DragonFi (DFSec) [link] announced that it has started commercial operations as of March 10, and after what it refers to as a “beta testing” phase, will open to full commercial operations by the end of April. DFSec is a new stock brokerage firm that is owned by Tony Caktiong (Jollibee [JFC 226.20 1.6%]) and Injap Sia (DoubleDragon [DD 6.86 0.4%]).
MB Quick Take
here hasn’t been a lot of news about what this new brokerage will be, whether it will be retail focused, or mostly just an in-house vehicle for the owners to pursue their own stock trading needs. The press release I received said that DFSec is looking to debut a “best-in-class trading platform for professional and aspirational investors alike”, and that would suggest that they’re looking to compete for anyone looking to step off the GStocks ride and get more into manual personal investing. It definitely would fit Mr. Sia’s “brand” of trying to lift up the average investor.
Metro Pacific [MPI 4.04 0.7%] [linl] confirmed reporting that they’re investigating multiple IPO listings for various portfolio companies, including their hospitals unit, their tollways company, and Maynilad. The reporting suggested that MPI did not have any immediate plans to list the companies, only that such listings would be considered. MPI confirmed that reporting, but insisted that “no final decision” had been made.
MB Quick Take
As I’ve said with MPI and Manny V. Pangilinan in the past, this is a group that is not afraid to look at its options to maximize shareholder value. They seem better than most at removing emotion and sentimentality from their approach. While some might question the value of that approach given the stock price results, where the price has gone low enough to prompt MPI and its partners to openly consider taking the massive conglomerate private, I think this level of corporate creativity is something that I look for in a management group. If there’s more value in a spun-off subsidiary, spin it off! I get very frustrated by companies that coddle failed investments like cherished family heirlooms.
Ayala Corp [AC 624.00 ?0%] [link] teases FY22 core net income of P27.7 billion, up 18% y/y, driven by contributions from BPI [BPI 109.00 0.9%] and Ayala Land [ALI 26.45 2.0%] riding the wave of economic recovery that has followed the loosening of movement restrictions. Excluding one-off gains realized through the BPI’s sale of property, Globe’s [GLO 1820.00 1.1%] sale of interests in data centers and cell towers, among others, AC’s net income would have been flat at around P27.4 billion.
MB Quick Take
For the large conglomerates, it really pays to wait to see the full report before making any definitive comments, but I have had the impression for a little while that the AC empire is struggling with direction. I’m sort of torn as well, because on the one hand I love it when companies get creative (as above, with MPI) and monetize dead parts of their balance sheets as with the sale-leaseback deals, but I also get a little unnerved when the number of those one-offs starts to stack up and I don’t get a good sense of the larger thesis for how the proceeds will be used to directly benefit shareholders. At least shareholders can trust the Zobel Family to be competent maintainers of shareholder value while waiting for the family to communicate and execute that plan. There are still bright spots in the portfolio (I’m a big fan of hospitals, GCash, and logistics) that are worth watching.
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