Property:SMPH reports strong 2Q14 results. SM Prime Holdings Inc (SMPH-BUY) reported that 1H14 net income was up 12%YoY to PHP9.8b. This was 51% of our full-year estimate of PHP19.3b. Net income was driven by 7% growth in total revenue to PHP33.4b (50% of our 2014 estimates of PHP66.5b), boosted by rental income and real estate sales which accounted for 89% of the total revenue.The increase in rental income was due to the opening of two malls last year and the contribution of the SM Megamall expansion which was opened in January with total additional rental GLA of 500k sqm. Same-store-sales growth was sustained at 7%, same as in 1Q14. For the residential segment, 2Q14 saw a turnaround in revenues as it grew 9% YoY and 37% QoQ to PHP6.9b. Still, 1H14 real estate sales were down 4% YoY to PHP11.9b due to lower launches. We maintain our BUY rating and TP of PHP21.67. Although the residential segment has been a drag, the apparent recovery in 2Q14 reinforces our belief inventory levels are being sustainably trimmed. We believe there could be a re-rating in the stock as net income is ahead of consensus.
Conglomerate: MPI, DM Consunji and WalterMart team up for ITS project bidding. Metro Pacific Investments Corp. (MPI-BUY) has teamed up with DM Consunji Inc, a subsidiary of DMCI Holdings Inc (DMC-Not Rated) and Walter Mart Property Management Inc to bid for the PHP2.5b Integrated Transport System Southwest Terminal Project. Other listed companies interested in bidding include Ayala Corp (AC-BUY) and Ayala Land (ALI-BUY), San Miguel Corp (SMC-Not Rated), Robinsons Land Corp (RLC-BUY), Filinvest Land Inc (FLI-BUY) and Megawide Construction Corp. (MWIDE-Not rated). This terminal project, which will be located at the Coastal Road terminal, will connect passengers to several urban transport systems.
-ATR
No comments:
Post a Comment