It’s not always that I feature a particular stock in this blog, but I do hope this post will appeal to you.
Stock investing is not something I shy away from sharing to you as I, myself, am investing in the market as well. Last time I discussed where you can invest during a pandemic and I love that a lot of you appreciated that post.
In this post let’s dig deeper on Megawide Construction Stock and why you should check it out as you do your next stock picks.
Disclaimer: Thank you Megawide for partnering with me in this post and providing the research material. All opinions are 100% my own.
In today’s post you will learn the following:
- A timeline of Megawide’s stock movement from listing to present situation
- Historical review of Megawide’s Initial Public Offering release
- Present and Future Plans of Megawide
I would also like to put a disclaimer first that I am not a licensed financial advisor. Please do not treat this post as investment advice but more of an added reading. This post is again created only to educate, inform, and discuss for as a financial advocate. As always, invest only what you are okay to lose. Investing, whichever shape or form, involves risks.
About Megawide Construction Corporation (PSE: MWIDE)
First let’s talk about Megawide Construction Corporation as a company. Megawide is a Philippine infrastructure conglomerate consisting of Engineering, Procurement, and Construction (EPC), Airport Infrastructure, and Transport-Oriented Developments.
It was founded in 1997 as a mid-size construction firm and through the years grew to what it is today. In just 14 years, the company was able to get listed in the Philippine Stock Exchange. This further proves the impact that the corporation was able to establish.
Megawide entered the market at Php 7.84/share and has evolved from a pure engineering and construction company to play a big role in innovating the country’s infrastructure programs like Mactan-Cebu International Airport (MCIA) and Paranaque Integrated Terminal Exchange (PITX).
From an P8 Billion revenue company in 2011, the year of its IPO, Megawide’s revenue has almost tripled, reaching its highest todate of P19 Billion as of end 2017.
Present and Future Plans of Megawide
Today Megawide has continued to sustain company growth through diversifying its client base by undertaking flagship public-private partnership projects like that of the 10,000-unit Public School Infrastructure Project and the recently completed Clark International Airport Passenger Terminal Building.
The company has sealed its vision from day one of engineering a first-world Philippines and you will appreciate that with Megawide Construction Corporation.
They set their sights on essential businesses that will help drive faster economic recovery for the country.
Here are the main fields Megawide is focusing on:
With the Build, Build, Build initiative being implemented, Megawide focused on big ticket projects Such as the Japan International Cooperation Agency (JICA)-funded Metro Manila Subway Project and the Asian Development Bank (ADB)-financed North-South Commuter Railway (NSCR) South Line projects.
The company also strategically expanded its transport-oriented development portfolio with PITX. They were able to sign a joint venture with Cebu City for the Carbon Market
Redevelopment and in advanced discussions as well with Baguio City for a potential landport location. These projects will surely help further out the tourism in the said cities in preparation for travel after this pandemic.
Another project they are preparing for in the future is the Bus Rapid Transit (BRT) system in the Southwest area of Luzon. This will improve efficiency and road safety to Cavite for example which as we all know is largely considered part of Mega Manila. Once the project advances it can increase possibilities for investors in the area and enable a better commute journey for the residents.
All these projects went through an unsolicited proposal route, which means that Megawide developed the concept and the business model, which it submitted to the proponent for evaluation. Also, these will have to go through the process of Swiss Challenge to ensure pure transparency and fair competition.
We all know how hard the COVID-19 outbreak hit the aviation industry. However, we can see how the global and local inoculation provided a way for airports to gain momentum once again. There’s an expectation that in 2022, countries will start to slowly open their borders.
Domestic travels can be expected too. Megawide holds 80% of MCIA’s market which Megawide Construction is part of. Another key event that will surely boost the airport’s performance is the upcoming 2022 national elections.
Overall, Megawide is expected to slowly restore its pre-pandemic conditions.
Why you should consider Megawide Construction Corporation
I mentioned this in my previous post, but truly the infrastructure can create a multiplier effect in the economy. And Megawide, as young as it is, is already a legend in the field.
With construction projects resuming since mid-May last year, new jobs generated by the construction industry for this year will be substantial. Government infrastructure projects, themselves, are creating 1.7 million direct and indirect jobs.
The construction industry is one of the underrated sectors during this pandemic. And did you know that in the Philippines, the construction industry is expected to bounce back in 2021 and grow at an annual average rate of 8.3 percent from then till 2024? Source: Data and analytics firm GlobalData in an August 20 note.
The sector has been a major contributor to economic growth, with construction gross fixed capital formation accounting for nearly P3 trillion in real terms, or 1.8 percentage points of the 6.6% average GDP growth over the past four years.
For long term investors this means a great way to diversify your portfolio. There’s a huge potential in this market for the future.
Final Notes from SavingsPinay
This is the first time I am sharing an overview of a particular stock available in the Philippine Stock Exchange. Do let me know if you want me to feature other stocks in the future.
Remember investing in stocks can be tricky. It is never for the faint-hearted. But it’s a must step if you are aiming for financial security.
Pag mahina loob mo, talo ka.
I like this quote from Philip Taylor, international finance blogger from PTMoney,
“Time in the market is better than timing the market. Just start saving/investing now. Automate it. Pay yourself first. Your future self will thank you for it.”
What does this mean for you and me?
If you invested your money 10 years ago, you have already won. There’s no need to be greedy at all. Whatever happens to the market in the next 6 months to 1 year is not your battle anymore. Focus on the long-term possibility instead.
Over the years these three things remain the wisest advice I’ve ever read when it comes to the stock market.
Invest now, Invest regularly and Invest for the long-term.
And one final and important note. If you believe in impact investing, where companies you invest in have contributed significantly to social and economic advancement and share your vision of a First-World Philippines, Megawide is among those with several proofs of concept to show for it.
Yung pa-wait wait mo, yung tsaka na lang pag may pera na ko at yung di ko naman alam yan, ayoko will be the biggest regret of your life 10 years from now.