SMIC shares hit new highs on company’s 11th yr

March 27, 2016 7:47 pm

SHARES of SM Investments Corp. (SMIC) shot up to new heights last week as the company celebrated its 11th year as a publicly listed firm.

Early last week, the share price of one of the country’s largest conglomerates reached an intraday high of P1,006 a share. It closed on Wednesday, the last trading day of the week, at P990.

SMIC shares were listed on March 22, 2005 at P183.14 apiece.

“Investors acknowledge the SM growth story. Its commitment to the Philippines is apparent with its retail, banking and property footprint constantly expanding and harnessing the opportunities and synergies across its business to deliver optimal results for the past 11 years,” said Cora Guidote, SM senior vice president for investor relations.

In 2005, SM had total assets of P169.9 billion and a market capitalization of P127.2 billion.

As of the end of last year, SM’s assets were worth more than P771 billion and its market capitalization was above P693 billion as of March 21 of this year.

Revenues also jumped in the last 11 years for an average growth of 17.15 percent per annum with net income showing an average growth of 12.5 percent every year.

Recently, SM announced its plan to merge its retail arm, SM Retail Inc. with several related retail companies that operate leading local retail chains including Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company and several other specialty stores.

The combined entity will have 1,927 outlets and 2.4 million square meters of gross floor area across a diverse portfolio of food, household appliances, DIY, furniture, apparel, footwear, pharmaceuticals, cosmetics and specialty retailing stores.

The portfolio aims to serve a wide range of Filipino consumer needs in both staple and discretionary goods categories and will continue to leverage extensive synergies across the SM group.

Post-merger, SM will own 77.3 percent of the enlarged SM Retail Inc.

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