SM Investments: Seeking Growth Outside the Philippines

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SM North Edsa Mall. Source: Company’s Website

Highlights from the WSJ article:

“MANILA—China’s sputtering economy has spooked some foreign investors into fleeing, but not the Philippines’ richest man, Henry Sy: He’s ramping up plans to build more malls in the country of his birth.

SM is a minnow compared with some of its Chinese competitors. Its 2014 group sales were $7.7 billion, a fraction of the $39.1 billion posted by China’s property and retail giant, Dalian Wanda Co.

The expansion is a homecoming of sorts for the SM patriarch, who in the 1930s left Fujian for Manila to join his father, who already had a business in the city.

There is still room for expansion in the Philippines, but with a population of about 100 million it is a far smaller market than China’s 1.3 billion people.”

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SM Investments by the Wall Street Journal.

-numbers-

Market cap as of 11/29/2015: 678.58 Billion PHP

9-year average annual revenue: 198 Billion PHP

9-year average annual profit: 21 Billion PHP

9-year average annual free cash flow: 16.5 Billion PHP

9-year average net margin: 11%

9-year average d/e ratio: 1

Reference

WSJ

Disclosure: I do not have shares in any of the companies mentioned in this article and don’t plan to initiate purchase within the next 24 hours. I would not receive any compensation for doing this article. I am not a professional financial analyst. This is just a hobby. Lastly, my work is not error-free, but I strive for it to be. Do not consider as a buy or sell advice. Invest at your own risk.

If you are interested in this similar approach to investing and would seek updates or share ideas, I wish to invite you to this Facebook group SEEKING VALUE (https://www.facebook.com/groups/SeekingValue/?ref=bookmarks)

Happy investing.

Mark Y.

-End-

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