November 18, 2013

MEG’s 9M13 net income up 15% YoY

In a press statement, Megaworld Corp (MEG, Not rated) announced a 15% YoY growth in 9M13 net income to P6.55b. This came on a 12% hike in revenues to P26.7b. Total group presales grew 20% YoY to P46.5b of which P40.3b pertain to MEG’s own projects. No further details were given.

Our take: The numbers indicate a growth slowdown in 3Q13 during which we compute the earnings growth at just 11.3% vs. 17% in 1H13. MEG has yet to submit its detailed financial statements but we believe that the apparent slowdown may be partly due to higher interest costs in connection with the U$250m in new debt secured in April this year.

At any rate, MEG’s 9M13 net earnings are still tracking ahead (79%) of the full-year market consensus forecast. We will put out a more detailed note pending the release of the financial statements and after this afternoon’s briefing. – WealthSec