ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)

MARKET NOTES_MEGAWIDE CONSTRUCTION CORPORATION [pse: MWIDE]

source: www.pse.com.ph
Ref e-mail: jcwaterrat@gmail.com

COMPANY PROFILE: The Company was incorporated in 2004 to engage in the general construction business. It includes constructing, enlarging, repairing or engaging in any work upon buildings, houses and condominium, roads, plants, bridges, piers, waterworks, railroads and other structures and to own, use, improve, develop real estate of all kinds. Since 2008, the Company has completed a number of projects with an aggregate value of php2.3 billion. SMDC, the property development firm of the SM Group, is MWIDE's biggest customer, accounting for 72% of its Construction Order Book last year. It is in this context that the Company is currently in talks with new potential clients to diversify its client base and minimize concentration risk. It's other customers include listed-property and gaming firm, Belle Corporation [pse: BEL] , Prince Jun Development Corporation (PJDC), Malate Bayview Development Corporation (MBDC), Antel Land Holdings (ALH) and the Bellevue Group (BG.) PJDC is the second largest customer with 9% of the Order Book.
PROJECT SM Grass Residences * Tower 2 * Tower 3 SM Sea Residences * Phase 2 * Phase 3 SM Jazz Residences Belle Hotel Casino (Phase 1) Bench Corporate Office Bldg University Tower II University Tower III Malate Antel Serenity Tower Hotel & Residences Hampton Garden Tower I & J Asya Office Building Blue Residences My Place South Triangle LOCATION North EDSA, Quezon City PROJECT COST (in php 000,000) 5,308.47 TARGET COMPLETION December 2013 July 2012 MOA Complex, Pasay City 3,328.67 July 2011 January 2012 December 2012 July 2011 October 2011 June 2011 December 2011 December 2011 December 2011 December 2011 December 2013 March 2013

PROJECT Millenia Tower Hampton Garden Tower G & H Bellevue Hotel Citysquare Residences Antel Spa Residences B-Hotel SMDC Showroom Hampton Garden Tower K & L

LOCATION Escriva Rd., Ortigas Center Pasig City Pasig City Filinvest Corporate City, Alabang, Muntinglupa City Chinatown Business district Makati City Madrigal Business Center, Alabang, Muntinlupa City MOA Complex, Pasay City C. Raymundo Avenue, Maybunga, Pasig City

PROJECT COST (in php 000,000) 350.00 65.00 400.00 353.39 636.11 338.00 34.65 89.82

TURN-OVER March 2008 April 2008 December 2008 January 2010 July 2010 July 2010 August 2010 July 2010

Jupiter St., Bel-Air, Makati Macapagal Avenue, Pasay Global City, Ft. Bonifacio Espana, Manila (across UST) Pedro Gil, Malate Makati Avenue, Makati City C. Raymundo Avenue, Maybunga, Pasig City Macapagal Avenue, Pasay Katipunan Avenue, QC South Triangle, QC

3,618.11 583.90 698.00 495.00 616.00 688.00 185.07 115.60 1,741.26 1,592.47

The Company has a long list of projects due to completed within the next three years to 2013. For the balance of 2011 alone, there are at least eight (8) developments due to be turned over to the owner at completion. The estimated value of these 2011 projects is roughly php4.5 billion. Assuming the Company merely achieves the same margins it did last year of almost 8.0%, this will translate to a net income of php315 to php320 million, putting it on track to meeting its upward adjusted earnings guidance of between php720 million to php800 million. The figure does not include the revenue still to be recognized from project backlogs, which at the end of December 2010, amounted to php14.2 billion. Assuming only half of these are realized and the other lost to penalties or other delays assessment (depending on the contract provisions), a mere 7% margin translates to an additional earnings of php500 million. In this context, the guidance may even look conservative. FINANCIAL AND OPERATING PERFORMANCE: The Company's 2010 Net Income expanded three-fold to php335 million compared to prior year's total of only php71 million. A combination of project completions and new projects acquired and started, made such result possible.

INDICATOR LIQUIDITY RATIO CURRENT RATIO DEBT-TO-EQUITY RATIO BOOK VALUE PER SHARE PROFITABILITY RATIO EARNINGS PER SHARE1 RETURN ON ASSETS NET PROFIT MARGIN 1 Q1 2011 EPS annualized

Q1 2011 1.94 0.15 3.85

END 2010 1.08 0.36 1.73

The Company's Order Book has registered strong growth from only php3.07 billion in 2008 to php14.0 billion last year. This translates to a 2-year compound growth of 113.5%, or a doubling of orders per year. This gains more significance when taken in the context of a general economic slowdown in 2008 and 2009. We observe significant improvements across all Key Performance Indicators tabled above. Lending more confidence in the prospects of MWIDE moving forward is a recent BSP Business Sentiment Survey which, although showing a slight dip in optimism, points to the Construction sector as being still the most optimistic across all sectors. The drag was presented by the perceived slow disbursements of funds for government's infrastructure projects under the PPP scheme, the rationalization of other government programs in an effort to bring down costs and generate savings plus the rising costs of

0.60 1.82% 7.69%

1.19 1.60% 5.29%

itsDISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR CO MPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED. DAILY Report Page 1 of 2

ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)

MARKET NOTES_MEGAWIDE CONSTRUCTION CORPORATION [pse: MWIDE]

source: www.pse.com.ph
Ref e-mail: jcwaterrat@gmail.com

materials. Nevertheless, with the Aquino administration keeping to its commitment to the PPP scheme, these challenges may be considered temporary and will be resolved soon. This will undoubtedly boost the Company's prospects. RECENT NEWS & DEVELOPMENTS: Bagged the php1.5 billion contract to construct the succeeding phases of Belle Corporation's [pse: BEL] casino complex to rise within the Manila Bay reclamation area. The project includes the construction of structural and civil works for the two hotel towers, four condotels and a casino. (Disclosure No. 4224 s. 2011, June 2, 2011) BOI-registered as New Producer of Modular Housing Components/Systems on a Non-Pioneer Status under EO 226 Will inaugurate Megawide Corporate Tower at N. Domingo St., Quezon City on July 2, 2011 Increase in Authorized Capital Stock from php1.0 billion, par value php1.00 to php2.0 billion at the same par. Declared 30% stock dividend to common shareholders. Pertinent dates still to be announced. Raised its 2011 earnings guidance to between php720M to php800M from php560M with the expected completion of major projects. Currently in talks with new clients to diversify its base and mitigate concentration risk. Will participate in biddings for selected infrastructure projects Studying the possibility of issuing Fixed Rate Corporate Notes (FXCN) in light of the interest rate outlook

Since its listing last February, the stock has drawn an uptrend, closing last Friday's trades at php9.41, just a tick below the intra-day and all-time high of php9.42. Thus the stock is in unfamiliar and uncharted territory. The underlying technical measures confirms the positive momentum, albeit putting it at overbought levels. Critical support level at php8.60-8.70 marking the range as the buy window. Depending on the risk profile of the investor, purchases at between support and below php9.00 may present good opportunity over the long haul. The stock is trading at 11.5x prior year's earnings, a bargain compared to the Construction subsector's 14.6x (April 2011), more so, when ranged against the broad Industry's 18.7x. A subsector and sector averages, MWIDE share price should hover between php11.95 to 15.30. The range is even higher using an estimated 2011 EPS of between php0.84 and php0.93, which are based on the earnings guidance band. RECOMMENDATION: BUY & HOLD

itsDISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR CO MPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED. DAILY Report Page 2 of 2