San Miguel Corporation is a Philippine conglomerate with interests in Food and Beverage, Packaging, Real Estate, Energy, Fuel and Oil, Telecommunications, Banking, Infrastructure and others.
I am most excited in SMC's infrastructure holdings. The Philippines, in particular, Metro Manila, is currently experiencing a logistical crisis, ranked as having the 5th worst traffic jams in the world. The Japan International Cooperation Agency estimated that Metro Manila's traffic jams cost $57 million dollars a day.
Currently, several huge highway projects are under construction. One being the NAIA Expressway that will connect the Ninoy Aquino International Airport terminals 1-3 to the existing South Luzon Expressway, the metropolis' main southern artery and the City of Dreams Manila, a huge parcel of reclaimed land west of the metropolis currently being developed as a regional casino hub. Included in the project are various flyovers that will ease traffic on critical intersections that have been traffic bottlenecks for a very long time.
And to me, one of the game changer infrastructure projects, the Metro Manila Skyway. This project, will unite, for the first time, the North (NLEX) and South (SLEX) main expressways of the metropolis, greatly easing traffic flow.
SMC controls the South Luzon Expressway (SLEX), the only expressway south of the metropolis, and one of the longer highways in the country. It has recently been extended by the STAR Tollway also operated by SMC.
On March 5, 2015, SMC increased its share of profits from the SLEX. The following were taken from SMC's 2014 Annual Report:
"As of December 31, 2014, SMHC had a 46.53% stake in Atlantic Aurum Investments
B.V. (AAIBV), a company which has the following shareholdings: (i) 80% stake in South Luzon
Tollway Corporation, which holds a 30-year concession rights to operate the 36 kilometer SLEX,
one of the three major expressways that link Metro Manila to key southern provinces and (ii)
87.84% beneficial ownership in CMMTC.."
"With the purchase of additional 44% equity interest and the exercise of option for the
4.47% equity interest, SMHC has a 95% ownership interest in AAIBV as of March 5, 2015. As
such, AAIBV became a subsidiary and is controlled by SMHC effective March 5, 2015."
See also this article:
http://www.interaksyon.com/business/107767/san-miguel-consolidates-toll-ways-business
Review of Some Financial Ratios, based on 2014 Annual Report
Outstanding Shares of SMC Stock (taken from the 2014 Annual Report)
Common: 2,378,145,134 (69.03%)
Preferred Series 2-A: 721,012,400
Preferred Series 2-B: 90,428,200
Preferred Series 2-C: 255,559,400
Total: 3,445,145,134
2014 P/E Ratio: 13
2014 Book Value Per Share: P101.11 source: COLFinancial
2014 equity less non-controlling interests: P240,462,000,000
Preferred Series 2 issued 2012: P79,238,000,000 (source p.76, 2014 annual report)
Preferred Series 2 issued July 2015: P33,500,250,000 (source, http://www.philstar.com/business/2015/07/17/1477710/smc-taps-9-banks-handle-p33.5-b-preferred-share-sale)
2014 equity less controlling interests and preferred shares: P127,723,750,000
divided by outstanding common shares (2,378,145,134)
**Pilifinance Estimated 2014 SMC Common Shares book value per share: P53.71
Latest Dividend Rate: "Cash dividends declared by the Board of Directors of the Parent Company amounted to P1.40 per share both in 2014 and 2013."
At latest price of P46.95 on September 14, 2015, Dividend Rate is at 2.98%
Debt to Equity Ratio: 2.12
Total Liabilities (Current + Noncurrent)
Equity + Non-controlling Interests
Meaning, SMC's total assets are 2.12 times financed by leverage than by equity, but its total assets still exceed leverage/loans..
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