WLCON is expected to retain its P600 million quarterly profit, undeterred by the IKEA opening
(WLCON, Php18.30; HOLD, TP:Php20.00)
Rosemarie Bosch-Ong, WLCON’s CFO and SVP, said the company is targeting P600 million in quarterly earnings, including anticipated savings from lower corporate income tax. The company aims to open 100 shops by 2025, with a capex of P3.2 billion. The company is apparently unconcerned about the impending arrival of IKEA, a Swedish home furnishings retailer.
MEG sees improvements in reservation sales
(MEG, Php3.07; BUY, TP:Php4.00)
Megaworld Corporation (MEG) has seen an increase in residential sales for its projects outside of Metro Manila in the past two months. Reservation sales, on the other hand, have not recovered to pre-pandemic levels.
MEG, on the other hand, has put its residential launches in Metro Manila on hold since the outbreak began.
MEG announced projects worth Php4.6 billion in the first quarter of 2021, with a total saleable area of 75,697 square meters. MEG’s La Cassia Residences in Cavite’s Maple Grove township, The Lindgren Phase 2 in Cavite, and The Grand Hill in Antipolo’s Eastland Heights Village are among them.
3. DAVIN & COSCO
Da Vinci Capital acquires Cosco liquor subsidiaries for Php22.5bn
COSCO agreed to transfer 100 percent ownership of its liquor subsidiaries to DAVIN in exchange for a controlling interest in DAVIN. Da Vinci Capital Holdings, Inc. (DAVIN) and Cosco Capital, Inc. (COSCO), both owned by businessman Lucio Co, completed a share swap transaction last June 18 in which COSCO agreed to transfer 100 percent ownership of its liquor subsidiaries to DAVIN in exchange for a controlling interest in DAVIN. Montosco, Inc., Meritus Prime Distributors, Inc., and Premier Wine and Spirits, Inc. are among the subsidiaries that distribute foreign liquor brands including Alfonso, Jim Beam, and Absolut, among others. For Php22.5 billion, the three COSCO liquor businesses will be infused in DAVIN.
In return for the stake in the three liquor companies, DAVIN will seek permission from the Securities and Exchange Commission (SEC) for an increase in its authorized capital stock and the subscription of COSCO to additional shares.
DAVIN will also seek confirmation from the SEC on its exemption from securities registration and the value of the shares that will be received from COSCO as part of the transaction, based on the disclosure.
DAVIN intends to offer the extra shares on the Philippine Stock Exchange later this year. DAVIN has earlier announced that company will rebrand as The Keepers Holdings, Inc.
VLL brand benefitted from virtual house tours
In May, VLL’s Lessandra brand saw a 43 percent increase in sales thanks to virtual home tours. Previously, the brand was a home series under Camella Homes. There were no additional specifics provided.
The Metropolitan Cebu Water District granted VVT’s fully-owned Vivant Hydrocore Holdings (VHHI) a 25-year bulk water delivery contract. Watermatic Phils. (WMP) is the technical partner on the project, which is based in Cordova. VHHI will construct a utility-scale desalination plant to supplement MCWD’s inadequate bulk water supply with 20k cu.m. of treated and drinkable water per day.