Megawide aims for 14% profit growth, seeks more partners

Megawide Construction Corporation, a local construction and infrastructure firm, is expecting to post a 12 to 14 percent improvement in net income this year while exploring new partnerships for future growth.

In a press briefing before the firm’s annual stockholders’ meeting, Megawide Chief Finance Officer Oliver Tan the higher profit will come on the back of a projected 2 percent hike in revenues.

In 2016, Megawide posted a profit of P1.9 billion, up 30 percent from the previous year, as revenues rose 14 percent to P17.7 billion.

"As of the first half, we are already 51 percent of target. The margins are pretty stable, maintaining a 15 percent gross profit margin and 6 to 7 percent net profit margin" Tan noted.

Megawide President Edgar Saavedra said they can grow earnings by another two percent if they can close more infrastructure-related projects such as the Clark and Mactan airport expansions.

"Our steady growth and upward trajectory reaffirm our core value of engineering excellence. As we continue to venture into other businesses and pursue projects with a substantial socio-economic impact, we remain committed to maintaining our solid financial position in the industry," he said.

In the construction business, Saavedra said they are already talking to some Japanese firms for possible partnerships for projects funded by Japanese Overseas Development Assistance.

“We can be their joint venture partner or the sub-contractor of Japanese contractors who need a stronger local presence,” said Saavedra.

He said Megawide is bullish about its core construction business and plans to participate further in infrastructure tenders, noting that “engineering and construction are vital components in any infrastructure project.”