The Filipino Billionaire Sy Family-led SM Investments Breaks Records by Purchasing $1 Billion Worth of Their Own Stocks
SM Investments, the financial powerhouse behind the late retail mogul Henry Sy Sr., is planning to spend a whopping 60 billion pesos ($1 billion) to purchase back its shares, which are trading at their lowest in almost two years. This move marks the biggest share buyback in Philippine corporate history and the first of its kind for the Manila-based conglomerate.
The company announced this open-ended buyback just as it recorded a 7% increase in net profit last year, reaching 82.6 billion pesos. Teresita Sy-Coson, vice chairman of SM Investments, confidently stated that they believe in the market's potential and the economy's growth capacity, asserting that it can be sustained.
Currently, SM Investments shares are experiencing a slide of 15% in 2023. However, Franklin Gomez, the executive vice president of SM Investments, believes that the stock is significantly undervalued. He observed that the company's price-to-earnings ratio has dropped drastically compared to 2017, going from 36 times to just 11 times at present.
SM Investments—the holding company of the family of the late retail billionaire
With sufficient cash reserves on hand and a strong bond market position, SM Investments has the financial muscle to fund this ambitious buyback program and finance its expansion plans simultaneously. The company successfully raised $500 million in bonds for 2024, and SM Prime, a subsidiary, earmarked a hefty 100 billion pesos for expanding its property footprint across the Philippines.
Henry Sy Sr—will spend 60 billion pesos ($1 billion) to buy back its shares, which are trading at a two-year low.
In an interview, Gomez indicated that they are convinced of the Philippines' long-term potential, disagreeing with other investors who focus on short-term markets. He highlighted the family's historical resilience and ability to navigate business cycles.
expand its property footprint across the Philippines.
As SM Investments executes this major share buyback, the property sector in the Philippines appears to be in a challenging phase. Developers are facing stalling demand and are grappling with an excess of unsold units in Metro Manila. However, John Gatmaytan, chair of Luna Securities and a seasoned stock trader, suggests that the Sy family might be picking up on information that the public is still unaware of.
Today’s NYT Mini Crossword Clues And Answers For Sunday, March 2nd
Rounding off its vast business interests, SM Investments forays into sectors such as banking, geothermal energy, logistics, retail, and shipping. The business empire can be traced back to Henry Sy Sr., who established the nation's first shopping mall amidst political turbulence in the 1980s. After his demise in 2019, his six children inherited his fortune and became the richest family in the Philippines, boasting a combined net worth of $13 billion.
WWE Elimination Chamber 2025 Results: Jade Cargill Returns, Bianca Belair Wins
- With the significant funds from BDO, a trusted partner of SM Investments, the conglomerate is well-equipped to execute its share buyback program and expansion plans.
- In the latest Forbes list of billionaires, Henry Sy's name still dominates the Philippine business scene, highlighting his impact on the retail and property sectors.
- For those interested in keeping up with the latest business news, consider subscribing to our newsletter_signup_article for regular updates on SM Investments, BDO, and other notable entities in the Philippines.
