The Bellwether – Issue 23

Releasing the 23rd issue of The Bellwether, as published by FMIC's IAG-Research.

This is a fortnightly publication on market action and outlook.

The following are the highlights of the issue:

Corporate earnings growth to accelerate

Filinvest Land, Inc. (FLI) backed by robust economy

Vista Land and Lifescapes, Inc. (VLL) sees 20% earnings growth to Php5.2bn

Corporate earnings growth to accelerate

Mean earnings growth of 26 PSEi members (so far those with disclosures) reached 18% in 2012, within analysts’ forecast of 15%-20% for the year. How much is predicted growth this year? Bloomberg says only 10% corporate earnings growth for the PSEi, which suggests only a 6,398 index target for the year. But so far, the PSEi has jumped 18% to a record high of 6,867, and the average of individual 2013 corporate earnings growth estimates by analysts suggests a much higher number or 21%. See Table 1 on page 2, also from Bloomberg.

Filinvest Land, Inc. (FLI) backed by robust economy

Focus on growing affordable and middle-income market segments

FLI has consistently shown a track record of growth through its focus on the low to medium-income market and its wide assortment of products (office buildings, medium rise-buildings (MRB), and lots). The company is looking to complete six MRB projects worth P11bn within this year. The new projects will increase the firm’s aggregate number of MRB projects to 18. Specifically, the new MRBs will be constructed in Quezon City, Pasig City, San Juan, Tagaytay, Iloilo and Cagayan De Oro. The firm has allotted a total of P20bn for new projects in 2013. From 2006 to 2012, FLI has more than tripled its sales reservations/ pre-sales from P3.8bn to P12.1bn.

Vista Land and Lifescapes, Inc. (VLL) sees 20% earnings growth to Php5.2bn

VLL’s 1Q2013 pre-sales were 15% up, in line with full year target of 15-20%. Last year’s pre-sales were up by a hefty 30% to Php40bn.