Updated: September 9, 2021
Megawide Construction Corporation (MWIDE) is one of the leading engineering and infrastructure firms in the country. They have a decisive portfolio in Engineering, Procurement, Construction, and Transport-Oriented Development.
A public-traded company in the Philippine Stock Exchange, MWIDE is a favorite of a good number of my stock trader friends because of its consistent trading volume and its optimistic fundamentals.
Founded in 1997 as a mid-size construction firm by civil engineers from De La Salle University. Megawide has since then grown to the giant conglomerate that it is today, receiving various industry awards and prestigious contracts in its more than 20-year history.
For instance, the company received its Triple A License and Quadruple A License in 2007 and 2017 respectively, from the Philippine Contractors Accreditation Board (PCAB), the highest given to firms, which certifies the company’s technical qualifications and financial capability.
In 2013, Megawide was awarded the Turnkey contract for the PPP for School Infrastructure Project (PSIP) and named Best Managed Company in the Philippines – Small Cap by AsiaMoney. While in 2014, they were awarded a 25-year Build-Operate-Transfer contract for the Mactan-Cebu International Airpot (MCIA).
A year after, in 2015, they were then awarded a 35-year Build-Transfer-Operate contract for the Paranaque Integrated Terminal Exchange (PITX). And in the same year, they were also recognized by the Safety Organization of the Philippines for achieving 637,071 Safe Man-hours for B-Hotel Project.
In February 2011, Megawide was listed on the Philippine Stock Exchange with an Initial Public Offering (IPO) price of P7.84 per share.
This momentous event started the company’s transformation from a pure engineering and construction firm to becoming the country’s foremost infrastructure innovator, with MCIA, PITX, and the recently completed Clark’s New Passenger Terminal, as proofs of concept.
From an P8 Billion revenue company in 2011, Megawide’s revenue has almost tripled, reaching its highest to date of P19 Billion as of end-2017, with assets growing more than six times to P54 billion during the same period. In addition, the company’s market capitalization increased from P2.29 billion on IPO date to a peak of around P58 Billion as of Q1 2018.
And by December 2019, MWIDE has created major direct subsidiaries, which include GMR Megawide Cebu Airport Corporation; Globemerchants, Inc.; Megawide Terminals, Inc.; and MWM Terminals, Inc.
Predictions and Plans
Amidst these achievements, Megawide continues to pursue its vision of engineering a First-World Philippines, regardless of the odds.
The Company has set its sights on essential businesses that will help drive a faster economic recovery, such as infrastructure – with construction as an enabler – and organized transport systems for supply chain and people mobility.
Infrastructure and Construction
The government’s Build, Build, Build initiative prioritized to extend the country’s road and rail network and Megawide is focused on the big-ticket rail projects within Luzon, funded by JICA and ADB, such as the Malolos-Clark Railway Project and its electro-mechanical component, the Metro Manila Subway Project, and the North-South Commuter Rail Southline.
Megawide’s thrust is to upskill rail infrastructure competencies, completing its elevated, at-grade, and underground civil works expertise and advancing to the electro-mechanical and track works component. This will enable the company to participate in other similar projects in the future, either as the main proponent or even possibly O&M opportunities on the horizon.
From an organic standpoint, the Company is strategically expanding its transport-oriented development (TOD) portfolio, anchored on a hub-and-spoke model, currently with PITX at the core.
After successfully providing proof of concept on the essentiality of an organized multi-modal transport terminal with PITX and signing the joint-venture agreement with Cebu City for the Carbon Market Redevelopment, Megawide is in advanced discussions with Baguio City LGU for a potential land port location.
Likewise, they have also engaged in initial talks for a future Bus Rapid Transit (BRT) system in the Southwest area of Luzon. Several locations are being evaluated by the Company as potential TOD sites to accelerate its hub and spoke model.
With global and local inoculation drives gaining pace, revenge tourism is expected to fuel the appetite for air travel. Experts are seeing 2022 as the start of the recovery as countries slowly open up borders.
With this, domestic travel, which comprises 80% of MCIA’s market, is positioned to benefit earlier from the 2022 national elections and boost the airport’s performance.
And so it seems that all cylinders will be running for Megawide by the end of next year and by 2023, the economy and the company are expected to slowly restore their pre-pandemic conditions and continue its growth in reaching its mission of being at the forefront of building a First-World Philippines through engineering excellence and innovation.
Disclosure: This article is written in collaboration with Megawide Corp.
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