Filinvest seen to bounce back after losing airport bid
MANILA, Philippines - Filinvest Development Corp. is seen to bounce back after losing the bid for Mactan Cebu International Airport.
The Gotianun family's holding company is expected to remain an investor favorite in the long term.
"I think investors view FDC more as a power generation play going forward and not really as an infrastructure play. So its plan to develop capacity (in the power sector) is the center of investor expectations rather than Mactan," Jomar Lacson, head of research at Campos, Lanuza and Co. Inc., was quoted by FDC as saying.
FDC, which also has interests in the real estate, banking, agriculture, and hospitality businesses, reported a double-digit net income growth of 12% to P6.5 billion in 2013.
Earlier this month, the Department of Transportation and Communications announced it awarded the $390-million Cebu airport modernization deal to Megawide and its Indian partner GMR Infrastructure Ltd.
"It could have been another feather on its cap (referring to the Mactan airport bid). There was a slight knee-jerk reaction from the market with the announcement of DOTC," First Grade Holdings Inc. managing director Astro del Castillo said.
Del Castillo said noted that markets have graded well "Filinvest Group’s aggressive stance in terms of venturing out of its comfort zones, which is in real estate selling and leasing."
As of 1 p.m. on Monday, FDC and Filinvest Land shares were up in morning trade. FDC shares were up nearly 3% to P5.02 a piece, while Filinvest Land shares jumped nearly 4% to P1.62.