First Pacific Company Limited: history, ownership, mission, how it works & makes money

A Brief History of First Pacific Company Limited

First Pacific Company Limited, established in 1981, is a leading investment management and holding company based in Hong Kong. The company focuses on telecommunications, infrastructure, consumer food products, and natural resources. Over the years, First Pacific has expanded its portfolio significantly through strategic acquisitions and investments.

In 1993, First Pacific acquired a significant stake in PLDT Inc., the Philippines' largest telecommunications provider, which has been a cornerstone of the company's operations. By the end of 2022, First Pacific owned approximately 26.2% of PLDT, a stake valued at about US$1.3 billion based on PLDT's market capitalization.

In 2000, First Pacific made a strategic investment in the Indofood Sukses Makmur, a leading food company in Indonesia. As of 2023, First Pacific controls about 50.1% of Indofood’s shares, which contributed to a robust revenue of approximately IDR 70 trillion (around US$4.7 billion) in 2022.

First Pacific's diverse portfolio also includes investments in the infrastructure sector. In 2019, it increased its stake in Metro Pacific Investments Corporation (MPIC), a major infrastructure investment company in the Philippines, to around 41.0%. MPIC generated revenues of approximately PHP 41.9 billion in 2022, representing an increase of 5% year-on-year.

In 2022, First Pacific reported total consolidated revenues of US$2.4 billion, with an underlying net profit of US$215 million. Its revenue stream is primarily driven by telecommunications, food, and infrastructure operations. Additionally, the company's net asset value reached approximately US$2.5 billion in 2023, showcasing solid growth and investment returns over the years.

Over the years, First Pacific has also been recognized for its commitment to corporate social responsibility and sustainable development. In recent reports, it highlighted investments exceeding US$100 million in various social development initiatives across Southeast Asia.

As of October 2023, First Pacific continues to explore new investment opportunities to enhance its portfolio, focusing on technology and renewable energy sectors as part of their long-term growth strategy.

A Who Owns First Pacific Company Limited

First Pacific Company Limited, listed on the Hong Kong Stock Exchange under the ticker symbol 00142, is primarily owned by a mix of institutional and individual investors, along with key stakeholders within the company.

As of the latest available data, the largest shareholder is First Pacific Company Limited itself, owning approximately 46.3% of the outstanding shares. This significant ownership indicates a strong alignment of interests between the company and its management. The remainder of the ownership is distributed among various institutional investors and retail shareholders.

Major Shareholders Breakdown

Among the institutional investors, some notable names include BlackRock, Inc. and HSBC Global Asset Management, which hold significant stakes amounting to approximately 4.5% and 3.2%, respectively. The presence of these large financial institutions indicates robust confidence in the company’s long-term prospects.

Executive Ownership

In terms of executive ownership, the management team also holds a notable portion of shares, with key executives owning about 5.0% of the total shares. This level of ownership champions alignment with shareholder interests, contributing to strategic decision-making processes.

Recent Stock Performance

As of October 2023, First Pacific Company Limited's stock has shown a year-to-date performance of +18.5%. The stock price was approximately HKD 12.25 at the end of September 2023, reflecting a solid recovery from previous lows.

The company has also demonstrated strong financial metrics, reporting a revenue of approximately USD 1.16 billion in its latest earnings report for the fiscal year 2022. This shows a year-over-year growth of 7.4%.

Conclusion of Ownership Dynamics

Overall, the ownership of First Pacific Company Limited is characterized by a strategic mix of corporate, institutional, and retail investors, all contributing to its governance and operational strategies. The significant stakes held by institutional investors and executives suggest a high level of confidence in the company’s future trajectory and financial performance.

First Pacific Company Limited Mission Statement

First Pacific Company Limited, founded in 1981, operates primarily in the telecommunications, consumer food products, and infrastructure sectors across the Asia-Pacific region. The company's mission statement emphasizes its commitment to enhancing the quality of life of the communities in which it operates while delivering sustainable growth and returns to its shareholders.

As of the end of June 2023, First Pacific reported a revenue of approximately USD 1.65 billion, reflecting a growth of 6% year-on-year. This growth is largely driven by its subsidiaries, including PLDT Inc., which accounted for a significant portion of the revenue, contributing around USD 1.1 billion.

The mission statement further underlines First Pacific’s dedication to operational excellence and ethical governance, with a focus on sustainable practices. The company aims to provide innovative solutions while adhering to high standards of corporate social responsibility.

First Pacific’s commitment to sustainability is evidenced by its investment in renewable energy projects, targeting to allocate around 30% of its capital expenditure towards sustainable initiatives by 2025. This aligns with its mission to foster long-term value creation and mitigate environmental impacts.

To support its mission, First Pacific has established clear operational goals, including:

• To enhance operational capabilities across all subsidiaries.
• To drive customer satisfaction through quality products and services.
• To ensure a responsible approach to business that respects the environment and communities.
• To achieve a sustainable return on investments for stakeholders.

First Pacific operates with a diversified investment portfolio. The financial performance of key subsidiaries in 2022 is shown below:

First Pacific’s mission is also reflected in its financial strategies. The company has maintained a robust balance sheet, with a net debt to EBITDA ratio of approximately 2.1x as of Q2 2023, indicating a healthy leverage position which supports further investments and growth.

As part of its future direction, First Pacific is enhancing its technology infrastructure, with a planned investment of USD 150 million in digital transformation by 2024, aimed at improving operational efficiencies and customer engagement.

This commitment to innovation and sustainability is central to First Pacific’s mission and is essential for its strategy to position itself as a leader in its sectors. The focus on responsible governance not only aims to improve shareholder value but also ensures that the company contributes positively to the communities it serves.

How First Pacific Company Limited Works

First Pacific Company Limited, incorporated in 1982, is a Hong Kong-based investment management and holding company with a diverse portfolio across various sectors including telecommunications, infrastructure, consumer food products, and natural resources. The company operates primarily in Southeast Asia, focusing on investments that yield stable cash flows and growth opportunities.

The company's key operating segments include:

• Telecommunications: First Pacific's major subsidiary in this sector is PLDT Inc., a leading telecommunications provider in the Philippines. As of Q2 2023, PLDT reported service revenues of approximately ₱78.6 billion (Philippine Peso), reflecting a year-on-year growth of 5%.
• Infrastructure: First Pacific holds substantial stakes in various infrastructure projects, including toll roads and water supply undertakings. The company’s investment in Metro Pacific Investments Corporation (MPIC) operates under this segment, showing an EBITDA of about ₱19.4 billion in Q1 2023, an increase from ₱17.8 billion in Q1 2022.
• Consumer Food Products: The company owns a significant portion of Indofood Sukses Makmur, the largest food company in Indonesia. In 2022, Indofood reported revenues of approximately IDR 141 trillion, marking a robust performance amid global inflation challenges.
• Natural Resources: First Pacific has investments in companies involved in mining, specifically nickel and other mineral resources. In 2023, these investments produced approximately ₱1.2 billion in net income.

First Pacific's business model revolves around acquiring and developing assets in high-growth industries to enhance shareholder value. This approach includes:

• Strategic Acquisitions: The company actively seeks undervalued investments or those with strong growth potential.
• Operational Improvements: First Pacific utilizes operational efficiencies to improve margins and enhance profitability across its portfolio companies.
• Dividends and Returns: The company aims to return substantial dividends to its shareholders; in 2022, First Pacific declared dividends amounting to approximately USD 50 million.

Below is a table detailing First Pacific's financial performance over the past three years, demonstrating its revenue growth and profitability:

As of October 2023, First Pacific Company Limited has a market capitalization of approximately USD 2 billion. Its stock performance has shown resilience, with shares trading at around USD 0.75 per share, reflecting a year-to-date increase of 15%.

The company maintains a disciplined capital allocation strategy, focusing on long-term objectives. The management's commitment to maintaining a 40-50% payout ratio on net income indicates a strong emphasis on rewarding shareholders without compromising growth potential.

Overall, First Pacific Company Limited exemplifies a robust investment approach, leveraging diverse business operations to create sustainable growth and deliver value to its stakeholders across various markets.

How First Pacific Company Limited Makes Money

First Pacific Company Limited, a Hong Kong-based investment holding company, primarily derives its revenues from its investments in various sectors. The company has a diversified portfolio that includes telecommunications, food and consumer products, infrastructure, and natural resources.

Revenue Streams

The key revenue streams for First Pacific include:

• Telecommunications: Through a significant stake in PLDT Inc., the largest telecommunications and digital services provider in the Philippines, First Pacific benefited from PLDT's strong performance. In Q1 2023, PLDT reported consolidated revenues of PHP 42.3 billion, driven by mobile and broadband segments.
• Food and Consumer Products: First Pacific owns a substantial share in Indofood Sukses Makmur Tbk, one of the largest food companies in Indonesia. For 2022, Indofood reported revenue of IDR 76.8 trillion (approximately USD 5.2 billion), mainly from its instant noodles, dairy, and snack products.
• Infrastructure: The company has investments in toll roads and power generation. For example, Metro Pacific Tollways Corporation reported revenue of PHP 11.3 billion in 2022, enhancing First Pacific's income through toll collections.
• Natural Resources: First Pacific is also involved in the mining sector through its investment in Philex Mining Corporation. In FY 2022, Philex reported revenue of PHP 5.7 billion from mining operations, contributing to First Pacific's earnings.

Financial Performance

First Pacific's financial health is marked by consistent revenue growth and a robust dividend policy. For the fiscal year ended December 31, 2022, First Pacific reported total revenue of HKD 63.4 billion, an increase from HKD 60.1 billion in 2021.

The following table illustrates the revenue contributions from each sector for the year 2022:

Moreover, First Pacific's net profit for 2022 was HKD 4.5 billion, indicating an increase compared to HKD 4.2 billion in 2021. This improvement was driven by enhanced operational efficiencies and strategic investments.

Market Positioning and Strategic Initiatives

First Pacific's strategy emphasizes long-term growth through investments in high-potential sectors. The company continuously looks for acquisition opportunities that align with its business model. In 2023, First Pacific announced plans to invest around HKD 6 billion in expanding its telecommunications infrastructure in the Philippines, anticipating significant future revenues.

Risk Factors

Despite its robust business model, First Pacific faces various risks, including regulatory challenges in Southeast Asia, currency fluctuations, and potential disruptions from global economic conditions. However, the company's diversified portfolio helps mitigate some of these risks by spreading revenue sources across different sectors.