MARKET players remained optimistic on SM Prime Holdings, Inc. (SMPH) following strong earnings results last week, dampened only after Russia invaded Ukraine.
A total of 41.35 million SM Prime shares worth P1.61 billion were traded from Feb. 21 to 24, data from the Philippine Stock Exchange (PSE) showed.
Financial markets were closed on Friday in commemoration of the People Power Revolution anniversary.
The share price of the Sy-led property developer closed at P38 apiece, down by 0.5% from Feb. 18’s closing price of P38.20 per share. For the year, the stock has gone up by 13.4%.
Stock analysts attributed SM Prime’s performance last week to its “upbeat” earnings report.
“SMPH’s trading range was wholly dictated by sentiment over its [fiscal year 2021] earnings report. Investors bought up SMPH in the first half of the week as a reopening play amid talks of a lower alert level in the Metro,” Regina Capital Development Corp. Head of Research Luis A. Limlingan said in a Viber message, referring to the company’s ticker symbol.
“SMPH’s upbeat earnings surprised on the upside on the back of better-than-expected [fourth quarter 2021] leasing figures. It looks like because of this, market players revised upward their fair value estimates for the stock,” Mr. Limlingan added.
However, this was dampened by the escalating tensions between Russia and Ukraine, which “dragged performance of index issues across the board on Thursday,” China Bank Securities Corp. Research Associate Andrei Jorge G. Soriano said in a separate e-mail interview.
SM Prime’s net income reached P6.2 billion in the fourth quarter of 2021, its disclosure to the local bourse showed without providing comparative figures. Revenues during the period rose by a fourth to P25.5 billion.
This brought the full-year bottom line to P21.8 billion last year, growing by 21% year on year. Its revenues were flat at P82.3 billion.
By market segment, its residential unit, led by SM Development Corp., posted P45.9 billion in revenues.
SM Prime’s mall business’ revenues improved a bit to P24.1 billion last year from P23.6 billion in 2020 as mobility restrictions were eased in Metro Manila and surrounding areas. Rent income likewise inched up by 6% to P23 billion.
Revenues from its other businesses, which include offices, hotels, and convention centers, increased by 4% to P6 billion.
Meanwhile, Russian President Vladimir Putin unleashed an invasion of Ukraine on Thursday, citing the need to “denazify” the latter’s leadership as one of Mr. Putin’s main reasons, which Ukraine and its Western allies dismissed as propaganda, Reuters reported.
This sent global stocks and US bond yields to dive on Thursday, while US dollar and gold rose. Brent oil surged past $100 per barrel for the first time since 2014.
Mr. Limlingan expects the property firm to grow by 21% to net around P7.5 billion for the first three months of the year. He also forecasts a P25 billion in earnings for the entire 2022.
“With its residential segment staying robust, and the retail leasing segment continuing to improve, it is highly likely that the company will be able to sustain its double-digit growth figures this year and next,” Mr. Limlingan said.
For this week, he sees SM Prime’s support and resistance levels of P37 and P40, respectively.
“We think that SMPH will likely continue pulling back over the coming week, especially given the weakness in market sentiment,” Mr. Soriano said.
He placed the company’s immediate support and resistance at P37.30 and P40.00, respectively. — Ana Olivia A. Tirona
