MEGAWIDE Construction Corp. is earmarking P1.8 billion for its capital expenditure (capex) budget this year to support growth in its real estate and construction businesses, its president said.
“About P1.8 billion. Half will be real estate-related, and half will be in construction and transport,” Megawide President and Chief Executive Officer Edgar B. Saavedra told reporters last week.
In comparison, Megawide allotted P3 billion for its capex budget last year.
Mr. Saavedra said Megawide’s topline is expected to grow by 20% to 30% this year, led by the company’s real estate business.
He added that Megawide’s bottom line is expected to grow faster than its topline, without providing specific figures.
Megawide operates in the property sector via its subsidiary PH1 World Developers, Inc.
Mr. Saavedra said Megawide is focusing on the lower segment of the real estate market.
“We’ll focus on the lower market, below P3.5 million, or around P2.5 million, that’s the real backlog,” he said.
However, Mr. Saavedra noted that mid-segment offerings have experienced some softness due to excess supply.
He also said that PH1 may have its initial public offering in three years.
Megawide recently secured a contract from the Office of the Provincial Governor of the Province of Cavite to construct and develop the P1.87-billion Cavite Bus Rapid Transit (BRT) project.
Partial operations of the project are expected to start by September this year.
For the first nine months, Megawide’s net income increased by 69% to P562 million as revenue grew by 7.2% to P16.3 billion.
The construction segment accounted for P15.5 billion or 96% of consolidated revenues due to increased economic activities and the government’s infrastructure buildup.
Megawide shares fell by 1.54% or four centavos to P2.56 apiece on Monday. — Revin Mikhael D. Ochave
