Book value per share reached P5.02, yet the stock trades below P1
In the first nine months of 2025, AbaCore Capital Holdings Inc. recorded a doubling of net income — not through the slow accumulation of operational strength, but through the deliberate shedding of assets. The Philippine holding company's story is one of a conglomerate in transition, trimming its portfolio and its costs while quietly planting a seed in renewable energy. Between a book value that towers over its market price and a wind power study on the horizon, AbaCore presents the paradox of a company that looks stronger on paper than the market is yet willing to believe.
- Net income surged 106% to P82.669 million, but the headline masks a deeper truth: nearly all of that growth came from selling off investment properties, not from building new revenue streams.
- A P172.076 million gain from property disposals was the decisive engine — remove it, and the underlying business, while still improved, tells a quieter story.
- Operational costs fell 11% through cuts to professional fees and employee benefits, including savings tied to the death of a senior officer — discipline that carries a human cost.
- The company's book value per share stands at P5.02, yet the stock trades below P1 — a chasm that signals deep investor skepticism about whether the balance sheet reflects real, accessible value.
- A memorandum with the Philippine National Oil Company to study wind power at AbaCore's Batangas hub offers a glimpse of a possible future, though it remains a study, not a commitment.
AbaCore Capital Holdings Inc. more than doubled its net income in the first nine months of 2025, posting P82.669 million against P40.348 million a year earlier — a 106 percent jump that lifted earnings per share from P0.0111 to P0.0202. The growth, however, was driven less by operational momentum than by a deliberate strategy of portfolio thinning: P172.076 million in gains from disposing of investment properties provided the decisive push. The company's underlying income from operations and affiliated companies also rose meaningfully, but the property sales were the story.
On the cost side, AbaCore trimmed operational expenses by 11 percent to P83.02 million, drawing savings from lower professional fees, reduced employee benefits following the death of a senior officer, and adjustments to healthcare and government premium costs. Chairman and President Antonio Victoriano Gregorio III described the results as proof of strategic asset optimization and financial discipline — measured language that signals competence without overpromising.
One figure casts a long shadow: the company's book value per share reached P5.02, yet the stock trades below P1. That gap between stated worth and market price suggests investors either distrust the valuation or perceive risks the balance sheet does not fully capture. AbaCore also distributed P418.6 million in property and cash dividends during the period, a substantial return of capital rooted in a 2022 stock declaration.
Looking forward, a memorandum of agreement between subsidiary Simlong Energy Development Corp. and the Philippine National Oil Company to study a wind power project at AbaCore's ABA Energy Hub in Batangas City hints at where the company sees its next chapter. It is early — a feasibility study, not a commitment — but in a Philippines pushing toward cleaner energy, it is the kind of bet that could meaningfully reshape AbaCore's earnings profile if it ever moves from paper to turbine.
AbaCore Capital Holdings Inc. more than doubled its net income in the first nine months of 2025, posting P82.669 million compared to P40.348 million in the same period a year earlier. The jump—a 106 percent increase—translated to earnings of P0.0202 per share, up from P0.0111 the previous year. But the growth story is less about operational momentum than about what the company chose to sell.
The real engine behind the surge was P172.076 million in gains from disposing of investment properties. Strip that out, and the picture shifts: the company's income from operations and other sources, including its share of earnings from affiliated companies, did rise 106 percent to P93.813 million from P45.609 million. Still strong, but the property sales were the decisive factor. AbaCore, a holding company with fingers in tourism, real estate, financial services, and energy, benefited from a deliberate strategy of thinning its portfolio.
On the cost side, the company managed to trim operational expenses by 11 percent year-over-year, bringing them down to P83.02 million from P93.80 million. The savings came from several places: lower professional and management fees, reduced employee benefits and salaries following the death of a senior officer, and adjustments to government premiums and healthcare costs. These are the kinds of moves that suggest discipline, though they also hint at organizational contraction.
Chairman and President Antonio Victoriano Gregorio III framed the results as evidence of "strategic focus on asset optimization and disciplined financial management." He added that the company would continue strengthening its balance sheet while hunting for growth opportunities across its core sectors. The language is measured, corporate—the kind of statement designed to signal competence without overpromising.
One number stands out as potentially troubling: AbaCore's book value per share reached P5.02 in the first nine months of 2025, up P0.68 from the prior year. That's the company's net worth on a per-share basis. Yet the stock trades below P1. The gap between what the company says it's worth and what the market will pay for it is enormous—a sign that investors either don't believe the valuation or see risks the balance sheet doesn't capture.
The company also distributed P418.6 million in property and cash dividends to shareholders during the period, stemming from a stock declaration made back in June 2022. That's a substantial payout, suggesting management is confident enough in the company's position to return capital to investors.
Looking ahead, there's a potential growth vector in renewable energy. In the third quarter, AbaCore's subsidiary Simlong Energy Development Corp. signed a memorandum of agreement with the Philippine National Oil Company to conduct a feasibility study for a wind power project at AbaCore's ABA Energy Hub in Batangas City. It's early stage—a feasibility study, not a commitment—but it signals where the company sees opportunity as the Philippines pushes toward cleaner power generation. Whether that project materializes into meaningful revenue remains an open question, but it's the kind of bet that could reshape the company's earnings profile if it succeeds.
Notable Quotes
Strong performance reflects the company's strategic focus on asset optimization and disciplined financial management— Antonio Victoriano Gregorio III, AbaCore Capital chairman and president
The Hearth Conversation Another angle on the story
So AbaCore's net income doubled. That sounds like a company firing on all cylinders.
It sounds that way until you look at where the money came from. More than half of that P82 million gain came from selling off properties. That's not the same as growing the business.
Fair point. But they also cut expenses by 11 percent. Doesn't that show operational discipline?
It does, but the cuts came from some painful places—a senior officer died, they trimmed employee benefits, adjusted healthcare costs. You can only squeeze so hard before you start losing people and capability.
The book value is P5.02 per share, but the stock trades below P1. That's a massive disconnect.
It is. Either the market thinks the balance sheet is misleading, or there's something about the company's future prospects that makes investors unwilling to pay what the assets suggest it's worth. That gap is worth paying attention to.
What about the wind power project with PNOC? Is that the future?
It could be. But right now it's just a feasibility study. The company is positioning itself in renewable energy, which makes sense given where the Philippines is heading. But it's not revenue yet—it's a bet.