the Outsider - PSE Points to Ponder

First Gen Corporation has completed the sale of a 60% stake in its natural gas business to Prime Infrastructure Capital Inc. for ₱50 billion , a landmark transaction that significantly strengthens the company’s financial position. Under the deal, Prime Infra acquired controlling interests in the Santa Rita, San Lorenzo, San Gabriel, and Avion power plants, the proposed Santa Maria project, and the Batangas LNG Terminal. First Gen retains a 40% stake, ensuring continued participation in the gas platform while unlocking substantial liquidity. Impact on Balance Sheet The ₱50-billion inflow will boost First Gen’s cash reserves, making the parent company effectively debt-free after having prepaid its ₱20-billion loans earlier this year. The transaction also positions First Gen with a strong net cash position, enhancing flexibility for future investments in renewable energy projects. Potential for Higher Shareholder Returns With a debt-free parent and substantial cash inflows, First Gen...

Three of the country’s leading food and beverage companies — San Miguel Food and Beverage Inc. (SMFB) , Universal Robina Corporation (URC) , and RFM Corporation — posted stronger results for the first nine months of 2025, signaling resilience despite cost pressures and shifting consumer dynamics. SMFB Leads with Broad-Based Growth SMFB delivered a 4.1% increase in consolidated revenues to ₱302.9 billion , while net income surged 10.8% to ₱33.7 billion . Growth was supported by all major segments: Food, Beer & Non-Alcoholic Beverages, and Spirits. The company also strengthened its balance sheet, reducing total liabilities to ₱187.2 billion and maintaining a hefty cash position of ₱62.4 billion. Dividend payouts totaling ₱2.00 per share year-to-date underscore confidence in sustained performance. URC Maintains Stability Amid Margin Pressure URC posted ₱124.6 billion in revenues , up 4.8% year-on-year , and net income of ₱9.03 billion , a 4.6% improvement . While gross margins...

VistaREIT, Inc. (VREIT) posted a 6.5% rise in nine-month net income to ₱1.12 billion , even as revenues dipped slightly to ₱1.80 billion. The REIT’s latest filing underscores its high-quality property portfolio , but also flags receivable aging and land lease structure as areas for investor scrutiny. Prime Locations Drive Stability VREIT’s 12-property portfolio spans key growth corridors in Metro Manila and major provincial hubs. Flagship assets include SOMO – A Vista Mall in Las Piñas, Vistahub BGC in Bonifacio Global City, and community malls in Antipolo, Pampanga, and Cebu . These sites anchor VREIT in high-density, high-income catchments , supporting resilient foot traffic and rental demand. GLA: 256,404 sqm Occupancy: ~97% Top contributors: SOMO (₱587.9M rental), Vistahub BGC (₱244.9M), Starmall SJDM (₱209.5M) The concentration in prime retail and office nodes mitigates vacancy risk and underpins long-term asset value, even as leases sit on land with remaining ter...

  From the Trading Desk. Shares the trading desk is planning to buy and accumulate.  The Philippine Stock Exchange Index (PSEi) has been battered in recent days, plunging to multi-year lows as investors digested weak GDP growth, peso volatility, and political noise. Last Friday’s close at 5,584.35 marked a sobering reminder of how fragile sentiment can be. But amid the carnage, one question looms large for long-term investors: Is Metrobank (MBT) a buy? The short answer: Yes—if you’re patient and disciplined. Why MBT Looks Attractive Now First, the sell-off was broad-based, not MBT-specific. Financials were dragged down alongside property and consumer names, but Metrobank’s fundamentals remain intact. In fact, the bank posted a record ₱37.28 billion in net income for the first nine months of 2025, with Q3 earnings up 2.6% year-on-year. Loan growth is healthy, non-performing loans are well-covered at 147%, and capital ratios—CET1 at 15.6%—are comfortably above regulatory mini...

SM Investments Corporation (SMIC) reported consolidated revenues of ₱482.3 billion for the nine months ended September 30, 2025, up 4.3% from last year, while net income after tax rose 5.6% to ₱88.8 billion , according to its latest SEC filing. Net income attributable to the parent reached ₱64.4 billion , driven by strong contributions from banking and property segments. Retail, which accounts for 66% of revenues , posted ₱318.1 billion in sales and ₱12.2 billion in net income. However, management flagged margin pressure from frequent flooding in Q3 and promotional activity in sports and athleisure categories. Merchandise inventories climbed to ₱47.9 billion , raising concerns over potential markdowns if consumer demand softens. Property arm SM Prime delivered ₱103.4 billion in revenues and ₱37.2 billion in net income, supported by mall rental growth of nearly 7%. Still, residential sales slipped 2% amid slower revenue recognition, while capital expenditures surged to ₱59 billi...

Aboitiz Power Corporation posted weaker results for the first nine months of 2025, as operating revenues fell 2.7% year-on-year to ₱144.33 billion from ₱148.32 billion in the same period last year. The decline came despite a 19% surge in energy sales to 32,138 GWh, as spot market prices plunged by about 33% amid cooler weather, slower economic activity, and oversupply from new renewable capacity under the Green Energy Auction Program. While revenue softened, operating expenses edged up 0.8% to ₱118.00 billion , driven by higher purchased power costs, increased operations and maintenance, and rising general and administrative expenses. Depreciation and amortization also climbed as the company absorbed the full impact of GNPower Dinginin’s units and new renewable assets. This cost escalation compressed margins, with EBITDA slipping 6% to ₱52.00 billion from ₱55.26 billion a year earlier. Management attributed the EBITDA decline primarily to lower Wholesale Electricity Spot Market (W...

GMA Network Inc. (PSE: GMA7) may be forced to trim its cash dividend as the Philippine economy shows signs of slowing, putting pressure on advertising revenues—the company’s primary income source. The network’s strong performance in 2025 was fueled by election-related advertising , which drove a 12% revenue increase to ₱13.99 billion for the first nine months , according to its latest SEC filing. Advertising accounted for more than 90% of total revenues, with political advocacies and campaign ads ahead of the May midterm elections providing a significant boost. GMA declared a ₱0.50 per share dividend in March 2025 , totaling ₱2.43 billion , following ₱0.60 in 2024 and ₱1.10 in 2023. This payout represented an aggressive 88% of annualized earnings , based on its nine-month net income of ₱2.07 billion . Analysts estimate that a 2% GDP slowdown could cut profits by up to 24% , pushing payout ratios above 100% if the dividend remains unchanged. To maintain financial prudence, a reduced ...