Phinma earmarks P3 billion for capital expenditures

LISTED holding company Phinma Corp. announced on Tuesday that it had allocated around P3 billion for capital expenditures (capex) this year, with plans to use the funds for expanding its subsidiaries.

“Capex will be used [mainly] for schools and constructions, one of which is actually for [the new insulated panel business],” Phinma Construction and Material Group (CMG) President and Chief Executive Officer Eduardo A. Sahagun said during a briefing.

The new subsidiary, called Union Insulated Panel Corp., will specialize in producing insulated paneling and construction materials, according to the company.

The company plans to spend around P500 million to construct a new facility. It also aims to produce approximately one million square meters of insulated paneling materials every year.

“We will be providing effective thermal insulation and structurally efficient building materials that can reduce energy consumption,” Phinma CMG Vice-President for Insulated Panels Division Danielle del Rosario said.

She also said the company intends to commence the construction of the new facility this year, with the goal of starting operations at the end of 2024 or in early 2025.

At the same time, the company said that its subsidiary, Phinma Education Holdings, Inc., will prioritize the increasing number of student enrollments in its schools and universities.

“So, all of our schools from Dagupan all the way to Cagayan de Oro actually have projects as we speak,” Phinma Educations Philippine Country Chief Christopher Tan said.

Mr. Tan also said that Phinma Education has also expanded to other countries with two colleges in Karawang, Indonesia.

“We are now working with regulators to convert those into universities, that will allow us to acquire additional properties,” he added.

Mr. Tan also said that the company was working on expanding in Surabaya and Bogor.

The company recently announced a 30% surge in student enrollments for the academic year 2022-2023, reaching a total of 124,501 enrollments. It currently operates nine colleges and universities across the country.

Some of the capex for this year will be allocated to other units of the company, namely Phinma Property Holdings Corp. and Phinma Hospitality, Inc.

Shares closed unchanged at P19.00 apiece on Tuesday. — Adrian H. Halili