Boulevard Honors John Gokongwei Jr.; Caution Advised on Meralco Stock

If tycoon John Gokongwei Jr. were still alive today, he would have turned 100 on Aug. 11. To commemorate this centenary, family and friends gathered at The Victor Podium yesterday for a ceremony that renamed the 1-kilometer Bridgetowne Avenue, the main thoroughfare of Bridgetowne Destination Estate that straddles Quezon City and Pasig, as John Gokongwei Jr. Boulevard. It was raining cats and dogs, but Lance Gokongwei was reminded by his dad’s BFF, Antonio Go, that the rain augured prosperity. His five sisters—Robina, Lisa, Marcia, Hope and Faith—also graced the event. Robina’s son, Justin Gokongwei-Pe, was also there to represent the next generation. “He showed us that true vision is not just about dreaming big; it’s about having the grit and determination to turn those dreams to reality so that others may have better lives,” said Lance. “This boulevard is more than a tribute bearing his name. It is a reminder of a journey he inspired, the path he moved and the values that continue to drive us today,” he added. John’s great-grandfather, Pedro Gotiaco, was one of the richest men in the 19th century. However, the World War II years were tough, and John lost his father at the age of 13. Forced to become the breadwinner, he peddled goods on his bicycle in Cebu and eventually set up new businesses from scratch. Together with his brothers, he built an empire that has become a key player in Philippine property development, aviation and food manufacturing. The group has likewise entered overseas markets across the region. Mybelle Aragon-GoBio, president of Robinsons Land Corp. (RLC), the developer of Bridgetowne, said naming the boulevard after the late tycoon serves as a meaningful bridge between Gokongwei’s centenary and RLC’s 46th anniversary this year. Bridgetowne scales up the mixed-use property development concept first pursued by RLC at Robinsons Galleria, combining offices, residences, shopping, hospitality, leisure and public spaces in one destination. “By naming the boulevard after Mr. John, we honor the timeless principles that he lived by: his discipline, his prudence and his bold unstoppable vision. These are the very values that built our foundation and continue to guide everything that we do today,” GoBio said. —Doris Dumlao-Abadilla Manila Electric Co.’s (Meralco) sharp post-State of the Nation Address selloff may have bargain hunters circling, but one market watcher says it may be wiser to keep the shopping cart parked—for now. COL Financial chief equity strategist April Lynn Tan believes the recent decline has yet to fully reflect the regulatory risks facing the country’s largest power distributor after President Marcos called for amendments to the Electric Power Industry Reform Act that would stop utilities from passing system loss charges on to consumers. The proposal rattled investors and sent Meralco shares tumbling as the market tried to gauge its potential impact. At around P480 per share, Tan said the stock still does not offer a comfortable margin of safety. Her biggest concern is Meralco’s distribution utility business, which accounts for roughly P400 of the P691 fair value estimate. If regulators eventually require the company to absorb the entire system loss—currently capped under existing rules—the value of that business could take a significant hit. Even under a less severe scenario, where Meralco shoulders only nontechnical losses such as theft and inefficiencies, Tan estimates that the company’s fair value could still fall by around P100 per share. Another cloud hanging over the stock is the possible delay in Meralco’s long-awaited tariff reset as policymakers focus on the system loss issue. That, she said, could translate into P6 billion to P7 billion in foregone income, potentially shaving another P50 to P100 off the stock’s valuation. The takeaway? Investors may want to resist the urge to catch a falling knife. “Don’t make Meralco attractive yet at this portion. Maybe wait a little bit more for a better price or for more clarity to come out before it’s a good idea to start bargain hunting,” Tan said. —Emmanuel John B. Abris INQ