It is now confirmed, the Aboitiz family’s Aboitiz Equity Ventures (AEV) is now bigger than the Ayala Group’s (AG) holding company. Market capitalization of the PSE-listed AEV is at P277.75 billion, higher than Ayala Corp’s P244.197 billion. Despite a higher market cap, however, AEV is trading only at 13.18 times price earnings ratio or PER, compared to AG’s PER of 20.93 times – which could only mean that AEV is still cheap compared to Ayala, the same source disclosed.
Last year, Aboitiz Equity Ventures posted a net income of P21.068 billion while AG posted a lower netincome of P11.665 billion. Many find it interesting to note that the Aboitiz holding company was able to overtake the Ayalas’ net earnings, but those in the know attribute this to the Cebu-based family’s power company whose contribution to the net income has been described as “enormous.” AEV is currently the second most valuable PSE-listed holding company next only to Henry Sy’s SM Investment Corp.
Residential condos driving real estate profits
Leading securities and investment firm ATR Kim Eng (which is now known as Maybank ATR Kim Eng following Maybank’s acquisition last year) forecast an increase in real estate sales this year to P19 billion, up from last years P16 billion. Net profits are predicted to reach P4.9 billion for 2012, higher than 2011’s P4.18 billion – with the sale of residential condominiums identified as the growth driver.
That’s very good news for Henry Sy’s SM Development Corp. (SMDC) – which was named top condo developer with 22-percent market share in Metro Manila. In the last eight years, SMDC booked an estimated P36 billion in real estate sales from its existing and past projects out of the total estimated P64 billion. The company posted over P4 billion in profits for 2011, up 38 percent from 2010 figures of P3.02 billion. ATR adjusted its previous profit forecast for SMDC after incorporating possible sales contribution from the developer’s new residential projects with an estimated total sales value of P27 billion in the next four to five years. The new profit forecast is now P4.9 billion, almost nine percent higher than ATR’s previous projection and 18 percent higher year-on-year.
Maybank ATR’s vast network of offices in Asia makes it a significant regional force in the area of investment banking, offering a wide range of services that includes corporate finance, investment banking, venture capital and private equity, research, corporate finance advisory and asset management services.
Orange revolution
No – this item has nothing to do with the political protests that rocked Ukraine in 2005 due to massive election fraud – but the potential “revolution” workers might stage after being fired by a law firm in Florida. Apparently, the employees were set to join an after-working-hours event in New York to celebrate payday and decided to wear the same color to easily spot each other in the crowd. The color coding scheme convinced management that the workers were staging a protest – which resulted in their immediate sacking with no due process and no severance pay given them.
Florida is known for its orange juice exports and prides itself for being the “Sunshine State” – but there’s nothing sunny about the unceremonious sacking of the employees. Apparently, Florida is what is called an “at-will” state – meaning the state law allows employers to fire anyone for any reason, whether it is a good reason, a bad reason or even the wrong reason, as long as no legal violation are made. Ironically, the orange loving employees would have stood a very good chance of fighting out their termination had they been wearing the color as a form of protest – because that would have made their sacking unlawful.
Spy tidbit
Powerhouse business group Philippines Inc. held its annual conference the other day at the Tower Club in Makati, with Philippines Inc. chairman Tonyboy Cojuangco and its president Tony Lopa – both of whom are relatives of President Noynoy Aquino. PNoy who confirmed his attendance as guest of honor and speaker for the conference, was unavailable at the last minute due to “pressing matters” in Malacañang.
Several Aquino Cabinet officials attended the conference, among them Trade and Industry Secretary Greg Domingo (who read P-Noy’s speech), Board of Investments chief Tito Panlilio; Tourism Secretary Mon Jimenez and Foreign Secretary Albert del Rosario who arrived late due to a meeting with the deputy prime minister of Chechoslovakia who we are told intends to run for president of the Chech Republic.
The conference was well attended, with no less than presidential special friend Grace Lee hosting the event.
