The plant visit arranged by First Metro Securities Brokerage Corporation (FirstMetroSec) last Friday, May 22, for the media, stockbrokers and investor-members of the Monday Circle, among others, became a revealing trip on how listed company Megawide Construction Corporation (trading symbol: MWIDE) has successfully transitioned itself into a high-growth business from a value but cyclical construction enterprise, by capitalizing skillfully on the building methods it has originally distinguished itself since it started to operate, such as the Japanese precast concrete technology and proprietary German formwork systems.
Together with its successful move to divest its heavy equity stake in the Mactan-Cebu International Airport (MCIA) to de-lever its balance sheet and make a profound structural metamorphosis that now defines its business model, Megawide has become a compelling investment opportunity now worthy of a valuation re-rating.
Today, Megawide is an asset-light, infrastructure-anchored powerhouse with diversified revenues that takes advantage of vertical integrated construction, high-margin transit-oriented real estate, and digital infrastructure company. This strategic realignment of resources is yet again another ingenious initiative to reinvent the company by no less than Megawide’s moving force and visionary chairman and CEO, Edgar B. Saavedra. (READ: The undervalued Filipino engineer)
