PGOLD and WLCON are both pandemic winners. Despite restriction in mobility, both companies were able to post profits and grew cash flows from operations. In the case of WLCON revenue was down by a third but cash from operating activities rose by 68% to 4.3 Billion. WLCON maintains a zero-indebtedness stance.
PGOLD who has not yet released its 2020 Audited Financial Statements has announced that its net income grew by 18.9% to 8.05 Billion. PGOLD ended the year with 469 operating stores.
To sustain its growth momentum, PGOLD is planning to spend 4.7 Billion for organic expansion. It plans to open 40 PGOLD stores, 2 S&R stores, 10 S&R Quick Service Restaurants. Aside from store openings, PGOLD is investing in e-commerce, improving its logistics, and strengthening its supply chain. Those three initiatives are pre-emptive moves to address any changes or disruptions in the prevailing business practices.
It can be remembered that PGOLD borrowed 12 Billion Pesos it doesn’t need in 2020. The move was a pre-emptive one in case of disruptions in lending.
Despite having all the attributes of a pandemic resilient enterprise, PGOLD just trade at 15.57 P/E. It has a P/E significantly lower than that of WLCON which trade at 50.37 P/E.
PGOLD registered a five-day net foreign buying of 41.42 Million as of 31 March 2021.
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