Megaworld can sustain strong performance
LISTED Megaworld Corp. closed the last trading week higher but still ended lower on a week-onweek basis.
The shares of Andrew Tan’s property firm inched up by 3 centavos or 0.9 percent to finish at P3.38 apiece on Friday, however, these sharessaw a 7.4-percent decline week-on-week.
Diversified Securities Inc. trader AnicetoPangan said Megaworld became active in the last two trading sessions last week after it disclosed its fourth quarter performance.
“This happened after the release of its full year earnings last Wednesday, which showed a strong fourth quarter performance in terms of reservation sales, while its leasing manifested resiliency,” Pangan said in a text message.
Megaworld’s net income fell by 45 percent year-on-year to P10.6 billion last year, while its consolidated revenues slipped by 35 percent to P43.5 billion as the pandemic hampered its business.
Despite slower 2020 results, the firm noted that the easement of quarantine measures enabled its core businesses to see recovery during the last quarter of the year.
Its real estate sales gained 22-percent quarter-on-quarter during the period as reservation sales rose 85 percent quarter-on-quarter.
Megaworld Chief Strategy Officer Kevin Tan in a disclosure last week said that its office business segment is the company’s “most stable income generator” in its revenue stream as rental revenues of Megaworld Premier Offices stood at P10.4 billion last year, almost the same level from a year ago.
For this week, Pangan sees Megaworld’s shares to “continue to perform strong as its office business continue to be resilient with Iloilo property less affected by the pandemic.”
He added that the stock is also among those resilient in the property sector due to its “relatively low debt exposure.”
“As it has relatively low debt exposure among the property businesses, it stands to be among the resilient in the property sector with a stable revenue from its office business, thus its recurring income will continue to strengthen its financial standing,” Pangan explained.
Megaworld currently has 26 integrated urban townships, integrated lifestyle communities and lifestyle estates across the country.