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TKC embarks on equity restructuring program

TKC Metals Corp. plans to proceed with an equity restructuring program, as it aims to strengthen shareholder value after the drop in steel prices since 2014 weighed on the company’s financials.
In a disclosure to the stock exchange, TKC said it targets to increase its authorized capital stock by P2 billion. This will accommodate the advances the company took from its shareholders for working capital purposes amounting to P2.6 billion.
The PSE’s listing and disclosure rules mandate that companies logging negative equity for three consecutive years must be delisted.
The listed steel manufacturer attributed the negative equity to the drop in steel prices since 2014, which effectively weighed on the company’s financials.
“The company was therefore constrained to reduce its operations for the past years. Steel prices have only recently started recovering. Furthermore, the lack of sufficient electric power in the Mindanao area severely hampered the continuous production of our main product line,” the company said.
With this, the company plans to undertake an equity restructuring program to bring back shareholders’ value while waiting for the steel market to recover.
Once the company completes the conversion of the shareholders’ advances to equity, TKC will be able to reverse its negative equity to P1.71 billion. — Arra B. Francia

Property developers building more dorm-type condos

By Arra B. Francia, Reporter
More property developers are developing residential condominiums near educational institutions, as they aim to take advantage of the lack of players in the area.
DMCI Homes, Inc. said it will be launching a P2.8-billion condominium for sale near the St. Scholastica’s College in Malate, Manila in the second half of this year.
“This is a dormitory designed for family and students…Para siyang condominium na ibebenta sa property buyers pero ang features niya ay sa dormitory. We’re developing at a lower price point,” DMCI Homes President Alfredo R. Austria said in a media briefing last Aug. 13. He added that the project will be launched within two to three months.
Mr. Austria said the condominium will stand 30 storeys tall with unit sizes starting at 24 square meters each, priced at P3 million. The executive said the building will feature amenities designed for students residing in the area.
Meanwhile, tycoon George S.K. Ty’s property unit, Federal Land, Inc., also recently launched Quantum Residences along Taft Avenue. The project stands near several schools such as the De La Salle University, De La Salle College of Saint Benilde, St. Scholastica’s College, Philippine Women’s University, and Arellano University.
Quantum Residences will consist of three towers with 35 floors each standing on a single podium. The first five floors are the podium levels, while the remaining 30 will house the residential units. The entire project stands on a 5,960-sq.m. property.
Last July, property giant Ayala Land, Inc. (ALI) also opened its dormitory type property called The Flats at Amorsolo St., Makati City. The 15-storey building features co-living spaces catered towered young urban professionals seeking housing near their place of work.
ALI offers units at The Flats at a minimum six-month lease, with each room having up to four occupants. Occupants may also choose between rooms with lofts and rooms with bunk beds.

Prime Orion earnings almost triple in Q2

Ayala-led Prime Orion Philippines, Inc. (POPI) almost tripled its attributable profit during the second quarter of 2018, lifted by its expansion into the industrial park and logistics businesses.
In a regulatory filing, the listed company reported a net income attributable to the parent of P47.7 million, 188% higher than the P16.5 million it posted in the same period a year ago. Revenues surged 547% to P745.8 million.
This pushed POPI’s attributable profit for the first half of the year to P55.4 million, more than double the P25.8 million it generated in the first six months of 2017. The company’s revenues also jumped 240% to P925 million.
“We are very happy with our first half result. With the recent acquisition of a majority stake in Laguna Technopark, Inc., we continue to evolve and transform POPI into a real estate logistics-focused business,” POPI President and Chief Executive Officer Maria Rowena Tomeldan said in a statement. — Arra B. Francia

Allianz PNB Life Insurance to launch microinsurance products

Allianz PNB Life Insurance, Inc. will venture into the microinsurance business to help narrow the country’s protection gap.
In an interview, Allianz PNB Chief Finance Officer Efren C. Caringal said the joint venture between German insurer Allianz SE and Lucio C. Tan-owned Philippine National Bank (PNB) is aspiring to launch microinsurance products in the country to address the issue of protection gap or the amount of insurance needed by Filipinos.
“Allianz is very big in microinsurance. I think we’re one of the biggest [globally], particularly in markets like Indonesia and India. Our aspiration is to be able to do that also in the Philippines,” Mr. Caringal told BusinessWorld in an event in Makati City last week.
He added that there is a large potential to insure more Filipinos though microinsurance.
“One of our corporate advocacies is really on the financial incursion. There is a large potential to insure more Filipinos.” — Karl Angelo N. Vidal

Sustainable agri-tourism gets the spotlight in DoT trade show

The Department of Tourism (DoT) will be promoting sustainable agri-tourism in its food and travel exposition, Philippine Harvest, which will be launched on Friday, Aug. 24.
Tourism Secretary Bernadette Romulo-Puyat in a statement on Wednesday, Aug. 22, said that this year’s Philippine Harvest is in line with the department’s thrust to promote both local food and tourist destinations, which are seen to add extra income to the agriculture sector.
“We hope to develop sustainable farm tourism as a dependable source of income for Filipinos in line with the implementation of the Farm Tourism Development Act of 2016, which serves as one of our strategies for countryside development,” she added.
The Philippine Harvest will feature DOT-accredited farm sites, travel agencies, and some 30 local food exhibitors.
In partnership with the World Wide Fund for Nature Philippines, the three-day event will also provide a venue for lectures on sustainable tourism and dining.
The first Philippine Harvest in 2016 highlighted organic and indigenous produce. — Anna Gabriela A. Mogato

Finance dep’t cites tax reform gains as retail firms report higher sales

THE DEPARTMENT of Finance (DoF) touted the effectiveness of lower personal income tax (PIT) rates under the Tax Reform and Acceleration and Inclusion (TRAIN) law, after large firms report an increase in sales in the first half.
“The significant growth in sales reported by retail establishments and restaurants point to the fact that people now have more money to spend as a result of the hefty PIT cuts under TRAIN, which is now benefiting 99 percent of our taxpayers,” Finance Assistant Secretary Antonio Joselito G. Lambino II said in a statement on Wednesday, Aug. 22.
The DoF cited Philippine Seven Corp., who holds 7-Eleven convenience stores, as an example where retail sales grew 22.7% to P22.2 billion year-on-year in the first semester.
It also said that Robinsons Retail Holdings Inc., Puregold Price Club, and Max’s Group Inc. had reported increases in retail sales in the second quarter. — Elijah Joseph C. Tubayan

SEC approves Globe’s creation of new tower firm

Globe Telecom, Inc. is moving closer to establishing a separate tower holding company now that it has secured clearance from the Securities and Exchange Commission (SEC).
In a disclosure to the stock exchange on Wednesday, Aug. 22, the telco giant said it was granted approval by the SEC on Monday to incorporate GTowers, Inc.
It said putting up a distinct tower company would “help speed up the building and deployment of cellular towers in the country.”
This development comes after Globe secured approval from its Board of Directors last month to start the process of incorporation for the new tower company.
The company said in February it was considering divesting its cellular tower assets to build a tower unit with third party companies. It said at that time it had already started talking to independent companies, but Globe President and Chief Executive Officer Ernest L. Cu told reporters last month it has yet to come up with an agreement.

DBM releases P2.29 billion for Marawi social projects

THE DEPARTMENT of Budget and Management (DBM) has released P2.29 billion for social projects under the Marawi City Rehabilitation and Recovery program.
The projects, which is carried out by the Department of Social Welfare and Development (DSWD), includes the Basic Transitory Family Support Package worth P1.43-billion for 25,537 displaced families.
They will also get an additional P675.20 million from the Provision of Livelihood Settlement Grants program.
The fund release also includes a P183.02-million Operational Support Fund for other administrative expenses.
The sum is taken from the Marawi Recovery, Rehabilitation, and Reconstruction Program (MRRRP) through the P25.5 billion 2018 National Disaster Risk Reduction and Management (NDRRM) Fund. — Elijah Joseph C. Tubayan

Five power projects cleared for grid impact study — DoE

The Department of Energy (DoE) has cleared five projects to conduct their separate study on their project’s impact on the national transmission grid as they will potentially add 1,233 megawatts (MW) to the country’s installed power capacity.
Based on latest DoE data, the five projects secured their clearance in July with Limay LNG Power Corp. accounting for the bulk of the expected new power capacity at 1,100 MW for its combined cycle gas turbine project in Limay, Bataan.
The rest of the projects are renewable energy development that ranges in capacity from 14 MW to 80 MW.
The DoE data show that no other projects had been cleared for grid impact study (GIS) so far this year except for the five facilities. — Victor V. Saulon

Building your wardrobe with a bit of digital magic

Two years ago, Abbie Victorino found herself in between a day job and a side business supplying accessories to an e-commerce site. Perennially crunched for time, she was eating a lunch sent to her through a meal delivery service, a convenience she wished she could bring into the rest of her professional life.
“Buti pa ’yung isa kong problem, it’s solved already,” Abbie said, thinking about where else a service like this might come in handy.
“Why isn’t there a delivery plan for clothes?” she asked, the gears in her head turning. “What if I’m the one who would do it?”
As a former international fashion buyer and model, with a background in the field of e-commerce, she decided to capitalize on these musings. That’s how, in 2016, styling subscription box StyleGenie was born.
“I talked to my friends and said, ‘I have this idea, it’s crazy, but do you think people would subscribe to styling box?’ It’s actually doing a lot better in the US, and I think in Singapore now, so, why not do it here in the Philippines?” Abbie said.
StyleGenie, considered the first styling and clothing subscription box in the country, aims to provide a unique, effortless shopping experience for Filipino customers.
Users of this digital stylist, currently numbering at around 2,500, follow a three step process: create a style profile, subscribe to a budget and delivery plan, and “Shazuums,” receive a curated box set of clothes.
“We want to make closet wishes come true,” Abbie said. “We don’t want to be just a shop. We want to be someone who can help you develop and improve your style. That’s why we called it a genie.”
In addition to Abbie, Steph Oller, 29, and Rhijean Sarenas, 28, round out the StyleGenie team. Together, they are planning to scale their operations to cover the entire Philippines, and even move into Malaysia and other Southeast Asian markets before the end of the year.
“Their eyes sparkled when I was pitching my basic five-slide presentation,” Abbie said, recalling how she first tapped her partners. “They got the idea and they’re like, ‘This is going to work’.”
Abbie admits that starting an online business today is quite a challenge. But with Steph and Rhijean, she says she’s found just the right kind of magic to make it work.
“It’s very important that you have the same vision — that you see where the company is going, what kind of purpose, or what kind of problem you are really solving,” Abbie said.
“We believe that clothes may not change the world, but the people who wear them can,” she said. “That’s our belief.”
And if the team behind StyleGenie can manage to help those potential world-changers be confident enough to try, then that’s its own kind of magic altogether.

Habi Footwear: Weaving a way out of poverty

Habi Footwear’s story begins in 2012, in an urban poor community in Quezon City. Janine Mikaella Chiong, the company’s president and co-founder, was on an immersion trip and had spent considerable time with the mothers of the community.
She noticed that they were incredibly skilled at weaving rugs, but barely made a profit from their output — roughly P10 to P15 per foot of fabric. That’s when she reached out to them with a business idea.
“[We] decided to incorporate woven mats into footwear as we wanted to come up with a functional, affordable yet stylish shoe brand that will capture the market,” Janine said.
Enter Habi Footwear.
Since its launch in 2012, Habi has grown into a lifestyle enterprise offering not only espadrilles, sandals, and heels, but also bags, pouches, and corporate giveaways — all produced by women from impoverished communities.
“Our aim is to address poverty and lack of empowerment and livelihood opportunities for women in communities,” Janine said.
The Habi team consists of Ms. Chiong, who is also in charge of the sales and marketing; Bernadee Uy, head of finance and community development; Maria Paulina Savillo, head of product development; and Allister Roy Chua, operations manager.
Currently, the team has partnerships with four communities in Quezon City, engaging a total of 30 weavers earning as much as P200 a day for their output.
According to Janine, the Habi team measures success not only on the basis of financial and developmental sustainability, but also by the impact on the quality of lives of their community partners.
“We try as much as possible to really gauge their well-being and productivity within the company,” Ms. Chiong said. Today, the team has plans to expand their partnerships to reach communities in Ifugao, as well as a correctional facility in Mandaluyong.
“If you want to put up your business, don’t be motivated just by prestige or profit,” Janine said, speaking of the lessons she’s learned from running Habi and what advice she’d give aspiring entrepreneurs. “Wherever you are, find something that bothers you and do something about it in whatever endeavor you wish to pursue.”

DoT Usec Kat De Castro moved to IBC-13

President Rodrigo R. Duterte has appointed Department of Tourism (DoT) Undersecretary Katherine Chloe S. De Castro as a member of the board of directors of the Intercontinental Broadcasting Corporation (IBC-13), Malacañang said on Wednesday, Aug. 22.
Ms. De Castro was replaced by Edwin R. Enrile as tourism undersecretary.
The President signed the appointment papers of Ms. De Castro and Mr. Enrile last Monday, Aug. 20.
“Pursuant to the provisions of existing laws, you are hereby appointed Member, Board of Directors, Intercontinental Boadcasting Corporation (IBC-13), to serve the unexpired Term of Office (of Manolito O. Cruz) that began on 01 July 2018 and will end on 30 June 2019,” Ms. De Castro’s appointment paper read in part.
IBC-13, according to the official Web site of the Governance Commission for Government-Owned and-Controlled Corporations (GCG), “started out in 1960 as a private company known as Inter-Island Broadcasting Corp., and then was sequestered by the Presidential Commission on Good Government (PCGG) in 1986 as part of the recovery of ill-gotten wealth.”
“It has been one of 2 networks considered as GOCCs aside from Philippine Television Network, Inc. (PTV-4). The State also has a minority share in Radio Philippines Network (RPN-9),” the GCG also said.
The President has also signed the appointment papers of the following new officials:
• Michael P. Ong, Acting Senior Deputy Executive Secretary, Office of the President
• Mcjill Bryant T. Fernandez, Acting Deputy Executive Secretary for General Administration, Office of the President
• Vanessa B. Goc-ong, Assistant Secretary, Office of the President
• Beatrice A. Avelino-Vega, Assistant Secretary, Office of the President
• Francisco P. Acosta, Chairman, Commission on Filipinos Overseas
• Ruben V. Lopez, Member, Board of Directors, United Coconut Planters Bank
• Joe Jay T. Doctora, Member, Board of Directors, Small Business Corporation
• Dengel P. Palmares, Member, Board of Directors, Philippine Sugar Corporation
• Danilo C. Trongco, Member, Board of Directors, National Tobacco Administration
• Amador T. Tabuga, Jr. Member, Board of Directors, Philippine Mining Development Corporation
• Paul J. Paulin, Provincial Agrarian Reform Program Officer I, Department of Agrarian Reform
• Peter Joseph L. Fauni, Register of Deeds II, Land Registration Authority, Department of Justice
— Arjay L. Balinbin