Megawide profit seen tripling by 2027

Tycoon Edgar Saavedra-led Megawide Construction Corp. is likely to triple its profit before preferred dividends by 2027, driven by robust prospects for its construction, land port and real estate businesses.

This is according to a Sept. 15 research issued by local stock brokerage First Metro Securities Brokerage Corp. and DBS, which said the government’s anticorruption drive may favor large, listed contractors like Megawide in securing public projects.

The government has begun the tight screening of public works contractors amid an ongoing investigation of corrupted flood control programs.

First Metro Securities and DBS reinstated coverage on Megawide with a target price of P4.50 per share, suggesting a 90-percent upside from Tuesday’s closing price of P2.37 per share.

The new target price is “supported by the increasingly visible impact of Megawide’s 3-D (Deliver, Delever, Decarbonize) strategy,” said the research that was written by First Metro Securities’ Mark Angeles and Kyle Garcia.

From P551 million in full year 2024, the research projected that Megawide’s earnings before preferred dividends may more than triple by full year 2027.

“Construction momentum is supported by a targeted P50-billion order book, driven by the government’s 4PH program and private sector partnerships,” the research said.

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4PH refers to the “Pambansang Pabahay Para sa Pilipino” program, the nation’s flagship housing program under Pres. Marcos.

Operations as landlord of Paranaque Integrated Terminal Exchange are also seen to benefit from the new LRT 1 station, which could boost foot traffic and office occupancy, currently at 40 percent.

The research also cited the expansion of real estate arm PH1 World Developers into high-growth areas such as Cavite.