Jollibee reports 25% profit growth, sets overseas expansion

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Jollibee reports 25% profit growth, sets overseas expansion
Posted: 2:39 AM | May 11, 2006

Inquirer

FAST-FOOD firm Jollibee Foods Corp. plans to diversify into new brands overseas, particularly India and China, company chairman Tony Tan Caktiong said Wednesday as Jollibee reported a 25-percent growth net income to P448.7 million in the first quarter of the year from P358.3 million in the same period in 2005.

Revenue rose 16 percent to P7.6 billion from P6.5 billion, and system-wide retail sales -- sales of company-owned and franchised stores -- rose 15.2 percent to P10.4 billion from P9.0 billion.

"The food service industry in the Philippines grew slightly in the first quarter of 2006, as consumers visited food service stores only at the same frequency as last year, which was a difficult year," Tan Caktiong said. "Fortunately, we were able to grow our business by improving our products and service and this was made possible through the hard work of our people."

Tan Caktiong said Jollibee was exploring possible acquisitions in the fast-food industries in India and China, and was looking at businesses that might include noodle chains and bakeshops.

He said the Jollibee group might acquire a food chain brand in India this year.

Jollibee was in talks with New Delhi family restaurant Nirula's for possible acquisition before the Indian firm sold out to another company.

In China, it is expanding its Yonghe King brand and is open to new acquisitions, Tan Caktiong aid.

Jollibee is set to open its first store in a key city in southern China, and is studying locations in Shenzhen, Guangzhou and Shanghai, he said.

In the United States, the Jollibee group will open a new Red Ribbon Bakeshop in the East Coast in October.

Last year, the Jollibee group reported a 10.6-percent growth in revenue to P29.0 billion from P26.2 billion IN 2004. System-wide sales grew 12.1 percent to P39.8 billion.

Among the group's brands, Jollibee increased sales 8.1 percent last year, Chinese fast-food Chowking 13.1 percent, pasta and pizza chain Greenwich 5.9 percent, and China-based brand Yonghe King 43.2 percent. Red Ribbon contributed 1.6 percent of the total system-wide sales. With INQ7.net

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Holcim says govt effort to drive industry growth

Holcim says govt effort
to drive industry growth

LEADING cement maker Holcim Philippines Inc. expects a modest single-digit hike in its net revenues for the year, with demand for its product expected to rise due to prospects of more public sector infrastructure projects in 2006.
       “We are looking at a good year ahead of us,” Holcim Philippines chairman Oscar Hilado told reporters after the company’s annual stockholders meeting at the Mandarin Oriental Hotel on Wednesday.
       Hilado said with the administration doing a good job in fixing the government’s fiscal condition, they expect a lot of state-funded infrastructure projects for the year.
       He said while the private sector has been pouring in investments for vertical infrastructure, it would still be the government’s horizontal projects that will really drive cement demand up.
       Hilado said the company hopes that government would finally start unlocking the Overseas Development Aid (ODA) funds by doing better in putting up the required counterpart funding.
       For the whole of 2005, Holcim reported a 6.5-percent increase in total revenues to P14.15 billion from P13.29 billion in 2004. However, its net income for the same period dropped 14 percent to P1.269 billion from P1.409 billion in 2004.
       The whole industry, Hilado said, suffered a 4-percent dip in demand for the first quarter, but there was a strong rebound in April and May is also seen to be a strong month. “We are hoping that there will be no decline in demand for the year,” he said.
       Holcim eats up about 32 percent to 40 percent of the 11.6 million tons annual domestic demand. Aside from its domestic sales, Holcim exported 1.7 million tons in 2005 to countries like Nigeria and Hawaii. Max V. de Leon

http://www.businessmirror.com.ph/0511/comp04.php

Stocks advance on export gains

PHILIPPINE stocks rose on Wednesday, extending this month’s rally, after better-than-expected March export figures added to evidence that the economy is improving.

Philex Mining Corp. and other local miners advanced after gold touched a 25-year high, climbing as much as 0.2 percent to $702.90 an ounce in after-hours electronic trading in New York.

“The economic numbers are looking so good that you can almost taste it,” said Rico Gomez, who helps manage about $1 billion at Rizal Commercial Banking Corp. “We are also seeing some sectoral shift from commercial-industrial to mining stocks with gold reaching over $700.”

The Philippine Stock Exchange Index rose 17.26, or 0.7 percent, to 2,529.49 at the noon close in Manila, extending this month’s gain to 11 percent. The Mining and Oil Index jumped 7.2 percent to 5446.52, its highest close since April 11, 1997.

March exports grew 25.8 percent from a year earlier as electronics sold more components abroad, a government report showed. That’s the fastest pace in six years and more than double the 10.5-percent increase forecast by economists in a Bloomberg News survey.

Separately, the agriculture department said farm output grew 3.9 percent in the first quarter, the fastest in more than a year, as farmers planted more crops in the second half of last year to take advantage of higher rainfall.

Exports, harvests

A pickup in exports and better harvests may help the Philippines achieve the higher end of its 5.5-percent to 6.2-percent economic growth forecast this year. Bank of America this week raised its 2006 growth forecast for the Philippines to 5.3 percent from 4.7 percent.

“The good economic numbers are helping boost what is already bullish market sentiment,” said Gomez.

Ayala Land Inc., the nation’s largest builder, added 50 centavos, or 3.5 percent, to P14.75. Metropolitan Bank & Trust Co., the largest Philippine lender by asset, rose 50 centavos, or 1.1 percent, to P44.50.

Globe Telecom Inc., the country’s second-largest mobile phone company, rose P45, or 4.4 percent, to P1,080.

Philex Mining’s Class A shares, the nation’s most profitable producer of copper and gold, jumped 60 centavos, or 14 percent, to P4.80, its highest close on record. Its Class B shares, which have no ownership restrictions, gained 45 centavos, or 11 percent, to P4.75.

Lepanto Consolidated Mining Co.’s Class A shares added 2 centavos, or 5.4 percent, to P39, its first gain in seven sessions. Lepanto’s Class B shares gained 1 centavo, or 2.5 percent, to 41 centavos.

First Gen gains

FIRST Gen Corp., the third-largest Philippine power producer, rose beyond its initial public offer price for the first time after the company said first-quarter profit grew and it will pay higher dividends this year.

Shares of First Gen added P2, or 4.3 percent, to P48.50, topping its 47 peso IPO price for the first time since it started trading in February. First Philippine Holdings Corp., which controls First Gen, gained P1.50, or 3.1 percent, to P50.50, bringing its four-day gain to 15 percent.

Shares worth P2.28 billion changed hands, 46-percent more than the six-month daily average. Gainers edged losers, 64 to 36, with 50 unchanged. Bloomberg

http://www.businessmirror.com.ph/0511/comp03.php

 

 

First Gen posts 16% earnings hike in Q1

By Honey Madrilejos-Reyes
Reporter

HIGHER fuel charges and cost savings resulted in a 16-percent growth in the first quarter net profit of First Gen Corp. to $25.5 million compared to the $22 million posted in the same period last year.

Company senior vice president and chief finance officer Giles Puno said the recent increases in fuel prices translated to higher fuel charges to its major customer Manila Electric Co. (Meralco), allowing them to end the period with revenues of $217 million.

“Apart from the fuel charges, there was also the $4-million cost savings from lower administrative expenses and taxes as well as reduced professional fees incurred from the settlement with our plant’s contractor Siemens,” he said.

For the full year, however, Puno said they are expecting flat to minimal growth in bottom line as tax incentives awarded to its 1,000-megawatt Sta. Rita gas-fired power plant will expire at the end of this month.

“The revenues will continue to be there but the forthcoming increase in our taxes once the incentives are lifted will put pressure on our net profit unless we deliver growth,” he explained.

Analysts earlier projected net profit of First Gen—the country’s third- largest power producer—to level at around $83 million by the end of the year. Last year, the company’s audited net profit was $87 million.

Listed at the stock exchange in February, the company held its first stockholders meeting Wednesday, where it declared a cash dividend of P1.75 per share on all outstanding common shares in favor of stockholders of record as of June 2, 2006. Payment date has been set on June 16.

The cash dividend is 2-percent higher than its dividend policy of 30 percent of prior year’s recurring net income.

According to Puno, the policy could be raised to 50 percent if the company continues to register higher income from operations.

Shares of First Gen on Wednesday rose P2, or 4.3 percent, to P48.50, above its IPO price of P47.

Controlled by the Lopez family, First Gen operates gas-fired power facilities in Luzon, with an aggregate capacity of 1,500 MW. By 2010, power generated by its gas plants will go up to 2,000 MW with the completion of its San Gabriel power facility in Batangas City.

http://www.businessmirror.com.ph/0511/comp01.php

Jollibee expands in China; Q1 profit up 25%

By Honey Madrilejos-Reyes
Reporter

JOLLIBEE Foods Corporation (JFC) will expand in three key sites in China through acquisitions of new brands, its chairman and president Tony Tan Caktiong said Wednesday.

 “We are eyeing Shanghai, Schenzen and Guangzhou. It can be done through acquisitions of fastfood chains there,” he said in an interview.

The company, though, could not give a specific timetable for the plan, saying everything “is still exploratory”.

Also on Wednesday, the Philippines’ biggest fast-food company said first-quarter profit climbed 25.2 percent as sales increased.

Net income attributable to shareholders rose to P448.7 million ($8.7 million) from P358.3 million last year. Sales rose 16 percent to P7.6 billion from P6.5 billion.

The company said profit in 2005 increased 7 percent to P1.67 billion as sales gained 11 percent to P29 billion.

In the meantime, Tan Caktiong said they would continue to expand Jollibee’s Yonghe King brand, which, as of end-2005, has 101 stores all over China.

The group is also scheduled to open this year one Jollibee branch in the southern part of China.

For India, JFC’s plan is to likewise acquire a new brand. Tan Caktiong said they are now in talks with potential sellers but declined to identify them. “We are looking for the right brands at the right value,” he added.  This October, JFC will also open its first Red Ribbon branch in New Jersey, US.

The group ended 2005 with a net profit of P1.67 billion versus P1.56 billion the previous year. Revenues, on the other hand, were pegged at P29 billion from P26.3 billion in 2004.

This year, the group plans to open at least 100 new stores located mostly in the country.

“We will be spending maybe P1 billion to finance the establishment of these stores. The financing will come from our internal fund,” he said.

With operations in nine countries including the US, China, Indonesia, Vietnam and Hong Kong, JFC has plans of further expanding in other countries and in the Philippine market through the widening of store networks and acquisition of new businesses.

JFC holds the record of being the biggest fast-food operator in the Philippines. As of end-December 2005, it had a total of 1,273 stores in the country broken down as follows: Jollibee brand, 529; Chowking, 328; Greenwich, 239; Red Ribbon, 140; and Delifrance, 37.

Jollibee, which serves chicken, burgers and other meals, operated an outlet in Xiamen from 1998 to 2001. In 2004, it bought Yonghe King, which then had 77 outlets. Yonghe had 103 outlets as of February, the company said last month. Jollibee is in talks to buy more chains in China and India, Tancaktiong said. With Bloomberg

http://www.businessmirror.com.ph/0511/front05.php

Stocks near 7-yr high on foreign buying

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=05&dd=09&file=1

Posted: 1:28 AM | May 09, 2006
Elizabeth L. Sanchez
Inquirer

SHARE prices Monday surged to a nearly seven-year high as foreign investors stepped up buying, with sentiments buoyed by the country's bright economic prospects, improving government finances, solid corporate earnings, low interest rates and relative political calm, analysts said.

The 30-company Philippine Stock Exchange Index jumped 118.93 points, 4.8 percent, to 2,589.17 after touching 2,602.46. It was the index's best finish since July 13, 1999, when it hit 2,604.49.

The index has risen a hefty 14 percent over the past five trading sessions. Even so, investor interest remains unabated, with P5.3 billion worth of shares traded on Monday compared with Friday's value turnover of P4.9 billion.

"This is just the beginning," said Paul Joseph Garcia, chief investment officer at ING, adding that the medium- to long-term trend was up.

"This is an indication that, one, finally investors are recognizing that the Philippines is back on the radar screen and, two, that the Philippines is an improving story on the macroeconomic front," Garcia said.

JP Morgan heralded the current period as the "start of a new era" for the Philippines and said it had upgraded the country to an "overweight" in the Asia-Pacific stock markets.

The bulk of Monday's trade was driven by foreign investors who bought P3.77 billion and sold P2.15 billion worth of shares. Net foreign inflow reached P1.6 billion, with only the mining sector in the red, down 2.6 percent after hitting a record high in mid-April.

Since January, net foreign inflows to the Philippines of $163 million have caught up with the total inflow in 2005, according to Nomura data, and were higher than both Indonesia and Malaysia.

"What is surprising is the speed by which the market has gone up," said Edgar Bancod, head of research at ATR Kim Eng Securities. "It happened so fast that investors are buying like there is no tomorrow."

"Foreign interest has returned. They view the Philippines as a laggard play," said Mark Tan, Singapore-based director of Asian equities at UOB Asset Management, which has Philippine investments.

The Philippine market has "not performed as well as the rest of the Asian markets since the recovery in 2002," Tan said. "So there's probably a lot of catch-up going on right now."

The Philippine Stock Exchange, which has the shortest trading day in Asia at two-and-a-half hours, had been left behind by other exchanges in the region. Philippine stocks are trading at an average of about five times their expected 2006 earnings, cheaper than Thailand's 10.4 times and Indonesia's 12.2 times expected earnings, according to Reuters data.

Fundamental factors have started to improve, analysts noted.

The government revenue shortfall has been shrinking because of an increased value-added tax, and the administration of President Gloria Macapagal-Arroyo says it is on track to keeping the budget deficit within a 2006 target limit of P125 billion, 2.1 percent of gross domestic product, compared with the 2005 deficit of P146.5 billion.

"The Philippines is on track to reach a balanced budget by 2008 and a surplus in 2009," JP Morgan said.

Recent government financial reforms, most notably in the implementation of the expanded value-added tax, have inspired the administration to project a balanced budget two years earlier than the official target of 2010.

Fears of a coup plot against President Arroyo have also eased after last week's Labor Day demonstrations, traditionally a flash point for violence, passed peacefully.

JP Morgan said the next stage was a higher annual growth trajectory of 6.0-8.0 percent in gross domestic product, driven by the infrastructure and mining sectors, which are emerging from their lows and reclaiming their position as economic growth engines. The economy grew 5.1 percent in 2005.

"For now, strong growth in remittances [from overseas Filipinos] and BPOs [business process outsourcing operations) will continue to fuel domestic demand," said JP Morgan. "Favored cyclical plays are the property and banking sectors, which have already seen a turnaround."

Analysts said investors were encouraged to shift to equities since last week on news of lower interest rates, tame inflation and stable first-quarter corporate earnings.

Investors cheered a government report that the inflation rate -- the year-on-year increase in consumer prices -- slowed to 7.1 percent in April from 7.6 percent in March.

"Inflation was lower than expected despite higher oil prices. And with a stronger peso, this boils down to a favorable sentiment in the market," said Fitzgerald Aclan, head of research and strategy at BDO Trust.

Money also continues to pour into the stock market as interest rates remain at low levels. Last week, the central bank kept its interest rates steady for the seventh straight month in line with its assessment that inflation would slow down starting in the second semester.

The central bank's overnight borrowing rate stayed at 7.50 percent and its overnight lending rate at 9.75 percent.

Lower interest rates mean prospects of better corporate earnings as companies can borrow more cheaply to fund expansion moves.

"We are looking at a 15-percent growth in earnings in the next two years," said Jerome Gonzalez, head of research at fund manager Philippine Equity Management Inc. "With the fiscal reforms in place, the peso strong and interest rates low, even banks now are finding it hard to find good yields and are shifting to equities. The market is very liquid."

"Even laggards in the index are being bought," said Mark Canizares, analyst at Citisecurities Inc. "There should be corrections, but the short-term and long-term trends still point up and the market is actually breaking into new highs."

Garcia, who sees the next key resistance at 2,700 points, said the biggest short-term risk was the possibility that opposition leaders could try to revive last year's failed impeachment attempt against President Arroyo, although many analysts expect her allies in the House of Representatives to defeat any impeachment bid.

The banking and property sectors have been particularly buoyant after the central bank decided to hold fire on borrowing costs -- but gains have been well spread amid solid first-quarter corporate earnings.

Leading the stock market bull-run Monday were blue-chip stocks such as Philippine Long Distance Telephone Co. (PLDT), Bank of the Philippine Islands (BPI), Ayala Corp. and Metropolitan Bank and Trust Co. (Metrobank).

PLDT, the country's biggest telecom company, rose 6 percent to P2,255 per share. Ayala Corp., the largest conglomerate with interests in banking, telecom and property, rose P42.50, or 9.8 percent, to P472.50.

Metrobank, the largest bank in assets, rose 10.6 percent to P47, while its rival BPI rose 4.4 percent to P71.50.

SM Prime Holdings Inc., the country's largest mall developer and operator, on Monday said its first-quarter profit rose 8 percent as the higher sales tax failed to crimp consumer spending. Its shares jumped up 11.11 percent to P9. With Reuters, The Association Press, and INQ7.net

 

Stocks extend rally

Stocks extend rally
By Zinnia B. Dela Peña
The Philippine Star 05/09/2006

The stock market rose sharply higher yesterday, extending gains with a 118.93-point jump as optimism about the economy prompted foreign investors to gobble up local stocks.

Traders said sentiment was very positive on the back of an improving fiscal position while political tensions have eased of late, allowing investors to focus more fully on the market.

At the same time, foreign investor interest has become more pronounced as offshore names trawl through the region for any laggards among some of the best performing markets in the world over the past couple of years.

The composite index put on 118.93 points or 4.81 percent to close at 2,589.17 for the biggest single-day gain since Jan. 22,2001, when it put on 255.13 points or 17.56 percent. On Friday, the market had risen 4.22 percent.

The index has gained 23.5 percent since the start of the year, thanks to improving government finances, stable corporate earnings and low interest rates.

Banks and property stocks have been among the biggest gainers, helped by the Bangko Sentral ng Pilipinas (BSP) decision not to raise borrowing costs last week.

Turnover was strong at 3.42 billion shares valued at P5.3 billion. Gainers outnumbered losers 69 to 38 while 52 stocks ended unchanged.

There was some signs of rotational buying and selling as traders took profits on third-liners to switch to blue chips.

"We believe that the market is gaining on the back of improving sentiments on the Philippine equities market. After implementing major fiscal reforms and a concerted effort to improve corporate governance, foreign fund managers have been raising their country weighting on the Philippines," said AB Capital Securities research head Jovis Vistan.

"They (investors) woke up and decided we deserve to be re-rated,’’ said Marvin Fausto, who helps manage $2 billion at Equitable PCI Bank. An "improving economy" is helping draw funds, he said.

The government’s budget shortfall has been shrinking due to a higher sales tax and concerns over the country’s political stability have eased after last week’s Labor Day demonstrations ended peacefully.

"The market is showing no signs of letting up. And with foreign funds leading the way, we should expect the market testing new highs," Vistan said.

Vistan, however, warned that the market may be ripe for correction anytime as most stocks have already reached overbought levels. "We wouldn’t be surprised if the market should correct any time. A healthy correction is long overdue and any negative event can easily be used as an excuse to take profits. Earnings will be a factor as we start the first quarter earnings reporting season," Vistan said.

Foreign funds focused on key index issues, namely Ayala Corp., Ayala Land, Bank of the Philippine Islands, International Container Terminal Services Inc. and Philippine Long Distance Telephone Co.

Ayala Corp., the Philippines’ largest conglomerate with interests in banking, telecoms and property, closed nearly 10 percent higher at P472.50.

PLDT closed at a new record high, gaining P130 or 6.12 percent at 2,255, on volume of 334,640 shares worth P750.66 million.

In its market report, BPI Securities said: "Long-term outlook for the market has never been rosier; it is unlikely that sentiments will fall in any significant way if ever a correction will ensue."

The market’s new resistance has been pegged at 2,600.

The first quarter corporate earnings season has also kicked off positively.

SM Prime Holdings Inc. which reported an eight percent increase in its net profit for January to March this year to P1.34 billion, gained 11 percent to P9.

Globe Telecom posted a net profit of P3.5 billion in the first three months of the year, mainly due to higher subscriber base.

As of the end of March this year, Globe’s wireless subscriber base stood at 13.2 million compared with only 12.4 million at end-2005.

Net service revenues went up five percent from a year earlier to P14.2 billion for the three months to March, but was three percent lower compared to the last quarter of 2005 due to the seasonal demand in the previous quarter.

Union Bank of the Philippines rose P3.50 or 8.43 percent to P45 after it offered to acquire up to 100 percent of International Exchange Bank in a deal valued as high as P13.5 billion. iBank was also up at P40 or an increase of 50 centavos.

Bullish outlook

Bank of America yesterday raised its 2006 economic growth forecast for full-year Philippine economic growth to 5.3 percent from 4.7 percent.

The government said last week the economy likely expanded more than 5.5 percent in the first quarter because of better-than-expected harvests.

Ayala, owner of the nation’s biggest developer and No. 2 banking and phone companies, surged P42.50, or 9.9 percent, to P472.50, its highest since at least 1987, when Bloomberg’s records begin.

Metropolitan Bank and Trust Co., the nation’s biggest lender, rose P4.50, or 11 percent, to P47. Class B shares of

Manila Electric Co., which allow overseas investors to own the nation’s biggest power retailer, rose P2, or 10.3 percent, to P21.50. Megaworld Corp., a builder of office and residential buildings, rose 22 centavos, or 13 percent, to P1.86. – with AFP

SM Prime profit P1.34B in Q1

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SM Prime profit P1.34B in Q1
Posted: 4:32 AM | May 09, 2006

Inquirer

SM PRIME Holdings Inc., the country's biggest shopping mall developer and operator, reported a net income of P1.34 billion in the January-March quarter, up eight percent from P1.24 billion in the same period last year, thanks largely to rental revenues from new malls.

Total revenues grew 15 percent year-on-year to P2.85 billion from P2.5 billion, it said.

Rental revenues grew 15 percent to P2.35 billion from P2.04 billion.

In the second half of 2005 and early this year, the company opened the SM City San Lazaro mall in Manila, SM Supercenter in Valenzuela City, SM Supercenter Molino in Cavite province, and SM City Santa Rosa in Laguna province.

The new malls currently have an average occupancy level of 95 percent, SM Prime said.

Cinema ticket sales were up 20 percent in the first quarter, with more blockbuster movies than in the same period in 2005, it said.

Income from operations rose 22 percent to P1.71 billion from P1.4 billion in 2005.

Revenues are expected to increase further with the opening of more malls this year, the company said.

Set for opening are the Mall of Asia, SM City Clark, SM City Lipa, SM Supercenter Frontera Verde, and SM City North Edsa Annex-3.

The SM group's total mall floor area will increase to 3.5 million square meters this year from 2.8 million square meters at the end of last year, the company said. With INQ7.net

 

RP stocks post biggest gain in 3 years

RP stocks post biggest gain in 3 years

THE Philippines’ key stock index on Monday had its biggest gain in more than three years as optimism about the economy prompted overseas investors to add to their local shareholdings. Ayala Corp. and Philippine Long Distance Telephone Co. led the advance.
       The Philippine Stock Exchange Index climbed 118.93, or 4.8 percent, to close at 2,589.17 at noon in Manila, adding to last week’s 8.8-percent gain. That’s its biggest increase since June 17, 2003 and the highest close since July 13, 1999. Gainers outnumbered losers 69 to 38.
       Over investors were net buyers of $31.5 million of local shares Monday, after pumping in $36.7 million on May 5. That’s more than six times this year’s daily average of $4.8 million.
       “They woke up and decided we deserve to be rerated,” said Marvin Fausto, who helps manage $2 billion at Equitable PCI Bank (EPCIB). An improving economy is helping draw funds, he said.
       Trading Monday totaled P5.31 billion ($103 million), more than three times the average over the last six months.
       Bank of America on Monday raised its 2006 economic growth forecast for full-year Philippine economic growth to 5.3 percent from 4.7 percent. The government said last week the economy likely expanded more than 5.5 percent in the first quarter because of better-than-expected harvests.
       Ayala Corp., owner of the nation’s biggest developer and No. 2 banking and phone companies, surged P42.50, or 9.9 percent, to P472.50, its highest since at least 1987, when Bloomberg’s records begin. PLDT, the nation’s biggest company by market value, jumped P130, or 6.1 percent, to P2,255.
       Metropolitan Bank and Trust Co., the nation’s biggest lender, rose P4.50, or 11 percent, to P47. Class B shares of Manila Electric Co., which allow overseas investors to own the nation’s biggest power retailer, rose P2, or 10.3 percent, to P21.50. Megaworld Corp., a builder of office and residential buildings, rose 22 centavos, or 13 percent, to P1.86.
       EPCIB rose P1.50, or 2.1 percent, to P73.50. Government Service Insurance System said it might postpone Monday’s auction for its 12-percent stake in the lender. It would be the third postponement for an auction first scheduled for March.
       The government’s failure to sell its stake may pave the way for the lender to be sold to Banco de Oro, whose takeover bid the fund has been opposing. Banco rose P2, or 5.6 percent, to P38.
       Globe Telecom Inc. rose P45, or 4.6 percent, to P1,030. First-quarter profit may rise 30 percent to P2.5 billion (US$48.6 million), according to the median estimate of three analysts in a Bloomberg News survey. Globe was scheduled to release results Monday.
       Union Bank of the Philippines rose P3.50, or 8.4 percent, to P45. The lender agreed to buy International Exchange Bank for P13.5 billion, Union Bank said after the close of trading on May 5. The merger would create the nation’s ninth-largest lender. Bloomberg

http://www.businessmirror.com.ph/0509/comp05.php

Rentals revenues drive SM Prime's 1st-quarter profit

Rentals revenues drive
SM Prime’s 1st-quarter profit

RIDING on the back of higher gross revenues and minimal operating expenses, mall operator SM Prime Holdings Inc. (SMPI) reported Monday an 8-percent increase in net income for the first quarter of 2006 to P1.34 billion compared to P1.24 billion in the same period last year.
       In a statement, the company said the income growth was buoyed by the 15-percent increase in gross revenues from January to March to P2.85 billion from P2.49 billion in the same period 2005.
       “Rental revenues remain the largest portion, with a similar growth of 15 percent amounting to P2.35 billion from last year’s P2.04 billion. This is largely due to rentals from new SM Supermalls opened in the second half of 2005 and 2006, namely, SM City San Lazaro, SM Supercenter Valenzuela, SM Supercenter Molino and SM City Sta. Rosa,” it said.
       These new malls currently have an average occupancy level of 95 percent.
       Cinema ticket sales, on the other hand, showed a strong performance, increasing by 20-percent due to screening of more blockbuster films in 2006 compared to the same period in 2005 and the huge success of last year’s Metro Manila Film Festival.
       Meanwhile, income from operations enjoyed a significant growth of 22 percent from P1.40 billion in 2005 to P1.71 billion in 2006. Operating expenses exhibited a minimal increase of 6-percent due to the company’s efforts at maintaining operational efficiency.
 
Full-year target
       FOR the full year, the Henry Sy-controlled SMPH is targeting to record a net profit of P5.4 billion, 8-percent higher than the P4.9 billion it posted in 2005.
       Company vice president for finance and administration Jeffrey C. Lim said the projected increase would be boosted by the new malls that will open this year, particularly The Mall of Asia in Pasay City. Opening on May 21, The Mall of Asia is touted to be the largest shopping mall in the Philippines and one of the largest in the region.
       Apart from the Mall of Asia, the company is also set to open this month the SM City Clark, Pampanga; the SM Supercenter Frontera Verde on C-5 Road in Pasig City; and the SM City Lipa, Batangas.
       The company also has plans to build an SM Supermall in Bacolod City, Negros Occidental.
       The company has also reserved 118.7 hectares for development in 14 locations, including Marikina, Parañaque, Muntinlupa, Bulacan, Tarlac, Laguna and Pangasinan.
       SM Prime said it intends to build at least four to five malls annually for the next three years.
       It shares rose 11 percent to P9 on Monday. Honey Madrilejos-Reyes

http://www.businessmirror.com.ph/0509/comp02.php