Stock Commentary

Megawide gearing for 'big-ticket' transpo projects for 2022

Merkado Barkada
Megawide gearing for 'big-ticket' transpo projects for 2022

Megawide [MWIDE 4.44 2.42%] [link] said that it intends to grow the size of its infrastructure construction segment by focusing on “enhancing public transport infrastructure”, which MWIDE believes is “critical to our economic recovery”.

MWIDE grew its infrastructure segment from 5% to 17% of revenues in 2021, and is looking to grow the segment even further this year. MWIDE’s focus on this segment is supported by its observation that infrastructure development has remained strong through different “cycles” of the economy, and that the Marcos administration appears willing to maintain infrastructure development as a top priority.


After a relatively insane past 12 months, MWIDE’s executive team sounds like they’re looking forward to stretching out their wings a bit now that the legal case against the team has been dismissed, and some of the uncertainty about the elections has been resolved. While it sounds like the Marcos regime will look to amend the government’s approach to infrastructure development, to be a little less scattershot and random, MWIDE’s take that transpo will be front-and-center in the portfolio is probably accurate.

There is a great amount of work ongoing right now in road, rail, subway, and airport construction, and a lot of future work that MWIDE could get its fingers on as the Marcos development plan starts to take shape. Prior to the case dismissal, MWIDE had been trading at a 5-year low of P3.15/share, which was actually 46% lower than its COVID-crash low of P5.84/share, and 79% lower than its pre-COVID level of about P14.85/share. In the four trading days following the dismissal, MWIDE’s price is up 41%. With the changes at the Department of Finance, have MWIDE’s mysterious political headwinds disappeared. 



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