MEGAWORLD PLANS TO CHANGE THE GAME | Marvin Germo
Megaworld stocks

MEGAWORLD PLANS TO CHANGE THE GAME

By: Marvin Germo | February 1, 2018

Megaworld plans to develop iTownships

Megaworld Corporation plans to incorporate smart technology in its townships which will then be called iTownships. Since we are now moving into a generation where technology is our best friend, it is just about time that the corporation make the bold move of innovating its township projects. The idea, generally, is that it will include smart technology in its residential units, smart parking systems and use of sustainable materials. Basically, its objective is to turn townships into smart cities that are fully functional. This system, once adopted, will take the real estate industry to the next level. It also includes a digitization of customer service, 24/7 security monitoring, emergency response, as well as, adoption of new payment processes. There will also be urban art installations and smart parking systems that would include a station for electric vehicle charging.

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Megaworld Senior Vice-President for Commercial Division Kevin Andrew L. Tan said that they now have teams who are studying and working on the integration of smart technology in its townships. If the project will be a success, it will directly benefit the 22 townships that it has which includes more than 660 residential developments, 55 office towers, and 15 malls. This will entail more cost for the development but, nonetheless, the company will be able to derive more income from this in the future.

Since we live in a digital world, conversion of regular townships to iTownships will be of benefit not only to Megaworld but also to its users. It will also be the first to introduce this type of township project. This on-going project is expected to attract more investors to invest in its company as well as attract new market and create new demand. People are always looking for fresh ideas and are aggressive when it comes to spending.

Apart from the above-mentioned advancements, it will also enhance green and sustainable features converting old streetlights to LED and solar-powered lights, green roofing for office buildings, and the addition of vertical green spaces. The creation of iTownships will bring a new brand or concept of “townships of the future”.

Megaworld and Real Estate Industry 

Megaworld, the real estate arm of tycoon Andrew Tan, has been in existence since 1989 primarily engaged in project development specifically in residential, commercial, leisure, and entertainment components. In terms of its net income, it grew to 11% with the amount of P9.98 billion in the first nine months of 2017 compared to the same period of 2016. Also, revenue grew by 5% compared to the same period of 2016.

The tight competition in the real estate industry really pushes the companies to innovate and think of new ideas to incorporate in its projects. The real estate business requires you to aggressively push sales strategies while at the same time maintain growth in its bottom line figure. It’s about effectively using available resources with minimal cost. Apart of course from its intent to profit, the company is also concerned about its promise in promoting environmental sustainability.

Technicals

As much as the news is looking good for Megaworld, the chart is showing a different reading. From the seven month chart of Megaworld, the stock is still in a mid term downtrend which started last November 2017. The stock has already broken down from two significant support levels and faces its biggest test yet as it now is at the strong support of 4.85.

From a position trading perspective, if the stock fails to hold 4.85, the stock will further accelerate into its downtrend and  the major trend could shift into a much larger downtrend if 4.85 does not hold. However if it bounces off 4.85 and somehow breaks past 5.1, we may see the stock reverse and start to trend up again. But that is again contingent on the bounce from 4.85 and the breakout from 5.1.

From a quick trading perspective, please avoid the stock if it fails to hold 4.85 as it will place the downside target of the stock to 4.60. However should it bounce from 4.85, the stock could bounce and go to 5.1 for the short term. For those who would want to do a quick trade, that is around a 7.5% trade.

Megaworld stock pick

 

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