But after sharply raising the value of newly acquired land in his 3,500-hectare Villar City last year, the cemetery plot and mass housing builder can lay claim to a new distinction: the most attractively priced mega-stock on the Philippine Stock Exchange.
It’s definitely a standout year for Golden MV, which trades under the stock symbol HVN, but inexperienced investors and traders might want to read the fine print before jumping in with their money.
Breaking down the headline figures
Golden MV Holdings’ steady rise in the stock market has long puzzled observers, with its trillion-peso valuation making it worth more than all other conglomerates in the Philippines.
Land appreciation drives profit gains
How did Golden MV do this?
Fair value gains are profits on paper. Golden MV counted the rise in land value as income, even without selling it.
In its Monday filing, the company said the 4,683 percent surge in assets came from rising land prices.
It pointed to its September 2024 purchase of three firms owning 366 hectares (the disclosure previously stated 397 hectares) in Villar City, a massive estate spanning 15 towns and cities, dubbed the group’s “new center of gravity” in Metro Manila.
Did that purchase alone drive the jump in assets and profit? This is not explicitly stated, however, it is implied in the filing. Golden MV previously disclosed it bought the three firms for P5.2 billion.
Is this sustainable?
Alfred Benjamin R. Garcia, research head at AP Securities, said that recurring income growth is a stronger measure of long-term business performance.
“We generally don't consider fair value gains when evaluating earnings since it's one-off or non-recurring. We would look at the operating profits instead,” he told InsiderPH.
He noted that without the P1.33 trillion fair value gain, Golden MV’s figures point to a net loss of P331.3 million.
“And this is fair value gains from appreciation. It’s not necessarily actualized gains,” he said.
“We would consider it part of earnings if they actually sold the property already and actualized gains,” he added.
Is it a bargain stock?
Golden MV, which has gained 120 percent to P2,340 apiece over the past 12 months, is flashing attractive “buy” signals based on its latest earnings:
These ratios mean the stock is priced cheaper than others, which typically signals a bargain.
The profit increase made a big impact on the company’s ratios
Before this, it was the third most expensive stock in the PSE after Ferronoux Holdings (1,540 times) and BHI Holdings (1,530 times), data from Bloomberg showed.
Golden MV is now cheaper than the country’s better-known conglomerates such as the Sy family’s SM Group, the Zobel family’s Ayala, and the Gokongwei family-led JG Summit, according to Bloomberg data.
Low public float
One issue investors may encounter with Golden MV Holdings is low liquidity, with public ownership at 11.33 percent or just above the minimum 10 percent requirement.
This makes it harder to easily buy or sell shares.
On the day the company disclosed record earnings, over 1,000 shares worth P2.46 million changed hands. For perspective, that’s a small fraction of just 1 percent of the company’s total market value.
The golden opportunity
The Villar Group has stated that Golden MV will focus on developing Villar City, which spans parts of Southern Metro Manila and Cavite.
The initial 366-hectare acquisition has helped unlock over a trillion pesos in paper value.
But with thousands more hectares left in Villar City, the bigger question is whether the firm plans to steadily acquire more land, paving the way for more value to emerge.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
