BIZ BUZZ: The long Land Cruiser waiting list

At least nine months. But possibly an entire year. That’s how long one has to wait if one wants to buy the recently launched Toyota Land Cruiser LC300 model in the Philippines.

And naturally, that long waiting list and waiting time has bred a secondary market for buyers who can’t wait to get their hands on one.

Biz Buzz hears that the quoted prices from “flippers” of recently acquired units can go as high as P8 million, which represents a hefty premium over the P5.2 million sticker price set by Toyota Motors Philippines. And some people are actually biting the bullet and shelling out the cash just to get one.

In any case, Toyota Motors Philippines reiterated over the weekend that it is not requiring additional premiums for reservations and purchases of the LC300 from customers wanting to buy the coveted vehicle.

“Production of the new Land Cruiser was not spared by the global parts supply shortage in the manufacturing sector brought about by the COVID-19 pandemic,” Toyota said. “This has further contributed to the imbalance in supply and demand for this highly anticipated model. Since the debut of the LC300 in 2021, global demand for the car continued to grow, causing longer waiting time for fans in the country.”

So there. Be patient. Or be prepared to pay a hefty premium on the black market.

— Daxim L. Lucas

Early retirement

PAL Express president Bonifacio Sam is getting his much-deserved retirement after working nearly three decades for the Philippine Airlines Group.

Biz Buzz learned that Sam was granted his long-standing wish to retire to spend more time with his family on March 11 this year.

Sam is among taipan Lucio Tan’s most loyal executives and a respected figure within Philippine Airlines and PAL Express.

The airline executive was so prized, he was asked to stay on even after he filed his retirement in 2020.

Sam decided to continue as PAL entered crisis mode during the pandemic before emerging from a successful restructuring process.

With his extended mission accomplished, Sam said in a letter to Tan he was “happy that I will be leaving this company when it is already in its road to full recovery.”

“I am proud to say with all candor and honesty that I will be leaving with a good leadership team, a workforce that is highly professionalize, innovative and entrepreneurial and an organization that is agile and strong,” he said in the letter, portions of which were seen by Biz Buzz.

His stint at PAL Express ends 39 years with the Lucio Tan Group.

As Sam moves on to the next chapter, eyes are on who might replace the industry veteran at PAL Express. Whoever he or she might be, there’s no doubt the new airline boss would have big shoes to fill.

—Miguel Camus

Bullish on 2022

Mediline Distributors Inc. did not want the title, and yet it has earned the unfortunate distinction of having the worst trading debut in the recent history of the Philippine Stock Exchange, with its shares falling by some 30 percent on opening day.

With MEDIC closing at P1.03 on Friday, the shares that were listed at P2.30 apiece are now worth less than half. Ouch.

But for MEDIC chair Virgilio Villar, there are compelling reasons to look beyond the IPO (initial public offering) debacle and consider the intrinsic value of the business.

MEDIC is a medical equipment supplier that recently said it had closed contracts to install P1 billion worth of cancer therapy equipment this year.

MEDIC is set to deliver these machines to Bicol Regional Training and Teaching Hospital in Legazpi City, Northern Mindanao Medical Center in Cagayan de Oro City and the Philippine Children’s Medical Center in Quezon City as soon as the respective sites within the hospitals are ready starting Q2 this year, it said in a statement.

The company will also be completing its cancer projects in Cebu and Davao this year. Finally, its cancer project in Philippine General Hospital (PGH) will also be completed this year as soon as it finishes the bunker setting for the machine. At PGH, the preparation of the infrastructure where the machine will be housed and installed is part of the contract.

“The delivery and installation contracts of these machines already account for half of our 2022 full year revenue target putting us on track to hit another record year in sales. We are committed to bring advanced cancer treatment into the country’s public and private hospitals through these machines”,” Villar said.

Besides cancer therapy machines, MEDIC also distributes B. Braun dialysis machines and Siemens Healthineers diagnostic imaging equipment like CT scans and MRI machines. The company is expanding its product line offerings to consumables as it continues to offer world class medical equipment and supplies to Filipinos.

As the MEDIC chair says: “The investment community needs only to look at our performance to realize the value that we offer. We have been transforming medical centers into advanced treatment centers. Our fundamentals are solid and our prospects are bright.”

With that, investors may want to take a second look at the MEDIC shares.

—Tina Arceo-Dumlao INQ

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