Optimism is high among government fiscal planners that the country could sustain the economic gains it achieved this year up to 2028.
Meeting the growth target of 6% to 6.5%, they believe, is highly achievable when the final numbers are tallied for 2024. Projected growth for 2025 to 2028 has been given a wider latitude of 6% to 8%, fortified by adaptive structural reforms. The Department of Finance (DoF) is confident that the country is on track to surpass revenue goals in 2024, projected to be the highest in 27 years.
Other analysts’ estimates are also northward with the ASEAN+3 Macroeconomic Research Office (AMRO) seeing a robust Philippine economy with tamer inflation and a less restrictive monetary policy. It projects Gross Domestic Product (GDP) growth to reach 5.8% in 2024 and accelerate to 6.3% in 2025, buoyed by strong domestic demand and a pickup in external demand. Headline Consumer Price Index (CPI) inflation is projected to fall to 3.2% in 2024 from 6.0% in 2023, and maintain at 3.2% in 2025.
Inspired by these economic numbers, Vantage Point, in collaboration with Washington-based fund manager Eric Jurado of the International Investor, did some pencil-pushing to find out which Philippine companies benefitted the most from the country’s better-than-expected economic performance.
Ranked from the highest earnings growth over the past year, here are the top 20 publicly listed Philippine companies, selected by Vantage Point/International Investor for having high earnings quality, increasing profit margins, significant and accelerating earnings growth, earnings exceeding their five-year averages and industries over the past year, and returns on equity capital (ROEs) which exceed those of their industries:
1. Central Azucarera de Tarlac (CAT)
CAT engages in the production and sale of sugar and sugar by-products in the Philippines.
Market Value (December 23, 2024): P2.7 billion
CAT has been growing its earnings at an average annual rate of 51.7% over the past five years, while the food industry saw earnings growing at 6.7% annually. CAT’s earnings growth of 875% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 19.6% per year. CAT’s return on equity is 45%, which is higher than the industry’s 11.6%, and it has a profit margin of 32.1%, which is higher than the previous year’s 11.9%.
2. DigiPlus Interactive (PLUS)
PLUS manages and operates general amusement, recreation enterprises, hotels, and gaming facilities in the Philippines.
Market Value (December 23, 2024): P118.8 billion
PLUS has been growing its earnings at an average annual rate of 77.6% over the past five years, while the hospitality industry saw earnings growing at 4.7% annually. PLUS’s earnings growth of 328% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 51.6% per year. PLUS’s return on equity is 39.9%, which is higher than the industry’s 8%, and it has a profit margin of 17.1%, which is higher than its previous year’s 13%.
3. Grand Plaza Hotel (GPH)
GPH owns, leases, and manages hotels, inns, and resorts in the Philippines.
Market Value (December 23, 2024): P397.5 million
GPH has been growing its earnings at an average annual rate of 31.5% over the past five years, while the hospitality industry saw earnings growing at 4.7% annually. GPH’s earnings growth of 327% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 9.6% per year. GPH’s return on equity is 4.6%, which is lower than the industry’s 8%. Its profit margin of 8.9% is higher than the previous year’s 2.6%.
4. NexGen Energy (XG)
XG engages in the development and generation of renewable energy resources in the Philippines.
Market Value (December 23, 2024): P3.7 billion
XG has been growing its earnings at an average annual rate of 34.6% over the past five years, while the renewable energy industry saw earnings growing at 8.2% annually. XG’s earnings growth of 136% over the past year exceeded its five-year average. Revenues have been declining at an average rate of 0.6% per year. XG’s return on equity is 2.6%, which is lower than the industry’s 9.7%. It has a profit margin of 14%, which is higher than the previous year’s 5.7%.
5. Concrete Aggregates (CA)
CA engages in quarrying, crushing, and selling basalt concrete aggregates primarily in the Philippines.
Market Value (December 23, 2024): P1.1 billion
CA has been growing its earnings at an average annual rate of 6.1% over the past five years, while the basic materials industry saw earnings declining at 9.3% annually. CA’s earnings growth of 96.2% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 9.6% per year. CA’s return on equity is 14.9%, which is higher than the industry’s 7.3%, and it has a profit margin of 59%, which is higher than the previous year’s 53.2%.
6. Petron (PCOR)
PCOR operates as an oil refining and marketing company in the Philippines.
Market Value (December 23, 2024): P22.7 billion
PCOR has been growing its earnings at an average annual rate of 61.3% over the past five years, while the oil and gas industry saw earnings growing at 8.9% annually. PCOR’s earnings growth of 85.1% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 19.7% per year. PCOR’s return on equity is 6.2%, which is higher than the industry’s 5.5%. Its profit margin of 0.2% is higher than the previous year’s 0.1%.
7. MacroAsia (MAC)
MAC engages in the aviation-support businesses in the Philippines.
Market Value (December 23, 2024): P10.0 billion
MAC has been growing its earnings at an average annual rate of 28% over the past five years, while the infrastructure industry saw earnings growing at 6.1% annually. MAC’s earnings growth of 63.1% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 18.9% per year. MAC’s return on equity is 20.5%, which is higher than the industry’s 8.2%, and it has a profit margin of 13.5%, which is higher than the previous year’s 10.3%.
8. iPeople (IPO)
IPO provides education services in the Philippines.
Market Value (December 23, 2024): P6.6 billion
IPO has been growing its earnings at an average annual rate of 22.3% over the past five years, while the consumer services industry saw earnings growing at 28.5% annually. IPO’s earnings growth of 50.9% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 11.6% per year. IPO’s return on equity is 5.6%, which is lower than the industry’s 9.1%. It has a profit margin of 16.5%, which is higher than the previous year’s 13.1%.
9. Converge Information and Communications Technology Solutions (CNVRG)
CNVRG provides optic fiber fixed broadband network and internet services in the Philippines.
Market value (December 23, 2024): P119.0 billion
CNVRG has been growing its earnings at an average annual rate of 28.8% over the past five years, while the telecom industry saw earnings growing at 11.5% annually. CNVRG’s earnings growth of 42.1% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 25.3% per year. CNVRG’s return on equity is 21%, which is higher than the industry’s 10.8%, and its profit margin of 28% is higher than its previous year’s 21.7%.
10. Medilines Distributors (MEDIC)
Medilines Distributors engages in the importation, trading, sales, marketing, and distribution of medical equipment in the Philippines.
Market Value (December 23, 2024): P824.0 million
MEDIC has been growing its earnings at an average annual rate of 2% over the past five years, while the healthcare industry saw earnings growing at 13.4% annually. MEDIC’s earnings growth of 37.4% over the past year exceeded its five-year average. Revenues have been declining at an average rate of 6.7% per year. MEDIC’s return on equity is 6.3%, which is lower than the industry’s 9.9%. It has a profit margin of 9.5%, which is higher than the previous year’s 9.2%.
Rounding up the list are:
11. Keeper Holdings (KEEPR)
KEEPR engages in the liquor, wine, and specialty beverage distribution business in the Philippines.
Market Value (December 23, 2024): P32.4 billion
KEEPR has been growing its earnings at an average annual rate of 34.1% over the past five years, while the consumer retailing industry saw earnings growing at 10.4% annually. KEEPR’s earnings growth of 34.4% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 28% per year. KEEPR’s return on equity is 20.5%, which is higher than the industry’s 9.7%, and it has a profit margin of 18.4%, which is higher than its previous year’s 16%.
12. Apex Mining (APX)
APX engages in mining, milling, concentrating, converting, smelting, treating, and preparing gold deposits in the Philippines.
Market Value (December 23, 2024): P18.9 billion
APX has been growing its earnings at an average annual rate of 40% over the past five years, while the metals and mining industry saw earnings growing at 42.9% annually. APX’s earnings growth of 30.9% over the past year is below its five-year average. Revenues have been growing at an average rate of 22.6% per year. APX’s return on equity is 24.1%, which is higher than the industry’s 3.9%. It has a profit margin of 30.6%, which is higher than the previous year’s 28.7%.
13. Bank of Commerce (BNCOM)
BNCOM provides various banking products and services to private and corporate clients in the Philippines.
Market Value (December 23, 2024): P9.5 billion
BNCOM has been growing its earnings at an average annual rate of 26.5% over the past five years, while the banking industry saw earnings growing at 13.5% annually. BNCOM’s earnings growth of 29.4% over the past year exceeded its 5-year average. Revenues have been growing at an average rate of 13.7% per year. BNCOM’s return on equity is 9.2%, which is lower than the industry’s 11.9%, and its profit margin of 26% is higher than the previous year’s 23.5%.
14. San Miguel Food and Beverage (FB)
FB provides processed meat products; fermented, malt-based, alcoholic and non-alcoholic beverages; and spirits.
Market Value (December 23, 2024): P319.1 billion
FB has been growing its earnings at an average annual rate of 10.7% over the past five years, while the food industry saw earnings growing at 6.7% annually. FB’s earnings growth of 23.6% over the past year exceeded its 5-year average. Revenues have been growing at an average rate of 4.6% per year. FB’s return on equity is 22.6%, which is higher than the industry’s 11.6%. It has a profit margin of 8.9%, which is higher than the previous year’s 7.5%.
15. Philippine Savings Bank (PSB)
PSB primarily engages in savings and mortgage banking activities in the Philippines.
Market Value (December 23, 2024): P24.8 billion
PSB has been growing its earnings at an average annual rate of 20.7% over the past five years, while the banking industry saw earnings growing at 13.5% annually. PBS’s earnings growth of 23.1% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 5.5% per year. PBS’s return on equity is 11.9%, which is in line with the industry’s 11.9%, and its profit margin of 35.5% is higher than the previous year’s 30.4%.
16. Rockwell Land (ROCK)
ROCK operates as a property developer in high-end and upper-mid markets primarily in Metro Manila, the Philippines.
Market Value (December 23, 2024): P9.1 billion
ROCK has been growing its earnings at an average annual rate of 9.7% over the past five years, while the real estate industry saw earnings growing at 8% annually. ROCK’s earnings growth of 20% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 9.6% per year. ROCK’s return on equity is 10.8%, which is higher than the industry’s 9.5%, and it has a profit margin of 18.6%, which is higher than the previous year’s 18.3%.
17. Aboitiz Equity Ventures (AEV)
AEV engages in power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence businesses in the Philippines and internationally.
Market Value (December 23, 2024): P187.2 billion
AEV has been growing its earnings at an average annual rate of 5% over the past five years, while the industrials industry saw earnings growing at 6.2% annually. AEV’s earnings growth of 17.4% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 12.8% per year. AEV’s return on equity is 11.1%, which is in line with the industry’s 11%, and its profit margin of 8.1% is higher than the previous year’s 6.4%.
18. Alliance Global Group (AGI)
AGI engages in real estate development, tourism-entertainment and gaming, food and beverage, quick-service restaurant, and integrated tourism and infrastructure development businesses in the Philippines and internationally.
Market Value (December 23, 2024): P77.6 billion
AGI has been growing its earnings at an average annual rate of 7.9% over the past five years, while the industrials industry saw earnings growing at 6.2% annually. AGI’s earnings growth of 14.8% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 8.2% per year. AGI’s return on equity is 7.3%, which is lower than the industry’s 11%. It has a profit margin of 9.1%, which is higher than the previous year’s 8.5%.
19. SM Prime Holdings (SMPH)
SMPH engages in the property development business in the Philippines, China, and Southeast Asia.
Market Value (December 23, 2024): P726.3 billion
SMPH has been growing its earnings at an average annual rate of 8.6% over the past five years, while the real estate industry saw earnings growing at 8% annually. SMPH’s earnings growth of 14.5% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 6.1% per year. SMPH’s return on equity is 10.5%, which is higher than the industry’s 9.5%, and its profit margin of 32.4% is higher than the previous year’s 30.6%.
20. Panasonic Manufacturing Philippines (PMPC)
PMPC manufactures, imports, and distributes electronic, electrical, mechanical, and electro-mechanical appliances in the Philippines, Hong Kong, and Taiwan.
Market Value (December 23, 2024): P2.3 billion
PMPC has been growing its earnings at an average annual rate of 11.4% over the past five years, while the consumer durables industry saw earnings growing at 9.9% annually. PMPC’s earnings growth of 12.4% over the past year exceeded its five-year average. Revenues have been growing at an average rate of 7.3% per year. PMPC’s return on equity is 6.6%, which is lower than the industry’s 8.6%. It has a profit margin of 2.1%, which is slightly higher than the previous year’s 2%.
– Rappler.com
Val A. Villanueva is a veteran business journalist. He was a former business editor of the Philippine Star and the Gokongwei-owned Manila Times. For comments, suggestions email him at mvala.v@gmail.com.