Sunday, May 4, 2014

DMCI Holdings Inc.

Financial Highlights (2012)

For those industries linked to the Philippine economy - namely, construction, real estate and power - it was a banner year. However, weak commodity prices adversely affected the nickel and coal mining segments. Its coal mining business, Semirara Mining Corporation, reported a 7% decline in net income in 2012 to Php3.1 billion. The nickel and metal-mining company continued to mine and sell nickel from existing stockpile in the Benguet and Acoje mines in Zambales. It took advantage of the depressed international commodities market and acquired further assets by increasing its interest in European Nickel and Toledo Mining.

       The construction, real estate and power subsidiaries all posted significantly higher net incomes in 2012. Due to higher recognized revenues from project completion along with a burgeoning project portfolio, the construction segment’s net income grew 9% in 2012 to Php1.2 billion.

       Capitalizing on 2012’s buoyant housing market, the real estate subsidiary posted a 27% growth in net income. Such positive results were due to a high volume of sales and the completion of four projects during the course of the year. In direct contrast with the drop in global coal prices, the power generation business (itself a wholly-owned subsidiary of Semirara Mining Corporation) reported a remarkable 21% increase in net income due to higher energy-generation capacity resulting from the partial rehabilitation of Units 1 & 2 of the Calaca Power Plant. Further, the water segment’s returns grew steadily due to better operating efficiencies and continued expansion into the southern areas of Metro Manila. Maynilad’s 2012 net income is Php6.4 billion - up8.9% from the previous year. Maynilad’s net contribution to the Company amounted to Php2.3billion due to the adjustments at the consortium level.

All in all, the Company's 2012 net income grew 2% to Php9.8 billion while consolidated revenues rose 8% to Php51.7 billion on the back of the solid performances delivered by its construction, real estate and power generation businesses. The modest increase in net income can be attributed to the significant drop in the global prices of  commodities as well as the increase in costs associated with construction materials and labour. On May 15, 2012, the Board of Directors declared a cash dividend of Php1.20 per share totaling Php 3.1 billion, which was remunerated to all shareholders on July 5, 2012.

Company Profile

DMCI Holdings Inc., through its subsidiaries, provides general construction and infrastructure construction. DMCI also develops real estate and mines coal. In addition, DMCI manufactures cement and other products.

DMCI Holdings, Inc. (DMCIHI) was incorporated on March 8, 1995 as a holding company to consolidate all construction business, construction component companies and related interests of the Consunji Family. It was listed on the Philippine Stock Exchange on December 18, 1995. The Company has five operating subsidiaries, namely: D.M. Consunji, Inc. (DMCI), DMCI Project Developers, Inc. (PDI), Semirara Mining Corporation [Semirara (formerly Semirara Coal Corporation), DMCI Mining Corporation, and DMCI Power Corporation; and two affiliates namely, DMCI-MPIC Water Company, Inc. and Private Infra Dev Corporation (PIDC).
DMCI Homes
DMCI, a wholly owned subsidiary, is engaged in general construction services – the Company’s core business. It is also engaged in various construction component businesses such as production and trading of concrete products, and electrical and foundation works. Founded in 1954, DMCI is acknowledged as one of the leaders in the Philippine construction industry, noted for quality projects delivered on time and its pioneering application of advanced engineering methodology.

PDI, another wholly owned subsidiary, is engaged in construction business-generating investments primarily through its significant minority interests in various project and infrastructure development activities. These ventures generate not only investment income but also construction business for DMCI. PDI also seeks strategic partners who will add value and expertise to the various aspects of its project development and implementation.
Semirara Coal Mining
Semirara, a 56%-owned subsidiary, is a publicly listed company engaged in the exploration, mining and development of coal resources on Semirara Island in Caluya, Antique. It is currenly the Philippines’ largest coal-producing company with a guaranteed long-term market by virtue of its supply contract with the state-run National Power Corporation.

DMCI Mining Corporation (DMCI MC) is 100%-owned subsidiary engaged in ore and mineral mining and exploration. It was incorporated on May 29, 2007. It has entered into a Memorandum of Agreement with Rusina Mining Ltd., a listed company in Australia, in which the Corporation agreed to be the independent contractor to directly undertake the mining operations in the municipalities of Sta. Cruz and Candelaria in Zambales. Currently it also has a contract mining with Benguet Mining Corporation in Zambales. The mining operation is an open pit extraction of nickel, chromite, and iron laterite for direct shipping.

DMCI Power Corporation (DMCI PC), a 100%-owned subsidiary, is engaged in the business of a generation company which designs, constructs, invest in, and operate power plants. On January 15, 2007, the National Power Corporation (NPC) awarded to DPC the Masbate Power Generation, one of the small utilities group (SPUG) of NPC. DPC shall cover the take-over of the power supply obligation in Masbate with a 15-year Power Supply Agreement with Masbate Electric Cooperative (MASELCO). Masbate Power Generation has a total contract of 13,000 KW of Guaranteed Dependable Capacity (GDC).

DMCI-MPIC Water Company, Inc. (DMWCI), is a joint venture holding company which holds 92.85 percent of shares in Maynilad Water Service, Inc. (Maynilad), between the Company, Metro Pacific Investments Corporation (MPIC) and Marubeni Corporation Phils. Marubeni's acquisition of 21.54% shareholdings in DMWCI concluded last February 2013 and following this, the economic interest of the Company is now at 25.24%, while MPIC and Marubeni have 52.8% and 20% respectively.

Private Infra Dev Corporation (PIDC) is a consortium of different local contractors which the Company holds 24% equity interest for the Tarlac-Pangasinan-La Union Expressway (TPLEX) Project. TPLEX is an 88-km two lane toll road with a 35-year concession including 5-year contruction period. It costs a total of Php 19.4 billion including the Php 2.9 billion government subsidy.

Board of Directors:

·         David M. Consunji
·         Cesar A. Buenaventura
·         Isidro A. Consunji
·         Herbert M. Consunji
·         Jorge A. Consunji
·         Victor A. Consunji
·         Ma. Edwina C. Laperal
·         Honesto 0. Reyes-Lao
·         Antonio Jose U. Periquet
·         Noel A. Laman

Technical Stock Graph (Source:  Bloomberg)

        On March 19, 2009, its stock was worth P2.90 per share. By today (May 3, 2014), it is P71.80 or an increase of 2,376%. By now, your investment of P10,000 last 2009 is now worth a whopping P247,566.00.

Financial Statement

(In Millions)
Net Income

Price:  71.80/share (as of May 3, 2014
Market Cap:  190,664 million (as of May 3, 2014)
Address:  3rd Floor Dacon Building
                    2281 Don Chino Roces Avenue
                    Makati City

1 comment:

  1. The slump in the housing market has had far-reaching effects. Home prices have fallen significantly on existing homes, especially because there are so many foreclosures on the market. It has also affected new construction, including affordable housing projects.
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