HIGHER Q3 EARNINGS, HIGHER SMIC STOCKS | Marvin Germo

HIGHER Q3 EARNINGS, HIGHER SMIC STOCKS

By: Marvin Germo | November 11, 2019

Actively Traded Stocks

It looks like investors were triggered by the third-quarter earnings of SMIC that they made it one of the most actively traded stocks last week. SM Investment Corporation (SMIC) was on the list of the most actively traded stocks after the company disclosed its net profit for the first three months of the second half of the year. The reported quarter 3 earnings were above expectations and it drove investors crazy! Let’s see how SMIC moved last week as per the data I gathered for this article.

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Stock Smarts Singapore – November 6-10,2019
ICON Davao – November 30, 2019
Stock Smarts Manila – November 24, 25, December 8,9,15,2019

About The Trade Last Week

Based on the data I gathered, there were a total of 3.181 million shares of SMIC or equivalent to P3.345 billion exchanged from November 4 to 8. The stock grew by 3.88% on a week-on-week basis and last Friday, it closed at P1,070 apiece. The stock has increased by 16.88% already since 2019 began. And although there was a 1% decline in SM Retail, Inc., the earnings from the company’s core businesses such as banking and property were sufficient to offset the loss. The growth of the earnings of the company is truly an asset and it made foreigners take a position on the stock. In fact, during the same period when it was actively traded, there is a net foreign buying of P985.64 million.

SMIC Q3 Performance

SMIC was able to take the lead because it generated P33.1 billion net income as of the end of September or 26% higher than what it posted last year during the same period. The banking businesses contributed 44% of the reported net earnings of SMIC wherein BDO Unibank saw a 49% increase to P32.1 billion and China Banking Corporation a 21% to P6.7 billion. The banks were partly the reasons why the company had a great performance.

Property Segment and Retail Business

Meanwhile, the property segment of SMIC reported an 18% increase on a year-on-year basis or equivalent to P7.6 billion. The revenues rose by 14% to P85 billion as well. The retail business generated a net income of P7.8 billion during the nine-month period, which is 1% lower than last year due to the recent implementation of PFRS 16 or the policies on leases. Without the effect of this implementation, the business segment could have reported an 8% growth. The revenues of SM Retail grew by 12% to P253.9 billion.

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