Investing Stocks in Philippines

Stock News 2013: China's Life Insurance Companies

2013-06-26T01:54:00.000-07:00

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

Stock News 2013: Maynilad water rates to go down by P4.79 per cubic meter

2013-06-25T01:39:00.000-07:00

Population densities of Rizal localities, 1,000 people/km2 or more in red (Photo credit: Wikipedia)

Customers of the Maynilad Water Services Inc. will now enjoy a 10-percent drop in the average rate per cubic meter instead of the previously announced hike resulting from fluctuations in the foreign exchange rate.

The concessionaire for water services in Greater Manila Area’s west zone said on Thursday the average rate would decrease by P4.79 per cubic meter, thanks to a P978-million gain in a financing transaction that was closed last March.

Back then, when the peso traded at an average of P40.71 to a US dollar, Maynilad refinanced over $120 million in loans. It took the firm some three months to figure out the exercise’s impact on rates.

The new forex-influenced rate adjustment, which will take effect on July 6 and will be good until yearend, already takes into account the 17-centavo hike announced earlier this week.

This reduction will be reflected in the bills for August until January 2014.

Last Monday, Maynilad announced that its average rates would slightly increase in the third quarter due to the weakening of the peso against other currencies.

But now, average and all-in rates including value-added tax and other charges will go down to P41.77 per cubic meter from P46.56.

Lifeline customers who consume 10 cubic meters or less every month will pay P11.01 less in their August bill. The average household, which use up to 30 cubic meters, will enjoy a reduction of P85.32 in their total bill.

Under the concession agreement with the government, Maynilad must pass on to customers the gains or losses arising from the payment of foreign currency-denominated loans from banks and concession fees.

http://business.inquirer.net/128157/maynilad-says-water-rates-will-come-down-in-july

Stock News 2013: First Pacific keen on Angat plant

2013-06-24T01:35:00.001-07:00

Photo of Manny (Photo credit: Wikipedia)

Hong Kong-based First Pacific Co. Ltd., headed by businessman Manuel V. Pangilinan, confirmed that it was in talks with Korea Water Resources Corp. on a potential partnership involving the 246-megawatt (MW) Angat hydropower plant in Bulacan.

Pangilinan, who serves as managing director of First Pacific, said his group had spoken with officials of Korea Water.

“We visited Daejeon in Korea,” Pangilinan said on Friday, referring to the South Korean company’s headquarters. “They have not made a decision on which group to partner with.”

First Pacific is an investment holding firm controlled by Indonesia’s Salim family and whose investments are mainly located in the Philippines. Through local units, it has a controlling stake in Maynilad Water Services Inc., which supplies water to the west zone of Metro Manila and nearby provinces, and a 48-percent stake in Manila Electric Co., the country’s biggest electricity retailer.

First Pacific was among the interested groups when the Angat hydroelectric plant was auctioned in 2010.

At the time, it had partnered with rival Ayala Corp., which owns the Philippine capital’s east zone concessionaire Manila Water Corp., as well as the Lopez group in a joint bid against other players like San Miguel Corp., Consunji-led DMCI and the Aboitiz Group.

The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) eventually announced that Korea Water submitted the highest bid of $440.8 million.

In May 2010, however, the Supreme Court issued a “status quo ante order” effectively blocking the planned privatization of Angat Dam’s hydroelectric power plant.

The high court only last year rendered as valid and legal the sale of the Angat power plant to Korea Water. But the plant has yet to be turned over as the government and Korea Water finalize certain details under a so-called water protocol.

http://business.inquirer.net/127479/first-pacific-keen-on-angat-plant

Stock News 2013: Asia Brewery goes into yoghurt and soy milk

2013-06-23T01:32:00.000-07:00

English: an Malaysia Product Soy Milk ... Enriched with high calcium . showing an Soy Milk Envelope and a glass of that. (Photo credit: Wikipedia)

The LT Group, the investment holding firm of tycoon Lucio Tan, said it is looking to expand its food and beverage network into soy milk and pasteurized yoghurt.

LT Group head Michael Tan said at the company’s annual stockholders meeting on Wednesday, June 19, that they are looking to increase their market share by introducing new lines of soy milk and pasteurized yoghurt.

In December 2012, Asia Brewery Inc (ABI), a subsidiary of the LT Group announced its partnership with one of Spain’s biggest dairy company, Gulpo leche Pascual, to import pasteurized yoghurt and soy milk to meet the rising demand of dairy and soy products.

Grupo Leche Pascual president Tomas Pascual said at the launch that 2.6 million kilograms or 1 million cases of Creamy Delight Pasteurized Yogurt will be imported from its factory in Spain throughout 2013.

The next step, according to Tan, is to establish a manufacturing facility in the Philippines which will manufacture enough product to be exported.

“We’re importing it right now so once it gets to critical volume we will begin to manufacture. Gulpo Leche Pascual, has identified the Philippines as the manufacturing base they would like to have in South East Asia,” said Tan.

This comes as part of ABI’s new strategy to increase domestic market share, tap into new overseas markets and launch new products.

http://www.rappler.com/business

Stock News 2013: P20B resort rising in Subic

2013-06-22T01:30:00.000-07:00

A beach picnic resort at Subic Bay, Philippines (Photo credit: Wikipedia)

A Korean-owned resort is raising a P20-billion tourism complex that would include a hotel and convention center here, the top official of the Subic Bay Metropolitan Authority (SBMA) said.

Roberto Garcia, SBMA chairman and administrator, said the first phase of the project, which will be undertaken by Resom Resort Philippines, involves the development of a prime waterfront property, which used to serve as a mini-golf area spanning 2 hectares. The area has a 6,000-square-meter buildup site.

Garcia, on June 13, signed a lease development contract with Sang So Shin, chair of Resom Resort Philippines.

The project will rise on the same property offered for the $120-million Ocean 9 Casino and Hotel Resort project in 2008, from which architect and urban planner Felino Palafox Jr. withdrew after he discovered that the project could displace 300 trees. Ocean 9 later pulled out of the project.

Sought for comment about the fate of the trees in the project site, Garcia said: “Resom told us that they will not cut any trees. They will use only the buildup area.”

Garcia said Resom has committed to invest P1.2 billion for the construction of a 300-room luxury hotel furnished with convention facilities, a pool, spa, restaurants and other support facilities.

The second phase of the project would cover the development of the Resom City tourism complex involving several properties in the Naval Magazine area spanning 300 ha, he said.

“This will include the construction of a world-class resort complex that will have hotels, condominiums, a theme park, villas, casino and gaming operations, a water park and spa, health and wellness center, duty-free shopping and a championship golf course. This phase involves an investment commitment of around P19 billion and is expected to take around four years to complete,” Garcia said in a statement.

Shin said the Subic Resom City project would be the company’s centerpiece development.

Resom owns and operates four world-class resorts: Ocean Castle, Resom Waterpark and Spa, and Forest Villa, all in South Korea, and a championship golf course and resort in Weihai, China.

Shin said Resom develops its resorts by keeping and preserving the environment as a main priority.

http://business.inquirer.net/127495/p20b-resort-rising-in-subic

Stock News 2013: Stocks dive as Fed signals end to easy money

2013-06-21T01:45:00.003-07:00

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Local financial markets on Thursday were shaken after the US Federal Reserve signaled that the regime of easy money—which has inflated asset valuations in emerging markets—would end by next year.

But Philippine economic managers called for calm, saying that a more solid recovery of the US economy would benefit the Philippines in the long run.

The main-share Philippine Stock Exchange index on Thursday shed 186.53 points, or 2.86 percent, to close at 6,326.67, tracking the slump across global markets.

The peso, along with other Asian currencies, also weakened following the announcement of the US Fed Open Market Committee (FOMC). The local currency hit an intraday low of 43.76 against the dollar before it closed at 43.80—its weakest level since January of last year.

BDO chief market strategist Jonathan Ravelas said local investors were adjusting to the peso’s weakness.

“Most forecasts were below 40:$1. Very few believed [the peso] would depreciate,” Ravelas said.

BDO projected the peso to end the year at 42.10 against the dollar.

In a research note, investment bank BofA Merrill Lynch described 2013 to be the “high watermark” of the liquidity era.

“The FOMC statement was more hawkish than expected. Bernanke anticipates tapering to begin late this year and QE (quantitative easing) to end by the middle of next year. Our economists see the Fed’s forecasts as optimistic and low inflation as a growing concern. So, while the likelihood of fourth quarter tapering appears to have increased, they still believe early 2014 tapering is the more likely outcome,” Merrill Lynch said.

Financial markets have begun pricing the possibility of the US Fed unwinding its aggressive bond-buyback program, or QE, weeks ago, dragging down the local stock index by as much as 17 percent from the recent peak of around 7,400.

But many analysts say that, eventually, markets will again focus on the country’s fundamentals which, in turn, will boost Philippine assets.

“The situation could be a result of quick reaction to the recent announcement of the Fed’s view and policy intention,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said in a text message to reporters. “The market seems to be still digesting the full meaning and impact of the Fed view.”

Guinigundo said a stronger US economy should lead to an increase in foreign direct investments (OFW) and remittances to the Philippines. It should also aid in the recovery of the Philippine exports sector. The US is one of the Philippines’ largest trading partners.

http://business.inquirer.net/128263/stocks-dive-as-fed-signals-end-to-easy-money

Stock News 2013: Stocks dive as Fed signals end to easy money

2013-06-21T01:45:00.001-07:00

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Stock News 2013: Stocks dive as Fed signals end to easy money

2013-06-21T01:44:00.001-07:00

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Stock News 2013: Stocks dive as Fed signals end to easy money

2013-06-21T01:43:00.001-07:00

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Stock News 2013: MRT, LRT fares may go up in August

2013-06-21T01:28:00.000-07:00

Manila MRT Ayala Station in Makati City (Photo credit: Wikipedia)

A long-overdue fare increase at Metro Manila’s three elevated rail systems could take effect as early as August as the government seeks to recover part of its operating costs from the heavily subsidized train lines, according to Secretary Joseph Abaya of the Department of Transportation and Communications (DoTC).

But Abaya said in a round-table discussion with INQUIRER editors and reporters on Wednesday that the planned P10 average increase for the Light Rail Transit (LRT) Lines 1 and 2 and the Metro Rail Transit (MRT) Line 3 would be done in two equal stages through 2014.

This means fares, which were last adjusted in the early 2000s, will increase by P5 in 2013 while the second P5 increase will kick in next year.

“This increase has been long delayed so we are about to execute it. The matrix for LRT 1 requires us to catch up,” Abaya said.

“It was discussed a year ago in the budget hearing and it was taken as a set, all three railway lines,” he added.

“It should happen planning-wise in August or within the year.”

The announcement of the fare increases comes amid severe criticism of the LRT-MRT operations—coaches with passengers woefully packed like sardines most times of the day and long queues to the stations during rush hours.

For example, MRT 3 was designed to serve 350,000 passengers per day, but some 600,000 people cram the system daily.

A 1.3-kilometer stretch of the line on north Edsa—from Muñoz to Trinoma—has yet to be connected, three years into the Aquino administration.

Former Transportation Secretary Mar Roxas proposed a fare increase earlier in 2011, but it was met with opposition from critics who pointed out that managing public transport was a government function.

Critics say that no mass transportation system anywhere in the world makes money, quite apart from Hong Kong. But in this Chinese enclave, revenues come mainly from shop rentals in the mass transit railway stations, they add.

Reports showed earlier that the entire P10 average fare hike will happen this year but the DOTC secretary said the agency decided to “break it up” into two parts over two years.

Even with the fare increase, the LRT lines and MRT 3 come out “cheaper” than rates charged by bus operators, which are pegged at P40 per passenger, Abaya said.

The government is calculating that ridership at the train lines, which serve over 1.3 million passengers daily, will not be substantially affected by the rate increase.

The current fare at MRT, which runs through Edsa, Metro Manila’s main highway, is pegged at a maximum of P15 per passenger. For LRT 1, passengers are charged up to P20 each for a single journey; for LRT 2, the rate is pegged at P15.

http://business.inquirer.net/128269/mrt-lrt-fares-may-go-up-in-august-abaya

Stock News 2013: UCPB income up 18% in 1st quarter

2013-06-04T23:42:00.000-07:00

English: The new logo of United Coconut Planters Bank (Photo credit: Wikipedia)

United Coconut Planters Bank (UCPB) posted an 18 percent increase in net income in the first quarter to P1.04 billion from P883.7 million in the same period last year.

In a statement, UCPB president and chief executive officer Jeronimo Kilayko said the growth in income was mainly driven by a 51 percent improvement in non-interest income.

Kilayko also noted a 70 percent increase in trading and securities gain from treasury activities to P 829.1 million.

Likewise, income from trust operations increased 42 percent to reach P 32.4 million.

Total loans increased 16 percent to P91.1 billion from the same period a year before, with consumer loans growing at a stronger pace of 30 percent as a result of the bank’s more aggressive stance towards marketing its consumer loan products.

“We have placed a great deal of focus on the needs of our customers and meticulously worked to provide them with a range of investment products tailored to their requirements,” Kilayko said.

“We believe that our close relationship with our customers allow us to customize and respond to their needs accordingly.”

The bank’s revenue growth continues to outpace the slight increase in operating expense of P1.32 billion, a minimal increase of 4.6 percent over the first quarter of 2012.

The combined performance of revenue and operating expense components enabled a robust increase in net income.

http://www.philstar.com/business/2013/05/29/947413/ucpb-income-18-q1

Stock News 2013: Vista Land hikes capex to P20 billion

2013-06-03T23:37:00.000-07:00

English: Manny Villar was seen on Tinalak/T'nalak Fiesta Street Parade and Street Dancing taken on South Cotabato SMRAA, Koronadal City during T'nalak Festival on July 18,2009. (Photo credit: Wikipedia)

The real estate unit of the Villar family is jacking up its capital spending to as much as P20 billion this year to take advantage of the robust demand.

Vista Land & Lifescapes Inc. will roll out more residential projects in the provinces in the next two to three months, its top official said.

“We are prepared to spend more than P18.5 billion....We might spend up to P20 billion,” Vista Land chairman and founder Sen. Manuel B. Villar said on the sidelines of the topping off ceremony of the first building of Wil Tower Mall.

Villar said Vista Land is looking to increase its capital expenditures to take advantage of increasing demand for house and lot units.

“We are going to launch 14 new projects in the next two to three months,” Villar said.

For this year, Vista Land will launch residential projects in 12 new locations. As of the first quarter, Vista Land had a presence in 31 provinces and 63 cities and municipalities around the country.

“We are going to open in Marbel in South Cotabato, Sta. Maria in Bulacan, Kalibo in Aklan, Silang in Cavite and Roxas City [in Capiz],” Villar said.

For 2013, Vista Land will launch P30 billion worth of projects offering 15,000 residential units, up from P25 billion and 12,000 units last year.

Villar said the bulk of Vista Land’s sales will come from the house and lot units given the strong demand from end-users and first time home owners.

Vista Land targets to grow its reservation sales by 15 to 20 percent to as much as P50 billion this year from P40.09 billion in 2012.

In terms of high-rise projects, Vista Land has nearly sold out units in the first building of the 42-storey Wil Tower Mall in Quezon City.

The project, in partnership with variety show host and celebrity Willie Revillame, includes a four-storey shopping mall.

Villar said the second tower that will require P1.5 billion in capital spending will be launched when the first building is sold out.

Villar said adjacent lots can also be developed to complement the Wil Tower Mall, which sells units at P3 million to P6 million each.

Vista Land will also expand its portfolio of shopping malls.

“Vista Land has four right now and we are putting up another four,” Villar said.

Specifically, the listed property firm will put up the new phases of Vista Mall in Presidio in Sucat and Evia in Daang Hari. It will also build a Vista Mall in San Fernando in Pampanga and in Antipolo.

http://www.philstar.com/business/2013/06/03/949378/vista-land-hikes-capex-p20-b

Stock News 2013: PAL won’t be folded into LT Group

2013-06-02T23:03:00.003-07:00

PAL Express (Photo credit: Wikipedia)

Flagship carrier Philippine Airlines (PAL) will no longer be consolidated into the listed umbrella firm of beer and tobacco magnate Lucio Tan as it focuses on being a consumer-related conglomerate.

“We’re not putting it in. PAL will not be part of the LT Group. It’s part of the family holdings but not the LT Group,” Michael G. Tan, president of LT Group, told reporters.

Tan said PAL as an aviation company is different from the basket of consumer-related businesses held by LT Group.

“Essentially, we are focused on being a consumer firm,” said LT Group chief financial officer Jose Gabriel D. Olives.

In October, LT Group’s board of directors approved the deferment of the acquisition of the aviation unit. Concerns were raised over the negative effect of loss-making PAL in LT Group’s books.

LT Group, formerly Tanduay Holdings Inc., earlier planned to acquire 49.84 percent and 50.97 percent of Philippine Airlines Inc. and Air Philippines Corp. (now PAL Express), respectively.

Tan said PAL will not be consolidated into the conglomerate even it if becomes profitable already.

In the nine months of its fiscal year ending March 2012, the airline’s parent firm PAL Holdings Inc. trimmed its losses by 24 percent to P2.74 billion compared with P3.59 billion as total revenues climbed by 2.4 percent to P55.68 billion from P54.38 billion on the back of higher revenues from its passenger and cargo businesses.

PAL, which is 49-percent owned by diversified conglomerate San Miguel Corp., is embarking an expansion program as it plans to further widen its global footprint to include the Middle East, Europe and Australia. It plans to acquire up to 100 brand new aircraft in line with its bid to reclaim the top slot in the local airline sector.

The decision not to include PAL in the listed holding firm was finalized last year, Olives said.

LT Group, which completed its consolidation program last year, is into beer (Asia Brewery Inc.), distillery (Tanduay Distillers Inc.), real estate (Eton Properties Philippines Inc.), banking (Philippine National Bank) and tobacco (PMFTC Inc.).

Moving forward, LT Group expects to continue being a beneficiary of strong consumer spending.

“I would think in the next couple of years it will be like that,” Olives said.

“We should obviously take advantage and grow our businesses in the consumer segment,” Olives said, adding that its units will offer new products to increase its market reach.

LT Group grew its profits by a third to P3.8 billion in the first quarter. Revenues picked up 14 percent to P17.7 billion “due to higher revenues from banking, distilled spirits and property development, which offset the revenue drop in the beverage and tobacco sectors,” LT Group said.

http://www.philstar.com/business/2013/06/03/949392/pal-wont-be-folded-lt-group

Stock News 2013: Bloomberry revenue hits P578M

2013-05-18T19:24:00.000-07:00

HK Citywalk Food & Beverage Outlet 荃新天地 (Photo credit: Wikipedia)

Gaming firm Bloomberry Resort Corp. chalked up P578.3 million in revenue in the first 15 days of Solaire Manila Resort & Casino’s operations.

But for the first quarter, Bloomberry incurred a net loss of P1.06 billion, 688.6 percent higher year-on-year, due to higher pre-operating expenses as well as operating expenses and cost of sales during the first 15 days of operation.

Bloomberry launched the first entertainment complex in Pagcor City last March 16.

In the first quarter, gaming was the biggest contributor to revenue, amounting to P495.6 million. Its hotel, food and beverage outlets contributed P57.1 million while retail revenue from the first 15 days of commercial operation reached P1 million.

Other income consisted mainly of lease rentals, communication and transportation services.

After the opening of the first phase of its entertainment complex, Solaire said it would soon ramp up its gaming business. A number of junket operators have signed up to bring in foreign VIP players while numerous promotional programs and strategic marketing activities are ready to be launched, Bloomberry said.

Since opening day, Solaire’s hotel and food beverage outlets have become go-to destinations, becoming the byword for upscale service, amenities and excellent food and beverage choices. Bloomberry also announced that Solaire had adjusted its prices “to address concerns about being too pricey.”

http://business.inquirer.net/122247/metro-pacific-joins-msci-philippines-index-replaces-smc

http://pinoyfiq.com

Stock News 2013: Property, gaming boost AGI profits in Q1

2013-05-17T19:21:00.000-07:00

Casino logo (Photo credit: Wikipedia)

Alliance Global Group Inc. grew its first-quarter net profit by 18 percent year on year to P4.91 billion on higher earnings chalked up by its property development, gaming and beverage businesses.

Core net income attributable to AGI shareholders likewise increased by 21 percent to P3.58 billion from the level a year ago, the company disclosed to the Philippine Stock Exchange on Wednesday.

Property development arm Megaworld Corp. posted a 15-percent rise in first-quarter net profit to P1.8 billion. Megaworld contributed around 34 percent to AGI’s net income and about 26 percent to total revenue.

Leisure estate and gaming unit Travellers International Hotel Group—a partnership with the Genting group of Malaysia, which has made plans to go public—grew its first-quarter net profit by 16 percent year on year to P995 million. Travellers operates Resorts World Manila, the first integrated tourism estate in the country.

Emperador Distillers Inc. posted a 40-percent jump in first-quarter net profit to P1.4 billion.

Megaworld, Travellers and Emperador collectively contributed 84 percent of the conglomerate’s net profit.

“We believe the current macroeconomic conditions will contribute positively to our various businesses, from consumer and property to BPO and tourism—all growth drivers of the Philippine economy. These businesses will hit double-digit growth in revenues and net profits,” AGI chairman Tan said in a press statement.

Consolidated revenues went up by 25 percent to P30.39 billion in the first three months from the level a year ago.

Real estate arm Megaworld contributed around 34 percent to AGI’s net income and about 26 percent to its total revenue.

Megaworld’s three-month revenues stood at P8.1 billion, up 16 percent year on year. As an indicator of future growth, Megaworld and its subsidiaries also posted over P18 billion in reservation sales for the first quarter, higher than the P14 billion level in the same period last year, as the group reported brisk sales from the residential projects in its townships, particularly Newport City, McKinley West, McKinley Hill and Eastwood City.

Megaworld also cited strong leasing income from its BPO and retail portfolio.

http://business.inquirer.net/122247/metro-pacific-joins-msci-philippines-index-replaces-smc

http://pinoyfiq.com

Stock News 2013: SM inaugurates SM Aura at Global City

2013-05-16T19:30:00.000-07:00

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.

http://business.inquirer.net/122261/sm-inaugurates-huge-complex-at-global-city

http://pinoyfiq.com

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

2013-05-16T19:14:00.000-07:00

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.

http://business.inquirer.net/122247/metro-pacific-joins-msci-philippines-index-replaces-smc

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

2013-05-03T02:36:00.000-07:00

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

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

2013-05-02T00:39:00.000-07:00

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.

http://business.inquirer.net/118853/ayala-land-to-take-over-boulevards-beachfront-landbank

Stock News 2013: Union Bank profit jumps by 41%

2013-05-01T00:17:00.000-07:00

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

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

2013-04-30T08:09:00.000-07:00

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.

http://www.philstar.com/business/2013/04/26/934907/del-monte-eyes-dual-listing-phl-spore-markets

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

2013-04-29T07:30:00.000-07:00

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.

http://www.philstar.com/business/2013/04/26/934909/pepsi-cola-profit-jumps-20-p270m-q1

Stock News 2013: SM profit jumps 22% in Q1

2013-04-28T07:27:00.000-07:00

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

Stock News 2013: PSBank posts record net profit of P2B in Q1

2013-04-27T03:07:00.000-07:00

Loans (Photo credit: zingbot)

Philippine Savings Bank, the thrift bank arm of the Metrobank group, generated a record-high net profit of P2 billion in the first quarter as hefty trading gains complemented core interest earnings.

The first quarter net profit was 273-percent higher than the level in the same period last year, the bank disclosed to the Philippine Stock Exchange on Monday.

PSBank grew its net interest income by 8.7 percent to P1.5 billion. Interest earnings from loans went up by 16 percent to P1.9 billion as the bank expanded its loan book by 23 percent to P77 billion. Strong consumer confidence and sustained economic growth continued to buoy demand for loans, the bank reported.

Auto lending rose by 28 percent compared to the previous year while mortgage lending expanded by 21 percent. The bank’s combined small and medium enterprise as well as large corporate loans likewise went up by 25 percent.

Meanwhile, the low-interest rate environment allowed PSbank to post large trading gains from its investments in government securities. Trading gains amounted to P3 billion from only P1.7 billion in the same period last year.

The bank also grew income from service charges and commissions by 13 percent year-on-year.

On the other hand, improvements in operating efficiency brought by automation kept operating expenses flat at P1.8 billion, the bank said.

“We are seeing traction in our strategy of improving sales coverage and operating efficiency as evidenced by the continued increase in market share for our key loan products, auto and mortgage. Given this loan increase, we are confident to exceed the original income target of the bank for the year,” said PSBank executive vice president Jose Vicente Alde.

While the bank boosted its earning assets, it kept good quality of earnings assets in its books. The ratio of net non-performing loans stood at only 0.4 percent. PSBank has also set aside P609 million as provisions for the first quarter, thus increasing loan coverage to 102 percent.

PSBank’s equity rose by 27 percent to P18.7 billion. This translated to a higher capital adequacy ratio to risk assets of 18.6 percent, well above the 10-percent minimum required level for local banks.

http://business.inquirer.net/117987/psbank-posts-record-net-profit-of-p2b-in-q1

Stock News 2013: Meralco income surges to P4B in Q1, up 19.3%

2013-04-26T03:06:00.000-07:00

Photo of Manny (Photo credit: Wikipedia)

Manila Electric Co.’s consolidated net income in the first quarter grew 19.3 percent to P4.02 billion, from P3.37 billion in the same period last year, mainly on higher energy sales.

Meralco chairman Manuel V. Pangilinan said in a briefing Monday that the first quarter results were “slightly ahead” of expectations.

The country’s largest power distribution utility, which is controlled by Hong Kong-based First Pacific Group, also reported a 17.7 percent increase in core net income, which rose to P4.02 billion in the first three months of the year from P3.42 billion in the same period last year.

Meralco attributed the profit growth to the sustained increase in new customers, energization of new real estate developments such as the Pagcor Entertainment City and increased consumption driven by remittances of overseas Filipino workers and the business process outsourcing sector.

In terms of electricity sales volume, Meralco reported 1.2 percent increase to 7,777 gigawatt-hours from 7,687 gigawatt-hours during the period.

However, revenues slowed down by 1.5 percent to P64.16 billion from P65.12 billion due to lower power supply cost from the company’s new suppliers, which was slightly offset by the “moderate” increase in energy sales volume.

Meralco’s power supply costs are passed on to consumers.

Meralco’s average rates dropped by P0.03 to P9.32 per kilowatt-hour.

Customer numbers, meanwhile, reached 5.23 million as of end-March 2013, having grown 3.3 percent or by more than 165,000 new accounts since March 2012.

For the rest of the year, Pangilinan declined to give specific targets on sales and income targets until the second-quarter results have been reported, citing erratic demand for power.

April was a growth period, he said, with a 7.8 percent growth in sales but it remains to be seen whether sales volume will increase enough for the rest of the year to make up for cheaper rates.

SVP Alfredo Panlilio said April sales growth was attributed to residential customers’ increased use of appliances to cope with high temperatures, the resumption of operations of cement and steel plants that were down on maintenance in March, and the start of operations of Solaire hotel and casino in Pagcor City.

Meralco, which posted a 9-percent increase in core net income to P16.3 billion in 2012 from P14.9 billion in 2011 on the back of higher electricity sales, also seeks to acquire a Singaporean power firm in partnership with Hong Kong-based investment holding First Pacific Co. Ltd.

http://business.inquirer.net/118049/meralco-income-surges-to-p4b-in-q1-up-19-3

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