Corporate News

Primex aims to double earnings

Posted on July 26, 2016

LISTED real estate firm Primex Corp. plans to double earnings this year, as the property developer aims to beef up its capital in preparation for expansion.

In a statement on Monday, Primex said its net income ballooned to P41.17 million in the first quarter of 2016, a reversal of the P0.83-million net loss in the same period last year. Sales grew 26 times year-on-year to P69.09 million in the three-month period from P2.64 million.

“We expect the growth to continue and to double our net income in 2016,” Primex Director Karlvin L. Ang was quoted in the statement as saying.

Mr. Ang said growth will come from its acquisition of Primex Realty Corp., the owner developer of The Stratosphere, a 31-storey residential condominium in the Makati central business district. The listed firm acquired Primex Realty in March 2015.

“More projects are being worked out which should produce similar to, if not better than, The Stratosphere’s revenue and bottom line contributions,” Mr. Ang said.

Prime is exploring possible foreign and local joint ventures, as well as strategic partnerships including capital enhancement activities like a follow-on offering to support the company’s expansion, he added.

The company is set to declare cash dividends within the next 12-18 months because of its improved financial status, Mr. Ang said.

Incorporated in 1986, Primex engages in the many aspects of real estate, including raw land acquisition, development, marketing, and leases. Primex currently holds a land bank of prime properties in Makati, Greenhills in San Juan, Quezon City, Tagaytay, Antipolo, Malabon, and Bulacan.

The Primex group also has a joint venture project known as the Xiamen World Trade Center -- a mixed-use development in a two-hectare property in Xiamen, China.

Shares in Primex fell 10 centavos or 0.61% to end at P16.36 apiece on Monday. -- Krista Angela M. Montealegre