the Outsider - PSE Points to Ponder

  Flush with cash, light on debt, and generous to shareholders, SPC Power has begun to look less like a cyclical utility and more like a yield vehicle with optionality. The question is whether it can keep paying like one while also reinventing itself for the next phase of the Philippine power market. SPC Power’s 2025 annual report tells a story that investors in mature power businesses particularly enjoy: a company whose earnings rose sharply, whose cash swelled, and whose board remained unabashedly willing to return money to shareholders. On the numbers alone, the case is easy to sketch. At the group level, total comprehensive income rose 42.3% in 2025 to ₱2.224bn, while earnings per share climbed to ₱1.49 from ₱0.99 a year earlier, and return on equity improved to 19.7% from 13.9%. At the parent-company level, net income reached ₱2.079bn, up from ₱1.428bn in 2024 and just ₱303m in 2023. What makes those results especially striking is that they were not driven by a booming top lin...

In the Lopez empire, the better balance-sheet story still comes with a warning label In Philippine capitalism, families do not merely own companies; they curate ecosystems. That makes the latest lesson from the Lopez orbit unusually instructive. On one side sits Rockwell Land , the group’s polished property arm, which delivered rising earnings in 2025 and expanded its commercial footprint with the ₱21.6 billion acquisition of 74.8% of Alabang Commercial Corporation (ACC) . On the other sits ABS-CBN , another Lopez-controlled company, still haggling with lenders over waivers, maturities and covenant relief after years of losses and a balance sheet weakened by the loss of its broadcast franchise. Together, the two suggest a truth financiers know well: within a conglomerate, trouble rarely spreads legally—but it often spreads psychologically.  Rockwell’s 2025 results looked, at first glance, reassuringly robust. Net income rose 29% to ₱5.3 billion , revenues increased 4% to ₱20.9 bill...

A good stock exchange does not merely list companies. It disciplines them. That is why First Gen’s recent clarification on its agreements with Prime Infrastructure should alarm anyone who cares about Philippine capital markets. The company has now confirmed that its definitive agreements contain “Change of Management Control” provisions that could force it to sell its hydropower stake at a 25% discount—worth about ₱15.5 billion —and, if that right is exercised, could also expose its remaining gas-plant stake to a further ~₱8 billion discount. That is not gossip. It is a quantified, public admission of a contingent loss with potentially massive consequences for shareholders. Once a listed company itself can put a peso figure on a governance-triggered downside of that scale, the matter ceases to be a private dispute and becomes a capital-markets issue. The temptation is to dismiss this as merely another installment in the Lopez family feud. That would be a mistake. First Gen’s own clari...

For years, Monde Nissin was a tale of two pantries. In one sat the dependable staples of the Filipino table—Lucky Me!, SkyFlakes, Fita, M.Y. San Grahams—brands with the quiet power of habit and repetition. In the other sat Quorn, the British meat-alternative business whose promise once seemed modern and global, but whose subsequent impairments and restructuring bills turned what should have been a growth story into an expensive lesson in category exuberance. Monde’s 2025 Annual Report suggests that the company has at last become less a hostage to that second pantry. The core business remains sturdy; the balance sheet is lighter; and the market, still scarred by Quorn’s past, may not yet have fully caught up.  The numbers tell the tale plainly enough. In 2025, Monde posted ₱86.48bn in sales, up 4.0% from 2024, while reported net income rose to ₱8.60bn from just ₱0.45bn a year earlier. Core income after tax at ownership, the company’s preferred measure of recurring profitability,...

  Retailing, like politics, has a way of flattering the headline and embarrassing the footnotes. Metro Retail Stores Group, the Cebu-based operator better known to many shoppers as Metro Gaisano, reported a better 2025 than 2024 by the simplest measure investors notice first: net income. Revenue rose 4.9% to about ₱41.95bn , while net income climbed 12.2% to roughly ₱683m ; total comprehensive income rose 13.7% to around ₱704m . At first glance, that looks like a respectable recovery. It is certainly better than the prior year’s softer earnings profile: annual net income had slipped in 2024 before improving again in 2025, and the company maintained positive same-store sales growth, however slim, at 0.5% . Metro also expanded its footprint to 81 stores and 278,000 square metres of net selling area, while rental income rose more quickly than sales, increasing 8%-plus to roughly ₱395m as new tenants came in and existing rates stepped up. But the deeper reading of the annual report...

Philippine Seven’s 2025 annual report suggests a business with a sturdy balance sheet, but sturdiness is not the same thing as excitement. There are companies whose annual reports read like victory laps, and there are companies whose annual reports read like balance-sheet sermons. Philippine Seven Corporation, the operator of 7‑Eleven in the Philippines, belongs increasingly to the latter camp. The 2025 annual report paints the picture of a retailer with a notably resilient financial structure: total assets of about ₱47.8bn, equity of roughly ₱11.16bn, cash and cash equivalents of around ₱10.26bn, and only about ₱70m of bank loans , alongside sizeable credit lines. In plain English, this is a company with enough ballast to absorb rising working-capital needs without wobbling.  That matters because working capital did indeed become hungrier in 2025 . The company’s report indicates that inventories rose 20.6% to about ₱8.99bn , while receivables also edged higher; at the same time, ...