Anglo Philippine Holdings Corporation (APO) - Buy

The Company posted higher revenues of P357.8 million as of the end of the 3rd quarter 2007 compared to P188.7 million for the same period in 2006 due to Company's sale of 20 million ATLAS shares. The higher revenues resulted in a higher net income of P315.5 million as against P155.1 million for the comparable 9-month periods in 2007 and 2006. Total Assets increased to P2.42 billion as of 30 September 2007 compared to P2.33 billion for the same period last year due to increases in the value of the Company’s EDSA Properties Holdings, Inc. (EPHI) investment and Accounts Receivables from affiliates. Total Liabilities likewise declined to P1.07 billion as of 30 September 2007 from P1.43 billion as of 30 September 2006, as the Company paid off a portion of its loans payable and advances.

The Company maintains a 15.79% stake in the North Triangle Depot Commercial Corp. (NTDCC) which owns the TriNoma commercial center that held its grand opening last 15 October 2007. Trinoma’s anchor tenant, Landmark, opened its department store November 2007. The Company owns 5.08% equity in Shang Properties Inc. (formerly, EDSA Properties Holdings, Inc.), which maintains significant holdings in major commercial property developments like Shangri-La Plaza, The Enterprise Center, The Shang Grand Tower and The St. Francis Towers. The Company owns 15.79% equity in the MRT Development Corporation (MRTDC) which owns the development rights over certain lot pads around the perimeter of TriNoma. MRTDC continues to generate revenues from concessionaire rentals and advertising fees in certain MRT stations.

Natural Resources Development The Company owns 5.54% of Atlas Consolidated Mining & Development Corporation

(ACMDC), which has significant and focused interests in copper, gold, nickel, mineral exploration and water resources.

Last October 2007, the Company signed a Deed of Assignment with United Paragon Mining Corporation (UPMC), pursuant to which the Company agreed to assign and convert its receivables from UPMC into new UPMC equity upon SEC approval of

UPMC's capital restructuring program. UPMC maintains significant interest in gold mines which are now under study by prospective foreign investors.

Pending the transfer of its petroleum assets, the Company continues to participate in the following Oil Exploration Contracts:

Service Contract No. 6A Octon, NW Palawan (11.11000 %), Service Contract No. 14D Tara, NW Palawan (2.50000 %), Service Contract No. 41 Sulu Sea (1.67900 %), SC 53 (GSEC No. 98) Onshore Mindoro (5.00000 %), GSEC Application (SWAN Block) NW Palawan (33.57800 %), Service Contract (SC) 6A – The farm-in of Vitol GPC Investments S.A. into the SC 6A block was finally approved by the DOE last 21 September 2007. Block evaluation and geological/geophysical work are currently being undertaken.

The Company continues to maintain its core infrastructure investment in the Metro Rail Transit (MRT) III Project (the “MRT 3 Project”) through its 18.6% equity interest in MRT Holdings, Inc. (MRTHI). As of 30 September 2007, average ridership in the MRT 3 stood at about 480,000 passengers per day. The Company is in discussion with ACMDC’s subsidiary, Aquatlas Inc. for the transfer of the Company’s participating interests and/or all data and intellectual property rights over the Bulacan Central Bulk Water Supply Project and the Bohol-Cebu Water Supply Project.

Other Investments

The Company owns minority interests in: (1) Philippine Seven Corporation (PSC), the Philippine franchise holder of the 7-Eleven chain of convenience stores; and, (2) Batangas Assets Corporation (BAC), a holding company organized for the purpose of

investing in the Calabarzon area. The Company’s wholly-owned subsidiary, Filipinas Energy Corporation (“FEC”), has

not undertaken any business operation since its incorporation due to the deferment of the transfer of certain assets.

This week the market

Market Review

Newsletter

Request previous issues

Download the Client Account Form (PDF)