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First Pacific Company (00142) Conference Transcript
00142FIRST PACIFIC(00142)2025-05-15 15:00

Summary of First Pacific Company Limited Investor Conference Company Overview - Company Name: First Pacific Company Limited - Stock Symbols: 142 (Hong Kong Stock Exchange), FPAFY (OTC Markets) [2] Key Industry Focus - Geographical Focus: Emerging Asia, identified as the fastest-growing region globally according to the IMF [5] - Core Business Segments: - Consumer food products - Infrastructure - Telecommunications - Natural resources [6] Financial Performance Highlights - Gross Asset Value: Approximately 5.3billionasofMarch[10]−∗∗RecordProfits∗∗:2024markedthefourthconsecutiveyearofrecordhighprofits,leadingtothehighestdividendsdistributedtoshareholders[12]−∗∗DividendPolicy∗∗:Commitmenttoaprogressivedividendpolicy,expectingannualincreasesindividends[12]−∗∗CashPosition∗∗:Openingcashof5.3 billion as of March [10] - **Record Profits**: 2024 marked the fourth consecutive year of record high profits, leading to the highest dividends distributed to shareholders [12] - **Dividend Policy**: Commitment to a progressive dividend policy, expecting annual increases in dividends [12] - **Cash Position**: Opening cash of 71 million at the beginning of the year, with expectations for dividend income to exceed 300millioninthefuture[13][14]BusinessSegmentPerformanceIndofood−∗∗RevenueGrowth∗∗:Revenuesrose4300 million in the future [13][14] Business Segment Performance Indofood - **Revenue Growth**: Revenues rose 4% to over 100 trillion rupiah, with core profit increasing by 16% [17] - **Key Product**: Instant noodles, contributing 46% of total sales [21] - **Cash Reserves**: 2.4 billion in cash at the end of 2024, potential for strategic acquisitions [22] Metro Pacific Investments Corporation (MPIC) - Ownership: Approximately 50% stake in MPIC, contributing 25% to gross asset value [24] - Earnings Growth: Consistent record highs in earnings, with contributions from power, toll roads, and water sectors [25][26] - Upcoming IPO: Mainalad, the largest water company in the Philippines, is set for an IPO in July [32] PLDT (Telecommunications) - Market Position: Over a quarter ownership in PLDT, the largest phone company in the Philippines [8] - Revenue Drivers: Growth in mobile and fixed-line data services [33] - Digital Banking: Maya, PLDT's fintech unit, has achieved profitability and is positioned to capture the unbanked population [35] Pacific Light Power (Power Generation) - Performance: Achieved record high earnings in 2023 due to favorable supply-demand dynamics [37] - Future Projects: Plans to build a 600 MW hydrogen-ready power plant by 2029 [37] Felix Mining Corporation - Upcoming Production: New mine expected to begin production in 2026, with significantly higher ore grades compared to current operations [40][41] Market Valuation and Analyst Coverage - Share Price Performance: Share price increased from 2.33attheendof2022toapproximately2.33 at the end of 2022 to approximately 5.40, reflecting growing confidence in earnings and dividends [42][44] - Analyst Valuations: Citi estimates gross asset value at $8.8 billion, with price targets significantly higher than current valuations [45][46] Conclusion - Investment Outlook: First Pacific Company Limited is positioned for continued growth across its diverse portfolio, with strong fundamentals and a commitment to shareholder returns. The company remains resilient against global trade challenges, particularly in the context of tariff fluctuations [12][13]