*on buyback* Megawide Construction Corp.
Megawide to raise P3B via notes issue

MEGAWIDE CONSTRUCTION Corp., a contractor of listed property firm SM Development Corp., plans to sell as much as P3 billion worth of corporate notes to raise funds with its board yesterday approving the move.

The board of directors allowed executives “to enter a notes facility agreement and issue fixed-rate corporate notes of up to P3 billion,” the construction firm said in a disclosure yesterday.

“The board also approved a first drawdown of up to P1 billion to replace existing/maturing obligations,” it added.

The initial drawdown is slated within the month while the entire drawdown period is expected to span five years, Manuel Louie B. Ferrer, vice-president for marketing of Megawide Construction, said in a telephone interview yesterday.

Future fund-raising plans will have to be approved by the board.

So far, Megawide Construction has P1 billion in maturing debts, Mr. Ferrer said.

Subsequent drawdowns shall be subject to the board of directors’ approval.

In April, Megawide Construction announced its plans to raise more cash through notes for its working capital.

This, as the firm is eyeing P2.02 billion in capital spending this year.

It expects to complete negotiations for P5 billion worth of residential projects with four developers this quarter, according to earlier reports.

The added business will allow the listed construction firm to diversify its customer base, officials had said.

The projects under negotiations will be located in Makati, Quezon City and Manila, Megawide Construction Chairman Michael C. Cosiquien said.

The client base of the company so far includes the Antel Group, the Bench Group, Prince Jun Development Group, Bellevue Hotel Group, Malate Bayview Group, Goldland Properties and Dynamic Realty.

Megawide Construction started operations just before the Asian financial crisis in 1997 with a P5.5-million, three-storey building as its first project.

Shares in Megawide Construction, which has a market value of P8.74 billion, rallied by 2.94% or 30 centavos to close at P10.50 each yesterday. -- N. J. C. Morales with a report from FJGDLF

Mukhang naka hanap ng pera ang MWIDE, naka loan. Stock Div na ba kasunod? haha!
The World is a Vampire . . .
patiently waiting on your stock div date hehe... Big Grin
Date: August 30, 2011

Batting for the big league
Construction and engineering firm Megawide Construction Corp.—apart from enlisting the family of tycoon Henry Sy as a strategic investor during its stock market debut earlier this year—is bringing in a Japanese partner to flesh out plans to venture into infrastructure-building.
Industry sources said the company would now like to seek an active role as a proponent of some public-private partnership (PPP) projects and not just rely on winning bidders to award big-ticket deals to contractors like itself.
Industry sources said Megawide earlier had “formal” talks with its prospective Japanese partner and was now finalizing the tie-up. With the technical and financial muscle from the Japanese partner, Megawide is positioning for large-scale PPP projects.
The first on Megawide’s plate is the P1.96-billion Daang Hari-South Luzon Expressway project, which aims to ease and decongest traffic in Cavite, Las Piñas and Muntinlupa. A source confirmed that Megawide was among the 18 groups keen on bidding for this road project—the first in the PPP pipeline, which everyone hopes to see moving faster to convert what is often jokingly referred to as “Puro Powerpoint Presentation” into reality.—Doris C. Dumlao

the key to trading success is to focus on how much money is at risk, not how much money you can make.

trading is simple, but it's not easy. if you want to stay in the business, leave hope at the door, focus on specific setups, and stick to your stops.
Listed firms grew core earnings 7.1% in H1
Mining, utilities, property ‘impressed the most’
By: Doris C. Dumlao
Philippine Daily Inquirer
12:13 am | Monday, September 5th, 2011
0 shareNew 0

Corporate Philippines grew average core earnings by about 7.1 percent in the first semester compared with a year ago, with mining, utilities and property outperforming other sectors, a new research by investment house CLSA said.

In an assessment made by the CLSA research team led by analyst Alfred Dy as the recent reporting season of publicly listed companies ended, corporate earnings for the second quarter alone were estimated to have grown an average 18.6 percent year on year.

While mining, utilities and property were cited by the August 26 report as the sectors that “impressed the most,” cited as “laggards” were construction and building materials, media and power.

The interim results were in line with CLSA’s forecast of a growth of 6 percent in corporate Philippines’ core earnings per share (EPS) this year and 15.6 percent by 2012.

Excluding telecom companies, core EPS growth was projected at 6.8 percent for 2011 and 18.1 percent in 2012.

In the first six months, the research noted that the mining, utilities and property sectors stood out with their respective earnings growth levels of 126.4 percent, 40.7 percent and 30.1 percent.

On the other hand, CLSA noted a slowdown in earnings by construction and building materials (-44.1 percent), media (-30.9 percent) and power (-29.3 percent).

For the second quarter alone, mining and utilities still led the outperformers with their respective earnings increases of 90.9 percent and 52.5 percent. The banking sector likewise impressed investors with a 30.2-percent average growth in second-quarter earnings.

The laggards for the quarter were still construction and building materials (-49.2 percent), media (-39.3 percent), and power (-5 percent).

In terms of specific companies, CLSA said the most impressive in the first semester in terms of earnings growth were Philex Mining (+233.6 percent), Nickel Asia (+148.9 percent), Pheonix Petroleum (+125.6 percent), Semirara Mining (+79.6 percent), and SM Development (+53.9 percent).

On the other hand, cited as the first-semester laggards given a decline in profit were Energy Development Corp. (-57.7 percent), Holcim (-49.7 percent), Belle Corp (-43.7 percent), First Gen (-38 percent) and GMA Holdings (-37.5 percent).

For the second quarter, CLSA said the most impressive in terms of earnings growth were: Philex (+330 percent), First Philippine Holdings (+119.8 percent), Metrobank (+89.5 percent), Phoenix Petroleum (+84 percent) and Megawide Construction (+83.8 percent).

CLSA noted that the second-quarter laggards given their respective earnings contraction were Holcim (-54.9 percent), Energy Development Corp. (-51.1 percent), ABS-CBN (-40.5 percent), GMA Holdings (-37.6 percent), Belle Corp. (-23 percent) and Cebu Air (-23 percent).
Congratz MWIDE holders. nice GREEN candle pointing UP in the sky.
still holding small share @ 8.4573
i also have little...i still want to accumulate. i believe MWIDE has a strong foundation before constructing another strong one. rgds everyone and to admin.
ako waiting for the div announcement para maka unload. Also willing to accumulate below 10.
The World is a Vampire . . .

Expansion for long term benefit. Megawide is expanding its Taytay manufacturing complex
from 10 hectares to 15 hectares to enable it to produce prestressed concrete. With this new facility,
MWIDE will be able to participate in infrastructure projects since prestressed concrete is used for
producing beams, floors and bridges with longer lengths. The new facility will also allow MWIDE to
increase the prefabricated component of a building from 30% to 60%, reducing construction cost.
Diversifying client base. Although strong demand from SMDC will allow MWIDE to deliver rapid
growth this year, MWIDE plans to expand its client base to reduce its revenue risk and to ensure
the sustainability of its long term growth. SMDC currently accounts for 70% of MWIDE’s working
backlog. However, MWIDE plans to reduce this to 60% by 2012 and to 50% in 2013. For the year to
date period, MWIDE has won around Php4 Bil worth of new projects, none of which are from SMDC.

Targeting a piece of the PPP pie. MWIDE is taking the necessary steps to diversify its business
away from the construction of residential buildings. MWIDE has entered into a cooperation
agreement with an affiliate of a Japanese construction group to help them in their foray into
infrastructure construction. According to MWIDE, their Japanese partner has extensive knowledge
and experience in infrastructure projects. This partnership will help them in the engineering design
component of their future infrastructure projects.

Cautious on planned entry into the office leasing business. MWIDE plans to put up a green BPO
building in a 3,800 sqm lot in Fort Bonifacio with a gross floor area of 45,600 sqm and gross leasable
area of 36,000 sqm. Although MWIDE has no experience in running an office building, it hopes to
attract tenants by guaranteeing lower utility cost since green buildings are designed to increase
the efficiency of energy and water usage. Although it remains to be seen whether or not MWIDE’s
planned foray into the office leasing business will prove to be successful, we are a bit cautious since
office leasing is not in line with the company’s expertise and it will tie up a significant amount of

Forum Jump:

Users browsing this thread: 1 Guest(s)