MEGAWIDE Construction Corp. is earmarking P1.8 billion for its capital expenditure (capex) budget this yr to support growth in its real estate and construction businesses, its president said.
“About P1.8 billion. Half shall be real estate-related, and half shall be in construction and transport,” Megawide President and Chief Executive Officer Edgar B. Saavedra told reporters last week.
Compared, Megawide allotted P3 billion for its capex budget last yr.
Mr. Saavedra said Megawide’s topline is anticipated to grow by 20% to 30% this yr, led by the corporate’s real estate business.
He added that Megawide’s bottom line is anticipated to grow faster than its topline, without providing specific figures.
Megawide operates within the property sector via its subsidiary PH1 World Developers, Inc.
Mr. Saavedra said Megawide is specializing in the lower segment of the true estate market.
“We’ll give attention to the lower market, below P3.5 million, or around P2.5 million, that’s the true backlog,” he said.
Nevertheless, Mr. Saavedra noted that mid-segment offerings have experienced some softness attributable to excess supply.
He also said that PH1 could have its initial public offering in three years.
Megawide recently secured a contract from the Office of the Provincial Governor of the Province of Cavite to construct and develop the P1.87-billion Cavite Bus Rapid Transit (BRT) project.
Partial operations of the project are expected to start out by September this yr.
For the primary nine months, Megawide’s net income increased by 69% to P562 million as revenue grew by 7.2% to P16.3 billion.
The development segment accounted for P15.5 billion or 96% of consolidated revenues attributable to increased economic activities and the federal government’s infrastructure buildup.
Megawide shares fell by 1.54% or 4 centavos to P2.56 apiece on Monday. — Revin Mikhael D. Ochave
