^

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.

MB BOTTOM-LINE

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. 

 

--

Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.
Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.

MEGAWIDE

PHILIPPINE STOCK EXCHANGE

PSEI

Philstar
  • Latest
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

FORGOT PASSWORD?
SIGN IN
or sign in with