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PUBLICLY
LISTED Anglo Philippine Holdings Corp., or Anglo Phil,
said its 2007 income may reach more than P500 million
this year, after posting nearly 100-percent increase in
its first-half results.
“As an
investment bank told us, we may move to about P600
million this year; and present numbers indicate we may
make that real,” Anglo Phil president Christopher M.
Gotanco told shareholders at the firm’s annual meeting
late Friday.
Gotanco
said that first-half net income reached P289 million, up
94 percent from P149 million a year earlier.
Gotanco
said the target income for the year is realizable as
Anglo Phil has strategic investments that are now paying
off.
He cited
Edsa Properties Holdings Inc., where Anglo Phil owns
5.08-percent equity.
Edsa
Properties is a publicly listed firm that owns 8.6
hectares in Ortigas Center,
Pasig City, which is being leased out to the Edsa
Shangri-La Hotel and the Shangri-La Plaza, as well as
offices and condominium units by The Enterprise Center,
the Shang Grand Tower and the St. Francis Towers.
Anglo
Phil cited that last year, Edsa Properties posted sales
of residential condo units that increased by 153
percent, to P3.7 billion, from P1.46 billion in 2005.
“If the
price of our stock hits P3, that’s easily another P300
million for us,” Ramos said.
Ron L.
Rodrigo of Unicapital Securities Inc. said he believes
Anglo Phil can hit that target, and made a forecast of
P615 million in net income for Anglo Phil this year,
from P399 million last year.
“Their
fundamentals are strong,” Rodrigo told BusinessMirror,
citing Anglo Phil’s report that noted Edsa Properties as
another regular income base for Anglo.
For the
first quarter of the year, Edsa Properties declared a
cash dividend of P0.03 per share, which reflected a
dividend income of P6.5 million for Anglo Phil, Rodrigo
said. Unicapital trades Anglo Phil shares.
Another
income driver for Anglo Phil, according to Rodrigo and
Gotanco, is the company’s investment in the North
Triangle Depot Commercial Corp., which owns the TriNoma
commercial center at the North Triangle depot of the
Metro Rail Transit-3 (MRT-3) system in
Quezon City.
“The
opening of TriNoma will give the company a recurring
income base of P4 million this year and P25 million in
2008, since it owns a 15.8-percent stake in the
commercial center,” Rodrigo said in his equity research
on Anglo Phil.
These
numbers, he said, are based on a revenue forecast of P25
million and P141 million in 2007 and 2008, respectively,
for TriNoma.
He added
that Anglo’s share price may nit P3.80 on average this
year. “That’s conservative, even,” Rodrigo told
BusinessMirror.
“The
target price is justified since price-to-earnings ratio
of [Anglo Phil] will be 6.67 times, which is
48.1-percent cheaper than its nearest peer DMCI Holdings
Inc. of 12.84 times [based earnings estimate for the
year],” he said.
Anglo’s
compounded annual growth rate of 53.6 percent for the
last four years “is likely to be sustained for the next
two years as core investments start to pay off,” Rodrigo
said.
Other
investments of Anglo Phil include a 15.79-percent
interest in MRT Development Corp., which owns the
development rights over the perimeter lot around the
TriNoma commercial center.
However,
Gotanco said that “not as much cash flow” is being
generated from its investment in MRT Development as “it
is encountering problems in advertising issues.”
MRT
Development generates revenues from concessionaire
rentals and advertising fees in MRT stations.
Anglo
also owns 5.54-percent equity in Atlas Consolidated
Mining & Development Corp., whose copper mine operation
in Toledo City, Cebu, is undergoing rehabilitation.
Anglo
also expects to convert its significant amount of
receivables from United Paragon Mining Corp. into
equity. United Paragon maintains interests in gold mines
located in the southern part of
Luzon.
Gotanco
told shareholders that another factor for income growth
is the increase in the company’s total assets.
Anglo’s
total assets reached P2.335 billion last year, from
P2.078 billion in 2005 and P1.82 billion in 2004.
The
company has turned around from a net loss of P450
million in 2003. It declared a second cash dividend of
five centavos only a month after paying its first-ever
cash dividend.
“More
than a speculative company, as we have been painted in
the past, what is important for us now is that [Anglo
Phil becomes] known as a cash dividend giving firm,”
Gotanco said.
He added
that even after paying P107 million in cash dividends,
“there is still enough room to declare some more
dividends in the future.” |
