Intrigued with its outstanding decline from 2012 Market Price of 90 PHP/SHARE now to the current 52 week low of 48.9 PHP/SHARE (December 2013), and much more to its distance from its real net tangible value of at least 110.37 PHP/SHARE (see BALANCE SHEET), with its shares corresponding only to a minute 2.72% in (MY SPECULATIVE PORTFOLIO), the author still decided to start dissecting its financial statements.
FPH (FIRST PHILIPPINE HOLDINGS)
Company information
First Philippine Holdings Corporation (FPH) was incorporated and registered with the Securities and Exchange Commission with the primary purpose of purchasing and acquiring shares of stocks, notes, securities and entities in the power generation, real estate development, roads and toll ways operations, manufacturing and construction, financing and other service industries.
FPH's operating businesses are organized and managed separately according to the nature of the products and services, with each segment representing a strategic business unit that offers different products and serves different markets. The Company's major business segments are in power generation, manufacturing operations and real estate development. The Company's other activities consist of pipeline service, construction, drilling and sale of merchandise.
The Company's subsidiaries and affiliates include, among others, First Gen Corporation; Energy Development Corporation; First Philippine Industrial Corporation; and Rockwell Land Corporation. The Company has a 3.95% interest in Manila Electric Company.
First Philippine Holdings Corporation (FPH) is a management and investment company whose major business is power generation and distribution, with strategic initiatives in manufacturing and property development. In its 50 years, it has pioneered and managed some of the country's best companies, who are market leaders in their key industries. FPH is a member of the Lopez Group of Companies.
FPH's manufacturing subsidiary, First Philippine Electric Corporation (First Philec), operates the country's first large-scale silicon wafer-slicing facility called First Philec Solar Corporation (FPSC), which supplies some of the world's leading photovoltaic companies. FPSC is a joint venture of First Philec and SunPower Corporation, an established global technology leader in the solar industry.
In property development, FPH expands its reach through Rockwell Land Corporation (Rockwell Land) and First Philippine Industrial Park (FPIP).
The author initiates with the 2 (two) questions that are to be always considered prior to increasing any more interest in purchasing its junior securities (as has also been indicated in one of Warren Buffet’s, “Search for the Company with a Durable Competitive Advantage”) :
1. Does FPH “sell a unique product or service?”
Probably not so much, in fact, it is a diversified parent company. As has been read through the foregoing, the primary purpose of the business is purchasing and acquiring shares of stocks, notes, securities and entities in power generation, manufacturing operations and real estate development.
Ergo with this in mind, the author has derived other potential competitors here in this specified business segment(s) and is listed here (primarily related to power generation):
1. Alsons Consolidated Resources Inc. (ACR), ACR's core businesses, conducted through its various subsidiaries and associates, are grouped into main categories consisting of energy and power, property development, and other investments.
2. Aboitiz Power Corporation (AP), AP was incorporated on February 13, 1998 as a holding company for the Aboitiz Group's investments in power generation and distribution. However, in order to prepare for growth in the power generation industry, AP was repositioned in the third quarter of 2003 as a holding company that owned only power generation assets.
3. Aboitiz Equity Ventures Inc (AEV), AEV is the public holding and management company of the Aboitiz Group of Companies. As of December 31, 2012, its core businesses, conducted through various subsidiaries and affiliates, are grouped into five main categories, namely, power distribution, power generation and retail electricity supply; financial services; food manufacturing; real estate; and portfolio investments.
4. Manila Electric Company (MER), MER is engaged in the distribution and sale of electric energy through its distribution network facilities in its franchise area. Its market is categorized into four sectors such as residential, commercial, industrial, and streetlights. principal sources of power of MER include the National Power Corporation, First Gas Power Corp. and FGP Corporation, Quezon Power (Phils.) Ltd., Wholesale Electricity Spot Market, AES Corporation (Masinloc), Therma Luzon, Inc. (Pagbilao), South Premier Power Corporation (Ilijan), AP Renewables, Inc. (Makban), San Miguel
5. Energy Corp. (Sual), SEM-Calaca Power Corporation (Calaca), Philippine Power and Development Company, and Montalban Methane Power Corporation.
This includes Metro Manila, industrial estates and urban and suburban areas of adjacent provinces. The Company has three segments: power distribution segment, which is involved in the distribution and supply of electricity covering franchise areas in the Luzon region; the real estate segment, which is involved in real estate development and leasing, and the services segment is involved principally in engineering, construction and consulting services, e-transaction services and insurance. In March 2007, the Company acquired 100% interest in Republic Surety and Insurance Co. Effective December 11, 2013, JG Summit Holdings Inc acquired a 27.12% interest in Manila Electric Co.
6. JG Summit Holdings, Inc. (JGS), JGS is a Philippines-based company which acts as a holding company with business interests in branded consumer foods, agro-industrial and commodity food products, property development and hotel management, telecommunications, air transportation, petrochemicals and international capital and financial services. In addition, the Company has business interests in other sectors, including power generation and insurance. Effective December 11, 2013, JG Summit Holdings Inc acquired a 27.12% interest in Manila Electric Co.
7. Energy Development Corporation (EDC), EDC was incorporated and registered with the Securities and Exchange Commission (SEC) on March 5, 1976 to primarily engage in the business of exploring, developing and operating geothermal energy projects in the Philippines.
The Company is also into hydro power generation through its 60% equity interest in First Gen Hydro Power Corporation,
which operates the Pantabangan and Masiway hydroelectric power plants in Nueva Ecija.
8. First Gen Corporation (FGEN), FGEN was incorporated and registered with the Securities and Exchange Commission on December 22, 1998. FGEN and its subsidiaries are involved in the power generation business.
The different companies under FGEN include First Gen Energy Solutions, Inc.; First Gen Premier Energy Corp.; First Gen Prime Energy Corporation; First Gen Visayas Energy, Inc.; and Northern Terracotta Power Corp.
As of December 31, 2012, First Philippine Holdings Corporation (FPH) directly owns 66.2% of the common shares of FGEN and 100% of FGEN's voting preferred shares. FPH is the ultimate parent company of FGEN.
Its power generation subsidiary, First Gen Corporation (First Gen), is a renewable energy producer, with power plants that use geothermal, hydro, and natural gas for fuel. Today, it has a total installed capacity of 2,832.6 MW, or 18.2% of the country’s total installed capacity.
First Gen manages the world's second largest geothermal power producer, Energy Development Corporation, which searches for indigenous, low-carbon energy alternatives.
9. Lopez Holdings Corporation (LPZ), LPZ was incorporated in 1993 by the Lopez family to serve as the holding company for investments in multimedia communications, including broadcast, cable and telecom, and power generation, especially in the development of clean, indigenous and/or renewable energy sources.
Subsidiaries are ABS-CBN Corporation, which is focused on digital convergence strategy in cooperation with affiliate Sky Cable Corporation; and First Philippine Holdings Corporation, the parent company of clean and renewable energy firm First Gen Corporation, which in turn controls geothermal energy pioneer Energy Development Corporation. FPH also owns construction firm First Balfour, Inc.; pipeline operator First Philippine Industrial Corporation; property firm Rockwell Land Corporation; investment community First Philippine Industrial Park; and First Philec Corporation, the intermediary holding company for investments in manufacturing.
The Company is a 52.8% owned subsidiary of Lopez, Inc. (Lopez), the ultimate parent company.
2. Next question will be, “is the company a seller of a product that the public constantly needs?”
A yes, especially in its power generation, Philippines will always be in need of power/electricity providers (despite its already competitive state). This may also be envisioned in the Department of Energy’s outlook.
(see slideshow)
With this in mind, Its products do not necessarily change from time to time, and that it wouldn’t be an expense, however, it is important to know that this type of industry (power generation) would specifically entail that the company must maintain its Property, Plants and Equipments (PPE) (as discussed later) and it will be, at times, necessary to add/deduct its Property, Plants and Equipments in order to stay competitive in the industry.
FPH (FIRST PHILIPPINE HOLDINGS)
Company information
First Philippine Holdings Corporation (FPH) was incorporated and registered with the Securities and Exchange Commission with the primary purpose of purchasing and acquiring shares of stocks, notes, securities and entities in the power generation, real estate development, roads and toll ways operations, manufacturing and construction, financing and other service industries.
FPH's operating businesses are organized and managed separately according to the nature of the products and services, with each segment representing a strategic business unit that offers different products and serves different markets. The Company's major business segments are in power generation, manufacturing operations and real estate development. The Company's other activities consist of pipeline service, construction, drilling and sale of merchandise.
The Company's subsidiaries and affiliates include, among others, First Gen Corporation; Energy Development Corporation; First Philippine Industrial Corporation; and Rockwell Land Corporation. The Company has a 3.95% interest in Manila Electric Company.
First Philippine Holdings Corporation (FPH) is a management and investment company whose major business is power generation and distribution, with strategic initiatives in manufacturing and property development. In its 50 years, it has pioneered and managed some of the country's best companies, who are market leaders in their key industries. FPH is a member of the Lopez Group of Companies.
FPH's manufacturing subsidiary, First Philippine Electric Corporation (First Philec), operates the country's first large-scale silicon wafer-slicing facility called First Philec Solar Corporation (FPSC), which supplies some of the world's leading photovoltaic companies. FPSC is a joint venture of First Philec and SunPower Corporation, an established global technology leader in the solar industry.
In property development, FPH expands its reach through Rockwell Land Corporation (Rockwell Land) and First Philippine Industrial Park (FPIP).
The author initiates with the 2 (two) questions that are to be always considered prior to increasing any more interest in purchasing its junior securities (as has also been indicated in one of Warren Buffet’s, “Search for the Company with a Durable Competitive Advantage”) :
1. Does FPH “sell a unique product or service?”
Probably not so much, in fact, it is a diversified parent company. As has been read through the foregoing, the primary purpose of the business is purchasing and acquiring shares of stocks, notes, securities and entities in power generation, manufacturing operations and real estate development.
Ergo with this in mind, the author has derived other potential competitors here in this specified business segment(s) and is listed here (primarily related to power generation):
1. Alsons Consolidated Resources Inc. (ACR), ACR's core businesses, conducted through its various subsidiaries and associates, are grouped into main categories consisting of energy and power, property development, and other investments.
2. Aboitiz Power Corporation (AP), AP was incorporated on February 13, 1998 as a holding company for the Aboitiz Group's investments in power generation and distribution. However, in order to prepare for growth in the power generation industry, AP was repositioned in the third quarter of 2003 as a holding company that owned only power generation assets.
3. Aboitiz Equity Ventures Inc (AEV), AEV is the public holding and management company of the Aboitiz Group of Companies. As of December 31, 2012, its core businesses, conducted through various subsidiaries and affiliates, are grouped into five main categories, namely, power distribution, power generation and retail electricity supply; financial services; food manufacturing; real estate; and portfolio investments.
4. Manila Electric Company (MER), MER is engaged in the distribution and sale of electric energy through its distribution network facilities in its franchise area. Its market is categorized into four sectors such as residential, commercial, industrial, and streetlights. principal sources of power of MER include the National Power Corporation, First Gas Power Corp. and FGP Corporation, Quezon Power (Phils.) Ltd., Wholesale Electricity Spot Market, AES Corporation (Masinloc), Therma Luzon, Inc. (Pagbilao), South Premier Power Corporation (Ilijan), AP Renewables, Inc. (Makban), San Miguel
5. Energy Corp. (Sual), SEM-Calaca Power Corporation (Calaca), Philippine Power and Development Company, and Montalban Methane Power Corporation.
This includes Metro Manila, industrial estates and urban and suburban areas of adjacent provinces. The Company has three segments: power distribution segment, which is involved in the distribution and supply of electricity covering franchise areas in the Luzon region; the real estate segment, which is involved in real estate development and leasing, and the services segment is involved principally in engineering, construction and consulting services, e-transaction services and insurance. In March 2007, the Company acquired 100% interest in Republic Surety and Insurance Co. Effective December 11, 2013, JG Summit Holdings Inc acquired a 27.12% interest in Manila Electric Co.
6. JG Summit Holdings, Inc. (JGS), JGS is a Philippines-based company which acts as a holding company with business interests in branded consumer foods, agro-industrial and commodity food products, property development and hotel management, telecommunications, air transportation, petrochemicals and international capital and financial services. In addition, the Company has business interests in other sectors, including power generation and insurance. Effective December 11, 2013, JG Summit Holdings Inc acquired a 27.12% interest in Manila Electric Co.
7. Energy Development Corporation (EDC), EDC was incorporated and registered with the Securities and Exchange Commission (SEC) on March 5, 1976 to primarily engage in the business of exploring, developing and operating geothermal energy projects in the Philippines.
The Company is also into hydro power generation through its 60% equity interest in First Gen Hydro Power Corporation,
which operates the Pantabangan and Masiway hydroelectric power plants in Nueva Ecija.
8. First Gen Corporation (FGEN), FGEN was incorporated and registered with the Securities and Exchange Commission on December 22, 1998. FGEN and its subsidiaries are involved in the power generation business.
The different companies under FGEN include First Gen Energy Solutions, Inc.; First Gen Premier Energy Corp.; First Gen Prime Energy Corporation; First Gen Visayas Energy, Inc.; and Northern Terracotta Power Corp.
As of December 31, 2012, First Philippine Holdings Corporation (FPH) directly owns 66.2% of the common shares of FGEN and 100% of FGEN's voting preferred shares. FPH is the ultimate parent company of FGEN.
Its power generation subsidiary, First Gen Corporation (First Gen), is a renewable energy producer, with power plants that use geothermal, hydro, and natural gas for fuel. Today, it has a total installed capacity of 2,832.6 MW, or 18.2% of the country’s total installed capacity.
First Gen manages the world's second largest geothermal power producer, Energy Development Corporation, which searches for indigenous, low-carbon energy alternatives.
9. Lopez Holdings Corporation (LPZ), LPZ was incorporated in 1993 by the Lopez family to serve as the holding company for investments in multimedia communications, including broadcast, cable and telecom, and power generation, especially in the development of clean, indigenous and/or renewable energy sources.
Subsidiaries are ABS-CBN Corporation, which is focused on digital convergence strategy in cooperation with affiliate Sky Cable Corporation; and First Philippine Holdings Corporation, the parent company of clean and renewable energy firm First Gen Corporation, which in turn controls geothermal energy pioneer Energy Development Corporation. FPH also owns construction firm First Balfour, Inc.; pipeline operator First Philippine Industrial Corporation; property firm Rockwell Land Corporation; investment community First Philippine Industrial Park; and First Philec Corporation, the intermediary holding company for investments in manufacturing.
The Company is a 52.8% owned subsidiary of Lopez, Inc. (Lopez), the ultimate parent company.
2. Next question will be, “is the company a seller of a product that the public constantly needs?”
A yes, especially in its power generation, Philippines will always be in need of power/electricity providers (despite its already competitive state). This may also be envisioned in the Department of Energy’s outlook.
(see slideshow)
With this in mind, Its products do not necessarily change from time to time, and that it wouldn’t be an expense, however, it is important to know that this type of industry (power generation) would specifically entail that the company must maintain its Property, Plants and Equipments (PPE) (as discussed later) and it will be, at times, necessary to add/deduct its Property, Plants and Equipments in order to stay competitive in the industry.
Income statement (http://perennialinvesting.weebly.com/income-statement1.html)
Balance Sheet (http://perennialinvesting.weebly.com/balance-statement.html)
Cash Flow Statement (http://perennialinvesting.weebly.com/cash-flow-statement.html)
Balance Sheet (http://perennialinvesting.weebly.com/balance-statement.html)
Cash Flow Statement (http://perennialinvesting.weebly.com/cash-flow-statement.html)
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