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PSEi seen ending 2018 at 8,200

By Arra B. Francia
Reporter
THE stock brokerage arm of the Bank of the Philippine Islands (BPI) projects the Philippine Stock Exchange index (PSEi) to close around the 8,200 level by year-end, as investors focus on companies’ fundamentals amid rising inflation and the weakening peso.
Amid the volatility experienced in the first three quarters of the year, BPI Securities Corp. President and Chief Executive Officer Hermenegildo Z. Narvaez said market participants will still look at how companies perform and the outlook for earnings growth.
“The main determining factor is still fundamentals, the corporates’ prospects for earnings growth…and how investors expect them to perform,” Mr. Narvaez told BusinessWorld in an interview at the company’s head office in Makati City last Friday.
“If there’s going to be a rally, it’s gonna be towards the end of this year around December, we should end not far away from 8,200,” he added.
Should this materialize, this would place the PSEi about 4.2% lower than its finish of 8,558.42 in 2017, a reversal of last year’s 25.1% increase from 2016’s close.
‘CHALLENGING’ Q3
By the end of the third quarter, the PSEi has already sunk to 7,276.82, about 15% lower than its 2017 finish. In September alone, the PSEi saw four consecutive weeks of losses.
Mr. Narvaez said the third quarter was a “challenging” time for the PSEi.
“It’s a confluence of all the risks that we were considering could happen, actually manifested in the third quarter. The peso continued to weaken, inflation continued to accelerate. We’re starting to see that impact the earnings of the companies,” he said.
Mr. Narvaez explained that compared to the second quarter where the outflow of funds was driven by the cautiousness against emerging markets, the third quarter put a spotlight on inflation, as well as other short term issues hounding the Philippine market.
The Bangko Sentral ng Pilipinas’ efforts to curb inflation by hiking interest rates — now up by 150 basis points — is also seen affecting companies’ capital-raising efforts.
“When you’re also raising rates, lending rates are going up. So there’s a concern how that will affect consumption, and the investments of companies moving forward and in effect will that affect growth,” Mr. Narvaez said.
With this, some analysts have downgraded their forecasts for some companies in the consumer sector that are directly affected by rising inflation.
“So that includes FMCGs (fast moving consumer goods) like URC (Universal Robina Corp.), restaurants… It’s not just commodity prices, but there’s also some concern about labor cost and how inflation will eventually force companies to likewise raise wages,” Mr. Narvaez explained.
Asked which companies were able to weather the volatility for the quarter, Mr. Narvaez cited San Miguel Corp. and Jollibee Foods Corp. (JFC) due to their aggressive expansion efforts.
He noted, however, that these companies “barely” got through the weak performance as well, as only a few companies actually posted gains.
On the other hand, companies like GT Capital Holdings, Inc. may have faced more headwinds due to the implementation of laws affecting their businesses, such as the Tax Reform for Acceleration and Inclusion law, while regulatory concerns weighed on Metro Pacific Investments Corp.
Moving forward, Mr. Narvaez said the market can correct to around 7,000-7,100. The 7,000 level will indicate a price to earnings ratio of 15x, which he said will be a good entry point for investors.
Mr. Narvaez expects property companies such as Ayala Land, Inc. and SM Prime Holdings, Inc. to deliver strong growth for full-year 2018. He also cited oleochemicals and aerosols manufacturer D&L Industries, Inc., noting its business model can allow it to pass on higher input costs to end-customers — an effective hedge against inflation.

Playing with clothes


It’s always been the goal of people in the creative industries to push boundaries, when they can. But do limits exist? How can you push something to its limit, then take a look back, and still say it’s acceptable, even beautiful?
The trick, apparently, is to learn all the rules before you even begin to break them. Mark Higgins, the son of avant-garde designer Salvacion “Slim” Lim Higgins, used the terno as an acceptable. “Don’t change the sleeves.”
Mr. Higgins sits as a co-director of Slim’s Fashion & Arts School, and on Sept. 27, the school had an exhibit in SM Mega Fashion Hall’s atrium, featuring the best designs of its graduating students, with the theme “Laro” (“to play” in English). The exhibit will run until Oct. 3. The exhibit was done in collaboration with Swatch, and is evident in the dress forms and mannequins having the watches as heads. Apparently, according to Mr. Higgins, the partnership is perfect as the brand is releasing a collection called “Think Fun.”
As for the dresses, the students were told to “Play with colors, textures shapes. Think of children’s games, nursery rhymes: knock yourself out, but do it well,” said Mr. Higgins in an interview with BusinessWorld.
Some of the more striking designs we saw on exhibit was a man’s suit with butterfly sleeves, inspired by kites, by student-designer Marvien. A popular dress that attracted visitors to the exhibit was a terno printed with a design inspired by comic books by student Vanessa Pinlac, while several students attempted to interpret card games as garments, resulting in designs that were grand but playful. A design by Jomar Saldo recreates the lightness of childhood with a dress inspired by bubbles, executed with a Japanese technique that created small puffs of translucent fabric. Menswear was well-represented as well, with barongs taking cues from marbles, party games, and catching dragonflies.
“You can do something as outrageous as you like, but it has to be very well-made,” said Mr. Higgins, recalling what he says to students. His mother, Slim Higgins, was known throughout the 1950s to the ‘70s for creating avant-garde looks that took inspiration from playing around with Filipiniana, resulting in outfits that propelled the wearer well into the territory of Balenciaga. The designs showed a Filipina eager to join the party of fashion worldwide, while tiptoeing through the Filipino postwar politics and issues that shaped the nation. Asked about how his mother pushed boundaries in the conservative era of the ’50s, he said, “She would push the limits, and would do very avant-garde designs, but the women always looked beautiful.”
It’s one of the requirements for every student of Slim’s to know how to make a terno before graduating. The terno has fallen in and out of fashion, but it still remains in the collective Filipino consciousness, as seen in Slim’s exhibit. “It is part of the story of the birth of the Filipina,” said Mr. Higgins, when asked about the importance of students to learn how to make a terno. Of course, few of the ternos and dresses exhibited were wholly traditional, so the students also participate in the evolution of the national dress, experimenting with its form but still remaining deeply rooted in its origins. Mr. Higgins used artist Pablo Picasso as an example: while he is known for his abstract work, his earlier work reflects an artist skilled in distilling perfect form and enviable realism. “It makes for an educated designer.” — JLG

Small farms in Davao upland district eyed for agri-tourism

DAVAO CITY — The upland district of Marilog — home to numerous small vegetable, fruit, and flower farms as well as a growing number of hillside resorts and restaurants — is being groomed to become one of the city’s main agri-tourism site.
Davao City Chamber of Commerce and Industry, Inc. (DCCCII) President Arturo M. Milan said the chamber will be working with the City Tourism Office to develop a comprehensive plan in coordination with the farmers.
“There are so many farms, especially in Marilog area… people (on their own) just go there,” Mr. Milan said in an interview after the recently-held Davao Agri Trade Expo 2018, where farm tourism development was identified as a priority sector.
Mr. Milan said one of the components being discussed is a dedicated tour bus route.
“As of now, if you don’t have your own vehicle, you can’t really go there… There should be a bus (from the city center) to Marilog that will make stops at the farms. That is really our vision, to do it as a regular service,” Mr. Milan said.
At the same time, the farmers need to be organized to prepare them to offer tourism services.
He cited Bemwa Farms as a potential model site because it has become popular among locals as an agri-tourism destination.
“If you just go to Marilog during weekends, you will see so many cars, all the restaurants are full… Just like Bemwa, that is actually how it is should be, there are a lot of small farms there that could be included in a system that is structured, ” he said.
He said Davao City is in a good position to host farm tours because the urban center is not too far from the agricultural areas.
“The good thing with us is, we are so close to the farm sites and we can really bring, especially people from Manila, to visit a farm and do harvesting,” said Mr. Milan, adding that it is also one way of promoting direct links between farmers and buyers.
Mr. Milan also noted that Davao Region as a whole has a “from highlands to islands” tourism campaign, “So this is our way of promoting, adding value to the promotion of highlands in Davao.” — Maya M. Padillo

Treasury bill rates likely to go up

RATES of the Treasury bills (T-bill) on offer today will likely climb, with oversubscription in tenders expected, as investors await the local inflation print for September.
The Bureau of the Treasury (BTr) is offering P15 billion worth of T-bills on Monday. Broken down, the government plans to raise P4 billion through the three-month papers, P5 billion via the six-month T-bills, and another P6 billion in one-year debt.
Traders interviewed before the weekend said yields on the T-bills on offer today could pick up from last week’s offer, with one saying it will climb by five to 10 basis points (bp).
The Treasury opted to reject all bids for the P15-billion T-bills auction last week.
Had the BTr made a full award, the rates of the three- and six-month papers would have fetched rates of 4.381% and 5.142%, respectively, while the rate of the one-year bills would have climbed to 5.643%.
At the secondary market on Friday, yields on the 91- and 182-day papers were quoted at 4.3094% and 4.6491%, respectively, while the 364-day T-bills fetched a 5.276% yield.
The trader said that the offer volume will be 1.5 times oversubscribed, although the Treasury could reject offers at the longer tenors.
“The BTr could reject bids again probably on longer tenors this time because they have been rejecting the 91-day [papers] for two consecutive weeks,” the trader said.
“That’s the usual demand for the T-bills. Usually, tendered volume is 1.5-2 times oversubscribed.”
Another trader added that market players will await the September inflation print due to be released on Friday.
The Bangko Sentral ng Pilipinas (BSP) said last week it is expecting inflation to have further accelerated to 6.8% in September or a range of 6.3-7.1%.
If realized, it would be faster than the 6.4% print in August and would be the highest since the 7.2% tallied in February 2009.
“[This is due to] higher domestic petroleum prices, higher prices of rice and other agricultural commodities due to typhoon Ompong, and the peso depreciation contributed to the upside pressures for the month,” the central bank’s Department of Economic Research said in a statement.
“For [this] week, we are looking at the inflation data and the auction last week,” the trader said.
The Treasury is raising P270 billion from the domestic market this quarter through auctions of securities, offering P180 billion in T-bills and another P90 billion in Treasury bonds.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product. — Karl Angelo N. Vidal

Cebu Pacific to take delivery of its 1st A320neo aircraft by November

BUDGET carrier Cebu Pacific expects the delivery of its first Airbus A320neo (new engine option) by November, which will be deployed for international routes before the end of 2018.
“I think the upcoming neo deliveries is going to be exciting for us. We expect our first neo to be delivered around November. Entry into service sana [hopefully] by December. We hope to use it on international routes,” Cebu Pacific Vice President for Commercial Planning Alexander G. Lao told reporters last week.
Although the Gokongwei-led airline has yet to finalize which routes the A320neo will be used, Mr. Lao said they are looking at a combination of flights to Indonesia and Japan.
Cebu Pacific currently has an order of 32 Airbus A321neo, five A320neo, two A321ceo (current engine option) and six ATR 72-600 aircraft.
Mr. Lao said the plane acquisitions are expected to fuel the budget carrier’s growth, as Cebu Pacific has not expanded its fleet as much in the last few years.
By next year, Mr. Lao said the budget carrier is seen to receive an aircraft almost every month. All the company’s orders are targeted to be delivered between this year and 2022.
These new aircraft will likely be deployed to different airports, Mr. Lao said, such as Ninoy Aquino International Airport (NAIA), Mactan-Cebu International Airport (MCIA) and Clark International Airport.
“I think there’s plenty of places to deploy. It’s a matter of us trying to stimulate the market also and see if we can get enough traffic. (There are) enough places to put them,” he said.
Mr. Lao also noted the company may partially phase out some of its older Airbus A320 units once its new orders arrive.
Cebu Pacific currently has a fleet of 67 planes, of which 36 are Airbus A320s, five A321ceos, eight A330s, eight ATR 72-500s and 10 ATR 72-600s.
Cebu Air, Inc., the listed operator of Cebu Pacific, took a hit from rising jet fuel prices and the weakening of the Philippine peso as reflected in its first half net income, which fell 24% from last year at P3.309 billion.
Last month, the airline started raising fares for international and domestic flights with the implementation of a Level 3 fuel surcharge. With the surcharge, it hopes to recover some of the losses incurred from rising fuel expenses. — Denise A. Valdez

Healthy-snack venture hoping to cement place in GenSan food universe

BUSINESS PARTNERS Chad D. Dorego, Alex Emmanuelle G. Aponesto, and Kaye M. Peratero from General Santos (GenSan) City maintain their own day jobs for now, but they aim to eventually pursue their Good Chips venture into a full-time social enterprise.
The barely two-year old business was initially intended to develop a product that would become another trademark pasalubong (traveler’s gift) from their hometown, the Tuna Capital of the Philippines.
“When people say GenSan, all they can think of is tuna, so we wanted another product as additional pasalubong, and we decided to make use of root crops,” Mr. Dorego said in an interview in Davao City.
They knew that the idea of healthy snack options from root crops was not new, and so they started experimenting with the combination of three varieties — sweet potato, taro, and cassava — to stand out from the competition.
For now they source their raw ingredients from the main trading post but hope to work directly with the farmers someday.
“Our farmers in GenSan are indigenous people. If we grow (as a business), we are looking forward to work directly with the farmers so that we can lower the pricing, and at the same time we can also be part of the farming operation because we want to make sure that the root crops we are getting are organic,” Mr. Dorego said.
The current operation is manual, from peeling to packing, with a capacity of around 80 to 100 packs from 30 kilos of root crops per day.
Their initial P15,000 investment mainly went to buying packaging materials.
“Outside it’s craft (paper), but inside its foil to prevent oil stains because we fly the chips (to buyers). It is important in packaging (that) there is a window to make it attractive to the consumers, they can see inside… We print a sticker for the name and manually stick it,” Mr. Dorego said.
Determining the three-month shelf life of the chips was also a process of trial-and-error by opening one pack per week and determining the point when they were still suitable for consumption.
“We can’t afford the food tech(nology) to test the shelf life,” he said.
Mr. Dorego said the business has found a market in Manila and Cebu.
The Good Chips makers hope to purchase industrial equipment such as peelers, slicers, and dryers to increase production and meet the orders that they have had to turn down.
Mr. Dorego said the ultimate goal is to inspire other micro and small entrepreneurs to try social enterprise, where business benefits the community. — Maya M. Padillo

Yields on gov’t debt surge on inflation expectations

By Jochebed B. Gonzales
Senior Researcher
YIELDS ON government securities surged amid expectations of faster inflation towards yearend after the central bank tightened monetary policy rates by 50 basis points (bp) last Thursday.
Debt yields, which move opposite to prices, climbed 33.14 bps on average week on week, data from the Philippine Dealing & Exchange Corp. as of Sept. 28 showed.
“Yields rose due to the policy rate hikes of the BSP (Bangko Sentral ng Pilipinas) and the US Federal Reserve,” said Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines (LANDBANK).
“The recent policy meeting of the BSP kept open the possibility of more rate hikes ahead, while policy guidance of the US affirmed widespread views of steady rate increases until at least 2021.”
Mr. Dumalagan added that the negative impact of Typhoon Ompong (Mangkhut) on agricultural production contributed to higher inflation forecasts for the month of September.
Sharing the same view, Rizal Commercial Banking Corp. (RCBC) Trust Trading Head Helen G. Oleta said market players are keeping an eye on domestic inflation data to be released this Friday after the BSP upwardly revised its forecasts for 2018 and 2019 to 5.2% and 4.3%, respectively, from 4.9% and 3.7% earlier.
“With the 50-bp hike, the central bank is suggesting its expectation on the inflation number. For the rest of the year, we might see elevated inflation not just on the supply side locally but also globally,” Ms. Oleta told BusinessWorld via phone interview.
The BSP has hiked monetary policy rates by a total of 150 bps thus far this year. The 50-bp tightening effective Sept. 28 brought the rate for the overnight reverse repurchase facility to 4.5%, while rates for the overnight lending and deposit facilities are now at 5% and 4%, respectively.
Meanwhile, UnionBank of the Philippines (UnionBank) chief economist Ruben Carlo O. Asuncion described last week’s trading volume as “rather thin as the market was waiting on the sidelines all throughout the week.”
“Expectations for [last] week was sideways with a strong upward bias for yields,” he said. “The market was definitely waiting for the BSP rate action which eventually materialized [last Thursday].”
At the secondary market on Friday, the yield on the three-year bond rose the most, gaining 94.28 bps to close at 7.0339%.
It was followed by yields on the 20- and four-year Treasury bonds (T-bond), which respectively increased by 76.03 bps and 63.39 bps to 8.2969% and 7.4464%.
Also posting significant gains last week were yields on the 91- and 182-day Treasury bills as well those on the seven- and 10-year bonds, which rose 29.76 bps, 13.01 bps, 24.11 bps and 33.26 bps, respectively, to finish at with 4.3094%, 4.6491%, 7.1101% and 7.2348%.
The rate of the two- and five-year T-bonds barely moved, recording gains of 7.4 bps (to 6.1990%) and 0.91 bp (7.0395%), respectively, while the 364-day paper saw its yield dip by 10.71 bps to end with 5.2760%.
“[I]t seems that the 50-bp [increase] is enough at this time,” said UnionBank’s Mr. Asuncion. “Thus, I would expect the market to wait for further leads as September inflation will be out [on Friday], with expectation of a still elevated one.”
LANDBANK’s Mr. Dumalagan also expects debt yields to move sideways with an upward bias this week amid a “likely strong domestic inflation” turnout.
“The local inflation report may solidify views of more rate hikes from the BSP this year. Volatility might remain elevated due to geopolitical concerns abroad,” he said.
The Philippine Statistics Authority will report September inflation data on Friday.

Telenor in talks with potential partners to enter PHL market

NORWAY’S Telenor Group said it is in talks with local companies as it eyes participation in the bidding for the third player slot in the Philippine telco industry.
Shanshil Ahmed Shibly, deputy director for regional operations of Telenor subsidiary Grameenphone, told reporters on Thursday they will “hopefully participate” in the government’s search for a “third telco,” as discussions are ongoing with potential local partners.
He said the company’s biggest edge would be its fourth generation (4G) and fifth generation (5G) data network.
“4G, 5G will definitely come. But definitely we will start with something like 4G,” Mr. Shibly said.
He noted the Philippines is an interesting market for Telenor because of its size.
“We are already doing very good business in Malaysia, Thailand, Bangladesh, Pakistan and Myanmar also, where we are close to No. 1. (The Philippines) market also has very good potential,” Mr. Shibly said.
Telenor is currently present in Norway, Denmark, Sweden, Pakistan, Myanmar, Bangladesh (as Grameenphone), Thailand (as dtac) and Malaysia (as DiGi).
It is one of several foreign companies the Department of Information and Communications Technology (DICT) has identified as prospective bidders in its initiative to find a third telco player.
DICT Acting Secretary Eliseo M. Rio, Jr. had previously named others, such as China Telecom, South Korea’s KT Corp. and LG Uplus Corp. and Vietnam’s Viettel Telecom.
According to the memorandum circular outlining the selection terms for the third telco, participating companies must involve a domestic company with congressional franchise, hence the need for a local partner.
Mr. Rio said the local companies that have expressed interest to join are Philippine Telegraph and Telephone Corp. (PT&T), NOW Corp., Converge ICT Solutions, Inc., Transpacific Broadband Group International, Inc. (TBGI), EasyCall Communications Philippines, Inc. and TierOne Communications International, Inc.
The government is targeting to name the winning bidder by December. The deadline for submission of bids will be on Nov. 5.
The winner will be selected based on its highest committed level of service, divided into three categories: annual population coverage for 40%, average broadband speed for 25% and annual combined capex and opex for 35%.
The winner will be awarded radio frequency bands of 700 megahertz (MHz), 2100 MHz, 2000 MHz, 2.5 gigahertz (GHz), 3.3 GHz and 3.5 GHz, which is expected to be sufficient to help it compete with incumbents Globe Telecom, Inc. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

A traveler’s retreat


Travel is an activity which guests at Okada Manila have in common, thus the idea of naming its spa “Retreat” since traveling is a “time to escape” and having a retreat is having “time for yourself.”
According to The Retreat Spa director Vikki Aquino, the concept of the spa came from the casino resort’s proximity to the Manila bay and a similarity among its guests — travel. “All major cities situated by a bay are usually where you have the seat of development and settlement. So, when we were looking at developing the facility, we wanted something that would wind everyone together,” Ms. Aquino said at the spa’s launch on Sept. 18.
Okada Manila’s The Retreat Spa offers “a holistic approach to physical and mental regeneration in an atmosphere designed for total wellness and relaxation.”
THE FACILITIES
Upon entrance, one is greeted by a 1920s-inspired barber shop with a whiskey bar on one side of the spa’s reception desk, and an art nouveau-inspired salon with a nail bar on the other.
The 2,500 square meter (sqm) main spa is designed with Moorish-typed interiors and includes a 650-sqm spa garden, a free-form pool, and a fitness center.
At the far end of the spa is the Relaxation Room which is equipped with a jacuzzi, sauna, steam room, lounge with number combination-protected lockers, and a shower area.
In front of the Relaxation room is the Dream Wave Room, which is the first spa meditation chamber in Southeast Asia. It has a high-power LED–light projection system and a transparent wave disc at allows the waves of water to be projected onto the ceiling.
The treatments are done at the 10 indoor main spa suites — four for couples and six for singles — which are named after lakes in the Philippines. The suites for singles are each equipped with a top-of-the-line table with iPad capability, a foot ritual station, and a rain shower and water closet; the couple suites have the same amenities plus a jacuzzi and a Thai massage lounger.
THE TREATMENTS
The spa offers 36 treatments which are classified into signature massage therapies, wellness therapies, signature organic facials, must-do spa body treatments, him and her spa journeys, and guilt-free-spa journeys.
The prices for the services range from P2,000 to P8,000.
The spa has 54 Filipino staff, with most of whom have had experience in the hospitality industry abroad.
“In the menu, we have the treatments that are pre-programmed and you just choose which one you like,” Ms. Aquino told BusinessWorld after a media event on Sept. 12. The customization of the treatment is considered when the client expresses specific health concerns or body conditions which he/she hopes to be addressed.
Must-do body treatments are performed for detoxification and relaxation; wellness therapies are offered with meditation for emotional and mental exhaustion, sleeping problems, as well as hormonal balancing therapy for expecting mothers; facials are customized depending on the client’s type and condition of skin.
The Retreat Spa is located at the 3F, Pearl Wing, Okada Manila. For details contact the spa at 555-5775 or theretreatspa@okadamanila.com. — Michelle Anne P. Soliman

Taiwan to buy $1.56 billion worth of Iowa, Minnesota soy

CHICAGO/BEIJING — Taiwanese trade officials and business leaders signed a letter of intent on Thursday to purchase as much as 3.9 million metric tons of soybeans from farmers in Minnesota and Iowa over the next two years, Minnesota Governor Mark Dayton said in a statement.
The Taiwanese Agricultural Trade Goodwill delegation said it plans to purchase between 3.2 million and 3.9 million tonnes valued at up to $1.56 billion of Midwestern soybeans in 2018 and 2019, state officials said.
If the sales go through, it could be a big boost for U.S. soybean exports to Taiwan, the sixth-largest U.S. soybean export market last year. In 2017, Taiwan’s total soybean imports from the United States were 1.4 million metric tonnes.
The deal comes as U.S. soybean sales to top-importer China have plummeted, along with grain prices, amid a bruising trade war between the world’s top two economies. Farm groups and rural economy advocates have been pushing for the trade fight to end, as well as hunting for new markets in which to sell their agricultural goods.
The agreement came after a trade mission by Minnesota agriculture officials to Taiwan last month, and meetings with Taiwan Vegetable Oil Manufacturers Association Chairman Yau-Kuen Hung.
The push was likely fuelled by politics, as Taiwan seeks to strengthen its ties with the United States amid growing pressure from China, which claims the self-ruled island as a territory.
“They’ve been looking to cement ties with the U.S. so one way to do it would be to buy more soybeans,” said Loren Puette, Taipei-based director of ChinaAg, a consultancy.
Taiwan officials could not immediately be reached for comment.
Taiwan’s imports from the U.S. have surged this year, with U.S. soybean arrivals increasing 80 percent above the average for 2013-17 in the first seven months to 1.2 million tonnes, according to USDA data.
Taiwan is Minnesota’s sixth-largest export market, and a key trading partner for the state’s agricultural products, state officials said.
In 2013, a Taiwanese trade delegation visited Minnesota and signed a similar pledge to buy up to $3.5 billion in U.S. corn and soybeans for shipment in 2014 and 2015. — Reuters

Berjaya Philippines extends lease deal with PCSO

BERJAYA Philippines, Inc. has extended its lease deal for lottery equipment with the Philippine Charity Sweepstakes Office (PCSO) by another year.
In a disclosure to the stock exchange on Friday, the listed company said its wholly-owned subsidiary Philippine Gaming Management Corp. (PGMC) has signed a supplemental equipment lease agreement with PCSO. This extends the equipment lease agreement for one year, effective from Aug. 23, 2018 to Aug. 22, 2019.
PGMC’s core business is the leasing of online lottery equipment as well as the provision of software support.
The investment holding firm said it has also entered into a cash bond agreement with PCSO for the transaction.
Berjaya Philippines recorded a 16% increase in revenues for the quarter ending July to P9.64 billion, versus the P8.32 billion it posted in the same period a year ago. Its net income attributable to owners of the parent accordingly grew by 15% to P346.2 million in the same period.
The company attributed the increase to higher revenue contributions from its luxury automobile segment, H.R. Owen PLC, alongside fluctuations from the British pound to Philippine peso during the period.
Added to Berjaya Philippines’ portfolio back in 2014, H.R. Owen operates several vehicle franchises in the prestige and specialist car market mostly in the London Area. H.R. Owen is considered as the world’s largest retailer of Rolls-Royce, Bentley, Lamborghini, and Bugatti brands.
In the auto industry, the company is also invested in Ssangyong Berjaya Motor Philippines, Inc., which sells and distributes all types of motor vehicles.
Berjaya Philippines likewise has a 28.28% interest in Bermaz Auto Philippines, Inc., formerly called Berjaya Auto Philippines, Inc. Under this firm, it has entered into a distributorship agreement with Japan’s Mazda Motor Corp. for the distribution of Mazda vehicles in the country.
Aside from investments in automobiles and lottery equipment leasing, Berjaya Philippines further has a stake in Berjaya Pizza Philippines, Inc., the exclusive franchisee of the Papa John’s pizza brand in the country.
The company also owns Perdana Hotel Philippines, Inc., which operates Berjaya Makati Hotel in Makati.
Outside the country, Berjaya Philippines has been ramping up its investments in the Malaysian operator of 7-Eleven convenience stores. Earlier this month, it acquired 6.5 million shares in 7-Eleven Malaysia Holdings Berhad for around P124 million. This brought its total interest in the Malaysian firm to 1.59%, which it noted is for investment purposes.
Shares in Berjaya Philippines went up by 0.52% or a centavo to close at P1.92 each last Friday. — Arra B. Francia

What is it like?

The week before The Retreat Spa’s official launch, members of the media were intend to take a tour and try out the spa and its services.
After the short tour, the spa staff welcomed us and served simple low-calorie (less than 300 calories each) snacks — sliced apples, bite-sized ham and cheese sandwiches, oatmeal muffins, a matcha green tea cookie, and a glass of orange-infused water.
The snack was followed by a 30-minute trial of the Relaxation Room’s facilities.
Since I was not expecting to take a dip, I did not bring swimwear. Thankfully, the staff gave disposable (and stretchable) undergarments. The jacuzzi, sauna, and steam room were pleasant, but the temperature shift thanks to the air-conditioning was very obvious.
After the use of the facilities, we were introduced to our therapists and had our treatments separately.
I had my treatment in the room called Maria (after a lake in Laguna). The two-hour session began with a foot ritual and scrub. Prior to the massage proper, the therapist asked me about any specific health concerns (conditions and allergies) — I had none; and she also asked me when I had my last facial — to which I answered, “Never.”
The therapist then gave me the Tranquil Glow treatment with organic lavender and seaweed sugar scrub.
She noted that seaweed is good for relaxation, detoxifying, and skin moisturization. The treatment included body brushing with a lavender and sugar scrub, a quick shower, followed by the Tranquil Glow massage. The therapist ended with a mini facial and with a seaweed eye mask to treat puffiness.
The treatment was soothing (the New Age background music helped) and made me forget the rest of the world for two hours. After the treatment, I appreciated the feedback the therapist gave about my skin and her suggestions on how I may treat the pimples on my back (which she noticed).
After the treatment, more low-calorie snacks were served.
To end the experience, I spent a few minutes relaxing to the sound of waves in the Dream Wave Room.
It was a worthwhile experience. — MAPS

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