2023 Top Ultimate long-term stocks during and after the pandemic

Throughout the COVID pandemic and the ongoing occurrence of a low-interest-rate stocks environment, investors worldwide

have been waiting it out. When the economic recovery surge starts, timing will be important, and the Asia-Pacific region appears

to have the most potential for increased growth. The Philippines is one of many markets that are prepared to ride the wave that is

about to hit them.

During Pandemic

 

Despite the market’s stocks poor performance, some stocks managed to outperform the PSE Index. In actuality, double-digit

returns of at least 10% were achieved by nearly 25% of all listed companies.

 

Here are the top five stocks for the first eight months of the year 2019:

 

• Ginebra San Miguel, Inc.  

Ginebra San Miguel, the most popular gin in the world, is produced by Ginebra San Miguel Inc. (PSE:GSMI). San Miguel

Corporation, the largest conglomerate in the nation, owns 67.8% of GSMI’s subsidiary, San Miguel Food and Beverage, Inc., and

controls the bulk of the company.

 

Since 2007, the net sales of GSMI have increased slowly, just 5% annually, from Php13.9 billion to Php20.9 billion in 2017. This is

consistent with GSMI’s net income growth of 4% annually, which increased to P602 million in 2017 from P394 million in 2007.

 

Stock Sales for the first quarter of GSMI increased by a further 28% to P8.3 billion from P6.4 billion during the corresponding time

last year. The company was able to improve its net income by 141 percent to P615 million from P255 million last year thanks to

more sales and lower costs as a result of operating efficiencies. Even though GSMI’s stock price has more than doubled this

year, its price-to-earnings ratio is currently only trading at 12.5 times.

 

• Holcim Philippines, Inc.

Cement is one of the main products of Holcim Philippines, Inc. (PSE: HLCM), one of the biggest producers in the nation. As a

part of the Lafarge Holcim Group, the top provider of cement and other services for the construction industry, HLCM has seen its

net sales increase by an average of 7% annually over the past 10 years, from P18.1 billion in 2008 to P35.6 billion in 2018.

 

This led to a comparable stock increase in net income of 7%, rising to P2.5 billion from P1.3 billion in 2008. According to HLCM,

net income for the first half of the year dropped by 10% to P1.4 billion from P1.6 billion in the corresponding period last year,

while net sales dropped by 18% to P15.4 billion from P18.7 billion.

 

The purchase of San Miguel Corporation was the main factor in HLCM’s stock price more than doubling this year, despite the

underwhelming earnings reports. In order to represent the premium received after the announcement, the stocks price of HLCM

increased even further, rising as much as 19 percent at P16. Since then, the price has decreased to P14.08 per share. Given the

company’s expected profits growth and the present Price-to-Earnings (P/E) ratio of 37 times, HLCM’s pricing appears to be high.

 

• PHINMA Energy Corporation

PHINMA Energy Corporation (PSE: PHEN), formerly Trans-Asia Oil and Energy Development, focuses largely on electricity

supply and power generation with some secondary investments. Over the past ten years, PHEN’s income has increased by an

average of 28%, from P1.5 billion in 2007 to P17 billion in 2017. The increase in sales enabled PHEN’s net income to increase by

16 percent annually, from P78 million in 2007 to P353 million in 2017. However, PHEN reported a financial loss of P560 million

last year despite its revenues declining by 11% to P15 billion.

 

PHEN’s six-month financial results showed a net loss of P552 million despite a small increase in total revenues of P2.5 billion to

P8.3 billion. Due to the involvement of Ayala Corporation through its subsidiary, AC Energy, the stock price of PHEN increased by

more than twofold this year. Recently, AC Energy declared that it has paid P3.669 billion to acquire 51.48 percent of PHEN.

PHEN appears to have been purchased in January for about market value. After injecting new money of P2.6 billion into the

company, AC Energy plans to grow its ownership in PHEN to 68 percent.

 

• 8990 Holdings, Inc.

The largest mass home developer in the nation, 8990 Holdings (PSE: HOUSE), has constructed over 58,000 housing units under

the Deca Homes brand in just 14 years. Since 2012, the company’s net earnings have increased by an average of 19% annually,

going from P1.7 billion to P4.1 billion in 2017 thanks to robust sales growth. According to HOUSE, its net income increased from

P4.2 billion in 2017 to P4.7 billion in 2018 thanks to a 14.8% increase in revenue of P11.7 billion.

 

According to information released by the company this year, total revenues jumped by 20% to P3.0 billion, while net income for

the first quarter increased by 16.7%, to P1.17 billion, from P1.0 billion in the corresponding time the previous year. HOUSE just

started a buy-back campaign with a P2.0 billion budget, believing that the stocks has been undervalued by the market. 43 percent

of the budget has already been used by the business.

 

• Sta Lucia Land, Inc.

With approximately 10,000 hectares of land developed in the last 45 years, Sta Lucia Land (PSE:SLI) is the top developer of

residential communities in the nation. With an average growth rate of 20% per year, SLI’s revenues, which are mostly derived

from the sale of real estate properties, have increased more than five times in the past ten years, from P603 million in 2008 to

P3.7 billion in 2017.

 

SLI announced that its net income increased by 30% to P1.1 billion from P817 million in 2017 on the back of a 15% increase in

real estate sales. This rise corresponded to a 39-percent yearly improvement in net income from P31 million in 2008 to P817

million in 2017. This year, net earnings increased once more. SLI said that its net income for the first three months of the year

climbed by 27% to P338 million from P265 million in the corresponding time the previous year, while total sales increased by 32%

to P1.1 billion.

 

After Pandemic

How can an investor of stocks enter this market and position themselves to take advantage of potential future growth? There are

basically two methods. The cautious approach is to invest in an ETF that tracks the Philippines, which will ensure risk mitigation

and provide a highly liquid asset for whatever the future holds.

 

Finding a trustworthy broker that can provide you access to individual Filipino assets in the Philippine peso, a currency that has

been relatively stable with relation to the US dollar and other major currencies, is the second option. These companies do

occasionally list on other stock exchanges, but the liquidity and spreads there might not be ideal.

 

You will need a broker who can help you in this effort and give advice on the best long-term companies in the area of interest if

you are an investor who wants to buy stocks shares in individual companies rather than in an ETF for your country of emphasis.

The most secure strategy for long-term investments lasting five years or longer is to select blue-chip stocks with established track

records.

 

The following list of the top seven Philippine stocks share to buy is based on local recommendations. This conversation does not

offer investment advice. Do your own research on each business to determine the potential best moment to purchase each.

 

• SM Investments Corp. (SM)

This company was established in 1958 as a significant banking and property management partnership. Everything from mall,

residential, and commercial development to the management of hotels and convention centers is handled by its property section.

It runs 7 shopping centers in China and 36 malls in the Philippines. In its retail segment, the company sells dry goods, clothing,

food, and other products at retail and wholesale prices. From more than 1,400 offices, the banking division provides capital

management and other financial services. The company has a remarkable track record of returns and is the biggest on the

Philippine stock exchange.

 

• Ayala Corporation (AC)

Another significant Philippine conglomerate is Ayala. It served as a template for rivals like SM Investments when it was founded in

1834. It also emphasizes domestic and international property management as well as banking services. However, it has a wider

impact because it has a strong presence in the telecommunications sector and the production of electronic infrastructure goods.

The company is also well-known for its work in a variety of industries, including consultancy, agribusiness, education, human

capital resource management, health, and transportation infrastructure. It is regarded as one of the Philippines’ top blue-chip

corporations.

 

• SM Prime Holdings (SMPH)

A variety of properties are managed by this corporation. It has made the decision to focus only on the Southeast Asian, Chinese,

and Philippine real estate development industries. It is divided into four segments: 1) Mall, which manages shopping malls,

theaters, and amusement parks; 2) Residential, which develops and sells condominiums, single-family homes, and vacation

homes; 3) Commercial, which consists of office buildings; and 4) Hotels and Convention Centers, which includes 8 hotels and 5

convention centers. The biggest real estate development company listed on the Philippine Stock Exchange is this one.

 

• International Container Terminal Services, Inc. (ICT)

This company is the number one terminal operator in the Philippines and literally has no competition on the Philippine Stock

Exchange. Founded in 1987, it acquires, develops, manages, and operates container ports and terminals serving the shipping

industry in the Asia Pacific region, Europe, Middle East, Africa, and The Americas. The firm operates 32 terminal projects in 19

countries. ICT is one of the top listed companies on the Philippines Stock Exchange and is primed to deliver above-average

earnings during the post-COVID recovery.

 

• Jollibee Foods Corporation (JFC)

With approximately 6,000 locations in North America, Europe, the Middle East, Africa, China, Southeast Asia, and India, this

company is a titan in the fast-food sector. Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yuan,

Burger King, Mang Inasal, PHO24, Hard Rock Cafe, Dunkin’ Donuts, Smashburger, The Coffee Bean & Tea Leaf, Tim Ho Wan,

Tortas Frontera, Highlands Coffee, and Panda Express are just a few examples of branded restaurants. In terms of the food

network, JFC is the market leader on the Philippine Stock Exchange.

 

• BDO Unibank (BDO)

The largest bank in the Philippines in terms of assets, capital, deposits, loans, and receivables is BDO. With a foundation of

about 1,500 branches, it offers all banking-related services. Banco De Oro Unibank Inc., the name under which it was established

in 1967, was changed to BDO Unibank in 2011. With a strong stocks track record, it is regarded as the industry leader in

domestic banking.

 

• Puregold Price Club Inc. (PGOLD)

In the Philippines, this company runs department shops where it sells consumer items both retail and wholesale. Often referred to

as the Walmart of the Philippines, Puregold runs 403 establishments that include 20 membership warehouse clubs, 46 quick-

service restaurants, and a full range of hypermarkets, supermarkets, extras, and minimarts. PGOLD was established in 1998, has

a $2.5 billion market worth, and has amassed a devoted following.

 

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