SMIC sees higher revenues of P200 billion this year

MANILA, Philippines – SM Investments Corp. (SMIC), the listed holding firm of the family of retail tycoon Henry Sy, is eyeing revenues of P200 billion this year or an increase of 13.6 percent from the 2010 level as it ramps up expansion of its core businesses to capitalize on a favorable investment climate and steady inflows from overseas workers.

In a briefing following SMIC’s annual stockholders’ meeting yesterday, SMIC chief finance officer Jose T. Sio said the company is expected to sustain its growth amid increased consumer spending and stable political environment, with earnings seen to rise by 12 to 14 percent this year.

Sio, said retail operations will continue to corner the lion’s share of SMIC’s total earnings, followed by real estate.

He noted that the results of the first quarter have been encouraging and show strong support for its businesses.

SMIC president Harley T. Sy said the conglomerate is looking forward to bigger opportunities as it enters a new decade. “Your company is ready to further expand into new markets and enhance shareholder value backed by ample resources and an organization that is highly experienced, innovative, and committed to work hard.”

For this year, SMIC has allotted P47 billion for the continued expansion of its operations to build on its competitive strengths. The amount is 15.8 percent higher than the P40.6 billion earmarked in 2010.

SM Prime Holdings Inc., which handles the Sy family’s shopping mall operations, is spending P18 billion this year to further grow its presence. Half of the P18-billion capex will go to its domestic expansion while the other half will be used to put up new malls in China. SM Prime expects to have a total of seven malls in China by 2013 with a total gross gloor area of 1.4 million square meters.

Residential condominium developer SM Development Corp. has set a P17-billion capital expenditure program, majority of the amount will be funded by internal cash. The company is launching five new projects and further beefing up its landbank as it looks to expand in Baguio, Cebu and Davao.

BDO Unibank, on the other hand, plans to open 50 new branches this year while China Bank with another 58 branches, of which 18 are from the parent and 40 from its thrift banking arm.

China Bank remains on track to meet its target of having a branch network of 400 by 2014 for both the universal bank and the thrift bank unit China Savings Bank. It is also actively looking at acquisition opportunities to supplement this growth.

On the other hand, the non-food group consisting of SM Department Stores will open branches in Masinag; San Fernando; Pampanga; Olongapo and Consolacion, Cebu that will require investments totaling P2.2 billion.  

For food retail operations, the group is spending P2.5 billion for the establishment of six supermarkets, 13 SaveMore branches and five hypermarkets as the group remains bullish on the economy.

Reynaldo D. Villar, executive vice-president for SM Hotels and Conventions Corp., said the group is looking to spend P1.2 billion to refurbish and open new hotels. By 2014, the company expects to open a hotel in Davao as well as one at the back of SMX along Roxas Boulevard.