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Home rental sector gets boost from Dinagyang Festival

By Emme Rose S. Santiagudo
Correspondent

ILOILO CITY — The demand for accommodations during this year’s Dinagyang Festival highlighted the growing vacation home rental sector in Iloilo City, and the local government will now be looking into the regulation of these types of accommodations.

“We monitored that there are a lot of condominium units full of guests already for Dinagyang,” City Tourism and Development Office (CTDO) head Junel Ann P. Divinagracia said in a press conference last week.

“We don’t have a record of these vacation home rental sectors so we cannot account them yet. That’s what we really want, to monitor them or regulate them,” she added.

Ms. Divinagracia noted that the home rental segment has been boosted by the rise of various online booking sites, with Airbnb, Inc. being the most popular.

“Right now, Airbnb is trending in the city,” she said.

The city currently has an inventory of about 5,000 hotel rooms, all of which were already fully booked more than week before the main Dinagyang festivities during the 4th Sunday of January.

Among the major hotels in the city are international chain Marriot, and local brands Seda, Richmonde, Hotel 101, and Go Hotels.

“We have more than 5,000 (registered) rooms all over the city and it is still increasing, but as of the moment, most huge hotels are overbooked while the rest are fully booked,” Ms. Divinagracia said.

The CTDO was expecting to draw around 100,000 domestic and foreign tourists during the Dinagyang week.

“Last year, we recorded close to 100,000 tourist arrivals, we are expecting to exceed the number this year,” she said.

The Dinagyang guests include returning Ilonggos who are either overseas Filipino workers or migrants, some of whom usually stay at relatives’ homes.

“There are a lot of family reunions and most of the OFWs are staying in their relatives and they don’t need to book in the hotels,” she said.

In terms of tourism receipts, CTDO data shows that during the Dinagyang season, foreign guests shell out an average of P12,000 a day, while domestic tourists spend around P3,000 to P4,000.

New Malabon exit seen to benefit 20,000 motorists

ABOUT 20,000 motorists are expected to benefit starting next month from the new Malabon exit, which is part of the 2.6-kilometer C3-R10 Section of the NLEX Harbor Link Segment 10.

“We estimate that about 20,000 vehicles will benefit from this alternative ramp,” Romulo S. Quimbo, Jr., NLEX Corp. senior vice-president for communication, said in a mobile phone message on Sunday.

The ramp from the new Caloocan Interchange, C3 Road, Caloocan City to Dagat-Dagatan Avenue will be partially operational next month. It will be called “Malabon exit,” Mr. Quimbo said.

The entire stretch of the C3-R10 Section from Caloocan City to Radial Road 10 (R10) in Navotas City will be opened to motorists in March. It will connect to the NLEX Harbor Link Segment 10.

The 5.65-kilometer NLEX Harbor Link Segment 10 is an elevated toll road that passes through Karuhatan, Valenzuela City, Governor Pascual Avenue in Malabon City, and 5th Avenue/C3 Road, Caloocan City.

Public Works and Highways Secretary Mark A. Villar was quoted as saying in a press release last Friday that the project is now “75% complete.”

“We are on track to open the C3 to Dagat-Dagatan Avenue by February and the entire C3-R10 Section by March to help decongest major roads such as EDSA and C5,” he said.

“With the full completion of the project, we expect to reduce travel time from Port Area to NLEX to just 10 minutes,” Mr. Villar added.

NLEX said the project will likewise benefit the transport logistics industry, noting that cargo trucks will have “24/7 access from the port to NLEX, sparing them from truck ban and congested local roads.” — Arjay L. Balinbin

SM Cinema’s new direction: mores screens in smaller theaters

SM MALL of Asia’s (MOA) cinemas have been relaunched after months of renovations, increasing screens but keeping the same number of seats in a preview of what cinemas under the SM chain would turn into.

The 16 new cinemas are housed in a complex at the mall’s Entertainment mall section and include 11 regular cinemas, one IMAX screen, three Director’s Club screens, and one event cinema. This is an increase in the number of screens from the previous 10 screens: six regular cinemas, one Director’s Club, one IMAX screen, one Premier Cinema, and the Centerstage event cinema.

Despite the increase in the number of screens, the number of total seats remained the same as the company opted to build smaller capacity theaters to better fit what customers prefer.

“The regular cinemas usually house 400 to 500 seats which is actually too big, plus it can only house one movie so if you have too many blockbusters [it won’t fit in the number of screens]. So if you cut [the seats in half], you can service two movies at once,” Ruby Ann Reyes, SM Cinema Vice-President for marketing, told BusinessWorld during the launch on Jan. 24.

“The Filipino audience is not a quiet audience to begin with. If you have a 400-seat capacity, it’s too noisy and the people will not be able to enjoy the film anymore unlike in 144-seaters,” she added.

She said that having smaller theaters make the viewing experience “more intimate,” adding that the smallest cinema seating capacity at SM MOA is 80 while the biggest is 144.

“It’s more personal to the moviegoer — the screen is closer — plus it’s not so big anymore and the legroom is bigger right now,” she explained.

The smaller seating capacity allowed the company to install Opus Glide semi-recliner spectator seats which allow viewers in regular cinemas to recline for a more comfortable experience. The more premium Director’s Club cinemas meanwhile will have Verona full-recliner leather seats.

The screens also got a laser projection upgrade, with the regular cinemas having Standard 7.1 Surround Sound setup and RGB Laser Projection system, while the Director’s Club also has laser projection coupled with the Dolby Atmos Surround Sound system.

Aside from the renovation of SM Mall of Asia cinemas — which is the company’s largest cinema complex — cinemas at SM Olongapo and SM Fairview were also overhauled last year, and refurbished SM Southmall cinemas opening by the end of the month and SM Sta. Mesa’s opening by April.

Ms. Reyes said there are plans to renovate SM Baguio, SM North EDSA, and SM Megamall within the year.

“We are heavy with the expansion of new cinemas in the provincial areas,” she said, noting that plans are underway to renovate cinemas in Pampanga, among other provincial sites.

The aggressive pace of renovation is an indication that alternative viewing experiences like streaming services have not dampened the Filipino appetite for movie viewing, said Ms. Reyes.

“Filipinos go to the cinemas as a group in the Philippines… [there’s] also that concept of ‘fear of missing out,’ so people would rather watch their favorite films first in the cinemas than wait months for it to drop to other platforms,” she explained before adding that SM Cinemas add to the moviegoing experience by putting up film installations and activities. — Zsarlene B. Chua

Grocery operator MerryMart plans P1.6-B IPO

MERRYMART Consumer Corp. is doing a P1.6-billion public offer of its shares by the end of the quarter, it said in a statement yesterday.

The grocery operator owned by businessman Edgar “Injap” J. Sia II said it had filed an application with the Securities and Exchange Commission (SEC) to offer 1,594,936,709 primary shares. The application was received by the SEC on Jan. 27.

MerryMart is selling the shares at up to P1 each. The offer period is targeted to be on March 23 to 27, and listing at the Philippine Stock Exchange (PSE) on April 2.

“We would like to take advantage of our group’s knowhow in franchising, and our familiarity of the Philippine market terrain, just like in the rollout of Mang Inasal, CityMall, Hotel 101 and CentralHub network. We believe this step will further strengthen the market grip of all the industries that our group is involved in,” Mr. Sia was quoted in the statement as saying.

MerryMart is a wholly owned subsidiary of Injap Investments Inc., Mr. Sia’s holding firm. It is also the founder of Mang Inasal Philippines, Inc. and has key shareholdings in listed DoubleDragon Properties Corp. in partnership with Tony Tan Caktiong’s Honeystar Holdings Corp.

It currently operates four full-size supermarkets and 27 branches are opening by the second quarter.

Proceeds from the initial public offering (IPO) will be used to support MerryMart’s expansion plans to cover various sizes of retail formats. These will be called MerryMart Store, MerryMart Market and MerryMart Grocery.

The company is targeting to have 600 branches by 2025 and 1,200 branches by 2030, which will rake P120 billion in systemwide sales revenue. It plans to build company-owned stores to establish its brand, but will also open the business to franchising.

“The 3-in-1 innovation and expansion through franchising is expected to bring in operational efficiencies and enable MerryMart to rapidly scale up and build up durable competitive advantage. Franchising also creates business opportunities for many budding entrepreneurs,” it said.

Other plans of the company are making its platform available online and setting up warehouses and distribution centers across the country.

“Our family initially had no plans to expand the retail business, but our recent experiences made us realize the need for us to be in the modern retail business, and we believe we will be in it while the transition from traditional retail to modern retail is still ongoing,” Mr. Sia said.

“Moreover there are undeniable synergies between the real estate and retail businesses. I will be glad to see both DoubleDragon and MerryMart to soon grow hand in hand and become formidable companies…,” he added.

PSE President and Chief Executive Officer Ramon S. Monzon previously said he expects up to six IPOs this year from four IPOs in 2019.

The company tapped PNB Capital and Investment Corp. as lead underwriter, issue manager and bookrunner for the offering. — Denise A. Valdez

Online platform makes it easier to buy, sell, and lease properties

By Adrian Paul B. Conoza
Special Features Writer

PROPERTYACCESS Philippines recently launched its own online platform that aims to make buying, selling, and leasing real estate properties easier for Filipinos.

Founded in 2018 by real estate experts Hiroki Kazato and Shiela Baylon, PropertyAccess provides users with real estate multi-listings, intelligent data, and analysis. It also serves to connect real estate developers, agents, institutional/retail buyers and sellers, landlords, and tenants across Southeast Asia. Aside from the online platform, PropertyAccess’ businesses include consultancy, transactions, and events.

Mr. Kazato, chief executive officer of PropertyAccess, said the company was founded with the vision of “elevating the real estate experience through transparency of information and accessibility to a wider market.”

According Mr. Kazato, the “immense growth potential” foreseen in the Philippine market, with the country as one of PropertyAccess’ top market for transactions, pushed the company to build the PropertyAccess Philippines platform.

“With this website, property buyers will be able to access properties [easily]. At the same time, they will be able to look through key information and data that some websites and portals failed to provide,” Mr. Kazato said during the launch event in Makati City.

Ms. Baylon, chief revenue and partnership officer of PropertyAccess, said the main focus of PropertyAccess was to act as a bridge for Japanese investors interested in the Philippine market. Now, she said the company hopes to further tap into the Philippine market with this newly-launched platform.

“The Japanese [market] is using it. However, we also want the Filipinos to [use] it, and we want to make it more friendly too,” she said.

Modeled after innovative websites from leading markets in the region such as Singapore and Australia, the newly designed website has a new user interface that makes the platform easy to understand.

Not only is the website designed with the Filipino market in mind, but it also aims to bring real estate investment closer to a younger demographic.

“One of our goals is to bridge the gap between real estate and the younger generations,” Alyssa Narvasa, the company’s head of product, said while presenting the new website.

She added that with this new website, PropertyAccess wants to show Filipinos that real estate is not a scary venture, but rather a practical and sound investment. “We’re here to serve as a transactional environment that is safe, legitimate, intelligent, and credible,” she said.

The website’s home page has a search bar that conveniently guides users on what to look for based on their preferences. Featured listings are located underneath, while location tags are also provided below for users who prefer to search based on area. Tailored searches can be made through the website’s various search pages.

Overviews of every search result can be accessed without extra steps. By clicking on a listing, a comprehensive profile of the property can be viewed, together with vital information such as the price, size, description, details, location, and even the listing agent.

A key addition to the website is its Affordability Calculator, designed to make searching for properties less intimidating, especially for first-time buyers. It provides the expected monthly expense of a desired property based on the information given by the user.

“It gives the buyer a sense of empowerment, a sense of preparation, which makes them more confident to move forward with his investment,” Ms. Narvasa noted.

The website also caters to sellers, real estate agents, and brokers by helping them find customer leads for their property listings. For P999 a month, they can post an unlimited number of listings without any commission sharing with PropertyAccess Philippines.

The website also has a feature called Leads Filtering. With the help of trained professionals who use a criteria “based on logic and experience,” quality leads are filtered in and sent to agents or brokers.

It also has articles on real estate news, home care tips, and design trends, among others.

PropertyAccess is also holding regular events for the real estate industry, all of which are staged in Japan. For this year, the company will hold the International Property and Investment Conference in May, the third Japan International Property Awards, and the World Investment Fair, both in November.

K-pop star Tiffany Young’s new motto is becoming ‘brave’

TIFANNY YOUNG speaking at a press conference on Jan. 24 at Novotel in Quezon City.

AFTER MORE than 10 years in the South Korean pop industry (K-pop) as part of the country’s biggest girl group at the time, Tiffany Young is now making music that’s all her own: more personal and more intimate.

“My most recent songs are my most favorite to date, which would be ‘Run for Your Life,’ ‘Magnetic Moon,’ and ‘Born Again.’ Those three specifically because of just how those songs came to be. It was a time for me to come full motion when I wanted myself and my fans to open up and be themselves — like being okay with not being okay sometimes — it’s such an important message to share,” Ms. Young said during a press conference preceding her Manila concert on Jan. 24 at the Novotel Manila Araneta Hotel in Quezon City.

Ms. Young (real name Stephanie Young Hwang) was born in 1989 and raised in California. At the age of 15, she was discovered by South Korean talent agency SM Entertainment which prompted her to move and train in South Korea for two years. In 2007, she debuted as part of Girl’s Generation, arguably the biggest girl group in the country at the time.

The group, which originally had nine members, spawned several chart-topping hits in its home country including its debut single, “Into the New World.”

Some of the group’s hits include 2009’s “Gee” and “Genie,” and 2013’s “I Got A Boy” whose music video won Video of the Year at the inaugural YouTube Music Awards.

Ms. Young, as one of the group’s main vocalists, made her solo debut in 2016 with I Just Wanna Dance. The following year, she ended her contract with SM Entertainment to move back to Los Angeles to pursue acting and a solo music career.

She released her extended play (EP) album, Lips on Lips, in 2019 which included the singles “Born Again” and “Lips on Lips.” The album debuted at the 9th spot in Billboard’s Heatseekers Albums chart and 30th on their Independent Albums chart. She is currently signed with Transparent Arts in the US.

Girls Generation is a group known for its radio-friendly dance songs and emotive ballads, two genres that Ms. Young continues to embrace, though adding a bit more synths (as in the case of “Born Again” and “Run for Your Life”) and R&B. Some of her fans commented that her music reminded them of Lady Gaga and Rihanna.

“When I was writing that song [“Born Again”] I remember being in so much pain and fear but the fact that I got to share this and open up with my fans… and the fact that we’re singing this song to each other over and over made it my happiest moment,” she said.

“Born Again” is her first single after moving to California and in its lyrics showed her uncertainty and hopefulness in having to build a career in a new place.

“Coming in this world fully naked, Feeling brand new so I’m your baby. Never felt this safe, in a foreign place. I used to feel so hollow, shallow, vacant,” she sings in the song’s first verse.

During the press conference, Ms. Young noted that much has changed in the past few years for her as she took the time to become an adult who “takes responsibilities fully and being accountable” while taking care of her mind, body, and soul (she mentioned going to therapy).

This year, she has as her motto becoming “brave,” in contrast to 2019’s motto of being “fearless.”

“Being fearless is like not knowing and going after it but being brave is willingly going for it… and being equipped and educating yourself… before you do something,” she said.

Ms. Young is currently on her Open Hearts Eve Part Two tour. — Zsarlene B. Chua

Gov’t makes full award of T-bills as rates drop on strong demand

THE GOVERNMENT fully awarded the Treasury bills (T-bills) it offered on Monday as rates declined across-the-board amid strong demand.

The Bureau of the Treasury (BTr) accepted P20 billion in T-bills as planned out of the total tenders of P44.5 billion, which is more than twice as much as the programmed offer.

Broken down, the Treasury raised P6 billion as planned via the 91-day T-bills out of total bids worth P18.832 billion. The three-month papers fetched an average rate of 3.297%, lower by 9.3 basis points (bp) from the 3.39% yield fetched in the previous auction on Jan. 20.

The government borrowed another P6 billion as programmed via the 182-day papers which attracted tenders totaling P11.995 billion. The yield on six-month T-bills likewise dropped, inching down by 5.5 bps to 3.597% from the previous week’s rate of 3.652%.

For the 364-day securities, the Treasury accepted P8 billion as planned out of total bids worth P13.689 billion. The average rate for the one-year papers likewise dropped by 0.8 bp to 3.963% from 3.971% previously.

At the secondary market on Monday, the three-month and six-month T-bills were quoted at 3.303% and 3.516%, respectively, while the one-year securities fetched a rate of 3.874%.

National Treasurer Rosalia V. de Leon said the T-bill rates went down on the back of strong liquidity in the market as well as increasing appetite for shorter tenors.

A bond trader interviewed yesterday shared the same sentiment, citing global uncertainties such as the threat of an outbreak of the novel coronavirus that started in Wuhan, China. The trader said this pushed investors to favor the short end of the curve.

“The auction was oversubscribed that’s why the yields came lower…primarily because there’s also uncertainty in the coronavirus so I think people are tying to shorten the duration at the moment. Second, the remaining longer tenors have actually improved a little bit last week so the T-bills caught up,” the trader said via phone.

For Ms. De Leon, aside from uncertainties in the market, other developments that contributed to lower rates include the announcement of government’s offering of retail Treasury bonds (RTB) this week. Yields were also affected by the BTr’s euro-denominated bond sale last week, she said.

Last week, the Treasury raised €1.2 billion from its offer of the euro-denominated bonds — €600 million each for the two tenors of three years and nine years — at the average rates of 0.1% and 0.7%, respectively.

The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in T-bills and P180 billion via Treasury bonds.

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product.

RTB SALE STARTS TUESDAY
Ms. De Leon said they expect strong demand for the three-year RTBs they are offering starting today amid ample liquidity in the market and because the tenor has seen strong appetite from investors recently.

“So we are hopeful na (that) we will have good demand coming from investors when we do the auction tomorrow,” she told reporters on Monday.

“Right now, we’re going to auction P30 billion but as is always the case, if you can see na (that)good rates and we still see na (that) there will be a secondary or follow-up after the auction, then definitely we will upsize the offering,” Ms. De Leon added.

For the online facility of the RTB sale, she said banks that will offer the bonds are Land Bank of the Philippines, Development Bank of the Philippines and First Metro Asset Management, Inc.

The Treasury’s P30-billion RTBs will have a three-year tenor and will be offered starting Tuesday until Feb. 6.

However, the BTr has the right to upsize the offer or adjust the offer period.

The three-year papers will be issued on Feb. 11 and will mature in 2023.

RTBs are offered to small investors as they are low-risk, higher-yielding savings instruments backed by the national government.

“In the past issuances, we’ve heard about the complaints sa (in) branches that they have stopped offering dahil paubos na (because they are running out), or they are not offering. So we have warned the banks, and the selling agents eventually, that they should make sure that their branches would be selling this product. Although it competes with their own products, they have to make sure that RTB will be something na (that) they will be offering to the clients,” Ms. De Leon said. — B.M. Laforga

Groundbreaking for Two Regis

MEGAWORLD CORP. recently broke ground for its second residential condominium development within its 34-hectare township in Bacolod City.

The 14-storey Two Regis is located next to the soon-to-rise Upper East Mall within The Upper East township.

The project offers a mix of studio units sized up to 31.5 square meters (sq.m.), executive studio (up to 37.5 sq.m.), one-bedroom (up to 43.5 sq.m.), and two-bedroom (up to 87 sq.m.).

Some units have a view of the sunrise from the Negros Mountain Ranges, while others have a view of the sunset along Guimaras Strait.

Two Regis will have three “skygardens,” lap pool, kiddie pool, fitness center, function rooms, among others.

Tax court sides with Lepanto in refund case

THE Court of Tax Appeals (CTA) denied for lack of merit the appeal of the Bureau of Internal Revenue over the P12.8 million tax refund granted to a mining firm.

In a four-page resolution on Jan. 17, the court’s second division said that records showed that Lepanto Consolidated Mining Co. has valid zero-rated sales for 2015 which is the basis for its unutilized input value-added tax (VAT).

“Be that as it may, this Court has painstakingly scrutinized the evidence on record and has determined that petitioner has valid zero-rated sales for calendar year 2015 and, furthermore, determined that petitioner incurred input taxes attributable thereto. As held in the assailed Decision,” the resolution penned by Associate Justice Juanito C. Castañeda, Jr. read.

“In view of the foregoing, the Court finds no convincing reason to reverse or modify the Decision promulgated on September 23, 2019,” it added.

The court in September partially granted the P14.9 million tax refund claim of Lepanto, allowing only the amount of P12.8 million to be issued a tax credit certificate.

It said that the amount of P12.8 million can be traced to its valid zero-rated sales of P1.1 billion.

In its motion for partial reconsideration, the BIR said the court erred in finding that the company sufficiently established its claims for refund and that “direct connection between the purchases or input tax and the finished product whose sale is zero-rated as ‘concrete’ and not ‘imaginary’ or ‘remote’” cannot be found in the decision.

The court ruled that Lepanto is not required to prove which among its purchases are directly attributable to zero-rated transactions and which are taxable transactions.

The tax appellate court said that Section 112(A) of the Tax Code provided that if a taxpayer s engaged in zero-rated or effectively zero-rated sales in taxable or exempt sales and the input taxes cannot be entirely traced to the sales, “the input taxes shall be allocated proportionately on the basis of the volume of sales.” — Vann Marlo Villegas

China’s theaters, studios protest against deal to stream movie online for free…

CHINESE THEATERS and film studios are protesting a deal by Huanxi Media Group to premiere its new movie Lost in Russia on Bytedance’s online platforms.

BEIJING/SHANGHAI — Chinese theaters and film studios are protesting a deal by Huanxi Media Group to premiere its new movie Lost in Russia on Bytedance’s online platforms, with some saying it was “trampling” and “destroying” China’s cinema industry.

The week-long Lunar New Year holiday usually sees audiences flock to cinemas with distributors taking advantage of the crowds to launch films but the premieres of at least seven movies, including Lost in Russia, were postponed due to a virus outbreak which by Saturday had killed 41 people and infected more than 1,300 people globally.

But Huanxi Media Group announced on Friday that it would show Lost in Russia for free on Beijing Bytedance Network’s platforms on Jan. 25, and that the social media giant would in turn pay it at least 630 million yuan ($91.25 million) for new movies and dramas.

Financial magazine Yicai reported on Friday on a statement issued by the film industry of eastern China’s Zhejiang province, which threatened to boycott films made by Huanxi and one of the actors in Lost in Russia if the internet premiere went ahead.

Another letter signed by 23 theaters and films studios was also circulated heavily in Chinese social media and reported by media outlets like the government-backed Beijing Youth Daily newspaper. Two industry sources familiar with the letter confirmed its authenticity to Reuters.

The second letter, which was addressed to industry regulator China Film Administration, said the movie would mark the first time in history a Spring Festival blockbuster would be screened for free online, and while it was legal to do so, it would break the current industry model.

“This goes against the payment and revenue model that the movie industry has cultivated over many years, is trampling and intentionally destroying the movie industry and premiere models, and play a lead role in causing destruction,” said the letter, whose signatories include Wanda Film Holding, Bona Film Group, and Henan Oscar Theater Chain.

Wanda confirmed to Reuters that it had signed the statement but declined to comment. Bona Film Group and Henan Oscar Theater did not immediately respond to calls for comment. Many offices are shut in China due to the national holiday.

A Bytedance spokeswoman said that its cooperation with Huanxi was a normal commercial deal to benefit the creators, adding that it also allowed more people to stay at home, rather than go out, given the viral outbreak situation.

Huanxi did not immediately respond to a request for comment.

Many public areas including cinemas in Shanghai, the city’s Disneyland resort and even Beijing’s Forbidden City have been shut due to concerns about the virus.

CANCELATIONS
Movie makers canceled a slew of films set for the Lunar New Year holiday in China, while cinema chains suspended operations as a deadly coronavirus outbreak thwarted what is typically the biggest week of the year for theaters.

Detective Chinatown 3, the third installment in one of China’s most commercially successful comedies, would not open Friday, as planned, according to a post on the film’s Weibo social media sites. Producers of Leap, based on the true story of the Chinese women’s volleyball team, announced similar cancellations, as did the makers of Jiang Ziya: Legend of Deification, one of the most anticipated films to have been released over the seven-day holiday.

The lineup of potential Lunar New Year blockbusters had set expectations high for box-office sales in a market that is projected to overtake the US as the world’s largest this year. The potential hits were also set to increase the dominance of local-language films in China’s estimated $29 billion movie market, which US filmmakers are counting on to backstop ticket sales for big-budget franchise pictures.

Chains including Dadi Cinema, Jinyi Cinemas and the local affiliate of CJ CGV Co. announced on their websites they were halting operations Jan. 24 through Jan. 27.

The cancellations follow announcements by Chinese health officials urging residents to avoid gathering in public places where the virus could spread. The government has also halted travel from the city where the outbreak is believed to have originated. Wuhan, a city of 11 million, is essentially locked down as officials try to contain the virus.

IMAX Corp. shares fell for a fourth day Thursday in New York, while the cinema operator announced it would postpone New Year holiday releases. The step was the “best course of action in an unfortunate situation,” the company said in a statement. Imax China Holding Inc., the local affiliate, fell as much as 2.2% in Hong Kong trading Friday.

Other China film-related shares fell Thursday, though mainland markets were closed Friday for the start of the New Year holiday.

Shares of Wanda Film Holding Co., a film exhibitor and producer of the Detective Chinatown series, fell 7% Thursday in Shenzhen, bringing their decline this week to 21%, the biggest four-day slide since 2018. Beijing Enlight Media Co., the company behind Jiang Ziya, slumped 5%, bringing the four-day drop to about 15%. — Reuters/Bloomberg

UnionBank books higher profit on loans, trading

UNIONBANK OF THE Philippines, Inc. saw its earnings climb in 2019. — TL-PH.FACEBOOK.COM/UNIONBANKPH

UNIONBANK OF THE Philippines, Inc. saw its net earnings nearly double in 2019 on the back of a higher loan portfolio, margin recovery and strong gains from trading activities.

In statement on Monday, UnionBank said it booked a record high net profit of P14 billion last year, almost double the P7.3 billion it posted in 2018. This translated to a return of equity on 16.3% and return on assets of two percent.

“UnionBank ended 2019 on a high note. Our performance was supported by solid fundamentals given a healthy loan portfolio and steady margin recovery. Trading gains also boosted the bank’s bottom line. Moreover, CitySavings delivered their targets for the year given successes in the salary loans and motorcycle business,” UnionBank Treasurer and CFO Jose Emmanuel U. Hilado was quoted as saying in the statement.

The lender said it also saw its revenues jump by 44% last year.

Its customer loans rose 21% year on year to P393.4 billion in 2019 on the back of sustained double-digit growth in small and medium enterprises, credit cards, consumer loans and commercial lending, which went up by 40%, 35%, 31% and 16% year on year, respectively.

Its margins likewise rose by 113 basis points from the bank’s bottom level at the start of 2019, “driven by asset repricing efforts, placement of funds in cost-efficient instruments, and the impact of cuts in policy rate and reserve requirement ratio during the year.”

UnionBank President and CEO Edwin R. Bautista said the bank’s digital initiatives also contributed to its growth as the bank continues to expand its business.

“I am glad of the strong growth we achieved and the superior returns we delivered amid integration of new subsidiaries and continued investments in digital transformation. Our digital strategy was key as we scaled up our businesses while maintaining lean operations,” Mr. Bautista said.

UnionBank’s total assets also rose 15% year on year to P770.9 billion at end-2019.

Last week, Moody’s Investors Service has affirmed its credit rating of Baa2 and maintained a stable outlook for the bank on the back of its strong capital and liquidity position. This is in line with Moody’s credit rating on the Philippines.

Moody’s also maintained the bank’s foreign currency senior unsecured rating of Baa2 and foreign currency senior unsecured medium-term note program rating of (P)Baa2.

Meanwhile, its baseline credit assessment (BCA) for the bank is at baa3 which reflects the bank’s “robust capitalization and large pool of liquid assets.”

Moody’s said a rating upgrade for the bank’s long-term ratings is “unlikely,” given the country’s stable sovereign rating, but it “could upgrade the bank’s BCA because of a sustained improvement in the bank’s asset quality or capitalization. A lower dependence on the bank’s confidence-sensitive time deposits for funding will also exert upward pressure on the bank’s BCA.”

UnionBank’s shares closed at P60.90 apiece on Monday, up by P1.10 or by 1.84%. — B.M. Laforga

Damosa Diamond Tower topped off

DAMOSA LAND INC. (DLI) topped off a new office building located within the Damosa IT Park in Davao City.

The Damosa Diamond Tower, which is expected to be completed in April, will cater to the strong demand for office space in the city.

“As Davao continues to experience a stream in investments, we see Damosa Diamond Tower as a welcome addition to its interesting skyline. As one of our biggest projects, this is truly a milestone for the company,” Ricardo “Cary” Floirendo-Lagdameo, head of DLI, was quoted as saying in a statement.

The 17-storey Damosa Diamond Tower offers 20,000 square meters of leasable space.

The building’s facade echoes the wavy lines of banana fibers — Davao’s top export. It also promotes the use of renewable energy, with custom-made exterior fins to divert heat, LED lighting and eco-friendly insulation.

“We owe it to the community to not only provide an area where they can thrive as they live, work and play, but to also create an iconic space that captures our region’s pride which is our agricultural resources and the ingenuity of Davaoeños,” Mr. Lagdameo said.

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