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First Pacific Co
(0142)
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Rating:68Neutral
Price Target:
HK$5.50
▲(8.91% Upside)
Action:Downgraded
Date:08/27/26
The score is supported primarily by improving profitability and a strong 2025 cash flow rebound, plus very attractive valuation (low P/E and high dividend yield). These positives are moderated by balance-sheet leverage and weak technical momentum, while the latest earnings call was net positive (rating upgrade and strong operating-company performance) but flagged FX and refinancing-related risks.
Positive Factors
Improving profitability and cash flow
The sharp improvement in earnings and 2025 cash generation strengthens First Pacific’s ability to fund holding-company costs, service debt and support shareholder distributions, although cash conversion remains cyclical.
Negative Factors
High leverage and refinancing exposure
Elevated leverage reduces financial flexibility and increases sensitivity to interest rates, earnings weakness and asset distributions. The 2027 bond maturity creates a medium-term refinancing requirement despite current interest cover of 4.8x.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and cash flow
The sharp improvement in earnings and 2025 cash generation strengthens First Pacific’s ability to fund holding-company costs, service debt and support shareholder distributions, although cash conversion remains cyclical.
Read all positive factors
First Pacific Co (0142) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$21.84B
Dividend Yield5.61%
Average Volume (3M)3.05M
Price to Earnings (P/E)4.8
Beta (1Y)0.24
Revenue Growth4.57%
EPS Growth-19.83%
CountryHK
Employees108,154
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.13
Shares Outstanding4,262,120,000
10 Day Avg. Volume3,141,105
30 Day Avg. Volume3,045,743
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)0.74
Price to Sales (P/S)0.32
P/FCF Ratio2.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$6.71Price Target Upside32.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.16
Revenue Forecast (FY)HK$10.30B
First Pacific Co Business Overview & Revenue Model
Company Description
First Pacific Company Limited, established in 1981 and headquartered in Central, Hong Kong, functions as an investment management and holding company. Its diverse portfolio encompasses key sectors such as consumer food products, telecommunications...
How the Company Makes Money
First Pacific primarily makes money as a holding company by owning significant stakes in operating subsidiaries/associates and capturing their economic results. Its core earnings are driven by (1) profit contributions from its investee companies (...
First Pacific Co Earnings Call Summary
Earnings Call Date:Aug 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 01, 2027
Earnings Call Sentiment Positive
The call presented multiple strong operational achievements: record revenues and core profits at key operating companies (Indofood, MPIC businesses, PLDT), a credit rating upgrade, resilient recurring profit (second-highest ever), and growth in strategic areas (Maya fintech, PLP hydrogen-ready project, Philex Silangan). Offsetting these positives were notable headwinds: FX losses and currency depreciation reducing USD-reported contributions, a sharp drop in PLP core profit (-26%), cost pressures at Indofood (COGS +12% local currency), operational constraints at Padcal, regulatory uncertainty affecting Meralco, and an upcoming USD 350M bond refinancing. Overall, the highlights (broad strong operating performance, strategic investments, rating upgrade, and solid cash/free-cash-flow positions) materially outweigh the lowlights, though risks remain from FX, commodity/energy margins, and refinancing volatility.Positive Updates
S&P Credit Rating Upgrade
Standard & Poor's upgraded First Pacific's credit rating to BBB with a stable outlook; interest coverage ratio of 4.8x, blended interest cost ~4.5%, and average debt maturity of 3.4 years.
Negative Updates
Foreign Exchange Headwinds and Losses
Aggregate FX and derivative losses of approximately USD 51 million in H1 2026 (substantial portion — roughly USD 40+ million — attributable to Indofood bond-related FX movements). Rupiah and peso weakened ~5% and ~6% on average in H1; since 2020 peso down ~18% and rupiah down ~15%, pressuring USD-reported results.
Read all updates
Q2-2026 Updates
Positive
Negative
S&P Credit Rating Upgrade
Standard & Poor's upgraded First Pacific's credit rating to BBB with a stable outlook; interest coverage ratio of 4.8x, blended interest cost ~4.5%, and average debt maturity of 3.4 years.
Read all positive updates
Company Guidance
Management reaffirmed a constructive outlook while flagging near‑term headwinds: S&P upgraded the group to BBB (stable) as First Pacific reported H1 recurring profit down 1% but still the second‑highest in its history, turnover +6%, contribution from operations -2%, and interim distribution unchanged at HKD0.03/share (yield ~5.4%). Financial metrics remain healthy with interest cover 4.8x, blended interest cost ~4.5%, average debt maturity 3.4 years, gross asset value USD4.8bn (Foods ~1/3, MPIC ~26%, PLDT ~>1/5, Philex ~<10%, PLP 9%), gross/net debt little changed, and a USD350m bond due Sept 2027 under active market monitoring. Operating guidance and unit metrics were detailed: Indofood core profit +7% with ICBP sales guide up to +7% and EBIT margin 20–22% (ICBP CapEx IDR5.5T + other Indofood IDR4T; CBP profit +1% to IDR5.4T, COGS +12%; overseas noodles +31% in Q2); MPIC and Meralco delivered record H1 results; PLDT reported highest ever H1 service revenue and EBITDA (EBITDA +1%), positive free cash flow, an 8% dividend yield and CapEx at 19% of service revenues in H1; Maya contribution to PLDT profit rose ~40% to PHP559m; PLP revenue +12% but core profit -26%, with a hydrogen‑ready plant capex ~USD1.2bn (equity ~USD450m; FP share ~USD150m, ~USD44m invested H1); and Philex saw revenues -9% but core profit +56% with Silangan on track for late‑2026 start.First Pacific Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
54
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.51B | 10.23B | 10.06B | 10.51B | 10.30B | 9.10B |
| Gross Profit | 3.73B | 3.73B | 3.65B | 3.37B | 3.06B | 2.83B |
| EBITDA | 2.73B | 2.76B | 2.61B | 2.85B | 2.27B | 1.79B |
| Net Income | 570.58M | 661.00M | 600.30M | 501.20M | 391.60M | 244.50M |
Balance Sheet | ||||||
| Total Assets | 30.58B | 30.64B | 28.68B | 27.36B | 25.49B | 26.57B |
| Cash, Cash Equivalents and Short-Term Investments | 5.16B | 4.86B | 3.92B | 3.37B | 2.68B | 3.41B |
| Total Debt | 13.01B | 13.01B | 12.62B | 11.71B | 11.22B | 11.13B |
| Total Liabilities | 17.54B | 17.52B | 16.75B | 15.79B | 15.13B | 15.95B |
| Stockholders Equity | 4.44B | 4.39B | 3.93B | 3.69B | 3.30B | 3.30B |
Cash Flow | ||||||
| Free Cash Flow | 1.60B | 1.57B | 388.10M | 526.60M | 1.12B | 872.50M |
| Operating Cash Flow | 2.14B | 2.12B | 1.75B | 1.73B | 1.42B | 1.25B |
| Investing Cash Flow | -993.12M | -1.06B | -1.63B | -1.48B | -2.01B | -730.50M |
| Financing Cash Flow | -39.40M | -171.25M | 466.90M | 88.00M | 75.30M | 305.40M |
First Pacific Co Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$6.60B | 24.69 | 9.30% | 2.72% | -3.39% | 20.09% | |
70 Outperform | HK$95.26B | 7.86 | 13.85% | 12.26% | 5.58% | -3.88% | |
68 Neutral | HK$21.84B | 4.78 | 12.92% | 5.61% | 4.57% | -19.83% | |
63 Neutral | HK$71.14B | 12.65 | 33.44% | 3.65% | 3.53% | 17.26% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | HK$35.32B | 6.14 | 25.72% | 3.63% | 5.80% | -9.69% | |
57 Neutral | HK$70.43B | 32.98 | 4.53% | 3.23% | 3.48% | ― |
* Consumer Defensive Sector Average
HK:0142
First Pacific Co
5.02
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First Pacific Co Corporate Events
First Pacific lifts revenue but profits slide as leverage eases in H1 2026
Aug 27, 2026
First Pacific reported a 5.7% rise in turnover to US$5.32 billion for the first half of 2026, but saw profit contribution from operations edge down 1.8% and recurring profit fall 2.5%. Profit attributable to shareholders dropped 22.9%, dragging ba...
First Pacific Declares Interim HKD 0.13 Dividend for First Half of 2026
Aug 27, 2026
First Pacific Company Limited has declared an interim ordinary cash dividend of HKD 0.13 per share for the six months ended 30 June 2026, for the financial year ending 31 December 2026. The dividend will be paid in Hong Kong dollars, with the ex-d...
First Pacific flags PLDT financial updates and potential impact on group
Aug 17, 2026
First Pacific Company Limited has issued a voluntary supplemental announcement highlighting new disclosures by its key associate, PLDT Inc., regarding the latter’s unaudited consolidated financial results for the six months ended 30 June 202...
First Pacific Sets Board Meeting to Approve 2026 Interim Results and Weigh Distribution
Aug 17, 2026
First Pacific Company Limited has scheduled a board meeting for 27 August 2026 to review and approve its unaudited consolidated interim results for the six months ended 30 June 2026. The board will also consider whether to declare an interim distr...
First Pacific Affiliate MPIC Delivers Higher Core Earnings Despite One-Off Drag
Aug 13, 2026
Metro Pacific Investments Corporation, a major Philippine infrastructure and utilities conglomerate in which First Pacific holds an economic interest of about 49.9%, reported stable balance sheet metrics for the first half of 2026, with total asse...
First Pacific flags PLDT’s half-year 2026 results filing
Aug 13, 2026
First Pacific has issued an overseas regulatory announcement highlighting a disclosure by its major operating associate PLDT Inc. to the Philippine Stock Exchange. The filing relates to PLDT’s submission of a regulatory report and an accompa...
First Pacific Reports Slight Profit Dip at Key Telecom Associate PLDT for First Half 2026
Aug 13, 2026
First Pacific has disclosed the unaudited consolidated financial results of its major associate PLDT Inc. for the six months ended 30 June 2026, in line with Hong Kong listing and securities regulations. PLDT, which is 25.6% owned economically by ...
Indofood Delivers Solid H1 2026 Operating Growth Despite FX-Driven Profit Decline
Jul 31, 2026
Indofood reported a 9% rise in consolidated net sales to Rp65.53 trillion for the first half of 2026, supported by a 14% increase in income from operations to Rp13.29 trillion and a robust operating margin of 20.3%. Despite this solid operating pe...
Indofood Posts Strong Revenue Growth but Higher Finance Costs Trim First-Half Profit
Jul 31, 2026
Indofood reported unaudited consolidated net sales of Rp65.53 trillion for the six months ended 30 June 2026, up from Rp59.84 trillion a year earlier, lifting gross profit to Rp21.38 trillion from Rp19.83 trillion. Operating income rose to Rp13.29...
First Pacific Updates Bermuda Registered Office and Share Registry Address
Jul 31, 2026
First Pacific Company Limited has announced a change to its registered office, principal share registrar, and transfer agent address in Bermuda, effective 3 August 2026, with these functions moving to Richmond House, 12 Par-la-Ville Road, Hamilton...
First Pacific’s PLDT Unit Moves to Launch Philippines’ First Digital Infrastructure REIT
Jun 22, 2026
First Pacific’s major associate PLDT is advancing its digital infrastructure strategy through VITRO Inc., a wholly owned subsidiary of ePLDT, which has filed a registration statement and REIT plan with Philippine regulators for a proposed in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.