House of Investments Q1 net income down 102% y/y

House of Investments [HI 4.66 2.1%; 32% avgVol] [link] reported a Q1 net loss of P0.8 million, down 102% y/y from its Q1/22 net income of P374 million.

HI’s gross profit was actually up 13% to P1.15 billion, but a P244 million net loss on net income from affiliates (foreign construction company) and a 108% y/y increase in interest charges conspired to leave the company with a P66 million net loss, and a net loss attributable of P8 million.
 

MB BOTTOM-LINE

HI was relatively tight-lipped about the hows and the whys of what happened, but maybe that’s because the Yuchengco Family’s holdco is about to receive a major makeover that will likely make whatever happened in Q1/23 irrelevant by the time Q1/24 rolls around.

HI’s board approved the sale of a 14.346% stake in EEI Corp [EEI 5.90 1.7%; 83% avgVol], which is the Yuchengco Family’s construction arm, at a price per share of P7.2348 to raise P1.07 billion.

Then, the HI board approved the purchase of P1 billion worth of preferred shares in ATYC, Inc, a wholly-owned HI subsidiary that owns the A.T. Yuchengco Centre in BGC. Overall, the family is looking to reduce its exposure to the construction industry at the HI level.

It was an ugly quarter, but HI seems to be doing something about it. 

--

Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.