MVP thinks PLDT share price still undervalued

MANILA, Philippines — Tycoon Manuel V. Pangilinan, chairman of PLDT, Voyager Innovations and PayMaya, believes the share price of the telco giant is still undervalued despite recent gains.

He is optimistic the share price will continue to rise on the back of continued growth of the group’s fintech business PayMaya and its soon-to-launch digital bank, Maya Bank.

Pangilinan said Ayala-led Globe Telecom Inc., which is enjoying a rapid increase in share price, is benefitting from the “halo effect” from Globe’s fintech arm GCash.

“In the next two to three years, I think it will be a continued growth story for the telco business of PLDT,” he said in a briefing last week.

PLDT’s share price closed at P1,650 on Friday, up 1.6 percent while Globe’s share price rose 1.08 percent to P3,194.

Pangilinan is hopeful that with PayMaya’s growth, the halo effect that Globe is experiencing from Gcash will likewise happen to PLDT.

“I think it’s good that PayMaya got a banking license,” he said.

Last September, the Bangko Sentral ng Pilipinas granted a digital banking license to Maya Bank.

The digital bank’s primary focus will be the largely unbanked and underserved consumers and micro-, small-, and medium-sized enterprises (MSMEs). It will leverage on PayMaya’s track record and ready base of consumers and MSMEs, as well as its widest digital payments touch points and strong enterprise partnerships.

“Through its strong affiliation with PLDT and Smart, Maya Bank will also promote a seamless digital banking experience among customers. Maya Bank will launch by the first quarter of 2022,” PLDT said in its latest quarterly report.

The digital transformation of the country is at the top of the PLDT Group’s agenda and establishing the digital bank is a huge step forward for Voyager and PayMaya, Pangilinan said.

PLDT president Al Panlilio said driving relevant digital innovations, including extending the benefits of digital payments and e-commerce to more Filipinos, is part of the group’s commitment to bring world-class services to its customers.

“We have integrated financial services into our digital ecosystem by maximizing the synergies among PLDT, Smart, and PayMaya. And that is just the beginning. We will eventually expand this to include other customers, including those we provide with home broadband,” Panlilio said.

PLDT reported a 10 percent increase in telco core net income to P23.1 billion in the nine months to September, putting the company on track to reaching its full year guidance of P30 billion.