SM Investments is optimistic about its long-term growth potential, which is fueled by a robust, consumption-driven economy, strong synergies across its diverse business units, and solid consumer fundamentals.
In a recent analysis of Philippine conglomerates, equity research firm CLSA emphasized that SM’s retail segment stands to gain from factors such as increases in the minimum wage, steady remittance flows, and the continued resilience of consumer spending, even amid broader macroeconomic uncertainties.
“The Philippine economy continues to be consumption-led, and SM Investments is strategically positioned to meet and harness this demand. Our extensive ecosystem — spanning retail, banking and property — equips us to weather challenges while creating lasting value,” remarked Frederic DyBuncio, president and CEO of SM Investments.
CLSA pointed out that the expected wage hikes and the strength of remittances, particularly in the face of a weaker peso, will further bolster household spending, especially on essential goods. Despite potential shifts in consumer spending habits, CLSA believes overall consumption will remain a key pillar of the country’s economy.
“SM Investments has demonstrated remarkable resilience and, based on its valuation, is worth considering. The company is a direct beneficiary of a consumption-led economy,” wrote Joyce Anne Ramos, equity analyst at CLSA. “We foresee consumers continuing to prioritize essentials over discretionary items, with minimarts driving growth,” she added.