SM Prime’s income is constantly making a high jump. From P27.6 billion it earned last year 2017, the firm said they stood at P32.2 billion net income in 2018 and P104.1 billion consolidated revenue in the same year. The continuous leap on net income is fueled by the company’s expanding shopping malls and residential spaces. Kudos to the late Henry Sy for making a big step to start 2019 with prosperity and an aim to make a great profit in the coming years.
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We’ve known SM Prime as a Sy-led firm that has been providing satisfactory products and services not on;y its patrons but as well as to its vendors. The company welcomed 2019 with a total of 8.3 million SQM assets equivalent to 72 malls, in Philippines alone. It has also 7 malls in China extending to 1.3 million SQM. And just recently in 2018, it launched 4 malls which are SM Mindpro Citimall in Zambales, SM Center Dagupan, SM City Bicutan, and SM City Olongapo Central. We’ve seen SM prosper in the past years and it will surely continue on giving smiles to its customers while bringing in big profits to the firm.
This year, SM Prime is to launch about 15,000 to 18,000 units more. Expect that these house and lot project will compose of single detached style, mid-rise style, and high-rise style. The establishment of the next locations of the shopping malls are yet to be announced but there are definitely more malls to come in provinces and even outside the country.
Financially speaking, the firm’s giant shopping malls generated P59.3 billion revenues that is 11% higher than last year. According to the firm, this is because of the popularity of their newly opened SM malls in provinces especially in SM Tuguegarao Downtown, SM CDO Downtown Premier, and SM City Puerto Princesa. The revenue on the company’s rental spaces is 11% higher, P50.5 billion in figures, while 8% higher on malls sales across all its shopping malls. Speaking of its SM Development Corporation (SMDC), which is the main residential unit of SM, the company generated an income 38% higher than 2017, which is P12.3 billion in its equivalent. The main contributors to this income jump include the Spring Residence in Paranaque, Fame Residences in Mandaluyong, Shore 2 Residences, and Shore 3 Residences. While there are malls and residence sales, the company also got a 25% increase on its reservation sales, 21,157 units to be exact. And last but not the least, the firm had an average combined revenue of P8.4 billion from its other business segments which are composed mainly of commercial properties, convention centers, and hotels.
Looking at the chart, you can see that SMPH is now at the resistance, that’s why the stock is having a hard time to push up. Failure to breakout from the 40 level, will make the stock retrace to 37.5 to as low as 36 for the short term. While a breakout from 40 will bring the stock to 42.5 to 44 also for the short term.