DMCI Holdings Inc.

Market Performance

DMCI Holdings, Inc. posted P7.5 billion in consolidated core income for the
first nine months of 2014, a 6% decline from the P8.0 billion reported in
the same period last year. The drop in core income was attributable to the
weakened operating results of the power and construction
businesses.
Maintenance contractor delays resulted in extended outages in the
Calaca power units, exposing the power business to high Wholesale
Electricity Spot Market (WESM) prices for its replacement power during
the first half of the year.
Meanwhile, earnings from the construction business were dragged down
by cost overruns in its engineering, procurement, and construction
(EPC) contract for a power plant, and the delayed implementation of
major public infrastructure projects due to right-of-way and utility
relocation issues.
On the other hand, the mining businesses have rebounded well from
last year and have shown remarkable growth in net income contributions
due to a combined effect of higher sales volume and better average
prices.
The Company is reporting a 4% decrease in net earnings share from
the water business as a result of reduced effective interest in Maynilad.
Reported consolidated net income decreased by 54% year-on-year
mainly due to the onetime gain on sale recognized in 2013.
Executives

Aboitiz Equity Ventures Inc.

Market Performance

For the three quarters ended September 2014, AEV and its subsidiaries
posted a consolidated net income of P14.26 billion (bn), a 14% yearon-year (YoY) decrease.
Operating profit for the current period amounted to P19.36 bn, an 11%
increase YoY, as the P23.44 bn increase in revenues surpassed the
P21.47 bn rise in costs and expenses. This increase was mainly
attributed to the performance of power and real estate groups
and the full contribution of VECO which was consolidated towards the
end of the second quarter of 2013.
AEV disclosed a couple of initiatives which it hopes will serve as new
avenues of growth in the years to come, such as:
o Production of Liquid Biomethane, In June 2012, AEV
partnered with British company GazAsia Ltd. to build a plant that
produces liquid bio-methane fuel from organic waste.
o Davao Bulk Water Supply Project, AEV has agreed to enter
into a joint venture with J.V. Angeles Construction Corp. (JVACC)
to jointly construct both a raw water treatment facility with RE
component and conveyance system which will deliver 300 MLD
of treated bulk water to Davao City, the third largest city in the
Philippines.

o Power Generation, such as Ancillary services, Conversion of AP

Renewables, Inc.s (APRI) existing steam contract to a
Geothermal Resource Sales Contract, and Magat, Binga and
Ambuklao Reservoir Elevations.
o Increase in Attributable Generating Capacity, 600 MW (net)
Coal-Fired Power Plant in Subic. This is a project by Redondo
Peninsula Energy, Inc. (RP Energy), a joint venture among
Meralco PowerGen Corporation (MPGC), other coal fired project in
Quezon and Cebu, as well as Hydropower in Mt. Province and
Bukidnon, and AboitizPowers photovoltaic solar projects.
o Real Estate Expansion, The 50-50 JV with Ayala Land, Inc. took
into effect in February 2014 with the signing of the agreement
and incorporation of the JV company, Cebu District Property
Enterprise, Inc. (CDPEI). In 2015, CDPEI will start to develop the
15-hectare Mandaue Cebu property into a city center with
residential, commercial, retail and office components.
Executives:
Jon Ramon M. Aboitiz, Chairman
President/CEO
Stephen G Paradies, Senior VP/CFO

Erramon I Aboitiz,
Mikel A Aboitiz, Senior VP/CIO

The two companies are competitively comparable against each other,

as shown by the table above, but Aboitiz Equity Ventures turned out to be
a better company to venture in, after thorough analysis of its financial ratios,
stock trend, as well as its market performance.
Based on the financial ratios drawn, Aboitiz and DMCI both have 7
better ratios out of 14 particulars, which means that the two companies are
tie when financial ratios are to be relied on, not to mention some of its
extremely close ratios. The two companies profitability ratios are good, but
the turnover ratios are better in Aboitiz. DMCI has a greater EPS, but liquidity
ratios are better in Aboitiz, which means that the company is doing well in
operations. DMCI is giving good dividends and has higher TIE ratio, but
Aboitiz has a greater Equity portion, which implies that the company finances
its operations through stockholders, which is a good indicator for an investor.
Lastly, Aboitizs stock is not undervalued, because its market value is far
greater than its book value.
Relying on ratios alone is not enough, especially in this case of tie,
thereby market performance and stock trend must be also taken into
consideration. Based on each company disclosures, DMCI is not performing
well in majority of its operations, and it incurs drag downs recently, thereby

they are not providing a room for expansions currently. Aboitiz Equity, on the
other hand, although may experience little setbacks, is performing better
than the other, and is really after numerous expansions and improvements,
which indicates a good business performance, therefore, a good company to
invest in.
In terms of its stock trend, DMCI showed a very volatile trendthereby
indicating an unpredictable stock, which is not preferable for investors who
are after capital appreciation. Aboitiz, in the contrary, is somewhat stable,
the trend showed that its stock price is slightly tilting upward, thereby
indicating a good future for an investment, especially in maximizing ones
equity wealth.