Phinma Corp.’s (PHN) 35%-owned Phinma Properties will be completing the first of its 12 residential towers in Davao this November. It will be followed by three more towers in 2017. Phinma Properties is also negotiating for a second joint venture in Davao for a townhouse or possibly another condominium project. The company is eyeing mixed-use developments and a socialized housing project as well. Phinma Properties has been a drag to PHN with PHP63 mn in contributed losses in 2Q16. Hopefully, this turns around with booked revenues from the four towers’ completion from November 2016 to 2017.
PHN’s earnings are led by Phinma Energy (PHEN or formerly TA), investment holdings in shares of stock and steel through Union Galvasteel Corp. (UGC). PHN also has profitable education and BPO businesses. PHN is an overlooked bargain stock trading below scrap, book value and other valuations. It is at least a two-bagger stock that pays decent cash dividends that shield investors against inflation. Its prospects stem from PHEN and Phinma Properties’ potential turnaround.
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