IRC Properties, Inc. (IRC): The Sole Bidder?

IRC Properties, Inc. (IRC) moves significantly once again. There are still no updates about the Swiss Challenge regarding the Makati Subway.

Based on a recent election-related interview, Makati City Mayor Abby Binay stated that she is keen on finishing the railway project during her next term. It is despite going tow-to-tow with brother Junjun Binay. She added that this project is her legacy to Makati.

Under the Swiss Challenge, another party may bid to match or make a better bid for the project. So far, there is no news about another bidder — making investors speculate that IRC is the sole bidder for the project.

The Railway Project

A private consortium led by IRC Properties, Inc. proposed the subway project. The estimated total project cost is at USD 3.7 billion.

The city government will not spend on the project; the consortium will do the funding.

The project will span 10 kilometers, which can accommodate up to 700,000 passengers per day. The Makati Subway will pass through key areas such as the Makati City Hall, Ayala Avenue, University of Makati, Ospital ng Makati, and the Poblacion Heritage Site.

Consequently, the company entered into a subscription agreement with Aggregate Business Group (ABG) on April 10, 2018. The latter subscribed to 172,800,000 common shares of IRC for a subscription price of PHP 1.40 per share or a total consideration of PHP 241,920,000.00. It was taken from IRC’s unissued authorized capital stock.

Financial Performance

As of the first half of the year, the company generated revenues totaling PHP 119.71 million. This figure is higher by 24.44 percent versus the recorded PHP 96.19 million from the same period a year ago.

It was mainly due to the reversal of a PHP 50 million notes payable to PrimeEast recognized as income. Net income was correspondingly higher at PHP 25.75 million. This amount is more than double than the recorded PHP 11.21 million in the same period a year ago.

Technical Analysis

IRC bounced today after breaking below the 15 EMA and 20 SMA and finding support near the 50 SMA. It is in confluence with the 38.20 percent Fibonacci retracement.

Furthermore, the volume seems to lean with a bearish outlook. Estimated support is at 2.13 while expected resistance is at 2.32 followed by 2.46.

Top 10 Players’ Sentiment

Trading participants of IRC with a 100% Buying and Selling Activity as of Oct-19-2018 at 03:30 PM:

12 out of 47 participants or 25.53% of all participants registered a 100% BUYING activity
13 out of 47 participants or 27.66% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 2.2911
Top 10 Players’ Selling Average: 2.2892

The psychological average price of the top 10 players as of Oct-19-2018 at 03:30 PM is from 2.2892 to 2.2911.

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