PROPERTY developer Primex Corp. said it will double its profit this year, mainly on the contribution of its condominium arm as it considers a follow-on offering at the Philippine Stock Exchange.
Primex Director Karlvin Ang said the company is “very pleased and happy” with the profits of the company last year when it reported P97 million, from the previous year’s P2.5 million. Its fiscal year ends on April 29.
“We expect the growth to continue and to double our net income in 2016,” Ang said. He said the company’s major investment in its recently acquired subsidiary Primex Realty Corp., owner and developer of Stratosphere, a 31-story residential condominium in Makati City, will contribute to the profits.
It acquired Primex Realty in March 2015.
Ang said the subsidiary is earnings accretive and shall enhance its shareholder value in the coming years.
“More projects are being worked out, which should produce similar to, if not better than, Stratosphere’s revenue and bottom-line contributions,” Ang said. He said the company is exploring possible foreign and local joint ventures, as well as strategic partnerships, including capital-enhancement activities, like a follow-on offering.
The company has a portfolio of prime commercial and residential properties bought decades ago at very low prices.
Ang said due to the improved financial status of the company, it is projecting cash dividends to be declared within the next 12 to 18 months.
The same announcement was made by its chairman, Ernesto Ang, during the corporation’s annual stockholders’ meeting last June.
Primex generated P69.09 million in consolidated sales in the first three months of 2016, 26 times higher than the P2.64 million sales posted in the same period in 2015.
A net income of P41.17 million in the first quarter of 2016, an improvement over the P0.83 million loss last year. Total assets was at P1.56 billion as of March 2016.
Incorporated in 1986, Primex engages in the many aspects of real estate, including raw land acquisition, development, marketing and leases.
Primex currently holds a land bank of prime property in Makati, Greenhills in San Juan, Quezon City, Tagaytay, Antipolo, Malabon and Bulacan.