VISTA LAND CONTINUES ITS AGGRESSIVE EXPANSION | Marvin Germo
VLL Stock Pick

VISTA LAND CONTINUES ITS AGGRESSIVE EXPANSION

By: Marvin Germo | February 19, 2018

Vista Land aims to open 60 malls by 2020

Vista Land & Lifescapes Inc. (VLL), formerly owned by Manuel Villar Jr., is engaged in the development and sale of residential subdivisions and construction of housing and high-rise condominium through its horizontal and vertical projects. It currently ranks among the top listed property firms in the country in terms of total assets, earnings and market capitalization. VLL has six wholly-owned subsidiaries namely Brittany Corporation, Crown Asia Properties, Inc., Vista Residences, Inc., Camella Homes, Inc., Communities Philippines, Inc., and VLL International Inc. The company also owns 88.34% of Stamalls Inc., which is the commercial segment for the development, leasing and management of shopping malls and commercial centres all over the Philippines.

The company targets to have 60 malls by the end of 2020 which is three times higher than what is currently established. It currently has 22 malls so 38 more will be added in the next three years. VLL Chairman Manny Villar, Jr. expressed his optimism that the company’s goal can be achieved due to the strong demand in their commercial spaces and housing products driven by the steady growth in disposable income, OFW remittances and sound macroeconomic fundamentals.

Stock Smarts Hong Kong  —  July 28, 2018
Stock Smarts Iloilo —  August 10 – 12, 2018
Stock Smarts Manila  —  September 1, 2, 15, 16, & 29 2018
Stock Smarts Cebu, October 27 – 28, 2018

Vista land will spend 50 Billion this 2018  

VLL’s consolidated capital expenditure (CAPEX) budget for 2018 is set at P50 billion by which a big chunk of it is allotted for mall construction. It will be funded by internally generated cash and borrowings. It plans to hit 1.4 million square meters (sq. m) in Gross Floor Area (GFA) this year from last year’s 1 million sq. m which is relatively higher than its previous target of 1.3 million sq. m. Apart from that, the Vista Land President and CEO Manuel Paolo Villar expects a 10% to 15% net income growth this year.

The companies owned by Villar are allotting some P175 billion in CAPEX through 2020 for real estate, property leasing, retail, hotel, education and health. About 60% of the total CAPEX will go to real-estate development and about a third of the amount to leasing, retail business and development if its new concepts.

The company expect to experience double digit growth this 2018

For the next three years, the company expects a double-digit growth as it continues to expand in different areas of the country. It has already established its presence in about 133 cities and municipalities across 46 provinces. It will focus mainly on the development of its communities, integrated urban development combining lifestyle retail, prime office space, university town, health care, themed residential developments and leisure components.

Technicals

The technicals are confirming the amazing fundamentals of the stock! This is where both technicals and fundamentals are confirming each other out! If you are an investor, position trader and a quick trader you should be doing well by now! Considering this is one of the more relatively quiet stocks the upward movement has been pretty much steady.

Looking at the chart below, Vista Land is still progressing in its steady uptrend. All price and momentum indicators are still pointing to a more bullish bias and volume indicators are still showing that money is moving into the stock. If you are a position trader, since the stock is still in its upward progression there is no sell signal as of this point in time. If you are holding the stock and want to add to your position please make sure that you buy as much as possible close to the 5.85 support level. As long as the 5.85 level will hold you can expect the VLL to continue to be bullish from a trend perspective. If the stock drops below this level, make sure to be out of the stock.

For quick traders, that listened to our video updates and you bought because of the bounce from the 6.1 range support, the stock is still progressing from that bounce and make sure to watch out for the resistance at 7. If the stock experiences a hard time and fails to break out, you may take profits with confidence as the stock may retrace back to 6.1 again. However if the stock breaks out of 7, it may now challenge 8 for the short term. You may adjust your target prices accordingly.

I hope this helps you! Investing in the market is not just about making money but earning as much as you can so you can make a difference in the world around you.

 

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