Globe leans on GCash, data centers for value

New growth drivers

MANILA, Philippines — Telco-to-tech giant Globe Telecom Inc. is betting on its digital units to pick up more investor interest as it moves to cushion its recent profit slowdown.

In an analysis, H.E. Bennett Securities Inc. market strategist and chief trader Joel dela Peña said investors should consider buying into Globe right now ahead of its valuation burst.

He said Globe is underpriced in its current average of P1,590 per share, reaching a low of P1,401 due to inflationary pressures and its missed targets.

However, Dela Peña said Globe has shown it could hit as high as P1,964 as seen over the past 52 weeks. He also cited market consensus that Globe should be priced at P2,242.22 a piece.

He said Globe is capable of growing value because it remains the largest shareholder in GCash’s parent Mynt Inc., even after listing. Globe Capital Venture Holdings Inc. owns 33.84 percent of Mynt, the biggest stake among investors.

Dela Peña said Globe’s share in Mynt would enable its investors to practically receive fractional ownership in the country’s leading e-wallet.

Further, the telco operates ST Telemedia Global Data Centers (STT GDC) Philippines, which is building what would become the country’s largest data center, STT Fairview.

Once completed, STT Fairview will offer a capacity of 124 megawatts and is poised to land some of the storage demand for artificial intelligence (AI).

Dela Peña said the Philippines remains one the most underpenetrated data center markets in Southeast Asia, offering 0.8 MW of capacity per million of people. On the contrary, Thailand is capable of putting up 1.9 MW, while Indonesia, 1.4 MW.

Still, the Philippines is projected to triple its data center demand to 155 MW by 2030, driven by AI. Dela Peña said this is a market STT GDC Philippines is poised to capture.

As such, Dela Peña predicts Globe to increase valuation as soon as Mynt executes its IPO and its data center bet starts to pay off.