D&L on track to hit profit growth target

Food ingredient and specialty plastic additive manufacturer D&L Industries is on track to grow its recurring net income by 30 to 34 percent this year, the company’s chief finance officer said.

This will result from the company’s continued focus on higher-margin customized and specialty products, which include specialty fats and oil, as well as plastic and aerosol products, and reducing the share of low-margin refined vegetable oil to total business.

In a briefing held by BPI Securities on Saturday, D&L chief finance officer Alvin Lao said the company was “growing very fast” and has built three new plants to add capacity. By the time these plants are finished, he said utilization would be very low at 40 percent, which means that in the next few years, there would not be much capital spending required for the company.

Given recent results, he said the 30-34 percent goal of boosting recurring income this year was achievable, he said.

The goal was to increase margins by at least 1-percentage point each year, Lao said, noting this had been achieved in the last three years.

D&L, which has about 1,500 workers, is also heavy in research in development as the company has a 50-year heritage of innovation started by the first-generation founders, Lao said. “We’re coming out with more new products,” he said.

The company, which is being pitched as an indirect consumer play in the country, has 650 customers in the food business, including the biggest players in the industry. Doris C. Dumlao


PSM 09.30.13

Philippine Stock Market Updates

September 30, 2013

Trend: Sideways
Phase: Broken Support
Monthend Window Dressing mode
PSEI 6,400 and 6,200 Support break
US budget battle and debt ceiling debate issues
SMC to sell MER shares to JGS

Good Day

Despite the monthend window dressing, Philippine market went down hard today due to continued worried on US Budget and debt ceiling debate issues leading to 2 of our index’s support line to break.

with PSEI 6,400 and 6,200 strong support lines broken where could our market lead to?

at anyrate, lets just hope that things may get better tomorrow, else it might send our market back to the downtrend

on corporate news

MER holders rejoices as SMC sell their share at 270 to JGS Holdings.

Usually price of the company to be acquired pushes higher to the buying price while the acquirer goes down before the acquisition happens and then reverses afterwards

PGOLD is planning to open 25 stores in the next 5 years
most of which are under their expansion program in Mindanao.

US economy grew 2.5% in Q2



WASHINGTON, USA – The US economy grew at an annual rate of 2.5% in the second quarter, the Commerce Department said Thursday, September 26, leaving its prior estimate unchanged.

Analysts had expected that second-quarter gross domestic product (GDP) expanded at a slightly stronger 2.6% pace.

The world’s largest economy grew 1.1% in the first quarter.

“With the third estimate for the second quarter, the general picture of economic growth remains largely the same,” the Commerce Department said.

Revisions offset each other in the data, leaving last month’s estimate unchanged.

Inventory investment was lower than previously estimated, amid weaker spending by food and beverage stores and information industries.

Exports of goods and services also were revised lower.

But state and local government spending was revised upward, particularly in investment in structures.

Overall, the pace of economic growth in the April-June period was lackluster and well below the momentum needed to boost job growth.

Analysts expect that growth slowed sharply in the current third quarter that ends Monday.

Macroeconomic Advisers puts the third-quarter pace at 1.7%, while Moody’s Analytics revised down its tracking estimate to 1.4% Wednesday after weaker-than-expected durable goods orders and new-home sales.

The Federal Reserve last week cut its growth forecast for this year to 2% to 2.3% as it unexpectedly announced it would keep an open throttle on its easy-money policy.

Fed Chairman Ben Bernanke said that the central bank could still begin reducing its $85 billion a month bond purchases, known as quantitative easing (QE) in the next 3 months, but only if the outlook for the economy strengthened.

READ: Fed leaves stimulus unchanged at $85-B, no taper

“If the data confirm our basic outlook, if we gain more confidence in that outlook… then we could move later this year,” he said after a two-day Federal Open Market Committee policy meeting.

READ: Fed cuts 2013-2014 US economic growth forecast

The Fed’s preferred measure of inflation — the personal consumption expenditures (PCE) price index for goods and services — fell 0.1% in the second quarter, according to the Commerce Department data.

“Worryingly, it looks like even this relatively modest growth is only being achieved by firms cutting prices,” said Chris Williamson, chief economist at Markit.

“That was the first time these prices have fallen since the dark days of early 2009 and points to a general lack of demand growth.” – Rappler.com

PLDT mulls Google-like office


MANILA, Philippines – Philippine Long Distance Telephone Co. (PLDT) is currently considering moving its headquarters to a sprawling 2- to 5-hectare property where it could put up a new “campus type” location for its member companies.

Taking inspiration from complex-like offices in California, like “Googleplex” of search giant Google Inc., the PLDT group is currently finalizing project details, including costs and construction timetable, according to the telco president and CEO Napoleon Nazareno.

This option came up after the group decided not to push through with the acquisition of businessman Roberto Ongpin’s Alphaland Building along Ayala Avenue in Makati City.

READ: Alphaland in talks to sell Makati office building

The Googleplex-like proposal was among the options considered when the telco officials and its property group were assessing whether to rent or acquire new property to house the group’s revenue generating operations and save up to P90 million in rent.

READ: PLDT H1 profit grows 2% to P19.7-B

PLDT is currently headquartered at the company’s Ramon C. Cojuangco (RCB) Building and the Makati General Office (MGO) in Makati City but a migration plan is in the drawing board.

The new location may be financed by proceeds from its other properties.

READ: PLDT plans sale of idle properties

Among those considered for disposal are the 3-hectare property in Dansalan in Mandaluyong City, the old traffic office along España in Sampaloc in Manila, as well as a lot in Filinvest Corporate Center in Alabang in Muntinlupa City.

It may also sell the warehouse of defunct Pilipino Telephone Corp. (Piltel) in Sta. Rosa in Laguna, as well as the PLDT Garnet exchange building in Ortigas Center in Pasig City. – Rappler.com


PSM 09.24.13

By: Erwin San Luis
Philippine Stock Market Updates

September 24, 2013

Trend: Consolidation preparing for rally
Phase: Consolidation after last week’s Hype
Mode: Preparation for month end window dressing

PSEI is seen to consolidate in the 6,400-6,600 range this week with most analyst peg 6,400 as a strong support leaving traces of downtrend in the dust.

As strong the support it is, a fall below this support line (which would be less likely to happen) would send the market back on the extended C wave trend

Anyhow market just celebrated the FED’s stand regarding the QE exit (FED Tapering) which led to hype last week and in turn makes the lack of action this week. (dagdag mo pa ung force closing last friday)

Usually after a hype, market goes down to correct its trend, but this week, we may see the market simply range trading as a lot of market participants will see this opportunity to take some profits

Market is still net foreign buying ever since the fed announced its stand, so with both of factors it gives opportunity for new entrants to get in the market and position their portfolio

Month end window dressing would be short next week as we only have monday as the actual play day for window dressing since the last few days for the month would fall on weekends

it is recommended to fill up your position this week for the window dressing plays for next week