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Megawide Poised for P28.3 Billion Revenue Boost from Housing Program
Megawide Construction Corp. anticipates P28.3 billion in incremental revenues over the next three years from its participation in the government's "4PH" housing program. This venture is poised to become a significant growth engine for the infrastructure firm, projected to account for 36% of its revenues by 2028.
MANILA, Philippines — Megawide Construction Corp.’s venture into the government’s flagship housing program could generate P28.3 billion in incremental revenues over the next three years, emerging as a major growth engine for the infrastructure firm. In a report, First Metro Securities and DBS Bank said its estimate covers 16,700 “live-only” units under the Expanded Pambansang Pabahay para sa Pilipino (4PH) Program. READ: Megawide’s PH1 tops off first tower of Avesta Residences in Cavite The report expects 4PH to account for 36 percent of Megawide’s revenues by 2028. “We believe 4PH could become a significant incremental growth driver for Megawide,” the report said. Megawide has a bigger pipeline ahead. The company aspires to launch 100,000 affordable housing units over the long term, with the first 50,000 units already identified in its five-year pipeline. These include projects across five locations in Cavite—one in Imus and two each in Dasmariñas and Bacoor. The expansion is supported by Megawide’s partnership with the Pag-Ibig Fund through wholly owned subsidiary Megawide Dreamrise Residences Inc. Under their agreement, Pag-Ibig will invest P10 billion through perpetual preferred shares in the Megawide subsidiary. Proceeds are intended to fund at least 7,000 affordable housing units over the next two to three years. First Metro said the 4PH model could also give Megawide better cash flow visibility compared with traditional construction projects. READ: Megawide order book hits P50B on strong housing push “This should help reduce collection risk and improve working capital efficiency,” the report said, noting this addresses a longstanding challenge in Megawawide’s construction business. First Metro described 4PH as a “more capital-efficient and lower-risk growth platform” compared with conventional construction projects. The brokerage expects 4PH revenues to start booking in the second half of this year. It also forecasts Megawide’s overall revenues to reach P21.24 billion in 2026 before climbing by 32.4 percent to P28.11 billion in 2027. Megawide is seen swinging from a P164-million net loss this year to a P1.09-billion profit in 2027, helped by lower net interest expenses. First Metro maintained its “buy” recommendation on Megawide and raised its 12-month target price to P7.50 from P4.50. This implies a 57-percent upside from its Aug. 28 closing price of P4.77. INQ
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