But tune out the noise and it’s clear that legitimate players have been thriving.
For First Metro Securities (FMS), one of the country’s largest listed and well-run builders— Edgar Saavedra’s Megawide Construction Corp. (MWIDE)—offers strong potential for gains, with profits expected to surge in the next few years.
FMS’s research team led by research head Mark Angeles reinstated its coverage of Megawide with a “Buy” rating and a target price of P4.50 each, a report dated Sept. 12, 2025 showed.
This offers upside of about 90 percent from its closing price of P2.37 each on Tuesday.
“We believe this is justified by the increasingly visible impact of MWIDE’s 3-D strategy (deliver, delever, decarbonize), which we expect to drive a significant earnings uplift over the next two years,” according to the report, which was also penned by Kyle Garcia.
FMS Research said MWIDE’s net income was projected to triple by the end of 2027 from P551 million last year.
FMS said its buy call was backed by Megawide’s expanding order book under the government’s mass housing program, alongside growth from the Parañaque Integrated Terminal Exchange and its PH1 World real estate arm.
Upside from corruption probe?
FMS Research said the ongoing crackdown on corrupt contractors and government agencies could also benefit firms with stronger corporate governance controls such as Megawide.
“Positive outcomes from the government’s anti-corruption drive may also favor large, listed contractors like MWIDE in securing public projects,” the report showed.
A recovery in the real estate sector could further bolster demand for construction and its real estate business.
MDebt reduction program
Megawide recently said it will receive P9.4 billion from Citicore Holdings and Citicore Power to pare debt and strengthen its balance sheet.
With lower debts ahead, First Metro Securities said pre-tax income is expected to rise 62 percent in 2026 and 17 percent in 2027, mainly from reduced borrowings and interest costs.
This will also strengthen Megawide’s balance sheet, with net debt dropping to a healthier level of 0.99x by 2026.
FMS Research said its projections could change if Megawide faces slower project buildup, a delayed real estate recovery, late customer payments, or prolonged high interest rates. —Miguel R. Camus
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