MANILA, Philippines – As SM Investments Corporation (SMIC) marked the 20th anniversary of its listing on the Philippines Stock Exchange (PSE), the conglomerate promised to continue opening doors for the Filipino people — this time in provinces with promising growth.
“The next 20 years will see SM continue to lead in retail, property, and banking, while expanding into new regions where growth is accelerating, especially in provincial areas,” SMIC president and chief executive officer Frederic DyBuncio said on Monday.
In 2024, 85% of the company’s expanded footprint was in the provinces.
SMIC made its P28.75-billion stock market debut on March 22, 2005. The conglomerate held the record of being the country’s biggest initial public offering for years and was surpassed only in 2021 when Monde Nissin hit the market, raising P72.45-billion.
In 2005, there were only 19 SM malls in the country — the number has since grown to 87, with three more in the pipeline. Included in its arsenal are 8 more malls in China, 4,470 retail stores, and 2,441 branches of BDO and Chinabank.
“This expansion pushed strong consumer activity and sustained growth by creating jobs, extending enterprise access to markets, and boosting more economic activities,” PSE president and chief executive officer Ramon Monzon said during the bell-ringing ceremony on Monday, March 24.
SM said in its 20 years in the business, it had been able to give back.
Apart from job openings its businesses were able to create, the company was also able to provide 6,619 college scholarships, building a total of 110 school buildings, training 32,359 farmers, going on medical missions that have served over 1.314 million patients, and helped improved 216 health and wellness centers.
“As we move forward, we aim to build an ‘SM for all’ — one that reaches and benefits every Filipino, ensuring that our growth is shared by all,” said DyBuncio.
Confidence in the Philippine market
SMIC is conducting its largest share buyback program worth $1 billion. As of Monday, March 24, the company has already bought back 190,000 shares worth P152.518,505.
Companies buying back their shares can help boost the value of its shares.
“Our buyback program is a clear signal of our confidence in the future of both SM and the Philippine market. We believe in our country’s potential and in the enduring value SM will continue to create for its shareholders,” DyBuncio said.
The value of SMIC shares has already ballooned in the last 20 years. In March 22, 2005, its adjusted price was P123.27 per share.
This has since grown by 549%, closing at P800 apiece on March 21, 2025. However, SMIC officials believe it is currently undervalued — moving in the same price range over the last five years.
Meanwhile, the conglomerate is also investing more in its businesses too. SM Prime Holdings, its subsidiary, is allocating P100 billion in 2025 to expand its business.
Three new malls are set to open in La Union, Ilocos Norte, and Zamboanga City this year. Meanwhile, some existing SM malls are expected to get a facelift, with redevelopment works underway.
SM Prime is also launching a P5-billion office development, which will be located within the SM Mall of Asia complex. Named SixE-com Center, the two-tower building will bring 60,000 square meters of leasable space into the office market by 2026.
SMIC’s property arm is banking on demand from traditional companies, business process outsourcing, knowledge process outsourcing, and multinational firms.
“POGOs are not part of our tenant mix,” SM Prime vice president Alexis Ortega said in a statement on March 20. “Our office towers are designed for clients that prioritize operational efficiency, employee well-being and sustainability.”
7% earnings growth in 2024
The company reported a 7% growth in its consolidated net income in 2024, rising to P82.6 billion from P77 billion in 2023. Revenues also bumped up 6% to P654.8 billion last year.
Its banking businesses contributed 49% of its net income, 26% is from its property segment, retail accounted for 18%, and portfolio investments gave 7%.
“Our core businesses all grew, supported by positive macroeconomic fundamentals and healthy consumer sentiment. The fourth quarter registered the highest revenue growth rate of 9.4%, giving us solid momentum into 2025,” DyBuncio said on February 28.
BDO scored a 12% increase in net income, finishing 2024 with P82 billion. China Banking Corporation, meanwhile, saw a 13% increase to P24.8 billion.
SM Prime saw a 14% growth to a P45.6 billion net income growth in 2024. The subsidiary is working on developing integrated cities across the country — an example of which is its Mall of Asia complex in Pasay, which already has a combination of mall and retail, hotels, and office developments in the area.
Meanwhile, SM Retail’s income inched up to P20.9 billion in 2024 from P19.9 billion the previous year. The company said its food segment is its “strongest performer.”
Branded fashion, health and beauty, as well as household appliances also contributed to the increase in earnings.
SM expanded in 2024 with 619 new retail stores, two new malls, and 73 bank branches. – Rappler.com