Megawide Construction Corp. plans to invest P1.8 billion in capital expenditures (CapEx) this year, with a focus on expanding its real estate and construction sectors. The bulk of the spending will go toward enhancing its precast and construction solutions, as well as its real estate projects under PH1 World Developers Inc.
The budget represents a significant increase from the previous year’s P1.2 billion, and is expected to drive a 20 percent to 30 percent growth in the company’s top line. Megawide’s chairman, Edgar Saavedra, expressed confidence that the company’s strong position in the real estate market, particularly in the affordable housing segment, will outpace sales growth in terms of profitability.
PH1 World Developers is focusing on the P3.5 million-and-below housing market, with new mid-rise condo projects in Cavite and more planned for the future. The company also aims to list PH1 World on the stock exchange within three years.
In addition to its real estate ventures, Megawide’s core construction business is set for steady growth, with an order book of P42.6 billion, primarily from projects with delivery timelines over the next two to three years. Saavedra highlighted that the completion of pandemic-era projects should lead to stronger margins moving forward. The company is also exploring new opportunities in government infrastructure projects, particularly in airport development.
For the first nine months of the year, Megawide posted a profit of P589.73 million, a 76 percent increase from P333.3 million in the same period last year, while revenues rose by 4 percent to P16.49 billion.
