Vista Land & Lifescapes, Inc. (PSE:VLL) reported net income of P3.23 billion for the three quarters of 2012, up by 24% from P2.61 billion last year. The company recorded an all time high on sales at P30.1 billion, expecting to meet its year-end target of P40 billion this year.
VLL is the holding company of five real estate businesses started by Senator Manuel Villar and now being headed by his eldest son, Paolo. Camella Homes, the leader in building affordable homes, account for 33% of its profits while another third is generated by Communities Philippines, its business segment for regional and provincial housing. Brittany and Crown Asia accounted for 15% and 13% respectively. Vista Residences, its flagship brand for condominium projects only accounted for 5%.
While Camella and Communities Philippines remain to be VLL's cash cows, it has aggressively pushed to develop its high rise projects as well. In an attempt to boost sales on its condo projects, it has recently launched a new strategy the company will employ. The vertical-village concept aim to combine the lifestyle component of a spacious and comfortable subdivision and townhouses, fused with the modern concept of condominiums.
The stock is currently trading around P5 - P5.20 per share. At 10.5 times PE, it is one of the cheapest in the property sector behind only with Megaworld's P8.95.
We like VLL given its established leadership in building quality and affordable homes. Its projects expansion across the country make it well-positioned for continuous growth. It also aggresively pursues more opportunities, particularly in vertical housing, which could directly compete with condominium giants such as Megaworld and SMDC.
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Disclaimer: This article is solely the opinion of the author based on personal research. Any statement made is not a conclusion of absolute fact and is not intended to impose or persuade anyone's judgement.