FirstMetroSec Reinstates Megawide Coverage, Cites 4PH Housing Programme

Coverage Reinstated, Target Price Set

First Metro Securities Brokerage Corp. (FirstMetroSec) reinstated coverage on Megawide Construction Corp. on August 31, 2026. Analysts Mark Angeles and Kyle Garcia set a P7.50 target price for the construction firm. FirstMetroSec sees a renewed buying opportunity for investors, following recent market dips.

This updated view shifts from their September 15, 2025 report, which focused on balance sheet repair. The government's 4PH housing programme now drives Megawide's earnings outlook, providing a policy-backed platform.

4PH Programme Drives Valuation

FirstMetroSec projects a better valuation for Megawide, citing stronger earnings visibility from the Pambansang Pabahay para sa Pilipino (4PH) programme. This expanded national government initiative addresses the Philippines' approximate six-million-home housing backlog.

The Department of Human Settlements and Urban Development spearheads 4PH, coordinating with local government units and private partners. Megawide undertakes land development, construction, and project execution under this public-private partnership framework.

Policy Support and Financial Structure

The first 16,700 4PH units could generate over P28.3 billion in incremental revenue for Megawide. This revenue is expected from the second half of this year through 2028. Socialised housing units are priced at P950,000 for horizontal projects and up to P1.8 million for vertical developments.

Pag-IBIG Fund, the country's largest home financing institution, supports buyer affordability. Pag-IBIG began offering a subsidised 3% annual interest rate last July on eligible socialised housing loans for the first five years. Qualifying 4PH loans also carry a zero-equity requirement.

Proposed House Bill 3392, if enacted, would grant 4PH projects exemptions from various taxes and fees, including income tax, VAT, and real property tax.

Megawide's Strategic Position

4PH's demand is anchored by the large housing backlog. Pag-IBIG financing and policy incentives help reduce development friction. This creates a more visible, lower-risk earnings stream for developers like Megawide, especially in a high-interest-rate environment. Megawide's established construction capabilities and precast technology equip it to scale 4PH projects.

Its partnership with Pag-IBIG, through Megawide Dream Residences Inc., formalises its role in this key social infrastructure initiative. The company's track record in large public infrastructure projects further reinforces its ability to execute at scale.