SM smiling on prospects
The SM Group is giving its retail unit a strong spin until the end of the year to take advantage of a further pick-up in consumer demand through an ambitious plan of opening 400 new Alfamart stores by yearend. SM Retail reported a 9-percent decline in earnings despite a 4-percent gain in revenues, which indicates a resurgence in consumer demand.
Traders expect the positive trend in retail revenues to accelerate in the following quarters as inflation continues to ease, further boosted by the implementation of the P35 wage hike last July. While the wage hike would simultaneously translate to higher costs for SM Retail, AP Securities expects the net effect would be positive as it would increase the disposable income of SM’s very broad customer base.
Moderating inflation coupled with the continuance of the rate cut cycle give pundits confidence of a strong pick-up in consumer demand for both essentials and non-essentials.
SM’s exposure to the full spectrum of consumer spending should translate to better second half earnings for SM Retail, especially since the final half is typically the best time of the year for retail.
Give innovation a nudge
With adequate private sector and government support, the Philippines can become an innovation hub in the region considering the local skills primarily among the youth.
Two universities were named champions in different categories in the recently concluded (20 September) Unlocked 2024 competition organized by Xinyx Design, an integrated circuit design solutions company.
Established in 2009, Xinyx Design emerged after microchip multinational Intel concluded its operations in the Philippines.
Five engineering undergrads from the Technological University of the Philippines-Manila won first prize in the Unlocked Innovation Challenge for their entry “LiverScan+: An Automated Detection and Diagnosis of Focal Liver Lesions through AutoML-Based Triphasic Contrast-Enhanced CT Image Analysis Using Jetson Nano.”
Meanwhile, the Mindanao State University-Iligan Institute of Technology was proclaimed champion in the IC Design Olympics category for its entry called “PowerNap Sage: Advancing Home Energy Management with Intelligent Control and User-Friendly App.”
Unlocked 2024 was aimed at addressing the national engineering gap and to encourage more young Filipinos to pursue careers in microelectronics and IC design.
The Philippines faces a looming shortage of 128,000 semiconductor professionals by 2028.