the Outsider - PSE Points to Ponder

  Philippine power producer posts 32% revenue growth as stronger electricity prices, new generating capacity and a gas investment lift first-half results. Aboitiz Power Corp. converted a sharp rise in first-half earnings and a multibillion-peso return of capital from Chromite Gas Holdings Inc. into an opportunity to reduce debt accumulated during a period of acquisitions and expansion. The power producer reported ₱121.19 billion in operating revenue for the six months ended June 30, 2026 , up 32% from ₱92.06 billion a year earlier. Operating profit increased 50% to ₱21.89 billion from ₱14.57 billion, as revenue growth outpaced the increase in operating expenses. Net income attributable to AboitizPower shareholders climbed 45% to ₱18.42 billion , from ₱12.67 billion in the year-earlier period. Earnings per share advanced to ₱2.56 from ₱1.76 . Consolidated net income, including earnings attributable to minority shareholders, rose to ₱20.14 billion from ₱14.04 billion. The results r...

  The Philippines’ biggest national franchise-holder broadcaster remained cash-generative, but much of that resilience came from collecting old receivables, a source of liquidity that cannot be repeated indefinitely. We’ve been blogging for free. If you enjoy our content, consider supporting us! Disclaimer: This is for informational purposes and is not investment advice. Figures come from company disclosures and exchange data; valuation ratios reflect the author’s calculations based on cited inputs.  

Ayala Land generated more revenue in the first half of 2026, but SM Prime turned each peso of revenue into twice as much shareholder profit, delivered far stronger operating cash flow, and carried its debt with greater ease. At first glance, Ayala Land, Inc. and SM Prime Holdings, Inc. appear to occupy the same rarefied tier of Philippine business. Each controls more than ₱1 trillion in assets. Each owns some of the country’s most recognizable urban properties. Each can tap debt markets, deploy tens of billions of pesos in capital and shape the commercial geography of entire cities. But their financial statements tell the story of two very different property empires. In the first half of 2026, Ayala Land produced more revenue than SM Prime, taking in nearly ₱75 billion compared with SM Prime’s ₱71.7 billion. Yet SM Prime ended the period with ₱24.5 billion in profit attributable to shareholders, more than twice Ayala Land’s ₱11.5 billion. Put another way, SM Prime converted approximate...

  Recurring rental income more than offsets a modest decline in residential sales, while stronger collections lift operating cash flow SM Prime Holdings Inc. leaned on its sprawling mall portfolio to deliver higher revenue and operating profit in the first half of 2026, demonstrating how recurring rents can steady the business even as residential property sales soften. The Philippine property developer reported consolidated revenue of ₱71.66 billion for the six months ended June 30, up 5.3% from ₱68.04 billion a year earlier. Rental revenue, principally generated by the company’s malls, rose 8.2% to ₱43.86 billion , more than offsetting a 2.5% decline in real-estate sales to ₱19.51 billion . Other revenue, including cinema tickets, merchandise, food and beverages, advertising and amusement operations, climbed nearly 11% to ₱8.29 billion. The results highlight a shift in SM Prime's economic center of gravity. Residential development remains a major business, but the company’s mall...

  Philippine Seven grew faster in the first half of 2026, but Puregold’s wider margins, larger profit and stronger balance sheet showed the value of scale Philippine Seven Corp. is putting a 7-Eleven on seemingly every available corner. Puregold Price Club Inc. is doing something less visible but more consequential for shareholders: turning a much larger sales base into substantially more profit. The two retailers' first-half results offer a study in contrasting growth models. Philippine Seven, the local operator of 7-Eleven stores, delivered faster revenue growth as it continued an aggressive nationwide expansion. Puregold, whose businesses include supermarkets, smaller neighborhood stores, and S&R Membership Shopping warehouses, produced stronger margins, higher earnings, and a more resilient balance sheet. For the six months ended June 30, 2026, Puregold posted ₱121.48 billion in net sales , up 10.6% from a year earlier. Philippine Seven reported ₱53.48 billion in revenue , ...

  The 7-Eleven operator is opening stores and ringing up more purchases, but rising costs, lease payments and heavy investment are limiting profit and draining cash MANILA, Philippines : Philippine Seven Corp. is selling more goods through more stores, but a smaller share of those additional sales is reaching the bottom line. The Philippine operator of 7-Eleven convenience stores reported ₱54.15 billion in total income for the first half of 2026, including ₱53.48 billion in revenue from contracts with customers. Yet the company earned net income of only ₱1.84 billion, underscoring the rising costs of its nationwide expansion. Revenue from contracts with customers rose 14.9% from a year earlier, while operating income increased a more modest 7.9% and net income gained just 3.8%. The divergence was even clearer in the second quarter: Operating revenue climbed 15.4%, but operating income rose 7.6%, and net income increased only 3.3%. The results point to a business that is succeeding ...

  Megaworld’s modest growth and lighter debt load contrasted with Ayala Land’s revenue decline and greater reliance on borrowing. The first half of 2026 divided two of the country’s biggest property developers along an increasingly important fault line: the ability to convert a sprawling real-estate portfolio into growth without adding financial strain. Ayala Land Inc. remained the larger company by nearly every measure. Its first-half revenue of ₱74.98 billion was roughly 70% higher than Megaworld Corp.’s ₱44.20 billion, while its asset base of more than ₱1 trillion was about twice the size of its rival’s. But size wasn’t the advantage it once appeared to be. Ayala Land’s revenue fell 9.7% from a year earlier as property-development income weakened, while Megaworld’s revenue increased 2.6%, helped by rising contributions from offices, malls and hotels. Net income at Ayala Land declined 15.1% to ₱14.57 billion. Megaworld’s net income rose 5% to ₱12.70 billion. The result was an unu...

  The property developer entered the second half with more cash, less bank debt and stronger coverage ratios, providing greater support for its 5.1% indicated dividend yield. Megaworld Corp.’s first-half results offered investors something that has sometimes been difficult to find among large property developers: a dividend story supported by a balance sheet moving in the right direction. The Philippine township developer ended June with ₱22.76 billion in cash and cash equivalents , an increase of 9.4% from ₱20.79 billion at the end of 2025. At the same time, interest-bearing loans and borrowings declined 6.4% to ₱77.75 billion , reflecting repayments of maturing obligations during the period.  That combination of rising cash and falling borrowings strengthened Megaworld’s financial position even as the company continued investing in residential projects, offices, shopping centers and hotels. The improvement is particularly relevant for income-oriented shareholders. Megaworld ...