Conglomerate SM Investments Corp. (SMIC) said Tuesday its shares remain deeply undervalued even after repurchasing about P6 billion worth of stock under an ongoing P60-billion buyback program.
SMIC investor relations head Timothy Daniels said the company is trading at valuation multiples of roughly 10 times earnings.
This represents a significant discount compared to its historical valuation of low- to mid-20 times, despite 2025 net income reaching more than double 2019 levels.
“We are clearly undervalued company given our quality, performance and growth rates,” Daniels said.
The group has repurchased P6 billion worth of shares since announcing the $1-billion (P60 billion) program last year. At the time of the announcement, SMIC shares were trading at the P800 level. On Tuesday, shares of SMIC closed up 0.5 percent at P700.
The conglomerate reported that its net income grew 10 percent to P90.5 billion in 2025 from P82.6 billion in 2024. Consolidated revenues rose 4 percent to P681.7 billion from P654.8 billion a year earlier.
Earnings remain driven by a diversified portfolio, with about 50 percent of profits coming from its two banks, BDO Unibank Inc and China Banking Corp. Both lenders posted loan growth of around 13 percent.
The property sector contributed over 25 percent of earnings, supported by a 27-percent increase in mall income led by resilient consumer traffic and high occupancy.
Retail operations accounted for 18 percent of the total, bolstered by stable food sales and double-digit growth in the fashion and children’s segments.
Portfolio investments, which include Philippine Geothermal Production Company and 2GO Group, added 6 percent to consolidated earnings.
For its expansion this year, the group plans to open three to four malls and more than 200 new Alfamart stores, primarily located outside Metro Manila.
The company also intends to continue its provincial bank branch expansion and increase investments in logistics and geothermal energy.
The company said it remains cautiously optimistic about growth due to its diversified portfolio, despite geopolitical uncertainties and potential inflationary pressures.
