*on buyback* Megawide Construction Corp.
Business Profile:

Megawide Construction Corporation (“Megawide”) was registered with the Securities and Exchange Commission (SEC) on July 28, 2004 to exist for 50 years, or until July 28, 2054. Its primary purpose is to engage in the general construction business. It includes constructing, enlarging, repairing, or engaging in any work upon buildings, houses and condominium, roads, plants, bridges, piers, waterworks, railroads and other structures, and to own, use, improve, develop real estate of all kinds. Its principal office is located at 2/F Spring Bldg., Arnaiz Ave. cor. P. Burgos St., Pasay City. It also maintains an engineering office at No. 66 Scout de Guia St., Barangay Laging Handa, Quezon City and an extension office at 3rd Floor of JSB Bldg., Tomas Morato, Quezon City. Megawide’s warehouse is located in Brgy. Tagpos, Binangonan, Rizal and its motorpool in Edison cor. Dian Streets, Makati City. As of date, Megawide is constructing its corporate tower in N. Domingo St.,
Quezon City. It plans to transfer all operations in the corporate tower upon its completion.

Megawide had an initial authorized capital stock of One Hundred Million Pesos (P100,000,000.00) divided into Two Hundred Thousand (200,000) common shares with a par value of Five Hundred Pesos (P500.00). Of the authorized capital stock, 25% equivalent to Fifty Thousand (50,000) shares or Twenty-Five Million Pesos (P25,000,000.00) was subscribed and 40% equivalent to Twenty Thousand (20,000) shares or Ten Million Pesos (P10,000,000.00) was paid-up. On September 3, 2007, subscription receivables were fully collected. Subsequently, Megawide issued additional Ten Thousand (10,000) common shares. From this, Michael Cosiquien and Edgar Saavedra each subscribed to 5,000 additional shares at P6,500.00 per share.

In the last three (3) years, Megawide experienced a substantial growth in its Construction Order Book. From 2007 up to December 31, 2010, Megawide booked construction contracts worth P22.9 Billion. It consistently posted double-digit percentage year-on-year growth despite the recent global financial crisis.

Source: Annual Report 2010

Review of results for the three (3) months ended March 31, 2011 as compared with results for the three (3) months ended March 31, 2010

Results of Operations

Megawide continues to experience unprecedented growth registering gross revenues of P1.35 billion for the first quarter of 2011. This is an increase of 100% compared to revenues booked for the same period in 2010 of P675.6 million. The significant leap in revenues are attributed mainly to the increase in revenue provided by contracts in progress as structural works of Jazz Residences in Bel-Air Makati and Grass Residences Tower 3 are in full swing. Tail-end works from Berkeley Residences, Sea Residences Phase 1, University Tower 2 and 3 also contributed considerably to the extensive growth of Megawide’s top-line figure.

In addition, Megawide expects to be awarded the construction contract for the succeeding phase of Belle Grande Hotel Casino Project which consists of structural and civil works for two hotel towers and six condotels inside its integrated resort-casino project in Manila Bay. Likewise, Megawide was invited to bid for several high-rise residential and office buildings in 4 Metro Manila which it hopes to win within the year. These anticipated new contracts will sustain the growth momentum of Megawide moving forward.

On the expense side, Management performed very well in improving operating efficiency and cost controls thus significantly improved Net Profit Margin to 7.69% from 5.29% for the same period. As a result, Megawide reported a jump of 200% in its first quarter net income to P104.10 million from P35.73 million it earned during the same period in 2010.

Source: Q12011 Financial Report

Megawide bags P1.5-B Belle contract

MEGAWIDE Construction Corp., a listed building contractor partly owned by billionaire Henry Sy, has bagged the contract to construct the succeeding phases of Belle Corp.’s casino complex rising within the Manila Bay reclamation area.

In a statement on Wednesday, Megawide said the P1.5-billion contract includes the construction of structural and civil works for the two hotel towers, four condotels and a casino.

Megawide was also tapped to build the first phase of the casino project, to be called Belle Grande Manila Bay.

“Once completed, the luxurious resort-casino project [on] Manila Bay will be the biggest and expected as the most exciting hotel and casino complex in the country. The casino will make available almost 20,000 square meters of gaming space,” Megawide said.


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Megawide increases net income target for 2011

MEGAWIDE CONSTRUCTION Corp., the contractor of SM Development Corp. (SMDC), has hiked its profit target for the year to nearly double its earlier forecast after already recording an income surge in the first quarter.

“During our initial public offering [in February], we projected P560-million net income for the full year,” Oliver Y. Tan, chief finance officer of Megawide Construction, said in a briefing.

“Last year, we made P335 million. We are looking at P750 million to P800 million [in earnings],” Mr. Tan said.

An expected surge in revenues to P7 billion-P8 billion from the P4.52 billion recorded last year should support the profit target, he said.

So far, net income has ballooned by 191.35% to P104.1 million for January to March over year-ago levels. This, after revenues doubled to P1.35 billion.

The company currently has a backlog of P12 billion worth of projects that will be booked as earnings and revenues after completion.

“Looking at the property horizon, we are still bullish on the residential sector,” Mr. Tan said.

Megawide Construction, he added, is also looking at tapping more clients besides SMDC to further grow profits and spread risk.

“We already started to entertain other clients to mitigate our concentration,” Mr. Tan said, adding that the contractor is in talks with three listed property firms for the construction of affordable housing units.

“We are trying to close these projects. We are deep into negotiation and hopefully we can start this year,” Megawide Construction Chairman Michael C. Cosiquien told reporters.

The client base of the company -- which allotted P2.02 billion in capital expenditures this year -- so far includes the Antel Group, the Bench Group, Prince Jun Development Group, Bellevue Hotel Group, Malate Bayview Group, Goldland Properties and Dynamic Realty.

New projects will bring in billions of pesos worth of contracts and allow Megawide Construction to attain a revenue mix of 60% to 40% in favor of SM Development projects.

The listed contractor is also looking at venturing into infrastructure contracts as well.

“On top of the property market, we are making inroads to new markets, which includes possibly joining infra projects,” Mr. Tan said.

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 is valued by the market at P7.71 billion, inched up by 0.33% or three centavos to P9.03 apiece yesterday. -- Neil Jerome C. Morales

30% stock dividend decided today.
The World is a Vampire . . .
Ayos Mam Ruach and Ser Junie, wait lang bumaba konti ito poposition ako dito....30% Div is not bad
go mwide go
The World is a Vampire . . .
go go down mwide para posisyon ako hehehehe......boss Junkie nawala sa PSE corp disclosure ang 30% div dko rin makita sa COL div calendar sa PSE individual lang makikita kaya la pa masyadong kakaalam malamang tataas to in a week to come
If you wish to know the details of the dividend of MWIDE, please read the link below.

what would be a sound entry price here considering RSI is at the 80s level already?
muntikan na pila ko sa 9.82, meron napagbigyan then iniwan na ako....black monday abangan uli kita
Ingat mga guys. Got this at ave of 9.05 and I'm not buying anymore. Will sell sana at 10.5 level but with renewed interest, I will be riding the wave ika nga. Definitely not my lolas' saying this one.
The World is a Vampire . . .

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