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SM Investments: When the Market Finally Starts to “Bite”

 

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Disclaimer: This is for informational purposes and is not investment advice. Figures are taken from company disclosures and exchange data; valuation ratios include the author’s calculations based on cited inputs.


After spending much of the year grinding sideways, SM Investments Corp. (SM) is beginning to show signs that investors are leaning into the story again.The price is edging higher and the RSI is also turning up—a small but meaningful pairing that often reflects improving conviction rather than a one‑day bounce.

This time, though, the uptick isn’t happening in a vacuum. SMIC’s ongoing share buyback adds a second tailwind to the tape: as the company steadily repurchases shares, it can tighten effective supply and reinforce the market’s sense that management is willing to support value during periods of mispricing. In its 17‑Q, SMIC disclosed a board‑approved buyback program of up to ₱60.0 billion, and that by end‑September it had already repurchased 3.7 million shares for about ₱2.8 billion at an average price of ₱764.08—a shareholder-friendly signal that can help explain why the stock is starting to lift alongside improving momentum indicators. 

Fundamentals, in any case, are giving the market a reason to nibble—and perhaps take bigger bites. In its SEC Form 17‑Q for the nine months ended September 30, 2025, SM Investments delivered steady top-line growth and resilient profitability: revenues rose 4.3% to ₱482.3 billion, while net income attributable to owners increased 5.8% to ₱64.4 billion. Operating performance remained dependable, with operating income at ₱113.6 billion and margins holding firm in the mid‑20s at the operating level and high‑teens at the net level, reflecting cost growth that largely tracked revenue. 

The mix remains the core of SMIC’s appeal. Retail drives scale—about two‑thirds of revenues—but banking associate earnings drive profit, contributing roughly half of net income. Property, led by SM Prime, continued to lean on the strength of malls and recurring rental income, while residential faced a timing headwind from slower revenue recognition in mid‑segment developments. 

That steadiness carried into the full-year message. In a later disclosure, SM Investments reported FY2025 net income up 10% to ₱90.5 billion, reinforcing the idea that the 9M trajectory wasn’t a fluke—and giving the market even more reason to take the recent price-and-RSI turn seriously. 

In short, the chart is improving, the buyback is a quiet support, and the fundamentals are doing their job. If momentum holds, the next questions will be whether residential recognition catches up and whether retail margins normalize as expansion continues—because that’s where the next leg of “bite” could come from.

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 are taken from company disclosures and exchange data; valuation ratios include the author’s calculations based on cited inputs.

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