The Philippines is on the verge of a major digital adoption following breakthroughs in smartphone and data penetration and seven publicly-listed companies are likely to benefit most from this digitalization theme, investment house CLSA said.
In a July special report titled “Age of Disruption” authored by Marc Espino, CLSA said that as digital opportunities expand across multiple sectors, the long-term winners will be conglomerate Ayala Corp., electronics manufacturer Integrated Microelectronics Inc. (IMI), restaurant operators Max’s Group Inc. and Shakey’s Pizza Asia Ventures, lenders Bank of the Philippine Islands (BPI) and Union Bank, and Robinsons Retail Holdings Inc.
CLSA said the key building blocks in this process of digitalization were the Philippines’ large population, youthful demographic and government-led improvement of essential infrastructure, like its intervention to bring in a third telecom player.
“We expect the digital environment to gain traction over the next five years, with data users breaching 94 percent penetration. Organizations that are able to adapt and execute will survive over the long run. From our selection of digitalization winners, Ayala Corp. and IMI are our standout picks,” the research said.
CLSA surveyed the companies within its coverage to assess their digital awareness, level of understanding and any shift in mindset.
“Excluding the enablers (tech and telecom), the media, bank and retail sectors are under pressure, while consumer will be the net winner. However, organizations that can adapt and execute digital capabilities will benefit most from this ongoing shift,” the research said. —DORIS ABADILLA