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Eagle Cement Corporation
#1
Ang’s Eagle sees Philippine cement boost on Duterte infrastructure plan

PHILIPPINE TYCOON Ramon S. Ang’s cement company is betting that a $169-billion spending spree by President Rodrigo Duterte on infrastructure will spur sales to a record this year.

Sales will probably rise to 4 million metric tons in 2017 from 3 million metric tons last year at Eagle Cement Corp., outpacing the industry’s growth, company President Paul Ang said in an interview in Makati City. The company, poised this week to price the nation’s largest initial public offering in 2017, is expanding its production capacity to meet demand.

“Demand in the past several years has really been driven by private consumption,” Mr. Ang, the eldest of San Miguel Corp. President Ramon Ang’s eight children, said April 20. “Imagine how much more this industry can grow if government spends what it plans to on infrastructure.”

Demand for cement is rising as the Philippines plans to invest P8.4 trillion ($169 billion) to build airports, railways, roads, bridges and subways during Duterte’s six-year term. The increased demand helped boost Eagle’s first-quarter profit by about 25% to P1 billion from a year earlier, the 37-year-old Mr. Ang said.

Eagle and the Ang family, through Far East Cement Corp., plan to sell as many as 575 million shares at up to P16 each in its initial share sale next month. Eagle may get proceeds of up to P8 billion from the total of as much as P9.2 billion.

DISTRESSED PLANT

The younger Ang said he took a loan from his father in 2002 to revive a distressed cement plant in the Malaysian state of Sarawak, turned the company around, and sold it to set up Eagle.

The cement maker’s plant in Bulacan province, north of capital Manila, has capacity of 5.1 million metric tons, and a new production line there will add 2 million tons by 2018. It’s also building a plant in the central province of Cebu to boost capacity by another 2 million tons.

The excess capacity will help Eagle tap markets outside the Philippines’ main island of Luzon, which accounts for two-thirds of the nation’s total demand, according to Mr. Ang.

“I am building now even before demand kicks in,” Mr. Ang said. “By 2020, I would be sold out in Luzon if I don’t start building again.”


source: http://www.bworldonline.com/content.php?...&id=144284


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#2
Ang’s Eagle Cement willing to raise public float

BUSINESS TYCOON Ramon S. Ang’s Eagle Cement Corp. (ECC) is willing to hike its public float once the country’s corporate regulator issues rules raising the minimum public ownership requirement for companies applying to join the bourse.

ECC President and Chief Executive Officer John Paul L. Ang said they would be the first to comply when the Securities and Exchange Commission (SEC) comes out with rules requiring listing applicants to sell at least 15% of their issued and outstanding common shares. Under the current rule, listing applicants are only required to sell a minimum of 10% of their shares.

“We will comply kung kailangan i-akyat later on, kung batas yan... Yun ang problema, di ko kailangan cash masyado (We will comply if we need to raise it later, if it’s a rule. But it’s a problem since we don’t need that much cash),” Mr. Ang told reporters on April 26.

The cement manufacturer recently gained approval from the SEC for its IPO.

ECC is set to debut on the stock exchange by mid May, where it seeks to raise a maximum of P9.2 billion from the initial public offer (IPO) of 575 million common shares priced at P16 apiece, according to its prospectus. This comprises only 11.5% of the company’s total outstanding 5,000,000,005 common shares.

Earlier, SEC Chairperson Teresita J. Herbosa announced plans to require companies with proposed IPOs to allocate 15% of their issued and outstanding common shares for the investing public. Firms already listed will have to gradually raise minimum public float to 30% from 10%.

Asked on how the company will use the additional funds should ECC increase its float, Mr. Ang said it will be allotted for expansion, noting they have “high prospects” for a second site in Visayas.

“The way for me to grow right away is to go to Visayas-Mindanao. Malaki ang shortage dun eh (There’s a big shortage there). They’re importing to cope up with demand in VisMin, so we will build... We have always been aggressive,” Mr. Ang said.

Proceeds of the IPO will be used for the construction of a cement plant in Cebu by the fourth quarter of 2017. The plant is targeted to be operational by the first quarter of 2020, and will have a capacity of 2 million metric tons.

The integrated cement manufacturer currently has a production plant in San Ildefonso, Bulacan, which can produce about 5.1 million metric tons (MT) or 130 million bags annually. A third production line, set to be operational by 2018, will bring the firm’s total capacity to 7.1 million MT or 180 million bags.

As early as last year, the SEC had wanted to hike the minimum public float requirement for new listings. However, adverse market conditions prompted the corporate regulator to delay the action.

Ms. Herbosa wants the minimum public float requirement raised to 20% before ending her seven-year term in May next year, as part of efforts to encourage more Filipinos to participate in the capital markets.

The SEC and PSE have long said the minimum public float could rise further after they reinstated the 10% floor in 2011 in a bid to improve liquidity and increase public participation in the local equities market.


source: http://www.bworldonline.com/content.php?...&id=144491
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#3
Eagle Cement moves stock listing date...

http://www.philstar.com/business/2017/04...sting-date

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#4
wala ba interested dito? pricing na bukas...

http://edge.pse.com.ph/openDiscViewer.do...1c9257320d
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#5
(05-10-2017, 10:38 PM)leonaguila07 Wrote: wala ba interested dito? pricing na bukas...

http://edge.pse.com.ph/openDiscViewer.do...1c9257320d


final IPO price is at PhP15...
subscription now open at FirstMetro Sec..
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#6
sino nabigyan? hindi pala ako kumuha. 16 na daw ung OTC as per tsismis sa PSE.
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#7
Huh China Bank said it was over subscribed. I was allocated 1,800 shares with lots of documents to sign. Angry
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#8
(05-18-2017, 04:24 PM)Gavh1208 Wrote: sino nabigyan? hindi pala ako kumuha. 16 na daw ung OTC as per tsismis sa PSE.

got some shares from philstocks Smile
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#9
mas madame binigay ng bdo nomura, goodluck sa akin sa Monday!! fly fly EAGLE
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#10
...buti pa 'to kumita, sila CHP HLCM lugi Tongue

Eagle Cement nets P3.3B

Cement-maker Eagle Cement Corp. saw an 8-percent year-on-year growth in nine-month net profit to P3.3 billion as the company expanded sales volume despite cutthroat competition.

Excluding one-off items, such as initial public offering expenses, Eagle’s core net profit rose by 10 percent while cash flow margins remained robust, the company disclosed to the Philippine Stock Exchange on Friday.

Earnings before interest, taxes, depreciation and amortization (EBITDA) and EBIT margins in the nine-month period remained high at 44 percent and 39 percent, respectively.

The cement-maker grew net sales by 12 percent year-on-year to P11.24 billion, driven by more than 20-percent expansion in sales volume of bagged and bulk cement, partially offset by a decline in the average selling price of cement versus last year’s average.

“The industry-wide concern on flooding of imports is continuing to put pressure on prices. Nevertheless, Eagle’s advantage of having a new and state-of-the-art plant as well as its prudent cost structure, help keep the profitability above expectation,” the company said.

“Also, with its third production line in Bulacan to be commissioned in 2018, Eagle is best poised to withstand the imports threat,” it added.

Cost of goods sold for the nine months ending September went up by 19 percent, slower than the 23-percent increase in volume due to a lower cost per bag, which the company said was reflective of its effective cost management efforts. As a result, gross profit increased by 5 percent to P5.37 billion in the first nine months of 2017 at a gross margin rate of 48 percent.


source: http://business.inquirer.net/240483/eagl...nets-p3-3b
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