I.

Megaworld Corporation’s Profile

History
Megaworld Properties & Holdings Inc. was founded by Andrew
Tan and incorporated under Philippine law on August 24, 1989, primarily
aimed at engaging in real estate development, leasing, and marketing. In
1994, it spun off Empire East Land Holdings Inc., which focused on the middle
income market. It was converted to a public company on July 15, 1994. On
August 19, 1999, the company changed its name to Megaworld Corporation in
line with its conversion from a purely real estate company to a holding
company, though the company's core focus continues to be on real estate. In
2013, the company gained full acquisition of Suntrust Properties. Andrew Tan
has served as Chairman of the Board and President of the company since its
incorporation in 1989. Megaworld renewed its congressional franchise for
another 25 years on June 26, 2014 one day after celebrating their silver
anniversary. Under Philippine law, this real estate development company will
operate with franchise from Philippine congress, an authority that limits and
regulates development and operations of condominiums, hotels and shopping
centers.
The company was founded by Andrew Tan and incorporated under
Philippine law on August 24, 1989 to engage in the development, leasing and
marketing of real estate. The Company initially established a reputation for
building high-end residential condominiums and commercial properties
located in convenient urban locations with easy access to offices as well as
leisure and entertainment amenities in Metro Manila. Beginning in 1996, in
response to demand for the lifestyle convenience of having quality residences
in close proximity to office and leisure facilities, the Company began to focus
on the development of mixed-use communities, primarily for the middle-
income market, by commencing the development of its Eastwood City
community township. In addition, the Company engages in other property
related activities such as project design, construction oversight and property
management. In 1999, Eastwood City Cyberpark became the first IT park in
the Philippines to be designated a PEZA special economic zone.

47
Description
Megaworld Corp is a general real estate company. The company's core
business is property development. The company is focused on large-scale
residential and office developments including urban centers integrating office,
residential, and commercial components. Megaworld is a holding company
that engages in merchandise trading as well as hotel and leisure. The
company considers merger and acquisition investment as a potential
component of its operational growth strategy. The company's operations are
focused on the Phillippines.

Business Interests
Megaworld, being a leading urban township developer, has already
launched more than 200 residential buildings, office towers, commercial
centers and hotels. With the growth of its business, it has already geared
towards the Business Process Outsourcing (BPO) industry.

Major Shareholders

Megaworld’s major shareholders are the Alliance Global Group, Inc.

48
 Board of Directors

DR. ANDREW L. TAN

Chairman of the Board/President

KATHERINE L. TAN KINGSON U. SIAN ENRIQUE SANTOS

L. SY
Director Director and Executive Director
Director

CRESENCIO P. AQUINO ROBERTO S. GUEVARA JESUS

B. VARELA
Independent Director Independent Director
IndependentDirector

49
II. Macro-economics Conditions

The state of the economy in the Philippines is in the East Asia Pacific
region, the Philippines has one of the most diverse economies. The
Philippines' economic dynamism is rooted in high domestic demand backed
by a thriving labour market and robust remittances, thanks to rising
urbanization, a growing middle class, and a huge and young population.
Economic activity is booming, with notable gains in the services market, which
includes BPO, real estate, tourism, and the finance and insurance sectors.
However, The Philippine economy has made strides in achieving inclusive
growth in recent years, as demonstrated by a decrease in poverty rates and
the Gini coefficient, up until the start of the COVID-19 crisis. Poverty
decreased from 23.3 percent in 2015 to 16.6 percent in 2018, while the Gini
coefficient decreased from 44.9 to 42.7. The effect of the COVID-19 has
hampered this rising trend in real wages, which is supposed to have a positive
impact on household incomes—particularly for those in lower income groups
—with negative implications for poverty reduction in the Philippines.
Resuming growth could be able to reverse the detrimental effects once more.

Detailed analysis of current (2020) and forecasted (2021) economic

conditions:

50
51
52
 The central bank of the Philippines left the key overnight repo rate
steady at 2% on May 12th 2021, in line with forecasts. The interest rates on
the overnight deposit and lending facilities were also kept at 1.5 percent and
2.5 percent, respectively. Policymakers said risks to the inflation outlook are
broadly balanced and inflation is likely to settle within the 2%-4% target in
2021 and 2022. Inflation is expected to average near 4 percent in 2021, as
price pressures on food commodities are abating while inflation in 2022 is
seen to remain near 3 percent but forecast has increased slightly owing in
part to rising international crude oil prices

53
III. INDUSTRY ANALYSIS AND BUSINESS STRATEGIES

A. INDUSTRY ANALYSIS
What industry does the company operate in?
Megaworld Corporation (PSE: MEG) is a real-estate company in
the Philippines. It is listed on the Philippine Stock Exchange Composite
Index. The company develops large-scale, mixed-use, planned communities
incorporating residential, commercial, educational, and leisure components. In
addition it provides other services such as project design, construction
oversight, and property management.

What are the largest companies/competitors in the industry?

The Company’s future growth and development are dependent, in part,
on its ability to acquire or enter into agreements to develop additional tracts of
land suitable for development projects. As the Company and its competitors
attempt to locate sites for development, the Company may experience
difficulty locating parcels of land of suitable size in locations and at prices
acceptable to the Company, particularly parcels of land located in areas within
or surrounding Metro Manila. Presented below are the following competitors
of the MEGAWORLD.

However, these are the biggest and largest competitors exist international:
 Brookfield Asset Management (Canada)- is an alternative
asset management company focusing on direct investments in real
estate, renewable power, infrastructure, credit and private equity. Sales:
$69.109 billion, Profit: $2.803 billion, Assets: $323.969 billion and Market
value: $51.279 billion
 American Tower Corporation (United States)- is an American real estate
investment trust and an owner and operator of wireless and broadcast
communications infrastructure in several countries worldwide. Sales:
$7.760 billion, Profit: $1.905 billion, Assets: $40.789 billion and Market
value: $105.507 billion
 Prologis (United States)- is a real estate investment trust headquartered
in San Francisco, California that invests in logistics facilities, with a focus

54
 on the consumption side of the global supply chain. Sales: $3.537 billion,
Profit: $1.715 billion, Assets: $55.007 billion and Market value: $65.949
billion
 Simon Property Group, Inc. (US) is a real estate investment trust that
invests in shopping malls, outlet centers, and community/lifestyle centers.
Sales: $5.674 billion, Profit: $2.087 billion, Assets: $31.232 billion and
Market value: $20.406 billion
 Link Real Estate Investment Trust (Hong Kong)- is the first real estate
investment trust in Hong Kong and currently the largest in Asia in terms of
market capitalization. It is wholly owned by private and institutional
investors. Sales: $1.348 billion, Profit: $2.277 billion, Assets: $29.582
billion and Market value: $18.476 billion

These are the biggest and largest competitors exist in the Philippines:
 Ayala Land- The company specializes in planning and development of
large scale projects which involves the following: residential lots and
buildings, commercial and industrial lots, office spaces, and commercial
and IT parks. Revenue is 96.27 Billion pesos.
 SM Prime is in the business of constructing and managing condominiums,
hotels, restaurants, convention centers, and all sorts of commercial and
residential structures for mixed use. Revenue is 76.91 Billion pesos
 Alveo Land specializes in luxury residences, condominiums, Cityscapes,
leisure developments, and commercial spaces & offices – mainly serving
the upscale market in the Philippines. Revenue is 5.48 billion pesos.
 DMCI Homes is the real estate and development arm of DMCI Holdings.
They focus on building residential spaces and condominiums. Revenue is
87.8 billion pesos.
 Federal Land is the company is a partner of the Metrobank Group and a
member of GT Capital Holdings. Revenue is 6.2 billion pesos.

What is the geographical presence in this industry (local, Philippines only,

multinational or global)?
Megaworld, the Philippines’ largest office developer and landlord, has
bagged a landmark deal with US-based WEWORK for its first Philippine

55
location of collaborative workspaces in Uptown Tower Three in Uptown
Bonifacio, Taguig City.
Covering two levels with a total gross floor area of 4,081 square
meters, WEWORK formally opened its operations in Uptown Bonifacio in
February, following its launch of new locations in Vietnam and Malaysia late
last year.

Townships
In Metro Manila:
● Alabang West - a 62 hectare commercial and residential development
in Las Piñas located near Alabang.
● Arcovia City- a 12.3-hectare (30-acre) mixed-use riverside township in
Pasig.
● Eastwood City
● Forbes Town Center
● McKinley Hill- a 50 hectares (120 acres) mixed use development,
inspired by Spanish and Italian Architecture, housing retail, offices,
residential developments, including the famed Venice Grand Canal,
Taguig and embassies from the United Arab Emirates, Qatar, United
Kingdom, and South Korea.
● McKinley West- a 34.5 hectares (85 acres) mixed use development in
Taguig
● Newport City - a 25 hectares (62 acres) development located near the
Ninoy Aquino International Airport in Pasay. The development includes
the Resorts World Manila, hotels, prime offices, and retail and
entertainment spaces.
● Uptown Bonifacio - a 15 hectares (37 acres) development in the
Bonifacio Global City, it also houses the Uptown Complex and the
Alliance Global Group Headquarters.
● Westside City - a 31 hectares (77 acres), P121 Billion development in
Entertainment City consisting of retail, residential spaces, and gaming,
including the Westside City Resorts World Complex.

56
In Luzon:
● Capital Town - a 35.6 hectares (88 acres) development in San
Fernando, Pampanga, standing in a land formerly owned by the
Pampanga Sugar Development Company (PASUDECO)
● Highland City - a 24 hectares (59 acres) development in Cainta, Rizal.
● Maple Grove - a 140 hectares (350 acres) mixed use development in
General Trias.
● Southwoods City - a 561 hectares (1,390 acres) mixed use
development in Biñan, Laguna, consisting of retail, residential
developments, schools, a church, a cyberpark, a medical facility, open
spaces, leisure facilities including a Golf course, and a own transport
hub.

In Visayas:
● Boracay Newcoast- a 150 hectares (370 acres) mixed use leisure and
residential resort development in Boracay Island.
● Iloilo Business Park- a 72 hectares (180 acres) development in Iloilo
City.
● The Mactan Newtown - a 30 hectares (74 acres) development in
Mactan, Cebu.
● The Upper East - a 34 hectares (84 acres) joint- venture development
in Bacolod. Standing on a former sugar-processing complex owned by
the Araneta Group.

In Mindanao:
● Davao Park District - a 11 hectares (27 acres) development in Davao
City.
Offices
● The Alliance Global Tower - in Uptown Bonifacio.
● Petron Megaplaza in Makati CBD
● The World Centre

Residential

57
 ● Two Central and Three Central towers
● Manhattan Gardens - an 18-tower joint venture residential development
with the Araneta Group, occupying 5.7 hectares (14 acres) in the
Araneta City.

How does the business cycle affect this industry? Future potential?
One of the risks inherent in any real estate property market is the
possibility of an asset price bubble. An asset price bubble occurs when there
is a gross imbalance between the supply and demand in the property market,
causing an unusual increase in asset prices. The rapid upsurge in asset
prices might result in an eventual decline in prices as markets recalibrate. In
the Philippines, the growth of the real estate sector is mainly driven by low
interest rates, robust remittances from OFWs, and the fast growing BPO
sector which is vulnerable to global economic changes.
The Company believes that the Philippine property sector is adequately
protected against a domestic asset price bubble burst. The country has a very
young demographic profile benefiting from rising disposable income. It
likewise has one of the fastest growing emerging economies, registering
Gross Domestic Product growth rates and the growth in the property sector is
largely supported by infrastructure investments from both the public and
private sectors and strong macroeconomic fundamentals.There can be no
assurance however, that the Philippines will achieve strong economic
fundamentals in the future. Changes in the conditions of the Philippine
economy could materially and adversely affect the Company's business,
financial condition and results of operations.

B. BUSINESS STRATEGIES
Brief historical perspective on the company.

The company was founded by Andrew Tan and incorporated under

Philippine law on August 24, 1989 to engage in the development, leasing and
marketing of real estate. The Company initially established a reputation for
building high-end residential condominiums and commercial properties
located in convenient urban locations with easy access to offices as well as

58
leisure and entertainment amenities in Metro Manila. Beginning in 1996, in
response to demand for the lifestyle convenience of having quality residences
in close proximity to office and leisure facilities, the Company began to focus
on the development of mixed-use communities, primarily for the middle-
income market, by commencing the development of its Eastwood City
community township. In addition, the Company engages in other property
related activities such as project design, construction oversight and property
management. In 1999, Eastwood City Cyberpark became the first IT park in
the Philippines to be designated a PEZA special economic zone.

What is the primary focus of operations?

The Company has three primary business segments: real estate sales
of residential developments; leasing of office space, primarily to BPO
enterprises, and retail space; and management of hotel operations. Since its
incorporation, the Company and its affiliates have launched approximately
722 residential buildings, 70 office towers, 24 lifestyle malls, and 11 hotel
brands including condotels.

What is the most important strategy used by this company (e.g., low-cost
producer, product differentiation, quality, or service)?
Property giant Megaworld is optimistic that it can recover quickly from
the pandemic next year following reports of coronavirus vaccines to be
released before year-end. In his message at the company’s Annual
Stockholders’ Meeting via live webcast, Megaworld chairman and CEO Dr.
Andrew L. Tan said the company is ready to bounce back as it ‘adjusts to the
new demands of the diverse market.’ To jumpstart the company’s recovery
plans, Megaworld is rolling out a 4-point guide to ensure a strategic path
towards accelerated growth by next year.

During his presentation, Megaworld chief strategy officer Kevin L. Tan laid
down the R.I.S.E plan:

Resilience

59
 This tried and tested strategy has allowed Megaworld to weather five
(5) major crises since it was incorporated 31 years ago, namely: Coup
attempts in the early 90s, the July 1990 Luzon earthquake, the 1991 Mt.
Pinatubo eruption, the 1997 Asian Financial Crisis, and the 2007 global
financial crisis. Under this plan, the company puts financial prudence as its
top priority through adjustments in capital spending, temporary deferment of
projects, streamlining of operations, and other programs to preserve cash.
Innovation
The company will further accelerate its digitalization programs and
technology investments across all its businesses to align with the changes in
the behaviors and lifestyles of different types of customers even post-
pandemic. Through its technology investment arm, Agile Digital Ventures,
Megaworld will further expand its digital footprint to support its various key
businesses, and to start up digital innovation products to support the country’s
economic segments such as retailers, and small and micro enterprises.
Internally, the company will continue to fast track the shift to full digitalization
of its business processes, particularly in sales and marketing, customer
services, property and building management, and finance.
Stability
The company will focus in ensuring a consistently strong balance
sheet, strengthening land banking initiatives through strategic acquisitions and
partnerships, completing and delivering committed projects on-time,
reinforcing a stable recurring income stream, and expanding the township
concept by adding sustainable and crisis-resilient features.
Empathy
The health, safety, well-being, and general welfare of its employees will
remain to be Megaworld’s priority during this time. The company has been
closely monitoring the health status of its employees, and provided the
necessary support such as distribution of customized personal protective
equipment and vitamin supplements, all throughout the quarantine period. It
also initiated professional training programs for skill enhancement and
personality development, including emotional and wellness workshops,
available for free on virtual formats to its employees. The company also
continuously provides full salaries to its employees, and during the strict

60
lockdown period, it has deferred the payments of employees’ loans and other
deductions to help everyone cope with the crisis.

What are the major operating segments?

The Company has three primary business segments:
 Real estate sales of residential developments;
 Leasing of office space, primarily to BPO enterprises, and
 Retail space; and management of hotel operations

What is the outlook/forecast for the company over one to five years?
FORECASTING

14 days Jollibee Foods price prediction

61
3 years Jollibee Foods price prediction

Best Possible Prices each day for the month of June for the year 2021.

Least possible Best possible

Calendar date Regular
price price

2021 June

2021 June 01, Tuesday  13.848  11.7708  15.9252

2021 June 02,

 13.860  11.781  15.939
Wednesday

2021 June 03, Thursday  15.087  12.82395  17.35005

2021 June 04, Friday  15.060  12.801  17.319

2021 June 05, Saturday  15.006  12.7551  17.2569

2021 June 06, Sunday  14.892  12.6582  17.1258

2021 June 07, Monday  14.937  12.69645  17.17755

2021 June 08, Tuesday  14.857  12.62845  17.08555

2021 June 09,  14.869  12.63865  17.09935

62
 Least possible Best possible
Calendar date Regular
price price

Wednesday

2021 June 10, Thursday  15.173  12.89705  17.44895

2021 June 11, Friday  14.948  12.7058  17.1902

2021 June 12, Saturday  14.932  12.6922  17.1718

2021 June 13, Sunday  14.639  12.44315  16.83485

2021 June 14, Monday  14.532  12.3522  16.7118

2021 June 15, Tuesday  14.406  12.2451  16.5669

2021 June 16,

 14.580  12.393  16.767
Wednesday

2021 June 17, Thursday  14.566  12.3811  16.7509

2021 June 18, Friday  14.599  12.40915  16.78885

2021 June 19, Saturday  14.302  12.1567  16.4473

2021 June 20, Sunday  14.305  12.15925  16.45075

2021 June 21, Monday  14.357  12.20345  16.51055

2021 June 22, Tuesday  13.814  11.7419  15.8861

2021 June 23,

 14.793  12.57405  17.01195
Wednesday

2021 June 24, Thursday  14.812  12.5902  17.0338

2021 June 25, Friday  14.019  11.91615  16.12185

2021 June 26, Saturday  13.981  11.88385  16.07815

2021 June 27, Sunday  13.979  11.88215  16.07585

2021 June 28, Monday  13.977  11.88045  16.07355

2021 June 29, Tuesday  13.940  11.849  16.031

2021 June 30,

 13.760  11.696  15.824
Wednesday

2021 July 31, Saturday  14.857  12.62845  17.08555

63
Best Possible Prices each day for the month of December for the year 2021.

2021 December

2021 December 01, Wednesday  13.647  11.59995  15.69405

2021 December 02, Thursday  13.668  11.6178  15.7182

2021 December 03, Friday  13.159  11.18515  15.13285

2021 December 04, Saturday  13.504  11.4784  15.5296

2021 December 05, Sunday  13.504  11.4784  15.5296

2021 December 06, Monday  13.619  11.57615  15.66185

2021 December 07, Tuesday  13.131  11.16135  15.10065

2021 December 08, Wednesday  13.149  11.17665  15.12135

2021 December 09, Thursday  13.260  11.271  15.249

2021 December 10, Friday  13.205  11.22425  15.18575

2021 December 11, Saturday  13.168  11.1928  15.1432

2021 December 12, Sunday  13.139  11.16815  15.10985

2021 December 13, Monday  13.512  11.4852  15.5388

2021 December 14, Tuesday  13.404  11.3934  15.4146

2021 December 15, Wednesday  13.422  11.4087  15.4353

2021 December 16, Thursday  13.625  11.58125  15.66875

2021 December 17, Friday  13.035  11.07975  14.99025

2021 December 18, Saturday  13.566  11.5311  15.6009

2021 December 19, Sunday  13.481  11.45885  15.50315

2021 December 20, Monday  13.561  11.52685  15.59515

2021 December 21, Tuesday  13.107  11.14095  15.07305

2021 December 22, Wednesday  13.125  11.15625  15.09375

2021 December 23, Thursday  13.076  11.1146  15.0374

64
2021 December 24, Friday  13.470  11.4495  15.4905

2021 December 25, Saturday  13.453  11.43505  15.47095

2021 December 26, Sunday  13.238  11.2523  15.2237

2021 December 27, Monday  13.268  11.2778  15.2582

2021 December 28, Tuesday  12.953  11.01005  14.89595

2021 December 29, Wednesday  12.441  10.57485  14.30715

2021 December 30, Thursday  12.786  10.8681  14.7039

2021 December 31, Friday  12.727  10.81795  14.63605

As of 2021 May 15, Saturday current price of MGAWY stock is 12.790$ and

our data indicates that the asset price has been in an uptrend for the past 1
year (or since its inception). Megaworld stock price as been showing a rising
tendency so we believe that similar market segments were very popular in the
given time frame. We uses a custom algorithm based on Deep Learning that
helps our users to decide if MGAWY could be a good portfolio addition. These
predictions take several variables into account such as volume changes, price
changes, market cycles, similar stocks. Future price of the stock is predicted
at 20.908311$ (63.474% ) after a year according to our prediction system.
This means that if you invested $100 now, your current investment may be
worth 163.474$on 2022 May 15, Sunday. This means that this stock is suited
as a new addition to your portfolio as trading bullish markets is always a lot
easier.

1 year Megaworld Forecast: 20.908311 *

5 year Megaworld Forecast: 66.239 *

Below you will find the stock price predictions for 2021 to 2025
Opening Closing Minimum Maximum
Date price price price price Change

MegaWorld Corp. Stock Price Forecast for 2021

June 2021 3.073 2.977 2.977 3.073 -3.23 %▼

65
 Opening Closing Minimum Maximum
Date price price price price Change
July 2021 2.981 3.061 2.981 3.072 2.62 % ▲
August 3.046 2.773 2.773 3.046 -9.83 %▼
2021
September 2.764 2.740 2.740 2.795 -0.86 %▼
2021
October 2.744 2.842 2.721 2.842 3.46 % ▲
2021
November 2.849 2.734 2.734 2.849 -4.19 %▼
2021
December 2.720 2.559 2.535 2.720 -6.27 %▼
2021

MegaWorld Corp. Stock Price Forecast for 2022

January 2.581 2.527 2.527 2.641 -2.12 %▼

2022
February 2.516 2.575 2.480 2.575 2.28 % ▲
2022
March 2.572 2.441 2.433 2.572 -5.37 %▼
2022
April 2022 2.452 2.444 2.441 2.494 -0.32 %▼
May 2022 2.432 2.437 2.401 2.441 0.22 % ▲
June 2022 2.428 2.341 2.338 2.434 -3.7 %▼
July 2022 2.351 2.428 2.351 2.435 3.17 % ▲
August 2.416 2.127 2.127 2.416 -13.55 %▼
2022
September 2.128 2.112 2.108 2.158 -0.77 %▼
2022
October 2.101 2.210 2.085 2.210 4.91 % ▲
2022
November 2.208 2.090 2.090 2.209 -5.66 %▼
2022
December 2.085 1.915 1.897 2.087 -8.91 %▼
2022

MegaWorld Corp. Stock Price Forecast for 2023

66
 Opening Closing Minimum Maximum
Date price price price price Change
January 1.934 1.889 1.889 2.004 -2.39 %▼
2023
February 1.872 1.935 1.842 1.937 3.21 % ▲
2023
March 1.926 1.810 1.795 1.932 -6.38 %▼
2023
April 2023 1.823 1.813 1.810 1.856 -0.53 %▼
May 2023 1.800 1.791 1.764 1.803 -0.46 %▼
June 2023 1.792 1.711 1.700 1.799 -4.73 %▼
July 2023 1.718 1.785 1.714 1.797 3.71 % ▲
August 1.777 1.492 1.492 1.777 -19.08 %▼
2023
September 1.499 1.480 1.477 1.520 -1.28 %▼
2023
October 1.468 1.569 1.450 1.570 6.44 % ▲
2023
November 1.562 1.456 1.456 1.573 -7.3 %▼
2023
December 1.458 1.272 1.256 1.458 -14.62 %▼
2023

MegaWorld Corp. Stock Price Forecast for 2024

January 1.288 1.245 1.245 1.367 -3.46 %▼

2024
February 1.239 1.290 1.206 1.297 4.01 % ▲
2024
March 1.298 1.169 1.156 1.298 -10.96 %▼
2024
April 2024 1.180 1.160 1.160 1.220 -1.7 %▼
May 2024 1.148 1.163 1.127 1.165 1.33 % ▲
June 2024 1.158 1.072 1.062 1.158 -8.02 %▼
July 2024 1.078 1.132 1.072 1.158 4.8 % ▲
August 1.128 0.863 0.858 1.130 -30.71 %▼
2024

67
 Opening Closing Minimum Maximum
Date price price price price Change
September 0.862 0.836 0.836 0.884 -3.13 %▼
2024
October 0.829 0.926 0.8099 0.929 10.52 % ▲
2024
November 0.935 0.828 0.826 0.935 -12.95 %▼
2024
December 0.8090 0.646 0.618 0.8090 -25.18 %▼
2024

MegaWorld Corp. Stock Price Forecast for 2025

January 0.644 0.611 0.611 0.728 -5.43 %▼

2025
February 0.592 0.661 0.571 0.661 10.5 % ▲
2025
March 0.657 0.538 0.517 0.657 -22.06 %▼
2025
April 2025 0.539 0.516 0.516 0.582 -4.49 %▼
May 2025 0.513 0.527 0.491 0.527 2.6 % ▲
June 2025 0.524 0.438 0.425 0.524 -19.6 %▼
July 2025 0.437 0.498 0.431 0.521 12.21 % ▲
August 0.50045 0.229 0.225 0.50045 -118.55 %▼
2025
September 0.224 0.196 0.196 0.246 -14.33 %▼
2025
October 0.184 0.296 0.171 0.296 38 % ▲
2025
November 0.298 0.197 0.195 0.298 -51.11 %▼
2025
December 0.180 0.00123 0.00123 0.180 -14592.41
2025 %▼

68
IV. QUANTITATIVE FINANCIAL ANALYSIS

Common-Size Stataments

Megaworld Corporation presented Financial Statements for the years

2017 and 2020 for the company and for the Parent Bank, which is shown in
the tables below.

Table 4.1 Shows the company annual Statement of Financial Position for the
period ended December 31, 2019 and 2020.

Megaword Corporation
Statements of Financial Position
December 31, 2020 and 2017
(Amounts in Millions of Philippine Peso)
2020 2019 2018 2017
Period Ending: 31/12 31/12 31/12 31/12
210673.6 190506.1 175147.3
Total Current Assets 143041.52
1 6 9

375690.4 349633.0 322290.6

Total Assets 284322.71
2 7 7

Total Current Liabilities 72720.15 57544.52 47404.19 43951.37

190226.1 171168.9 158435.7

Total Liabilities 143214.25
9 9 8

185464.2 178464.0 163854.8

Total Equity 141108.46
3 9 9

69
 Total Liabilities & 375690.4 349633.0 322290.6
284322.71
Shareholders' Equity 2 7 7
Total Common Shares
31899.31 32239.95 32239.45 32239.45
Outstanding
Total Preferred Shares
6000 6000 6000 6000
Outstanding

Table 4.2 shows the annual Statement of Income of Jollibee Foods

Corporations for the period ended December 31, 2016 to 2020.

Megaword Corporation
Statements of Income
December 31, 2020 and 2017
(Amounts in Millions of Philippine Peso)

2020 2019 2018 2017

Period Ending: 31/12 31/12 31/12 31/12

Total Revenue 43540.88 67371.57 57334.9 49996.21

Revenue 43540.88 67371.57 57334.9 49996.21
Other Revenue, Total - - -
Cost of Revenue, Total 14753.63 24760.98 21342 18796.85
Gross Profit 28787.25 42610.6 35992.9 31199.37
Total Operating Expenses 27263.81 39617.22 32879.87 28485.05
Selling/General/Admin. Expenses, Total 6436.89 8854.26 6633.69 5974.01
Research & Development - - - -
Depreciation / Amortization 612.53 491.77 421.99 358.52
Interest Expense (Income) - Net
2485.17 2219.89 1839.89 1465.28
Operating
Unusual Expense (Income) - - - 1558.74
Other Operating Expenses, Total 2975.59 3290.31 2642.31 1890.39
Operating Income 16277.07 27754.35 24455.03 21511.17
Interest Income (Expense), Net Non-
-1711.18 -1571.74 -2301.26 -3350.3
Operating
Gain (Loss) on Sale of Assets - - - -
Other, Net -629.41 -804.93 -609.88 -393.14
Net Income Before Taxes 13936.47 25377.69 21543.89 17767.72

70
Provision for Income Taxes 3347.91 6081.66 5544.36 4063.45
Net Income After Taxes 10588.57 19296.03 15999.53 13704.27
Minority Interest -702.58 -1364.61 -624.91 -561.43
Equity In Affiliates - - -166.48 2.72
U.S GAAP Adjustment - - - -
Net Income Before Extraordinary Items 9885.99 17931.42 15208.14 13145.56
Total Extraordinary Items - - - -
Net Income 9885.99 17931.42 15208.14 13145.56
Total Adjustments to Net Income -535.86 -563.51 -290.94 -0.6
Income Available to Common Excluding
9350.13 17367.9 14917.2 13144.96
Extraordinary Items
Dilution Adjustment - - - -
Diluted Net Income 9350.13 17367.9 14917.2 13144.96
Diluted Weighted Average Shares 31762.51 31977.66 31962.13 31956.36
Diluted EPS Excluding Extraordinary
0.29 0.54 0.47 0.41
Items
DPS - Common Stock Primary Issue - 0.04 0.07 0.06
Diluted Normalized EPS 0.29 0.54 0.47 0.41

71
Table 4.3 shows the annual Statement of Income of Jollibee Foods
Corporations for the period ended December 31, 2016 to 2020.
Megaword Corporation
Statements of Cashflows
December 31, 2020 and 2017
(Amounts in Millions of Philippine Peso)
2020 2019 2018 2017
Period Ending: 31/12 31/12 31/12 31/12

Period Length: 12 Months 12 Months 12 Months 12 Months

Net Income/Starting Line 13936.47 25377.69 21377.41 17770.44
Cash From Operating Activities 19099.53 23381.9 14165.61 7130.49
Depreciation/Depletion 3104.66 2718.63 2268.84 1830.76
Amortization - - - -
Deferred Taxes - - - -
Non-Cash Items -807.73 -1280.05 930.75 1609.28
Cash Receipts - - - -
Cash Payments - - - -
Cash Taxes Paid 2886.45 3647.12 2840.94 2723.85
Cash Interest Paid 3843.17 4209.27 3886.04 3693.37
Changes in Working Capital 2866.13 -3434.37 -10411.39 -14080
Cash From Investing Activities -6333.46 -11315.86 -16679.02 -15360.05
Capital Expenditures -430.71 -350.12 -653.94 -431.85
Other Investing Cash Flow Items,
-5902.75 -10965.74 -16025.08 -14928.2
Total
Cash From Financing Activities 4295.81 -6504.26 3626.37 8264.04
Financing Cash Flow Items -5285.01 -4247.87 -3551.77 -3705.6
Total Cash Dividends Paid -535.26 -2942.1 -2202.54 -1722.16
Issuance (Retirement) of Stock,
-1244.5 -250.71 -251.6 -
Net
Issuance (Retirement) of Debt, Net 11360.57 936.41 9632.28 13691.79
Foreign Exchange Effects - - - -
Net Change in Cash 17061.88 5561.78 1112.96 34.47
Beginning Cash Balance - - 16430.13 16395.67
Ending Cash Balance - - 17543.09 16430.14
Free Cash Flow - - 13275.56 6698.64
Free Cash Flow Growth - - - -
Free Cash Flow Yield - - - -

72
Financial Ratios
P/E Ratio TTM 9.61 36.84
Price to Sales TTM 2.07 15.69
Price to Cash Flow MRQ 4.97 204.18
Price to Free Cash Flow TTM 4.71 4,344
Price to Book MRQ 0.49 5.37
Price to Tangible Book MRQ 0.49 6.25

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Gross Margin Operating Margin Pretax Margin Net Profit Margin

TTM (%) Column1

Gross margin TTM 66.12% 35.81%

Gross Margin 5YA 63.82% 33.87%
Operating margin TTM 38.9% 23.54%
Operating margin 5YA 40.04% 26.39%
Pretax margin TTM 32.01% 32.58%
Pretax margin 5YA 35.42% 28.79%
Net Profit margin TTM 24.32% 24.43%
Net Profit margin 5YA 26.91% 23.34%

Revenue/Share TTM 1.37 147.42

Basic EPS ANN 0.3 17.56
Diluted EPS ANN 0.29 17.49
Book Value/Share MRQ 5.81 177.61
Tangible Book Value/Share MRQ 5.81 109.99
Cash/Share MRQ 1.26 69.95
Cash Flow/Share TTM 0.43 39.85
Revenue/Share TTM 1.37 147.42

73
 Management Effectiveness: TTM vs 5 Year Average Margins
10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Return on Equity Return on Assets Return on Investment

TTM (%) 5 Year Average

Return on Equity TTM 5.14% 12.84%

Return on Equity 5YA 8.7% 12.66%
Return on Assets TTM 2.92% 5.09%
Return on Assets 5YA 4.6% 5.86%
Return on Investment TTM 3.91% 8.31%
Return on Investment 5YA 5.99% 9.07%

EPS(MRQ) vs Qtr. 1 Yr. Ago MRQ -51.68% 18.57%

EPS(TTM) vs TTM 1 Yr. Ago TTM -46% 20.45%
5 Year EPS Growth 5YA -1.62% 17.82%
Sales (MRQ) vs Qtr. 1 Yr. Ago MRQ -47.6% 12.82%
Sales (TTM) vs TTM 1 Yr. Ago TTM -35.37% 8.96%
5 Year Sales Growth 5YA -0.59% 16.08%
5 Year Capital Spending Growth 5YA -37.64% 53.55%
EPS(MRQ) vs Qtr. 1 Yr. Ago MRQ -51.68% 18.57%

Asset Turnover TTM 0.12 0.22

Inventory Turnover TTM 0.13 1.86
Revenue/Employee TTM 43.20M 77.69M
Net Income/Employee TTM 10.50M 15.78M
Receivable Turnover TTM 0.98 1.65

Dividend Yield ANN 1.33% 0.99%

Dividend Yield 5 Year Avg. 5YA - 1.12%
Dividend Growth Rate ANN - 14.42%
Payout Ratio TTM 0% 8.36

74
 2020
Hotel Corporate
Real Estate Rental Operations and Others Elimination Consolidated

TOTAL REVENUES
Sales to external
customers P 24,858,537,303P12,932,770,278 P 1,482,160,976 P 1,466,834,056 P - P 40,740,302,613
Interest income 1,400,701,643 599,253,561 2,646,996 1,184,963 - 2,003,787,163
Intersegment sales - 467,049,014 - 2,294,445,202 ( 2,761,494,216) -

Total revenues 26,259,238,946 13,999,072,853 1,484,807,972 3,762,464,221 ( 2,761,494,216) 42,744,089,776

RESULTS
Cost of sales and
operating expense
excluding depreciation
and amortization 19,252,024,183 1,745,331,616 1,438,867,811 3,669,211,000 ( 2,606,206,509) 23,499,228,101
Interest expense 1,401,027,748 451,200,603 - 58,857,029 - 1,911,085,380
Depreciation and
amortization 306,863,866 2,485,169,230 133,495,376 179,132,761 - 3,104,661,233

20,959,915,797 4,681,701,449 1,572,363,187 3,907,200,790 ( 2,606,206,509) 28,514,974,714

(P 87,555,215) 155,287,707)
Segment results P 5,299,323,149 P 9,317,371,404 (P 144,736,569)(P P 14,229,115,062

Unallocated other
income 796,788,076
Unallocated other
expenses ( 1,019,551,914)
Equity in net earnings
of associates ( 69,879,672 )
Tax expense ( 3,347,906,258 )

Net profit P 10,588,565,294

ASSETS AND
LIABILITIES
P P
Segment assets 235,599,151,575 P114,390,474,604 P 5,117,468,238 P12,913,055,054 P - 368,020,149,471
Investments in and
advances
to associates and other
related parties - net - - - 7,670,270,474 - 7,670,270,474

P
Total assets 235,599,151,575 P114,390,474,604 P 5,117,468,238 P20,583,325,528 P - P375,690,419,945
P P
Segment liabilities 113,607,944,849 P41,276,479,486 P 1,114,130,648 P 7,161,384,765P - 163,159,939,748

OTHER SEGMENT INFORMATION

Project and capital
expenditures P 27,907,230,441

75
 2019

Hotel Corporate

Real Estate Rental Operations and Others Elimination Consolidated

TOTAL REVENUES

Sales to external 2,543,769,50

customers P42,603,984,572 P16,814,091,846 P 8 P 1,889,033,843 P - P 63,850,879,769

Interest income 1,789,992,697 532,557,186 4,213,073 2,050,744 - 2,328,813,700

Intersegment sales - 497,191,017 - 2,773,501,898 ( 3,270,692,915) -

2,547,982,58
Total revenues 44,393,977,269 17,843,840,049 1 4,664,586,485 ( 3,270,692,915) 66,179,693,469

RESULTS

Cost of sales and

operating expense

excluding
depreciation

1,905,111,55
and amortization 30,747,680,397 1,952,200,282 7 4,464,159,187 ( 3,114,329,696) 35,954,821,727

Interest expense 1,524,194,888 420,528,292 - 63,111,421 - 2,007,834,601

Depreciation and
amortization 188,556,394 2,236,868,294 106,992,256 186,216,845 - 2,718,633,789

2,012,103,81
32,460,431,679 4,609,596,868 3 4,713,487,453 ( 3,114,329,696) 40,681,290,117

Segment results P11,933,545,590 P13,234,243,181 P 535,878,768(P 48,900,968)(P 156,363,219)P 25,498,403,352

Unallocated other
income 1,191,878,718

Unallocated other
expenses ( 1,253,763,397)

Equity in net
earnings

of associates ( 58,832,233 )

Tax expense ( 6,081,657,290 )

Net profit P 19,296,029,150

ASSETS AND
LIABILITIES

P P102,878,993,50 5,385,458,35 P
Segment assets 226,831,920,357 0 P 5 P 7,023,188,130 P - 342,119,560,342

Investments in and
advances

to associates and
other

related parties - net - - - 7,513,514,402 - 7,513,514,402

P P102,878,993,50 5,385,458,35
Total assets 226,831,920,357 0 P 5 P14,536,702,532 P - P349,633,074,744

P 1,331,766,29
Segment liabilities 102,921,026,112 P33,672,147,628 P 6 P 6,842,612,203 P - 76 P 144,767,552,239

OTHER SEGMENT INFORMATION

Financial Summary

V. COMPREHENSIVE AND TECHNICAL ANALYSIS

77
A. COMPREHENSIVE ANALYSIS
Megaworld, the country’s largest developer of integrated urban
townships, saw its net income decline by 45.16% to Php9.35 billion in 2020
from Php17.37 billion last year. The Group’s weaker earnings was traced
mainly due to COVID-19 pandemic affecting the core businesses. Net income
attributable to the parent company stood at Php9.89 billion, lower by 44.87%
from Php17.93 billion last year.
Megaworld Corp. shows its top income earning business segments as follows:
Development. Among product portfolios, the bulk of consolidated revenues
came from the sale of condominium units and commercial lots, comprising
57.18% of total revenues. Real estate sales decreased by 41.65%, amounting
to Php24.86 billion and Php42.60 billion for the years 2020 and 2019,
respectively. The Group’s registered sales mostly came from the following
projects: San Antonio Residence, Maple Grove Commercial District, The
Florence, Albany Kingsley, Bayshore Residential Resort 2 Phase 2, The
Palladium at Iloilo Business, One Eastwood Avenue Tower 1&2, Uptown
Parksuites Tower 2, Park McKinley West, Gentry Manor, Eastwood Global
Plaza Luxury Residence and Bayshore Residential Resort 2.
Leasing. The Group’s rental businesses, comprising office and lifestyle mall
leasing, registered a 23.08% decline, reaching Php12.93 billion in 2020 from
the previous year’s Php16.81 billion. This contributed 29.75% of the total
consolidated revenues for the first nine months of the year.
Hotel Operations. The Group’s revenues attributable to hotel operations
posted an amount of Php1.48 billion during 2020 with a decrease of 41.73%
from Php2.54 billion last year. Total costs and expenses amounted to
Php32.88 billion, a decrease by 31.52% from Php48.02 billion last year.
Interest and other charges – net decreased by 10.15%, amounting to Php2.93
billion this year from Php3.26 billion in 2019. Tax expense in 2020 amounting
to Php3.35 billion resulted in a decrease of 44.95% from 2019 reported
amount of Php6.08 billion due to lower taxable income.
There were no seasonal aspects that had a material effect on the
financial condition or financial performance of the Group. Neither were there
any trends, events or uncertainties that have had or that are reasonably
expected to have a material impact on net sales or revenues or income from

78
continuing operations. The Group is not aware of events that will cause
material change in the relationship between costs and revenues. There are no
significant elements of income or loss that did not arise from the Group’s
continuing operations

B.TECHNICAL ANALYSIS

79
80
81
VI. RECOMMENDATION AND CONCLUSION
Conclusion

There is no doubt of the massive contributions of Megaworld offices—

having generated thousands of jobs that significantly improved Filipinos’
purchasing power; created a multiplier effect as its offices pulled in and
boosted the growth of other sectors such as retail, restaurants, hotels, and
transport to serve a growing working population; formed thriving, safe self-
contained communities; and more notably, helped drive Philippine economy
by providing platforms for local and foreign businesses that generate hefty tax
revenues for the national coffers.

82
 The stock of real estate developer Megaworld Corp. appears to have
an odd, long-running love-hate relationship with investors (MEG). MEG is a
stock market darling at times, with investors flocking to it in the hopes of a 100
percent or 200 percent return in the near term, but when it falters, they desert
it like a house on fire. The stock's wild price swings over the last year are
recent proof. Its 52-week high was a whopping P6.54 per share in July 2019
— at a time when the real estate sector was looking up thanks to the rise of
Philippine Offshore Gaming Operators (POGOs) in the country — but it also
contrasts with its 52-week low of a meager P1.86 per share in March 2020,
when the Philippine government implemented a lockdown known as
Enhanced Community Quarantine (ECQ).  Indeed, Megaworld developments
have always been uplifting lives, creating a bigger impact on the society, and
helping shape the nation through its projects. As the company is poised to
further expand its office property business, it deemed it strategic to rebrand
the group into Megaworld Premier Offices.  

As of the 15th of May 2021, Megaworld Corp secures the risk adjusted

performance of (0.07), and Mean Deviation of 2.98. In connection
with fundamental indicators, the technical analysis model lets you check
existing technical drivers of Megaworld Corp ADR, as well as the relationship
between them. Strictly speaking, you can use this information to find out if the
firm will indeed mirror its model of past prices, or the prices will eventually
revert. We are able to interpolate and break down nineteen technical
drivers for Megaworld Corp, which can be compared to its peers in the
industry. Please verify Megaworld Corp ADR semi deviation, jensen alpha, as
well as the relationship between the Jensen Alpha and semi variance to
decide if Megaworld Corp ADR is priced some-what accurately, providing
market reflects its recent price of 11.93 per share. Given that Megaworld Corp
ADR has jensen alpha of (0.29), we recommend you to check Megaworld
Corp's last-minute market performance to make sure the company can
sustain itself at a future point.

Recommendation

83
 Based on the key factors discovered in the analysis in the preceding
section, the group recommend to BUY and HOLD to stock for long-term
investment. During this pandemic, real estate companies experience hard
downturns than fast food restaurant or food industry because properties are
not essential these days which leads to undervalue price. Through
undervalued price, investor is given a privilege for the reason in the future it
will have better returns. MEG’s hotel operations, much like the industry as a
whole, has surely benefited from the influx of tourists in recent years. With
that, the imposition of travel bans, visa restrictions, and lockdowns across the
globe will weaken the country’s tourism leading to an inevitable crunch in
hotel occupancy.

84