A.

FINANCIAL HIGHLIGHTS

B. STATEMENT OF THE PROBLEM

Should we invest in LT Group, Inc as this company is willing to participate
in ongoing government PPPs?
C. AREAS FOR CONSIDERATION
Strengths

-reduced labor costs

-skilled workforce
-high growth rate
-leading market position
-experienced business units
Weaknesses
-tax structure
-investments in research and development
-competitive market
-future debt rating
Opportunities
-growing economy
-venture capital
-global markets
-new markets
-new products and services
-growing demand
-income level is at a constant increase
Threats
-growing competition and lower profitability
-price changes
-cash flow
-rising cost of raw materials
-technological problems
-tax changes
-increasing rates of interest
-external business risks

D. CURRENT NEWS
1. LT Group Inc. (LTG), the investment holding firm of taipan Lucio Tan,
is setting aside P10 billion in capital expenditures this year to fund
the expansion of its beverage business, land acquisition, new
projects of the property unit and technology upgrade for its banking
arm. Were ready to work closely with incoming president Dutertes
handpicked finance team led by incoming secretary Carlos
Dominguez to fight illicit trade and increase tax collection especially
in the tobacco and alcohol sectors, Tan said.

2. The banking business contributed 38 percent of LTGs income or

P1.73 billion while the tobacco business comprised 32 percent or
P1.45 billion. PNB reported a net income of P4.42 billion, up eight
percent year on year. Equity in net earnings from the 49.6 percent
stake in PMFTC Inc., the partnership between Fortune Tobacco and
Philip Morris, reached P1.4 billion, significantly higher than the P420
million recorded a year earlier.
3. The holding firm of tycoon Lucio C. Tan -- expects to sustain its
growth momentum this year, as the conglomerate beefed up its
capital spending amid optimism that the administration of
President-elect Rodrigo R. Duterte will curb illicit trade and further
improve the business environment.
4. LT Group Inc. (LTG), the holding firm of most of tycoon Lucio Tans
businesses, said it almost doubled its income during the first nine
months of the year, driven mostly by its banking business, while its
tobacco unit showed signs of recovery. Despite the slightly higher
income, the illicit trade continues to adversely affect the overall
profitability of the cigarette business, the company said. The
intense competition in the beverage market continues to affect
volumes and margins, it added. Asia Brewerys net income for the
period declined by 13 percent to P694 million, from P797 million last
year, though it claimed that its brands of carbonated energy drink,
bottled water and alcohol-laced pop drink continue to be market
leaders.

E. Analysis
There are many factors which we should consider before an investment in
a company. Like the market share of a business, past financial
performance, future guidance of company, corporate governance in
company, companys ability to change with changing environment, and
the earning of the company. As we can see in the current events the
businesses doubled its income mostly from its banking business. The
beverage side of the business continued to be the market leaders of that
industry despite the decline of its net income. With the rush of presidential
Rodrigo Duterte in the activities of his administration, business outlook in
the country is starting to get jittery. His campaign for against drugs in the
past several months was characterized by provocative and profane
rhetoric, but shed little light in terms of economic policies. This has given
rise to uncertainty among firms and investors about the measures Duterte
and his team are willing to take to keep economic growth on track while

easing restrictions on doing business. Despite this challenges and

uncertainties with the current administration the LT Group, Inc are ready
to work closely with President Duterte to fight illicit trade and increase tax
collection especially in the tobacco and alcohol sectors. As to the future of
LT Group Inc. expects to sustain its growth this year, as the conglomerate
beefed up its capital spending amid optimism that the administration of
President Rodrigo R. Duterte will curb illicit trade and further improve the
business environment. The company is willing to participate on the
ongoing government PPPS. The advantages of this action is that Exploring
PPPs as a way of introducing private sector technology and innovation in
providing better public services through improved operational efficiency
and Incentivizing the private sector to deliver projects on time and within
budget. And lastly the past financial performance of the company was
outstanding and improving every year. We can conclude with this all
factors that LT Group Inc in long-term perspective will be a good
investment.
F. RECOMMENDATION
Since LT Group, Inc. was doing well in the past few years and the first
quarter of the year I recommend to invest in this company. Based on the
financial ratios, SWOT analysis and the past and current events.
Considering the business condition and threats it is evidently the right
move for us.

REFERENCES
Gonzales, Iris(2016). LT Group allots P10 B for expansion, new projects.
Retrieved from
http://www.philstar.com/business/2016/06/22/1595252/lt
-group-allots-p10-b-expansion-new-projects
Gonzales, Iris(2016). LT Group nets 28% more in H1. Retrieved from
http://www.philstar.com/business/2016/08/14/1613125/lt
-group-nets-28-more-h1
Montealegre, Krista A. M.(2016). LT Group ramping up capital
spending. Retrieved from
http://www.bworldonline.com/content.php?
section=Corporate&title=lt-group-ramping-up-capitalspending&id=129317