I have shared in my recent post that Ayala Land, Inc bought shares equivalent to P800 Million from Prime Orion Philippines, Inc. (POPI). Ayala is obviously making a big step to position itself in the growing logistics industry in the country. Soon, POPI will be named as Ayala Land Logistics Holdings Corporation. The change has already been approved as disclosed by the firm last February 19, 2019. Along with the name, the ticker symbol will also be amended from POPI to ALL.
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Investing Insights (Dubai) – March 1, 2019
Stock Smarts Manila — March 9, 10, 16, 17 & 23, 2019
Stock Smarts Cebu — April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stok Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
Ever since Ayala Land bought into POPI, it has turned the business around, expanded and made the Tutuban Center better and is now trying to be a driving force in the logistics industry.
POPI, was incorporated in 1989, it is a listed logistic and industrial firm which currently owns the Tutuban Center in downtown Divisoria–a popular mall that offers wholesale and retail merchandises to locals and foreigners. It’s immediate holding companies are Orion Land, Inc., Orion I Holdings Philippines Inc., and OE Holdings, Inc.
At present, POPI owns two industrial parks located in Cagayan De Oro and soon in the Central Luzon that will provide 42 7,000-SQM cuts of lands. Just recently, the company set aside P1 Billion for the development of the Standard Factory Building that can soon store more than 60,000 SQM area with 40 units having a size of 1,200 to 1,500 SQM per unit. This will be located in Laguna Technopark. Numerically speaking, the 2018 income of POPI was 122% higher than 2017, P189.47 Million in figures during the first 3 quarters of the year and even went up to 328% which was P1.4 Billion in the last quarter.
With a significant stake in POPI, the attributable income of Ayala rose to P20.78 Billion, 17% higher than 2017, during the first 9 months of 2018. It eventually climbed to 21%, allowing P199.68 Billion of gross revenues.
The stock is currently on a breakout after bouncing from the support of 2.65 and breaking past the resistance at 2.80. The next resistance levels where you could take profit if you are a quick trader is at 3 and 3.25. If you are a position trader, you can still hold on to the stock as it is still in its medium term uptrend and no reversal sell signal yet is in sight.