Produce)

Del Monte Pacific Ltd., controlled by condiments king Joselito D. Campos Jr., is planning a dual listing in the Singapore and Philippine stock markets.

This will make Del Monte the first local firm to be listed in both the Singapore Stock Exchange (SGX-ST) and Philippine Stock Exchange (PSE).

In a disclosure to SGX-ST, Del Monte said it submitted to the PSE and Securities and Exchange Commission an application for a listing by way of introduction.

“The proposed dual listing will provide the company with a platform to widen its investor base,” Del Monte said.

“In particular, it will enhance the company’s attractiveness to investors in the Philippines and to foreign investors interested in the Philippine stock market,” it added.

Listing by introduction allows a firm to join the PSE without having to sell shares to the public immediately.

Del Monte said being listed on both the SGX-ST and PSE will “enhance the profile and market visibility” that will result in greater liquidity.

Being a public company attracts coverage from brokerage firms, which provide valuations and recommendations to the investing public.

“The proposed dual listing will also allow the company to establish financing platforms in two different equity markets simultaneously,” Del Monte said, adding that extra channels and ready access to a wide pool of capital will fund future business growth.

Given its plan to list by way of introduction, Del Monte said it will not immediately issue new shares but there might be an offer of vendor shares depending on the market’s condition.

Vendor shares are stocks issued by a company in payment or in part payment for assets acquired from the vendor.

Aside from Del Monte, PSE-listed tuna and salmon processor Alliance Select Foods International Inc. is planning to conduct a dual listing in the Singapore and Philippine bourses.

Del Monte produces, markets and distributes food, beverages, and related products in the Asia-Pacific region and the Indian subcontinent, and has supply deals with Del Monte trademark owners and licensees around the world.

The NutriAsia Group of Campos owns a majority stake in Del Monte. NutriAsia leads the Philippine market for condiments, specialty sauces and cooking oil.

In 2012, sales of Del Monte climbed eight percent to a record $459.7 million while net profit jumped to $32.1 million.


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Monday, April 29, 2013

Stock News 2013: Pepsi Cola profit jumps 20% to P270M in Q1

Deutsch: Logo Altes Pepsi Cola-Logo
Deutsch: Logo Altes Pepsi Cola-Logo (Photo credit: Wikipedia)

Listed beverage maker Pepsi-Cola Products Philippines Inc. posted a hefty improvement in its first quarter performance due to strong sales.

In its financial report, Pepsi-Cola said its net income jumped 20 percent to P270 million in the first three months of the year. Gross revenues hit P6 billion, up 14 percent from a year ago.

“This significant achievement was driven by increasing distribution coverage with the intent of reaching more consumers from various consumer segments,” said Pepsi-Cola president Partho Chakrabarti.

“We also focused on product expansion and aggressive marketing programs, with equally supported investments in containers, coolers, vehicles and manufacturing,” he added.

The 18-percent growth in sales volume offset the 13-percent increase in cost of sales, which consists primarily of raw and packaging materials, direct labor and manufacturing overhead.

This allowed Pepsi-Cola to post a 14-percent gain in gross profit to P1.4 billion.

Operating expenses, which is composed of selling and distribution, general and administrative, and marketing expenses, jumped 12 percent in the first quarter.

Jika Dalupan, Pepsi-Cola’s vice-president for corporate affairs, said the top line growth helped fund strategic investments personnel, marketing campaigns, and sales and distribution infrastructure.

Pepsi- Cola is the exclusive bottler of PepsiCo beverages in the Philippines which include Pepsi-Cola, Mountain Dew, Seven Up, Mirinda, Gatorade, Tropicana, Mug, Lipton, Sting, and Premier.

Pepsi-Cola has joined the fray in the powdered drinks category through Mirinda Powder Fun Mix as it aims to strengthen its non-carbonated business.

In September, it launched Tropicana Coco Quench, which is 100 percent made from real coconut water. It will be available initially in the Philippines and later on to the rest of Asia as it seeks to expand its non-carbonated beverage segment.

Pepsi-Cola is partly owned by Lotte Chilsung, one of the biggest beverage companies in South Korea. The listed company has established manufacturing facilities across the country, serving at least 440,000 outlets and providing employment through its extensive distribution network.


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