After a successful weekend opening of its 25th and biggest mall, the Mall of Asia the Sy-led SM Prime Holdings, inc. is looking at expanding overseas, particularly in China.

The company is reportedly considering the injection of the privately owned malls of the Sy family in China into SM Prime’s operations, but this will depend on the profitability factor of the China malls. The Sy group has been studying how its mall operator SM Prime and flagship holding company SM Investments Corp. could participate in running the Sy family’s mall and other properties in China, which are privately held but carry the SM trademark.

SM Prime noted that one of the factors to be considered before integrating the China operations is profitability. For one the investments have to reach a certain level of profitability, from 85% to 90%, and to churn in bigger revenues. The Sys entered the booming China market with a 120,000 square-meter mall in Xiamen in 2003 and opened a second mall that covers 165,000 square meters to 175,000 square meters in the province of Jin Jiang City.

It has started construction of its third mall in Zengdu province and was looking for another site for a fourth mall to be constructed next year.

Although the management gave no timetable, ATR-Kim Eng analyst Leo Venezuela said the Expansion would likely open within the next three to four years. He said the triggers are stabilized lease take-up rates and positive earnings before interest and tax for each mall.

BPI securities, Inc analyst Spencer Yap said the Chinese “invasion is a good opportunity for regional expansion given the near-saturated local market for the mall industry.

He noted that in Metro Manila particularly, areas that can be developed into malls are getting smaller.

Mr. Yap gave a “long-term buy recommendation. “ The [stock] price has corrected, [It’s a] good time to pick up stocks now especially given the contribution expected from Mall of Asia.