AYALA Corp. may sustain its growth trajectory for the rest of the year amid its diversified portfolio of businesses, analysts said over the weekend.
“Ayala has a number of strengths that could help it sustain its growth in the long term. The company has a diversified portfolio of businesses, which helps to mitigate risk,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.
“Looking forward, so long as headwinds remain manageable, Ayala could still this momentum during the 2nd half of the year,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan, likewise, said in a Viber message.
The company on Friday reported an attributable net income of P18.41 billion for the first half, 13.2% higher than the P16.27 billion in the same period last year, on the back of its banking, properties, and energy units and a one-off gain from AC Industrial Technology Holdings Inc.
Ayala’s top line for period went up by 19.3% to P164.24 billion from P137.66 billion a year ago.
“For the balance of the year, we will build on our solid first half results and continue to recycle capital wherever it makes sense to do so,” AC President and Chief Executive Officer Cezar P. Consing said.
Bank of the Philippine Islands (BPI) saw a 23% increase in net income for the first semester to P25.1 billion.
BPI’s revenues for the six-month period went up 14% to P65.6 billion, which was buoyed by a 27% increase in net interest income.
Meanwhile, Ayala Land, Inc.’s net income rose by 41% to P11.4 billion driven by a 24% jump in its top line to P66 billion.
Revenues from commercial leasing climbed by 39% to P20.2 billion driven by higher occupancy and rents.
Better completion for residential projects, booking, and sales of commercial and industrial lots and office units drove property development revenues up by 13% to P38.7 billion.
Its reservation sales likewise grew by 18% to P58.3 billion as it saw better demand for its projects.
Globe Telecom, Inc. saw a 27% decline in net income for the first half to P14.4 billion due to a one-time gain from the partial sale of the company’s data center business realized in the same period last year.
Globe’s total service revenues inched up by 2% to P80.4 billion, as it saw improved revenues from mobile data, corporate data, and digital revenues.
Registered GCash users saw a 30% bump to P86 million for the period, “[five times] more monthly active users than the next biggest e-wallet,” the company said.
GCash more than doubled its total borrowers to 3.2 million with a total loan disbursement of up to P90 billion.
The company’s power business ACEN Corp. booked a net income increase of P4.2 billion for the January to June period driven by better revenues.
Its consolidated revenues went up by 28% to P20.5 billion on the back of higher net generation.
The company’s total renewables output grew by 21% to 2,052 gigawatt hours due to better winds in Northern Luzon and ACEN’s pivot to net selling.
“Ayala Corporation’s strong earnings momentum in the first half of 2023 is a positive sign for the company’s future prospects,” Mr. Arce said.
“There are a number of factors that could affect Ayala’s earnings in the coming quarters, including the global economic environment, the performance of the Philippine economy, and the company’s own strategic initiatives,” he added.
Shares in Ayala fell by 2.03% or P12.5 to close at P604 apiece on Friday. — A.H. Halili
