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Ovialand projects premium-affordable home sales to rise

PROPERTY developer Ovialand, Inc. is expecting an increase in demand for premium-affordable home products this year, its top official said, citing buyers who have become more discerning.

“The demand for premium-affordable products is going to rise because the market is now more discerning,” Ovialand President and Chief Executive Officer Marie Leonore Fatima Olivares-Vital told BusinessWorld last week before announcing the company’s plan to hold an initial public offering (IPO) of shares.

“We describe our market as educated, hardworking and aspirational. The [rise] of influencers, social media and just the desire to uplift and upgrade makes home buyers more aspirational. So, we believe that the market for our unique and premium products is going to be strong,” she added.

Family-owned Ovialand calls its product offering “premium-affordable,” which is between P2 million and P4 million price points.

“This is the household income of about 60,000 to 100,000,” Ms. Olivares-Vital said.

The property company announced in 2021 its plan to grow its portfolio to 3,300 units within five years.

“That was really designed to make our product more known. And yes, I think we are on track in reaching that,” she said.

As of February, the company has completed a total of 1,800 units on the back of a landbank of around 45 hectares, which it plans to grow.

“Sa sobrang bilis kasi namin magtayo ng bahay, mabilis din siyang mabenta, (Because we construct houses fast, they also get sold fast) so we have to keep on acquiring new land,” she said.

Last week, the company filed a P2.22-billion IPO with the Securities Exchange Commission, the proceeds of which it plans to fund real estate projects.

The offer covers up to 396 million common shares consisting of 336 million primary common shares, 24 million secondary common shares and an over-allotment option of up to 36 million secondary common shares.

Ovialand targets an IPO price of P5.60 per share, with net proceeds expected to fund land-banking initiatives in Laguna and Bulacan and the development of real-estate projects in Laguna, Batangas, Quezon, and Bulacan.

In 2022, the property company recorded P227 million in net profit, up by 36.7% from the P166 million it booked in 2021. Revenues increased by 64% to P1.4 billion in 2022, higher than the P1.2 billion it set as a target for the year. — Justine Irish D. Tabile

Sugar industry rejects direct imports by beverage companies

BOC - PUBLIC INFORMATION AND ASSISTANCE DIVISION (BOC-PIAD)

THE United Sugar Producers Federation of the Philippines (UNIFED) declared its opposition on Sunday to the beverage industry’s request to directly import sugar.

UNIFED President Manuel R. Lamata, in a statement released over the weekend, said the lobbying effort “will affect the more than five million stakeholders of the sugar industry who are ironically their consumers as well.”

Mr. Lamata said that beverage companies sent a letter dated March 22 to President Ferdinand R. Marcos, Jr., which cited domestic supply constraints and high prices, as well as the alleged “outright refusal” of traders to “provide price quotes to industrial buyers.”

The beverage companies asked Mr. Marcos to review other options to allow industrial users to directly import refined sugar to address shortages.

Mr. Lamata urged beverage companies to buy local.

“Allowing them to directly import now will not just kill the sugar industry but kill the millions who are dependent on this industry just so they can further enrich themselves at our expense,” he said.

Mr. Lamata said that there is a need to import but the government has addressed the shortages via Sugar Order No. 6 which allowed the entry of 440,000 metric tons of sugar. — Sheldeen Joy Talavera

Benilde to hold lectures on the future of fashion

BUSINESS developer and marketing specialist David Beltrán Valdivieso of digital identity platform Union Avatars

DE LA SALLE-College of Saint Benilde will be holding a series of free public in-person and online lectures on “The Future of Fashion” which will highlight the importance of practicing circular economy, and exploring the metaverse in the industry.

The lectures are part of Sinulid 2023: Renascence, the culminating graduation show of the Fashion Design and Merchandising (FDM) Program of the De La Salle-College of Saint Benilde School of Environment and Design.

Sustainable fashion advocate Rio Estuar Cuervo, a recent awardee in the Italian Design Awards and the creative visionary behind zero-waste fashion movement RIOtaso, will be talking on the practice of circular economy in the industry.

Estuar Cuervo, who is an alumna from Benilde FDM, will expound on textile waste, its environmental impact, and the value of upcycling fabric scraps into modish pieces. She will likewise enumerate several points to consider in starting an eco-conscious brand. Her face-to-face talk will be held on March 28, 11:20 a.m.

Business developer and marketing specialist David Beltrán Valdivieso of digital identity platform Union Avatars will discuss the incorporation of web3, metaverse, and 3D avatars as a tool and medium in fashion.

He will delve into the role of digital fashion in shaping the local clothing scene, the advantages of using 3D avatars in customizing designs, as well as the technical challenges involved in adapting to this technology. His lecture will be on a hybrid set-up on March 30, 3 p.m.

The Future of Fashion is free and open to the public. It will be conducted at the Benilde Design + Arts Campus, 950 Pablo Ocampo Street, Malate Manila. Interested participants may register through http://bitly.ws/BEK3.

TNVS applicants flock to ‘GrabCar-avan’ as LTFRB nixes CoC requisite

Almost a thousand TNVS applicants trooped to the GrabCar-avan event. — PHOTO FROM GRAB PHILIPPINES

GRAB PHILIPPINES recently saw a huge crowd of almost a thousand Transport Network Vehicle Services (TNVS) aspirants attend the second leg of its GrabCar-avan series. The program is Grab’s initiative to help fill the 4,000 TNVS slots opened by the Land Transportation Franchising and Regulatory Board (LTFRB) last January.

The “GrabCar-avan” was held at the Grab Philippines Partner Center in Marikina City. In a release, the company said it attributed the increase in applicants to the removal of the Certificate of Conformity (CoC) among the requirements of the LTFRB for TNVS franchise application.

TNVS applicants no longer need to submit a bank-issued CoC for the application of the Certificate of Public Convenience (CPC) after the passing of LTFRB’s Board Resolution No. 005 Series of 2023 last March 2.

Among the applicants was 52-year-old Gregorio Garcia. Mr. Garcia has been a GrabCar driver-partner since 2016, paying “boundary” to rent a car from an operator. But thanks to Grab’s partnership with Toyota Financial Services, Mr. Garcia was able to get his own car this January, allowing him to process his TNVS franchise as the owner. Formerly a jeepney driver, Mr. Garcia now plans on getting another unit to rent out to his fellow TNVS drivers.

Said Grab Philippines Senior Director for Operations Ronald Roda, “We thank the LTFRB for making it easier for more Filipinos to earn an equitable living through ride-hailing — and it is clearly manifested with the outpouring of applicants from our recent GrabCar-avan. We are optimistic that through this development and programs such as GrabCar-avan, we are taking the right step toward providing more livelihood in the ride-hailing sector, while offering our commuters with safe, reliable, and more affordable means of mobility for their everyday needs.”

SEC warns on unregistered frozen foods trader

THE Securities and Exchange Commission has warned the public not to invest in Davao-Prime Summit Frozen Products Trading as it is not authorized to solicit investment from the public.

In an advisory, the regulator found out that the entity has been soliciting investments in social media for its supposed frozen products business.

On its Facebook page, the entity stated that it is a “legit distributor and wholesaler of frozen dim sum and other frozen products.”

Investors are asked to place their investments online at an amount that ranges from P10,000 to P500,000 through its “Profit Share Program.”

The entity promises a 120% profit within the lock-in period of six months or 20% profit for every month.

It also said in a separate post that it was, supposedly, registered with the Davao office of the Department of Trade and Industry and has a mayoral permit from Davao City.

The commission also stated that it utilizes an investment contract as a security measure, a prominent measure “when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.”

In its review, the commission stated that both entities are not authorized to solicit investments from the public. — Adrian H. Halili

Globe Telecom, Inc. to conduct annual meeting of stockholders virtually on April 25

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T-bill, bond rates to rise following Fed, BSP hikes

BW FILE PHOTO

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could go up after the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) raised borrowing costs.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Monday, made up of P5 billion each in 91-, 182-, and 364-day papers.

On Tuesday, it will offer P25 billion in reissued seven-year T-bonds, which have a remaining life of six years and six months.

T-bill rates could rise this week to track secondary market levels “after the latest local policy rate hike of 25 basis points (bps) to 6.25%, the highest in nearly 16 years, matching the latest Fed rate hike of 25 bps,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills went up by 10.45 basis points (bps), 11.31 bps, and 13.89 bps week-on-week to end at 4.9666%, 5.5587%, and 5.9397%, respectively, based on the PHP Bloomberg Valuation Service (BVAL) Reference Rates data published on the Philippine Dealing System’s website.

“The upcoming seven-year Treasury bond auction results could be close to the comparable seven-year PHP BVAL yield at 6.13% as of March 24, 2023,” Mr. Ricafort added.

The seven-year bonds inched up by 3.92 bps week on week to end at 6.1251% on Friday.

The Fed last week raised interest rates by 25 bps to the 4.75%-5% range, but said it could consider a pause soon due to turmoil in the US banking system.

The US central bank has raised rates by 475 bps since March 2022.

Meanwhile, the BSP likewise decided to increase benchmark interest rates by 25 bps to anchor inflation expectations.

The latest move brought its policy rate to 6.25%, with cumulative hikes since May 2022 now at 425 bps.

Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a report that demand for the government securities could be affected by the BSP’s hawkish outlook.

“With no imminent rate cuts in store for the BSP, we expect the market will be inclined to a buy on dips in the near term,” Mr. Asuncion said.

BSP Governor Felipe M. Medalla said after Thursday’s meeting that risks to the inflation outlook remain heavily tilted to the upside as supply shortages weigh on food prices. Price pressures may also broaden due to higher transport fares, electricity rates, and above-average wage hikes.

“Further policy tightening will also preserve the buffer against external spillovers amid heightened uncertainty and volatility emanating from financial sector distress in advanced economies,” he said.

Last week, the BTr raised just P10.636 billion from its offering of T-bills, lower than the P15-billion program, as rates climbed across the board.

Broken down, the Treasury made a partial P2.531-billion award of the 91-day T-bills versus the P5-billion program as tenders for the tenor reached only P4.041 billion. The average rate of the three-month paper rose by 28 bps to 4.911%. Accepted rates ranged from 4.74% to 4.974%. 

The government likewise borrowed just P3.7 billion via the 182-day securities, lower than the P5-billion plan, even as demand for the tenor reached P6.97 billion. The six-month T-bill was quoted at an average rate of 5.556%, climbing by 11.90 bps from the previous week, with accepted rates ranging from 5.475% to 5.6%.

Lastly, the BTr raised only P4.406 billion from the 364-day debt papers against the P5-billion program, even as bids for the tenor reached P6.795 billion. The average rate of the one-year paper went up by 14.70 bps to 5.864%. Accepted yields were from 5.775% to 5.95%.

Meanwhile, the reissued seven-year T-bonds to be auctioned off on Tuesday were last offered on Jan. 4, where the government raised the programmed P35 billion. The bonds fetched an average rate of 6.796%, with accepted rates at 6.625% to 6.895%.

The Treasury wants to raise P200 billion from the domestic market this month, or P75 billion via T-bills and P125 billion via T-bonds.

The government borrows from local and external sources to help fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — Aaron Michael C. Sy

Tarlac pechay farmers sharing site with solar farm harvest 5,000 kg

Photo by Joseph Emmanuel Garcia, BusinessWorld

FARMERS in Tarlac cultivating Chinese cabbage, also known as pechay, were able to harvest 5,000 kilograms (kg) from a site also hosting a solar farm, Citicore Renewable Energy Corp.  said.

The 7-megawatt solar farm, known as Citicore Solar Tarlac 2, Inc., in Barangay Dalayap, Tarlac City, also provides power to area farmers, the company said, resulting in savings of 8,430 metric tons of carbon dioxide because they no longer need to fuel their equipment with diesel. The savings in diesel terms were estimated at 828,142 gallons, according to the Citicore website.

Fiona R. Nicolas, a Citicore senior manager for corporate affairs, said the project was designed “to help our host communities, especially the farmers, because we want to share our land with them so they can also profit,” she told reporters during the harvest.

Solar power projects tend to compete with agriculture for land, creating an opportunity for co-location via agrovoltaic technology.

“We have proven that agriculture and solar power generation can co-exist. So, it’s (not true) that solar power displaces agriculture,” she said.

According to Ms. Nicolas, the project tapped power from the company’s 10-hectare site, where farmers planted their crops for two cycles.

The crops were planted in between solar panels to allow access to sunlight, improving land-use efficiency and yield.

Citicore said it sold the harvested cabbage for P15-P25 per kilogram. The farmers’ profit share was 25%-40%.

The company said based on soil analysis, the site is also suitable for chili, eggplant, and tomatoes.

A trial planting at the site in 2021 yielded a harvest of 3,735 kilograms of turmeric, arugula, and French beans.

The solar farm generates 40,000 kilowatt hours (kWh) per day, the company said, equivalent to providing 5 kWh to about 8,000 households.

Ms. Nicolas cited the potential for the solar industry to co-locate with farmers for boosting food production.

“Imagine the impact we can have, especially when it comes to job creation and food security alongside clean energy generation,” she said.

The company expected gross revenues of around P1.3 million for eight harvest cycles. Its own profit will be used for other corporate social responsibility activities, she said.

Ms. Nicolas said that the company also plans to use its other solar farms for agro-solar initiatives in the Pampanga, Bulacan, and Batangas. — Sheldeen Joy Talavera

PHL remains 18th among 50 emerging markets in terms of offering logistics opportunities

The Philippines stood at the 18th spot with an overall score of 5.18 in the latest edition of Agility Emerging Markets Logistics Index 2023 produced by Transport Intelligence. This was higher compared with the 5.16 overall score in the previous year. The index gauges the competitiveness of 50 emerging markets based on four equally weighted metrics: domestic logistics opportunities, international logistics opportunities, business fundamentals, and digital readiness.

PHL remains 18<sup>th</sup> among 50 emerging markets in terms of offering logistics opportunities

Designer Ryan Chris marks 12th year by giving back to kids with cancer and indigenous students

DESIGNER Ryan Chris hosted a fashion show and charity gala called “Sketches + Stitches” to mark his 12th year in the business. However, the event was not merely a showcase of the designer’s fashion, instead, it was a celebration of his childhood dream, with every sketch and stitch dedicated to giving back to the community.

The show opened with a presentation of Joyce Peñas Pilarky’s newest collection which was followed by Ryan Chris’s latest collection of almost a hundred ensembles.

The proceeds from the evening were dedicated to two charities that are close to the designer’s heart. The MBrace Project, an organization that aims to make a difference in the lives of children with learning disabilities, cancer, and other chronic illnesses. The event also supported the Indigenous People’s Student Organization which provides resources and support to indigenous students pursuing higher education, empowering them to make a positive impact in their communities.

For more information and to see Ryan Chris’ collection, visit ryanchrisdesigner.com.

Lamborghini records best-ever year in 2022

More than 5,000 units of the Lamborghini Urus were sold last year. — PHOTO FROM LAMBORGHINI

SUPERCAR MAKER Automobili Lamborghini reported that it had “another record-breaking year” in 2022. A total of 9,233 cars were delivered to customers around the globe, and the company posted turnover which breached €2 billion for the first time. Operating income also increased by 56% versus 2021 to €614 million.

Said Automobili Lamborghini Chairman and CEO Stephan Winkelmann in a release, “Our business continues to grow, and we can proudly confirm the achievement of truly remarkable targets once again in 2022. These figures come in a very important year for the company, which is marking its 60th anniversary and entering the second phase of the Direzione Cor Tauri program: An unparalleled investment plan that will guide our growth, lead to further improvements in our financial performance, and boost the value of our brand and our company. We are ready to face the many challenges and changes that await us in 2023 and we will keep pushing to the next level. We have an opportunity to really focus on our next objectives, thanks in part to our 18-month waiting list, which means we can confidently contemplate our future targets.”

Total turnover reached €2.38 billion, up by 22% versus 2021. Operating margin of 25.9% is said to be a “best-in-class result in Lamborghini’s market and (puts) it right at the top of the automotive luxury market.” Meanwhile, operating margin increased for a fifth consecutive year — another milestone for the company.

“The economic and geopolitical situation has been tough in recent years, but we’ve been able to show our resilience and our capacity to work towards excellent economic and financial results. Year 2022 was our best year ever on all financial and business fronts. It means we can take an optimistic outlook on the growth of our brand and our company,” noted Automobili Lamborghini Managing Director and CFO Paolo Poma.

Asia was at the forefront with a 14% increase, followed by America (+10%) and EMEA (+7%). The United States remained in the top spot overall (2,721 cars delivered, up 10% versus 2021); followed by the Chinese mainland, Hong Kong, and Macau (1,018 cars delivered, up 9%); Germany (808 cars delivered, up 14%); the United Kingdom (650 cars, up 15%); and Japan (546 cars delivered, up 22%).

The Lamborghini Urus led the way in sales with 5,367 units delivered (up 7%). Next in line -— and experiencing a significant increase — was the Huracán (3,113 units delivered, up 20%), and the Aventador (753 units delivered). The Aventador reached the end of its production run in September 2022.

This year, the brand turns 60, and will mark a “new era.” The launch of the new V12 super sports car — the first plug-in hybrid from Sant’Agata Bolognese — will be the first step toward the hybridization of the entire model range, to be concluded at the end of 2024. The €2.5 billion invested up to 2028 is the biggest of its kind ever for Automobili Lamborghini.

PLDT rises as capex findings soothe investors

PLDT Inc. inched up last week as worries over its budget overrun were eased while news of its Sky Cable Corp. acquisition boosted optimism amid an expected wider market share.

Data from the Philippine Stock Exchange (PSE) showed a total of 551,025 shares of the Pangilinan-led telco worth P746.3 million were traded from March 20 to 24.

PLDT shares closed at P1,350 apiece on Friday, up 3% from the P1,310 close on March 17. For the year, however, the stock was down by 25.5%.

On March 23, PLDT said it found no wrongdoing over the P48-billion capital expenditure (capex) overrun last year. It also announced this year’s capex at P80 billion to P85 billion, or below the P96.8 billion it spent last year.

Globalinks Securities and Stocks, Inc. Head of Electronic Trading Mark Crismon V. Santarina said in a Viber message that the spending report was good for investors and the announcement of a lower capex “may ease concerns” about the year’s finances.

“However, the company’s stock price [was] still affected by the overall market [performance] and investors’ feelings,” he said, referring to Thursday’s net selling of the stock by foreign investors that may also impact PLDT’s price.

Mr. Santarina said PLDT, as a member of the PSE index (PSEi), could have been affected by the current international financial situation and was not exempted from the effects of the recent collapse of Silicon Valley Bank and Signature Bank in the US.

He added that news of the US Federal Reserve’s and the Bangko Sentral ng Pilipinas’ rate hikes also influenced market players’ decisions to buy or sell.

The US Fed hiked rates by 0.25 percentage points to lower inflation.

As the market expected, the local central bank hiked rates by 25 basis points as core inflation continued to climb and to keep headline inflation on a downward trend.

Meanwhile, PLDT’s acquisition of Sky Cable is another news that gained positive sentiments from investors as this is expected to widen the telco’s market share and bring in more revenue.

“However, it’s hard to predict the exact impact of the acquisition on PLDT’s overall income given current market conditions. Investors may also be staying on the sidelines due to the uncertainties in the market that can influence market and investor sentiment,” Mr. Santarina said.

For the week, Mr. Santarina sees PLDT moving sideways as investors await another “significant event that could trigger a breakout.”

He expects PLDT’s first-quarter earnings before interest, taxes, depreciation, and amortization to reach P25.8 billion, higher than the P20.9 billion recorded in the first quarter of 2022, and a full-year net income of P30.4 billion.

He placed PLDT’s support and resistance levels at P1,290 and P1,380-P1,400, respectively.

“Despite uncertainties in the market, the company recently announced a dividend payment for its common stock, which has generated excitement among investors as it is seen as a positive indication of the company’s financial strength,” he said.

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. — Bernadette Thesere M. Gadon

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