SMIC sees 2011 profit growing by at least 12%

TYCOON HENRY SY-led SM Investments Corp. is on track to growing its profit by at least 12 percent this year and top the record high net posted in 2010, an official said.

SMIC chief finance officer Jose Sio said that based on mid-year indications, the holding firm would be able to hit the full-year goal.  He said its performance in the second quarter was better than the first quarter, the usual business cycle in any given year.

“I think we can hit our budget,” Sio told reporters at the sidelines of an economic forum organized by Hong Kong-based The Asset magazine.

He said SMIC was now finalizing corporate results for the second quarter but noted that all businesses were performing well.  The indication was that SMIC had sustained a double-digit growth in the second quarter, he added.

SMIC posted a 13-percent year-on-year profit in the first quarter to P5.37 billion.

SMIC is a dominant player in retailing, banking and shopping mall development and is likewise a fast-growing player in residential and tourism-oriented real estate.

In terms of growth, the banking businesses were exhibiting the fastest momentum this year, he said.  SMIC has a controlling stake in Banco de Oro Unibank and China Bank.

In 2010, the high-volume but low-margin retailing business accounted for 33.9 percent of SMIC’s P18.44 billion in net profit, followed by banking which contributed 30.5 percent. Shopping mall and other real estate interests which accounted for 23 percent and 12.6 percent, respectively.