VICTORIAS MILLING COMPANY, INC.
By Diogenes C. Dy
It was July 5, 2014 and Ramoncito Pio Rodillo, the newly hired analyst of White Rock Investments, a local brokerage firm in the Philippines, was preparing an analysis of Victorias Milling Company, Inc. (VMC). After the stock had risen by 150% from the start of the year, May Chang, head of the research division, wanted to provide a fundamental analysis of the stock. This would be the first assignment of Ramoncito and he had to make a recommendation on the stock.
The next sections summarize the set of information and data that Ramoncito had gathered so far:
Company Background
Brief History
Summary of the Rehabilitation
Management
Stock Market Performance
Philippine Sugar Industry
Other Listed Sugar Companies in the Philippines
Company Background
Brief History
VMC is a domestic corporation founded on May 7, 1919 to manufacture raw and refined sugar. VMC's sugar plant facilities are located in Victorias City, Negros Occidental.
VMC is also engaged in the following businesses through its subsidiaries:[1: SEC Form 17-A (2012)][2: SEC Form 17-Q as of 31 May 2014]
Effective Ownership % | |||
Subsidiary/Associate | Nature of Business | Direct | Indirect |
Victorias Foods Corporation (VFC) | Food Processing and Canning | 100 | 0 |
Victorias Agricultural Land Corporation (VALCO) | Agricultural Land Leasing and Cultivation | 100 | 0 |
Canetown Development Corporation (CDC) | Real Estate Development and Selling | 88 | 12 |
Victorias Golf and Country Club, Inc. (VGCCI) | Non-profit Golf Facilities | 81 | 0 |
Victorias Quality Packaging Company, Inc. (VQPC) | Manufacture of Bags and Packaging Materials | 55 | 0 |
Victorias Industrial Gases Corporation (VIGASCO) | Gas Dealership | 30 | 0 |
VQPC's operations were effectively ceased last July 2012 and is currently under liquidation process. VMC also entered sugar trading back in 1969 through North Negros Marketing, Co., Inc. (NNMCI). NNMCI was then buying VMC's sugar production. It also had a subsidiary based in US...