Government and agriculture down
3Q14 GDP growth reached 5.3%, below consensus forecast of 6.4%. Weak spending from the government was largely responsible for the below expected GDP growth. During 3Q14, government spending dropped by 2.6%, sustaining the weakness displayed during the first half. For the first nine months of the year, government spending fell by 0.1%. Weakness of agriculture also dragged GDP growth. During 3Q14, agriculture spending fell 2.7%. On the positive side, consumer spending remained resilient while exports continued to grow. Consumer spending increased by 5.2% during 3Q14, after growing by 5.8% in 1Q14 and 5.3% in 2Q14. Exports rose by 9.8% during 3Q14, after increasing by 12.6% in 1Q14 and 10.3% in 2Q14. Capital formation also rebounded, rising by 3.6% in 3Q14, after falling by 2.4% in 2Q14. Growth was driven by the rebound of the construction as construction spending of the private sector increased by 15.7%, offsetting the 6.2% drop in construction spending of the public sector. By industrial origin, the manufacturing industry also remains strong with 3Q14 growth reaching 7.2%.
Maintaining positive long term growth outlook
Despite the disappointing 3Q14 GDP growth number, we maintain our positive longer term view of the economy. As discussed earlier, the weak 3Q14 GDP growth number was largely due to weaker government spending. Unlike in the past, this was not due to the weakness of government finances but rather delays in disbursement of funds. The said problem is easier to address in our opinion. Outside of the government, other drivers of economic growth remained strong. Consumer spending remained resilient, exports continued to pick up, while investment spending rebounded. The manufacturing and construction sectors also continued to grow significantly
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- COL Financial
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Thursday, November 27, 2014
Monday, November 24, 2014
Ayala sees completion of Daang Hari-SLEX toll road no later than March next year
The Aquino administration's first public private partnership (PPP) project is set to open in the first quarter of next year.
In a briefing today, AC Infrastructure Holdings Inc president Noel Kintanar said construction of the Muntinlupa Cavite Expressway (MCX), formerly known as Daang Hari-SLEX Connection Road is scheduled for completion in the next three to four months.
The road will connect Muntinlupa City to Cavite through Bacoor. As of November, construction was over 60 percent complete.
Kintanar said the toll for the four-kilometer, four-lane road would be set at P17 for Class 1 vehicles, and P34 for Class 2 vehicles. Daily vehicle traffic at the toll road is expected to reach 50,000.
MCX would relieve traffic congestion along the Daang Hari Road and Commerce Avenue, giving commuters from the Cavite towns of Molino and Bacoor faster and easier access to the South Luzon Expressway.
The first PPP venture that the Aquino administration bid out, the Daang Hari-SLEX Link was supposed to have been completed in the third quarter of this year but the private contractor moved its timetable because of delays in securing a right of way with South Luzon Tollways Corp (SLTC). Controlled by San Miguel Corp, SLTC operates SLEX.
Both parties agreed on the interconnection only in December last year.
Ayala-owned AC Infrastructure bagged the project linking Cavite to Metro Manila through SLEX in December 2011.
The conglomrate invested around P2.2 billion in the project, which it will operate and maintain for 30 years.
The road will provide southern Metro Manila with a high-standard highway within a 200-kilometer radius of the Philippine capital and will serve as an alternative route to Cavite, decongesting traffic in some parts of the province and Las Pinas and Muntinlupa, specifically the Alabang-Zapote Road and Commerce Avenue.
- Interaksyon
In a briefing today, AC Infrastructure Holdings Inc president Noel Kintanar said construction of the Muntinlupa Cavite Expressway (MCX), formerly known as Daang Hari-SLEX Connection Road is scheduled for completion in the next three to four months.
The road will connect Muntinlupa City to Cavite through Bacoor. As of November, construction was over 60 percent complete.
Kintanar said the toll for the four-kilometer, four-lane road would be set at P17 for Class 1 vehicles, and P34 for Class 2 vehicles. Daily vehicle traffic at the toll road is expected to reach 50,000.
MCX would relieve traffic congestion along the Daang Hari Road and Commerce Avenue, giving commuters from the Cavite towns of Molino and Bacoor faster and easier access to the South Luzon Expressway.
The first PPP venture that the Aquino administration bid out, the Daang Hari-SLEX Link was supposed to have been completed in the third quarter of this year but the private contractor moved its timetable because of delays in securing a right of way with South Luzon Tollways Corp (SLTC). Controlled by San Miguel Corp, SLTC operates SLEX.
Both parties agreed on the interconnection only in December last year.
Ayala-owned AC Infrastructure bagged the project linking Cavite to Metro Manila through SLEX in December 2011.
The conglomrate invested around P2.2 billion in the project, which it will operate and maintain for 30 years.
The road will provide southern Metro Manila with a high-standard highway within a 200-kilometer radius of the Philippine capital and will serve as an alternative route to Cavite, decongesting traffic in some parts of the province and Las Pinas and Muntinlupa, specifically the Alabang-Zapote Road and Commerce Avenue.
- Interaksyon
Thursday, November 20, 2014
SM Prime to open 5 new malls next year
SM Prime Holdings Inc. (SMPH), the umbrella property firm of the SM Group, will continue growing its empire of malls with the planned opening of four to five new branches next year.
Jeffrey C. Lim, chief finance officer of SM Prime, said four of the five malls would be situated in the country, while one would open in China.
“We’re opening four or five, including Tianjin,” Lim said in an interview on the sidelines of yesterday’s ING Finex CFO of the Year Awards.
For the local sites, Lim cited Cebu and Cabanatuan as sure locations for the upcoming malls along with the planned expansion of its mall in Bulacan.
“Given the size that we have now, the new malls would increase our gross floor area (GFA) by another eight percent,” he said.
Over the long term, SM Prime earlier said it intends grow its malls to 85 (74 in the Philippines and 11 in China) with a GFA of 6.95 million square meters (sqm) in 2018.
SM Prime recently opened SM Center Angono in Rizal, its 50th mall in the Philippines.
SM Prime built its very first mall in 1983 on North EDSA and opened it two years after, starting with a GFA of only 125,000 sqm.
Among its 50 malls in the Philippines, three are included on the world’s 10 largest malls, one of which includes SM North EDSA.
The other two are SM Megamall and SM Mall of Asia. Together, these three malls have a combined GFA of 1.4 million sqm.
“We are committed to continue our expansion towards the provincial areas which remains our strategic direction in the Philippines. In almost 30 years, SM Malls have become an important element in every community. We will also continue to expand and improve the look and feel of our existing malls to keep them current and exciting for our customers,” SM Prime president Hans T. Sy said earlier in a statement.
- ABS-CBN News
Jeffrey C. Lim, chief finance officer of SM Prime, said four of the five malls would be situated in the country, while one would open in China.
“We’re opening four or five, including Tianjin,” Lim said in an interview on the sidelines of yesterday’s ING Finex CFO of the Year Awards.
For the local sites, Lim cited Cebu and Cabanatuan as sure locations for the upcoming malls along with the planned expansion of its mall in Bulacan.
“Given the size that we have now, the new malls would increase our gross floor area (GFA) by another eight percent,” he said.
Over the long term, SM Prime earlier said it intends grow its malls to 85 (74 in the Philippines and 11 in China) with a GFA of 6.95 million square meters (sqm) in 2018.
SM Prime recently opened SM Center Angono in Rizal, its 50th mall in the Philippines.
SM Prime built its very first mall in 1983 on North EDSA and opened it two years after, starting with a GFA of only 125,000 sqm.
Among its 50 malls in the Philippines, three are included on the world’s 10 largest malls, one of which includes SM North EDSA.
The other two are SM Megamall and SM Mall of Asia. Together, these three malls have a combined GFA of 1.4 million sqm.
“We are committed to continue our expansion towards the provincial areas which remains our strategic direction in the Philippines. In almost 30 years, SM Malls have become an important element in every community. We will also continue to expand and improve the look and feel of our existing malls to keep them current and exciting for our customers,” SM Prime president Hans T. Sy said earlier in a statement.
- ABS-CBN News
Max's snags SEC approval of maiden share sale
The Securities and Exchange Commission (SEC) has cleared the share sale of Max's Group Inc, its first fundraising in the stock market since taking over Pancake House Inc.
In a text message, SEC commission secretary Gerard Lukban said the corporate regulator approved the P4.6-billion equity offering of the homegrown casual dining restaurant operator in a meeting today.
Documents from the SEC show Max's will sell 300.14 million shares at P15.33 apiece or 155.93 million shares at P29.50 each. However, the listed firm recently announced the reduction in the maximum price of its share sale to P21.75 per share.
BPI Capital Corp was tapped as bookrunner, issue manager and lead underwriter for the transaction.
Net proceeds from the primary component of the offering will fund the expansion of stores and commissaries, working capital and other general corporate purposes. Proceeds from the secondary share sale will be used to settle a portion of the debt incurred to pay for the acquisition of a controlling interest in Pancake House.
Max’s completed the takeover of Pancake House in February, acquiring 89.95 percent of the listed firm's outstanding capital stock to become the biggest player in the local casual dining restaurant category with an aggregate market share of 28.3 percent in terms of sales value for 2013.
In August, the SEC approved the capital stock hike of Pancake House, allowing the Max's Group of Companies to fold all its restaurant business under the listed firm. It now owns Max's Restaurant, Max's Corner Bakery, Krispy Kreme, Jamba Juice, Pancake House, Dencio's, Kabisera ng Dencio's, Teriyaki Boy, Sizzlin' Pepper Steak, Le Coeur De France, The Chicken Rice Shop, Singkit, Maple and Yellow Cab.
Brands under Pancake House suffered losses of P31.36 million in the first nine months of the year, a reversal of the net income of P116.11 million a year ago, as the Max's Group streamlined operations following its takeover early this year.
- Interaksyon
In a text message, SEC commission secretary Gerard Lukban said the corporate regulator approved the P4.6-billion equity offering of the homegrown casual dining restaurant operator in a meeting today.
Documents from the SEC show Max's will sell 300.14 million shares at P15.33 apiece or 155.93 million shares at P29.50 each. However, the listed firm recently announced the reduction in the maximum price of its share sale to P21.75 per share.
BPI Capital Corp was tapped as bookrunner, issue manager and lead underwriter for the transaction.
Net proceeds from the primary component of the offering will fund the expansion of stores and commissaries, working capital and other general corporate purposes. Proceeds from the secondary share sale will be used to settle a portion of the debt incurred to pay for the acquisition of a controlling interest in Pancake House.
Max’s completed the takeover of Pancake House in February, acquiring 89.95 percent of the listed firm's outstanding capital stock to become the biggest player in the local casual dining restaurant category with an aggregate market share of 28.3 percent in terms of sales value for 2013.
In August, the SEC approved the capital stock hike of Pancake House, allowing the Max's Group of Companies to fold all its restaurant business under the listed firm. It now owns Max's Restaurant, Max's Corner Bakery, Krispy Kreme, Jamba Juice, Pancake House, Dencio's, Kabisera ng Dencio's, Teriyaki Boy, Sizzlin' Pepper Steak, Le Coeur De France, The Chicken Rice Shop, Singkit, Maple and Yellow Cab.
Brands under Pancake House suffered losses of P31.36 million in the first nine months of the year, a reversal of the net income of P116.11 million a year ago, as the Max's Group streamlined operations following its takeover early this year.
- Interaksyon
Thursday, November 13, 2014
Jollibee allots P9.1 billion for 2015 capex
Jollibee Foods Corp. (JFC) posted a 15 percent increase in its profit for the third quarter of the year on the back of higher revenues and improved operating margin.
JFC, the country's largest food service company, said its net income attributable to equity holders of the parent jumped to P1.17 billion for the third quarter of 2014 from the P1.02 billion posted in the same period last year.
Revenues reached P22 billion in the period, 11.6 percent higher than the P19.8 billion recorded last year.
Its operating margin improved to 6.4 percent this year from the 6.1 percent last year.
From January to September, JFC's net income attributable to equity holders of the parent surged 16.5 percent to P3.6 billion from the P3.1 billion in the same period in 2013.
JFC saw a 12 percent increase in its system wide sales, a measure of all sales to consumers, both from company-owned stores and franchised stores, as its Philippine business grew by 13 percent and the foreign business by 9.6 percent.
“The growth was driven by a 7 percent to 8 percent same store sales growth and a 5.7 percent growth in store network,” the company said in a disclosure to the stock exchange.
Same store sales growth refers to sales from restaurants that were already open for at least 15 months, excluding sales growth from new store opening.
For the first nine months of the year, JFC's sales rose by 13.6 percent consisting of a 13.4 percent domestic growth rate and a 14.5 percent growth abroad.
JFC operates the largest food service network in Philippines. The Jollibee Group opened 148 new stores in the first nine months of the year, of which 114 were in the Philippines and 34 were in foreign operations.
As of end-September, the JFC Group has 2,258 stores nationwide under the brands Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, and Burger King. It has a total of 2,849 stores worldwide.
2015 capex
JFC said its board of directors approved a capital expenditure budget of P9.1 billion for 2015, 42 percent higher than the estimated P6.3 billion spending this year.
The firm said that P6.7 billion of the amount will be spent for its operations in the Philippines, P1.7 billion for China and the balance for the US and Southeast Asia and the Middle East.
“The 2015 capital expenditures will be mostly for the store openings in the Philippines and foreign operations, store renovations in the Philippines and abroad, investments in commissary construction and commissary capacity increase in the Philippines,” JFC said.
It added that the investments will be financed by its cash reserves and cash expected to be generated from next year's operations.
- ABS-CBN News
JFC, the country's largest food service company, said its net income attributable to equity holders of the parent jumped to P1.17 billion for the third quarter of 2014 from the P1.02 billion posted in the same period last year.
Revenues reached P22 billion in the period, 11.6 percent higher than the P19.8 billion recorded last year.
Its operating margin improved to 6.4 percent this year from the 6.1 percent last year.
From January to September, JFC's net income attributable to equity holders of the parent surged 16.5 percent to P3.6 billion from the P3.1 billion in the same period in 2013.
JFC saw a 12 percent increase in its system wide sales, a measure of all sales to consumers, both from company-owned stores and franchised stores, as its Philippine business grew by 13 percent and the foreign business by 9.6 percent.
“The growth was driven by a 7 percent to 8 percent same store sales growth and a 5.7 percent growth in store network,” the company said in a disclosure to the stock exchange.
Same store sales growth refers to sales from restaurants that were already open for at least 15 months, excluding sales growth from new store opening.
For the first nine months of the year, JFC's sales rose by 13.6 percent consisting of a 13.4 percent domestic growth rate and a 14.5 percent growth abroad.
JFC operates the largest food service network in Philippines. The Jollibee Group opened 148 new stores in the first nine months of the year, of which 114 were in the Philippines and 34 were in foreign operations.
As of end-September, the JFC Group has 2,258 stores nationwide under the brands Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, and Burger King. It has a total of 2,849 stores worldwide.
2015 capex
JFC said its board of directors approved a capital expenditure budget of P9.1 billion for 2015, 42 percent higher than the estimated P6.3 billion spending this year.
The firm said that P6.7 billion of the amount will be spent for its operations in the Philippines, P1.7 billion for China and the balance for the US and Southeast Asia and the Middle East.
“The 2015 capital expenditures will be mostly for the store openings in the Philippines and foreign operations, store renovations in the Philippines and abroad, investments in commissary construction and commissary capacity increase in the Philippines,” JFC said.
It added that the investments will be financed by its cash reserves and cash expected to be generated from next year's operations.
- ABS-CBN News
Growth in Metro Manila leads increase in Manila Water's nine-month income
Higher billed volumes at its Metro Manila concession pushed up Manila Water Co Inc's earnings in the first nine months of the year.
In a financial report, Manila Water said its net income increased by 7 percent to P4.6 billion in the January to September period from P4.3 billion in the same nine months of last year.
The increase was driven largely by operating revenues growing by about the same level to P12.2 billion from P11.5 billion in 2013.
The bulk of Manila Water's operating revenues comprises water bills, which account for 79 percent of the total. The rest comes from environmental and sewer charges, connection fees, and management contracts.
The improved operating revenue was brought about by a 3.5 percent growth in the billed volume at the east zone concession of state-run Metropolitan Waterworks and Sewerage System.
The Ayala-led company derived 88 percent of its earnings from the MWSS concession.
Besides growth from its Metro Manila and Rizal operations, contribution from the utility's other domestic subsidiaries rose 48 percent year-on-year to P1 billion.
Likewise, Manila Water's subsidiaries in Vietnam --Thu Duc Water and Kenh Dong Water, together with Saigon Water Infrastructure -- contributed P263 million in earnings, up 27 percent from the previous year.
Manila Water aims to spend P5 billion this year for the rehabilitation and construction of facilities to improve water and sewer services in its MWSS concession area.
- Interaksyon
In a financial report, Manila Water said its net income increased by 7 percent to P4.6 billion in the January to September period from P4.3 billion in the same nine months of last year.
The increase was driven largely by operating revenues growing by about the same level to P12.2 billion from P11.5 billion in 2013.
The bulk of Manila Water's operating revenues comprises water bills, which account for 79 percent of the total. The rest comes from environmental and sewer charges, connection fees, and management contracts.
The improved operating revenue was brought about by a 3.5 percent growth in the billed volume at the east zone concession of state-run Metropolitan Waterworks and Sewerage System.
The Ayala-led company derived 88 percent of its earnings from the MWSS concession.
Besides growth from its Metro Manila and Rizal operations, contribution from the utility's other domestic subsidiaries rose 48 percent year-on-year to P1 billion.
Likewise, Manila Water's subsidiaries in Vietnam --Thu Duc Water and Kenh Dong Water, together with Saigon Water Infrastructure -- contributed P263 million in earnings, up 27 percent from the previous year.
Manila Water aims to spend P5 billion this year for the rehabilitation and construction of facilities to improve water and sewer services in its MWSS concession area.
- Interaksyon
Tuesday, November 11, 2014
Filinvest Land profit jumps 19 pct in Jan-Sept
Gotianun family-led residential developer Filinvest Land Inc. (FLI) reported its 9-month consolidated net income rose 19 percent to P2.89 billion.
In a statement, FLI said its revenues grew by 27 percent to P11.82 billion from January to September, on the back of continued growth in its residential business and office leasing operations.
Real estate revenues jumped 31 percent in the 9-month period to P9.16 billion, driven by strong sales in its horizontal housing projects and medium-rise building projects under the "Oasis" brand and high-rise buildings such as "Studio Zen."
Revenues from rental assets increased 10 percent to P1.65 billion in the January to September period. This after FLI recognized additional revenues from its new office buildings “Filinvest One” and “Plaz@ E” at Northgate Cyberzone located in Filinvest City, Alabang.
"We believe that the rental business will provide the stability of revenue streams. This is why a significant amount of our capex will be earmarked for investment properties. We are targeting to increase our gross leasable area to about 995,000 square meters within five years, which is almost 3 times our current office and retail space inventory," FLI CEO and President Josephine Gotianun Yap said.
FLI said it is on track to launch P17.5 billion worth of residential projects this year. Among the projects launched so far is 100 West, a mixed-use development high-rise tower along Sen. Gil Puyat Avenue in Makati.
"We are confident of sustained growth for the company as we continue to launch new residential projects and execute our plans to increase offices as well as retail spaces in key locations nationwide," Gotianun Yap said.
- ABS-CBN News
In a statement, FLI said its revenues grew by 27 percent to P11.82 billion from January to September, on the back of continued growth in its residential business and office leasing operations.
Real estate revenues jumped 31 percent in the 9-month period to P9.16 billion, driven by strong sales in its horizontal housing projects and medium-rise building projects under the "Oasis" brand and high-rise buildings such as "Studio Zen."
Revenues from rental assets increased 10 percent to P1.65 billion in the January to September period. This after FLI recognized additional revenues from its new office buildings “Filinvest One” and “Plaz@ E” at Northgate Cyberzone located in Filinvest City, Alabang.
"We believe that the rental business will provide the stability of revenue streams. This is why a significant amount of our capex will be earmarked for investment properties. We are targeting to increase our gross leasable area to about 995,000 square meters within five years, which is almost 3 times our current office and retail space inventory," FLI CEO and President Josephine Gotianun Yap said.
FLI said it is on track to launch P17.5 billion worth of residential projects this year. Among the projects launched so far is 100 West, a mixed-use development high-rise tower along Sen. Gil Puyat Avenue in Makati.
"We are confident of sustained growth for the company as we continue to launch new residential projects and execute our plans to increase offices as well as retail spaces in key locations nationwide," Gotianun Yap said.
- ABS-CBN News
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