The engineering innovation unit of Megawide Construction Corp. (“Megawide” or the “Company”) called Precast and Construction Solutions (PCS) recorded P720 million in revenues for the first nine months of 2022, 2% higher than the previous year and more than three times the P206 million recorded two years ago.
Of the aggregate amount, sales of precast remain as the biggest contributor at 54%, followed closely
by batching plant or ready-mix concrete at 34%, and the remainder coming from equipment and
formworks sales and rental.
The Company started to strategically offer its PCS services to external clients in 2018 to expand their
footprint in the local industry and promote a more environmentally-friendly innovation.
The segment is proving to be an emerging growth area for Megawide, not only as a pure
complementary service under the Company’s fully-integrated construction platform, but as a separate
income-generating business catering to a wide array of residential, commercial, and industrial uses.
“As ancillary businesses, these legs can benefit from the Company’s healthy order book as part of the
value chain. Externally, they can also look for their own clients outside of Megawide to increase their
customer base and diversify their revenue stream to leverage on the usability of precast as a natural
progression in the construction industry,” said Edgar Saavedra, Chairman and CEO of Megawide.
According to Saavedra, this segment is more scalable and could deliver better margins. “Precast
production follows a manufacturing model, where economies of scale can be achieved, thus result in
higher margins. Operating the largest and most advanced precast facility in the country gives us an
opportunity to maximize our unique advantage,” Saavedra added.
Megawide’s PCS unit, as a whole, used to make up less than 3% of total construction revenues but has
more than doubled its contribution in 9M2022 as its scope widened to include affordable housing
(with Phirst Park Homes supply and installation contracts) and horizontal infrastructure (with Skyway
supply contracts), among others. The Company recently inaugurated a second plant to expand its total
capacity and serve a bigger clientele.
