DMCI Holdings cautiously optimistic for 2024

Consunji-led conglomerate DMCI Holdings Inc. is expecting the year 2024 would be positive for the company while maintaining a cautious stance amid uncertainties in both domestic and external markets.

In a disclosure to the Philippine Stock Exchange on Wednesday, DMCI chairman and president Isidro Consunji said that for this year the company maintains a “cautiously optimistic outlook” on the back of “combined effect of cooling inflation, stabilizing interest rates, China’s economic slowdown and modest growth in the domestic energy market.”

“Slowing sales and manufacturing in China could keep a lid on commodity prices. With less demand and activity, we expect prices to be somewhat lower than last year," said Consunji.

The DMCI chief said interest rates in 2024 are expected to play a favorable role for the DMCI group.

Consunji said that interest rates, which seem to have reached their peak, “are likely to stabilize or decrease in the latter part of the year, potentially easing borrowing costs and encouraging economic activities.”

The government's infrastructure projects also appear to be a positive factor for DMCI, he said.

“Improved scheduling and payment processes for these projects are expected to hasten construction activities, a development that could have ripple effects across various sectors of the economy,” he said.

In the real estate sector, particularly the mid-segment, the DMCI chief said the company is seeing signs of recovery.

“One of our projects, Solmera Coast, is doing extremely well. In less than five months, we have sold out 74 percent of our launched units,” Consunji said;

Located in San Juan, Batangas, Somera Coast is the first beachfront property project of DMCI Homes.

As of September 30, 2023, it yielded P6.8 billion in reservation sales for the real estate company.

Consunji also cited the company’s performance last year for his positive outlook.

“We ended 2023 with all-time high coal shipments and off-grid energy sales. Our sole operating nickel mine also posted record sales during the year,” he said.

From January to December, Zambales Diversified Metals Corporation shipped 1.68 million wet metric tons (WMT) of nickel ore, a 16% upturn from 1.45 million WMT in 2022.

"Overall, we expect the DMCI group to deliver another resilient performance this year,” he said. — RSJ, GMA Integrated News