SM Prime Holdings Inc expects its net profit to increase by 10-13 pct this year from 5.45 bln pesos last year, according to its president, Hans Sy.  ‘Two-thousand-and-seven is very promising in terms of guidance. We are looking at a 10-13 pct increase over 2006 net earnings with the opening of three new malls in Bacolod, Tagaytay and Muntinlupa.

We are also expanding SM Mall of Asia, and our existing malls in Cebu, Fairview and Pampanga,’ said Sy during the annual stockholders’ meeting.  Sy said the company was setting aside 7 bln pesos for capital expenditure for this year and 35 bln pesos for the next five years. 

‘Over the long term, we will still continue our expansion of 3-5 malls each year over the next five years, while also looking at possible opportunities in China — although nothing is definite yet.’  SM Prime executive vice-president Jeffrey Lim said: ‘First-quarter earnings should be a good one. In terms of revenue, we’re looking at a 24-25 pct increase over last year.’ 

In the first quarter of last year, SM Prime’s net profit was 8 pct higher than a year earlier at 1.34 bln pesos, on revenue of 2.85 bln pesos.  Lim said the company might come up with a firm decision in the second half of this year on its plan to expand the SM brand into China. 

Sy said SM Prime’s expected growth this year was anchored on the bullish outlook for the economy here, which should bolster consumer spending.  ‘We remain optimistic about the business climate.