SM Prime shares rise on targets, sector rebound

SM PRIME HOLDINGS, Inc. (SMPH) shares climbed last week following the company’s target announcements and a broader rebound in the property sector.

Data from the Philippine Stock Exchange (PSE) showed SM Prime as the eighth most actively traded stock by Friday, with 67 million shares worth P1.44 billion changing hands over the week. The stock closed at P22.45 apiece, up 18.2% from the previous week’s P19, outperforming the property sector’s 10.4% gain and the PSE index’s (PSEi) 7.4% rise.

Despite last week’s gains, SM Prime remains 10.7% below its P25.15 close on the final trading day of 2024.

Christian Cabildo, equity analyst at The First Resources Management and Securities Corp., said the company’s recent announcements boosted investor sentiment.

On Wednesday, SM Prime disclosed its target to complete the redevelopment of SM City Iloilo by the first quarter of 2026. The P2.3-billion project will add 7,900 square meters (sq.m.) of gross leasable area (GLA) to the mall, enhancing dining, athleisure, and entertainment offerings. It will also feature upgraded infrastructure and expanded eco-friendly, sustainable facilities.

In addition, 23,670 sq.m. of GLA will be allocated to a new campus of the National University nearby, expected to further boost foot traffic.

“Positive developments like this definitely helped in lifting SM Prime from oversold territory,” Mr. Cabildo said.

The company also held a successful retail bond auction last week, with its P12-billion offering oversubscribed to P17 billion on Monday. Proceeds will fund various redevelopment projects and new lifestyle malls scheduled through 2030.

Mr. Cabildo noted that the news helped ease investor concerns following fears linked to flood control projects and weaker growth, demonstrating “the sector’s fundamental strength.”

The PSEi recently fell to pandemic-era lows amid a developing corruption scandal over alleged anomalous fund usage for flood control projects. The slump was compounded by political tensions and the country’s subdued economic performance, with third-quarter growth of 4% falling short of the 5.5% target for 2025.

In the nine months to September, SM Prime posted a 9.9% year-on-year rise in attributable net income to P37.24 billion from P33.88 billion in 2024. Revenues grew 3.6% to P103.4 billion from P99.76 billion in the same period.

For the full year of 2025, he forecasts SM Prime’s net income and revenues to reach P51-51.5 billion and P141.5-142 billion, respectively.

Regarding the stock, Mr. Cabildo said further upside may occur once it breaches resistance at P23.50, aligned with its 200-day moving average. Investors are also advised to monitor the Bangko Sentral ng Pilipinas’ monetary policy decision on Dec. 11.

For this week, he pegged support at P20.50-P21 and resistance at around P23. — Matthew Miguel L. Castillo