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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”

Surging coal could hurt AP, ACEN

Coal prices continue to surge. The rising coal price raises the fuel cost of coal-fired power plants. Notable publicly listed companies operating base-load coal plants are Aboitiz Power Corporation (AP) and AC Energy Corporation (ACEN). Semirara Mining and Power Corporation (SCC) is predominantly a coal miner with coal-fired power plants. ACEN operates the base loadContinue reading “Surging coal could hurt AP, ACEN”

Razon vs. Lopezes: diverging governance practices, diverging fortunes

Razon’s international Container Terminal Services (ICT) bought back 5,970,990 ICT shares at 191 per share from subsidiary IWI Container Terminal Holdings. The transaction valued at 1.1 Billion Pesos was crossed at the Philippine Stock Exchange on 17 September 2021. The transaction was brought about by the desire of the Razon controlled ICT to adopt theContinue reading “Razon vs. Lopezes: diverging governance practices, diverging fortunes”

AEV learns from Transport/2GO experience, cashes out portion of Power while value is still high

In 2010 Aboitiz Equity Ventures (AEV) sold Aboitiz Transport System operating under the 2GO brand to Negros Navigation Co. (NENACO) for 3.5 Billion Pesos. AEV incurred a loss of 74.6 Million Pesos on the sale of 2GO. The loss may have been small, but AEV made an impairment charge before that of 2.1 Billion Pesos.Continue reading “AEV learns from Transport/2GO experience, cashes out portion of Power while value is still high”

ESG repercussions – Cryptos going zero

Environmental, social and governance (ESG) guidelines for investing could bring cryptocurrencies to zero. Crypto mining underpins the existence of the crypto. Crypto mining is the computing process in the creation of a cryptocurrency and in the verification of a cryptocurrency transaction. It is an energy-intensive computing process. To save costs from its massive energy consumption,Continue reading “ESG repercussions – Cryptos going zero”

ABS may need a “white knight” to continue as a going concern

SGV, the independent auditor of ABS, has declared that a material uncertainty exists that may cast significant doubt on ABS’ ability to continue as a going concern. This is after ABS registered a net loss of 13.5 Billion Pesos in the year 2020. Earlier in the year 2020, ABS said that it will adopt andContinue reading “ABS may need a “white knight” to continue as a going concern”

GMA7 clocks an 18% yield but faces a significant risk of a huge capital loss

The ascent of GMA7 to the present level of 7.48 Pesos a share could have been driven by the fall of its larger competitor, ABS. With its larger competitor off the air, most investors may have flock to GMA7 believing that broadcast ad placements will migrate to GMA7. Indeed, for the 9-month period ending 30Continue reading “GMA7 clocks an 18% yield but faces a significant risk of a huge capital loss”

Ayala’s (AC) investment in Myanmar in peril as political turmoil develops; AC borrowed money for the Myanmar investments

Ayala Corp. invested US$108.6 Million in Yoma Strategic Holdings Ltd. (YSH) and US$82.5 Million in First Myanmar Investment Public Co. (FMI).  Those investments are part of the agreed US$237.5 Million investment into the Yoma Group by Ayala Corp. Yoma Strategic Holding Ltd. is a Singapore listed conglomerate but gets all of its revenue from MyanmarContinue reading “Ayala’s (AC) investment in Myanmar in peril as political turmoil develops; AC borrowed money for the Myanmar investments”