Sm Investment Corporation Case Study

1792 Words Feb 15th, 2013 8 Pages
SM
INVESTMENT CORPORATION

TABLE OF CONTENTS

INTRODUCTION

SM Investments Corporation, SM Investments or SMIC is a holding company with interests in shopping mall development and management, retail, real estate development, banking and tourism. The SM Group was founded by Henry Sy, Sr. it has become one of the largest conglomerates in the Philippines.

RETAIL
SM Retail reported a net income for the first nine months of the year of Php4.1 billion, up 6.7% year on year, while sales increased 8.7% to Php110.8 billion. EBITDA amounted to Php7.6 billion, up 13.5% year on year, for an EBITDA margin of 6.9%. Net margin for the period stood at 3.7% From January to September 2012, SM Retail grew its number of stores by a total of 25 stores,
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In addition, the conversion of all cinema screens to digital and the roll-out of cinema turnstile system have helped make the cinema viewing experience more convenient for movie-goers.
For 2013, SM Prime is scheduled to open SM Aura Premier in Taguig City and SM Cauayan in Isabela. SM Megamall will be expanded with the construction of Building D.
By the end of this year, SM Prime will have 48 malls in the Philippines and five in China with an estimated combined GFA of 6.7 million sqm.

PROPERTY SM emerged over the years as a buyer of choice for real property as the company regularly acquired land for its malls. It is therefore no surprise that SM eventually engaged in property development, largely as a residential developer now, with interests also in commercial and leisure development as well. SM’s real property operations are all under SM Land, Inc., which has three segments, namely residential, commercial, and leisure. SM Land’s residential arm is the publicly-listed SM Development Corporation or SMDC, while its commercial and leisure development are handled separately by the Commercial Properties Group and Costa del Hamilo, respectively. A trailblazer in the middle market for residential condominiums in Metro Manila, SMDC quickly emerged as the leading developer, in terms of number of units sold and in sales value. Much to the surprise of many, SMDC developed homes that attracted a large pool

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