FIRST PACIFIC(HK:00142)2022-04-18 23:42Investment Interests - First Pacific Company Limited holds economic interests of 50.1% in Indofood, 25.6% in PLDT, and 44.6% in MPIC as of March 30, 2022[8]. - The company focuses on investments in fast-growing Asian emerging economies, specifically in consumer food, telecommunications, infrastructure, and natural resources[5]. - First Pacific emphasizes investments in firms with strong market positions and significant cash flow potential[5]. - First Pacific has a strategic focus on acquiring undervalued assets with high growth potential and possible synergies[5]. - The company has invested in Philex Mining Corporation, which is one of the largest metal mining companies in the Philippines, producing gold, copper, and silver[7]. - First Pacific's investment in MPIC includes significant stakes in the Philippines' largest utility and infrastructure companies[7]. Financial Performance - In 2021, MPHI reported revenue of $9,103.2 million, a 27.7% increase from $7,130.5 million in 2020[21]. - The net profit for 2021 was $895.7 million, up from $667.6 million in 2020, representing a 34.1% increase[21]. - The contribution from operations in 2021 was $506.4 million, compared to $409.7 million in 2020, indicating a 23.6% growth[21]. - Basic earnings per share increased to $7.72 in 2021 from $4.65 in 2020, reflecting a 65.5% rise[21]. - The total assets of MPHI reached $620.85 million in 2021, slightly up from $620.12 million in 2020[21]. - The gross profit margin for 2021 was 31.07%, down from 32.37% in 2020[21]. - MPHI's dividend payout ratio was 24.53% in 2021, compared to 25.21% in 2020[21]. - Total assets decreased to $26,566.7 million in 2021 from $26,943.6 million in 2020, a decline of 1.4%[22]. - Net debt reduced to $7,865.5 million in 2021, down from $8,205.6 million in 2020, representing a decrease of 4.1%[22]. - Operating cash flow increased to $1,245.9 million in 2021, compared to $1,036.6 million in 2020, an increase of 20.2%[22]. Strategic Plans and Initiatives - The company plans to expand its power business through investments in new projects and acquisitions, including the acquisition of Indolakto to enhance its dairy product portfolio[20]. - The company plans to distribute dividends of $104.6 million, which is 25% of the recurring profit[25]. - The company aims to optimize its product portfolio, launch new products, and improve customer loyalty to strengthen its market leadership[54]. - The company aims to enhance its corporate social responsibility initiatives, allocating 2% of annual profits towards community development projects[155]. - First Pacific Group maintained a dual mission in 2021 to achieve stable growth while giving back to the community, marking its 40th anniversary[161]. Corporate Social Responsibility - First Pacific's corporate social responsibility initiatives focused on education, environmental protection, and community welfare[160]. - The group provided funding and development plans for digital compatibility and community development projects[160]. - First Pacific Group donated approximately HKD 3 million (USD 384,615) to support vulnerable communities in Hong Kong, Indonesia, and the Philippines affected by the COVID-19 pandemic[162]. - In Indonesia, the Indonesian Buddhist Tzu Chi Foundation distributed over 8 million kilograms of rice to more than 1.6 million families by the end of 2021[163]. - First Pacific Group's fundraising efforts for Typhoon Odette victims in December 2021 raised over PHP 45 million (USD 911,669) to provide essential aid[164]. Governance and Compliance - The company has established a governance framework primarily composed of independent non-executive directors to oversee corporate governance practices[173]. - The company has adopted its own corporate governance code, which is updated in accordance with relevant amendments to listing rules to ensure compliance with international and local best practices[173]. - The company has implemented a whistleblowing policy to assist employees and business associates in reporting any suspected misconduct[177]. - The board of directors consists of ten members, including eight non-executive directors, five of whom are independent non-executive directors, exceeding the minimum requirement[178]. - The company has a board diversity policy that emphasizes the importance of diverse backgrounds, including gender, age, and professional experience[186]. Market and Operational Insights - The company reported a significant increase in revenue, with a year-over-year growth of 15% in Q4 2023, reaching $1.2 billion[151]. - User data showed a 20% increase in active subscribers, totaling 5 million users by the end of the quarter[152]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technology solutions[154]. - A strategic acquisition of a regional competitor is anticipated to enhance operational efficiency and increase customer base by 15%[151]. - Research and development investments have increased by 30%, focusing on sustainable technologies and digital transformation[152].