SMIC sees higher Q3 income

MANILA, Philippines - SM Investments Corp. (SMIC), the investment holding company of the family of tycoon Henry Sy, said it expects its third quarter profit to be higher than last year given robust remittance inflows from overseas Filipino workers which continue to fuel consumer spending.

SMIC chief finance officer Jose T. Sio said the company is likely to maintain its double-digit growth in the third quarter, driven by increased business investment and strong consumer appetite resulting from the proliferation of call centers.

The company reported a 16.4 percent rise in income in the third quarter last year to P3.9 billion as revenues increased 6.5 percent.

Sio, however, said the company remains cautiously optimistic amid continued trepidation about the health of the US economy and fears of an imminent Greek default or exit from the euro zone.

Earlier reports said Greece only has a few weeks’ cash and needs the eight billion euro tranche in October to pay salaries and pensions.

Nevertheless, Sio maintained that they are likely to meet their net income growth target of 12 percent this year from P18.4 billion in 2010. Revenues are forecast to grow to at least P200 billion from P179 billion the previous year.

In the first half this year, SMIC reported a 12 percent hike in net profit to P9.64 billion, aided by high estate sales and sustained growth of its banking units.

Mall giant SM Prime Holdings Inc. likewise reported a 14 percent rise in net income to P4.27 billion as revenues climbed 12 percent to P12.71 billion.

By yearend, SM Prime will have 43 malls in the Philippines and four in China, with an estimated gross floor area of 5.2 million square meters in the Philippines and 0.6 million sqm in China.

SM Prime chief finance officer Jeffrey Lim said the company expects to speed up the expansion of malls in China beginning 2014 by putting up two new malls every year.

SM Development Corp., , on the other hand, chalked in a net income of P1.93 billion, up 54 percent, due to a 65 percent jump in revenues.

To further boost sales, SMDC will launch six new projects this year in the cities of Pasig, Quezon, Pasay, Manila and Parañaque.