Rising coal prices, potential Maynilad IPO may fuel Consunji’s DMC

Consunji’s DMCI Holdings (DMC) has seen a steady climb in share price in the past few weeks. It is currently trading at 5.93 just 4.65% below its 52-week high of 6.24. DMC is already up 34.77% from a year ago.

Bloomberg recently reported that global prices for coal surge on hot demand.

Coal mining constitute 24.37% of DMC’s revenue in 2020 and 33.14% in 2019. The surging coal price could provide DMC with a windfall. At current price DMC’s dividend yield is at 8.09%.

Another event that could fuel further DMC is the Manynilad IPO. DMC owns around 25% of Maynilad. A Maynilad public offering would allow DMC to do some value realization of its investments in the water company. BusinessWorld reported that Maynilad will have to go public as part of the new concession deal with the government.

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