“At yesterday’s closing price, SMPH is down around 20 percent year-to-date, which does not accurately reflect the strength of our current performance and given our growth plans for the coming year,” Lim told InsiderPH.
“The move reflects confidence in the company’s strong performance and growth outlook, aiming to correct market mispricing while rewarding shareholders,” he added.
SM Prime shares rose 2.1 percent to P26.75 per share after the developer announced plans for a P5-10 billion repurchase of its shares from the market.
Strong financial performance
SM Prime earlier reported a 12 percent rise in net income to P33.9 billion in the first nine months of the year.
This was already 85 percent of last year’s total profit, which puts it on track to eclipse record earnings in 2023.
Revenues climbed 8 percent to P99.8 billion, with third-quarter net income reaching P11.8 billion, an 11 percent increase driven by P35.1 billion in revenues.
While the company’s shopping malls and hotels deliver strong results, investors remain cautious about the residential condominium segment due to an ongoing oversupply in Metro Manila.
Recently, SM Prime announced plans to diversify into upscale housing, which has proven to be more resilient while the mid-income segment recovers.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
