GLOBE reports fantastic 2019 earnings, promises record amount of spending in 2020... also, 1000 subs! Thanks PHinvest! (Feb5)

[lilbithmb]

GLOBE reports fantastic 2019 earnings, promises record amount of spending in 2020​

The PSE closed up 90 points to 7,227 [▲1.24%].​

Shout out to meme-lover, /@josephjohn, for showing some love for the MWC doge meme that I made for yesterday's MB. It put a smile on my face because I make 90% of the memes myself (not from scratch) and often find myself zoning out in front of the laptop trying to find the al dente meme for the situation.

Also thanks to /@mattjames and /@harryridwick for the compliments and feedback! Always happy to hear MB is as much a part of your morning routine as it is mine.

Housekeeping: We added the "nCoV (all)" and "nCoV (PH)" trackers to the header, to track the daily change in the confirmed nCoV cases globally and in the Philippines specifically.

Housekeeping(1): We added "#nCoV" to the MB Market Sectors chart, with the following constituent companies: PAL, CEB, BLOOM, MAC, SMPH, JFC. Please advise if you can think of any other PSE stocks that will have operations impacted significantly by the nCoV situation.

Daily meme​

Top 3 MB indices:​

 POGO Gaming ▲2.61%
 2019 IPOs   ▲2.08%
 D30 Targets ▲1.68%

Bottom 3 MB indices:​

 Fast Food   ▼0.39%
 Logistics   ▼0.30%
 #nCoV       ▼0.11%

Main stories covered:​

1. GLOBE brings some swagger back to the Ayala brand with +20% net income for 2019
2. Jollibee closes 14 of its "Yonghe King" stores in Hubei, China
3. San Miguel says that the fire-damaged skyway will be repaired, but will delay opening by 3 months
4. Cebu Landmasters releases ahead of earnings that its reservation sales are up 31% in 2019

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[pentecostal1ness]

@lilbithmb Always a great read.

Specific to the nCov sector, depending on the length of the lockdown on China, companies that supply their merchandise or raw materials might also be affected.

Globe numbers are good. Like in our conversation in the Dito thread, incumbents won't be giving up market share without a fight and this shows it.

 

[lilbithmb]

@pentecostal1ness Thanks /@pentecostal1ness. I agree that as the story changes for some companies as the length of the lockdown increases.

At some point, do potential iPhone/smartphone supply chain disruptions start to hurt the subsidized handset subscriber model that GLO and TEL have been using/abusing for years? I don't know... but there are bound to be so many of those soft supply chain underbellies exposed if this lasts beyond Q2.

 

[pentecostal1ness]

@lilbithmb If I remember recent years the subsidies on handsets are as competitive as back then. Globe, (I'm not sure with Smart) are offering "cash" subsidies as an alternative to handsets. You get more "allocatable" units if you don't get a handset with your plan. I would think impact to the two (and possibly even Dito), specific to nCOV is on the supply of cellular equipment, since I would think that Huawei, and possibly other cellular tower equipment manufacturers, have their factories based on China.

On a personal end, our family business' raw material supply is from China and we have been informed by our supplier that there will be delays on their next shipments since ships are not leaving the ports from China.

 

[lilbithmb]

@pentecostal1ness I'm just thinking that GLO/TEL/DITO probably rely on the international hype machine to drive interest in new handsets, which are dangled to get subscribers to lock in to multi-year plans. If the phones are not available, or there's a substantial delay, that might make FY20 figures look depressed.

That your raw material suppliers are already giving notice is interesting, and not a great sign if this thing is to last the full 2 quarters that BPI and others expect.

 

[rob84]

@lilbithmb This is a very good achievement for Globe.. Yey!! Specially the recent news where Globe will be investing in Bataan, well that gets going for me. Hopefully, my internet will get going with this.

http://newsbytes.ph/2020/02/globe-vows-to-spend-p1b-to-build-towers-improve-speed-in-bataan/

It is wonderful to see the brands that you trust posting good results.

 

[lilbithmb]

@rob84 Agree!

Dito was a great kick in the ass for GLO and TEL, though it's hard to tell what TEL is planning to do with it. Maybe the bigger kick in the ass was the common cell tower initiative... that might be even more applicable to you in Bataan.

 

[ky_gal]

@lilbithmb Thank you for your insights! Please keep them coming.

For the #nCoV sector, perhaps we could include LR and WPI?

 

[lilbithmb]

@ky_gal Thanks for reading!

I think LR is automatic, but I'm not familiar with WPI. Are they invested in anything foreign in Macau, or are they domestic PAGCOR stuff?

 

[ky_gal]

@lilbithmb I'm not aware of their foreign investment, but I was thinking along the lines of them being in the hotel, casino and tourism business. Thank you for considering my suggestions!

 

[lilbithmb]

@ky_gal Added! Just curious. I am only starting to learn about the companies that have foreign ownership of casinos/etc.

Generally, the foreign ownership of anything (like Ayalas' big purchases in Myanmar) are under-reported in our financial news coverage. Probably for a good reason, but still.

 

[parklane3563]

@lilbithmb IMI is critically hit by nCoV

 

[lilbithmb]

@parklane3563 Absolutely, good spot. Thanks.

IMI added to #nCoV!

 

[clarissa17]

@lilbithmb The PSEi is recovering, let’s pray that Duterte doesn’t go on a rampage again, threatening big businessmen who did not support his presidency.

 

[lilbithmb]

@clarissa17 Fingers are crossed...