fbpx

Capital deficient DITO should tap its faithful for capital through SRO

As of March 31, 2022, DITO CME HOLDINGS (DITO) has a capital deficiency of 9.4 billion. DITO is the parent company of the third telco, Dito Telecommunity (Dito Tel). DITO has an indirect stake of 53.7% of Dito Tel. The 9.4 billion capital deficiency means that DITO’s total liabilities exceed its total assets by 9.4Continue reading “Capital deficient DITO should tap its faithful for capital through SRO”

PXP’s SC 72 wells languish, ACEN/ACEX’s SC 55 most likely to proceed

SC 72 and SC 55 are the two most promising gas fields in the country. The operator of SC 72 is a company controlled by PXP while the operator of SC 55 is a company controlled by ACEX and ACEN. PXP is a unit of the Hong Kong based conglomerate First Pacific Ltd. helmed byContinue reading “PXP’s SC 72 wells languish, ACEN/ACEX’s SC 55 most likely to proceed”

Razon not buying Malampaya for nothing, might be eyeing Ayala’s ACEX SC55

It has been reported that tycoon Enrique Razon will be buying Dennis Uy’s 90% stake in the Malampaya gas-to-power project.  But the Malampaya gas reserves are nearing depletion.  In fact, FGEN’s natural gas plants were plagued by gas interruptions at the Malampaya field and were forced to run on liquid fuel. With Malampaya gas runningContinue reading “Razon not buying Malampaya for nothing, might be eyeing Ayala’s ACEX SC55”

Valued 328PE, MM had to go down further to be at par with ALLDY’s 16PE

MerryMart Consumer (MM) and AllDay Supermarket (ALLDY) are the two new supermarket and retail business players that recently raised capital from the public stock market.  In their IPO, they envisioned delivering a world-class grocery experience to Filipinos.  With the capital raised from the public, they vowed to revolutionize the supermarket business and retailing. Legendary businessContinue reading “Valued 328PE, MM had to go down further to be at par with ALLDY’s 16PE”

Write-off of liabilities added 2.8B to Jollibee’s net income in 2021

For the year 2021, Jollibee reported a net income of 5.5 billion. But around half of that came from the write-off of liabilities amounting to 2.8 billion. The income from the write-off of liabilities is buried deep in the other income section of Jollibee’s financial statement. Jollibee had the income from the write-off of liabilitiesContinue reading “Write-off of liabilities added 2.8B to Jollibee’s net income in 2021”

APX Mining’s Q1 2022 operating cash flows is 2.7X last year’s

APX Mining has improved its Q1 2022 cash flows from operating activities to 1.04 billion from just 0.39 billions from last year. This is a significant milestone for APX. The strong cash flow from operations allowed APX to fund expenditures for mine development without borrowing from its banks. It also provides APX with extra fundsContinue reading “APX Mining’s Q1 2022 operating cash flows is 2.7X last year’s”

SCC, DMC’s main profit driver, could be facing an ABS-CBN type dilemma

Q1 2021 delivered the highest ever quarterly profit for DMC. DMC’s reported net income surged by 165% from 4.25 billion last year to 11.26 billion. Driving the profit growth is the coal mining and coal power unit, Semirara Mining & Power (SCC). SCC’s net income jumped 544% from 1.3 billion in Q1 2021 to 8.5Continue reading “SCC, DMC’s main profit driver, could be facing an ABS-CBN type dilemma”

Dividend lift fails to lift FGEN from oversold territory

FGEN raised its dividend to 0.35 a share from 0.3 a year earlier. But the move failed to raise FGEN out of the oversold territory. The reason for worry FGEN’s profit margin dropped to 31% in Q1 2022 from 42% in Q1 2021. Revenue rose for the period as compared to last year because theContinue reading “Dividend lift fails to lift FGEN from oversold territory”

CNVRG now looks like TEL less the dividends

Converge since its IPO has been aggressively expanding. In 2020 it spent 15 billion on capital expenditure and in 2021 19.8 billion. With cash flows from operations just half of the capital expenditures, CNVRG has been aggressively borrowing money from banks to fund capital expenditures. As of the end of Q1 2022, CNVRG had aContinue reading “CNVRG now looks like TEL less the dividends”

ACEN’s gross profit margin turns negative in Q1 2022

ACEN generated revenue from sale of electricity in Q1 2022 of 7.4 billion, an increase of 1.7 billion from last year. But the costs of selling electricity exceed the revenue from the sale of electricity. Costs of sale of electricity were at 7.7 billion pesos. The higher cost of electricity pushed ACEN’s gross profit intoContinue reading “ACEN’s gross profit margin turns negative in Q1 2022”

Divestments, not Acquisitions, power Jollibee’s net income in Q1 2022

Jollibee (JFC) has been touting its overseas expansion and acquisitions over the years. Over the years JFC acquired Milkshop, Tim Ho Wan, Coffee Bean and Tea Leaf, Smashburger among others. These acquisitions were expected to propel the growth of JFC’s bottom line and thus grow shareholder value. But the opposite seems to happen. In 2022Continue reading “Divestments, not Acquisitions, power Jollibee’s net income in Q1 2022”

Sales volume propels URC Q1 net income growth amidst margin squeeze

Inflation took a bite at URC’s profit margin. URC’s gross profit margin decreased by 274 basis points from 30.1% in 2021 Q1 to 27.3% in 2022 Q1. But despite the gross profit margin squeeze, URC is still able to grow its net income from continuing operations from 2.994 billion in 2021 Q1 to 3.578 billionContinue reading “Sales volume propels URC Q1 net income growth amidst margin squeeze”

PSEI to quickly surge past 7,500 if BBM starts with a 2028 election promise

The Philippines has the oldest democracy in Asia. But the country’s democracy was shattered when then-President Ferdinand Marcos declared Martial Law on September 21, 1972. Ferdinand Marcos ruled the Philippines until a People Power Revolution deposed him in February 1986. After Marcos was overthrown, the Filipinos rewrote the Constitution and limited the term of theContinue reading “PSEI to quickly surge past 7,500 if BBM starts with a 2028 election promise”

Strong cash flow is URC’s ammunition for growth, acquires Munchy

As can be seen from its financials in 2020, it is just a matter of time that URC strikes an acquisition.  Indeed URC signs a deal to acquire Munchy, Malaysia’s No. 1 biscuit maker, from CVC.  CVC is a global private equity giant in the league of KKR and Warburg Pincus. In 2020, URC boughtContinue reading “Strong cash flow is URC’s ammunition for growth, acquires Munchy”

Leviste’s Solar Nueva Ecija pulls an IPO bolder than Injap Sia’s MerryMart

Injap Sia pulled the public offering of MerryMart (MM) with a plan to reinvent the supermarket business to modern retail and a relatively small supermarket operation.  MM was offered at 1.0 a share but sizzled to a high of 8.56.  It is now trading at 3.15 levels, but it is still 3.15 times the offeringContinue reading “Leviste’s Solar Nueva Ecija pulls an IPO bolder than Injap Sia’s MerryMart”

Valuable ACEN shares as acquisitions currency show mastery of finance

Ayala’s strategy of hiring the smartest pays off.  ACEN, Ayala’s clean energy company, is a testament to that. Ayala infused its international clean energy assets to ACEN in exchange for shares valued at just 2.97 apiece.  Soon after, aided by the green energy PR, ACEN shares rose to 7-8 levels. Taking advantage of the highContinue reading “Valuable ACEN shares as acquisitions currency show mastery of finance”

GMA7’s empire ambitions may curtail distribution to shareholders

After the shutdown of ABS, GMA7 became the dominant television broadcaster and the primary source of free-to-air broadcasting within the country. The absence of a significant competitor allowed GMA7 to rack up revenue.  The substantial revenue improvement led to a strong cash flow from operations. The substantial improvement in cash flows from operations allowed GMA7Continue reading “GMA7’s empire ambitions may curtail distribution to shareholders”

DD needs fresh capital more than transformation announcement

On 19 November 2021, DoubleDragon (DD) announced that it had transformed from a property company to an investment holding company.  To signal its transformation, it dropped Properties in its name to just DoubleDragon Corporation. It seems that the market did not buy the transformation announcement.  DD continues to slide, hitting a 52-week low at 8.86Continue reading “DD needs fresh capital more than transformation announcement”

WLCON may be heading for a correction

Year-to-date Wilcon Depot (WLCN) has risen 93.03%. The market has placed a significant premium on WLCON. Its resiliency against the pandemic gave WLCON the premium. Despite the pandemic, WLCON has shown robust results, and the company is aggressively expanding. At the current price, the market has valued WLCON at 50.85 times earnings. At 30 PesosContinue reading “WLCON may be heading for a correction”

LTG yields 10.58%

LT Group (LTG) has been recently severely battered by net foreign selling. One year net foreign selling amounted to 3.97 Billion. The heavy foreign selling dropped LTG to a 52-week low of 8.50. As a result, LTG’s valuation dropped below its book value. LTG is currently trading at 0.5982 to book value. LTG is aContinue reading “LTG yields 10.58%”