DoubleDragon Properties Corp is a real estate development company founded in 2003 by Edgar "Injap" Sia II. It aims to develop 1 million square meters of leasable space within 5 years, with 70% coming from 100 shopping malls branded as CityMalls. DoubleDragon has already secured over 45 sites for these malls and has begun construction on 25 malls, with 2 having opened already. The company went public in 2014 and has since seen its market capitalization surpass industry peers to become one of the largest listed companies in the Philippines, though its high price-to-earnings ratio suggests it may be overvalued.

1. Stock Analysis of Double Dragon

2. History
• DoubleDragon Properties
Corp., the real estate firm
owned by Mang Inasal
founder Edgar ‘Injap’ Sia II
and Jollibee Foods Corp.
owner Tony Tan Caktiong.

3. • DoubleDragon Properties was founded in 2003 by Edgar
“Injap” Sia II, 39, a college architecture dropout from Bacolod
in west central Philippines. He is the chairman and CEO of
DoubleDragon.
• At 33, six years ago, he became the country’s youngest
billionaire, when he sold his Mang Inasal barbecue chicken
food chain for P3 billion to Jollibee. This enabled Injap to
become a billionaire faster than Henry Sy Sr., John
Gokongwei Jr., and Tony Tan Caktiong did in their time.
• DoubleDragon Properties was a wholly-owned subsidiary of
Injap Investments Inc. until July 2012 when Sia formed a
joint venture with Tan Caktiong, founder of Jollibee and buyer
of 70 percent of his Mang Inasal. A third partner is the giant
SM Investments Corp. which owns 34 percent of
DoubleDragon’s subsidiary, CityMall Commercial Centers Inc.

4. • As a property developer, DoubleDragon’s goal is one million square meters of
leasable space in five years.
• Of that, 70 percent will come from the 100 malls (each with an average leasable
space of 7,000 sqm), while 30 percent (300,000 sqm) will come from a 4.8-hectare
commercial block BPO and office building at the Mall of Asia called DD Meridian
Park, with 280,000 sqms leasable, and the 40-story Jollibee Tower in Ortigas, with
47,909 sqm leasable.
• The CityMall brand is thus poised to become the largest branded community mall
player in the Philippines. Twenty-five additional CityMalls are being constructed
simultaneously across the country and are expected to be turned over to tenants by
the end-2016.
• DoubleDragon has secured 44 locations so far for its malls, reveals Sia.
• On DoubleDragon’s outlook, Sia says “Investors can see our vision makes sense,
and maybe they are confident with our dynamic team to execute the laid out plans.”

5. • Injap is sure that the CityMall space will be leased. “We have the
strongest retail brands in the country,” he points out. In non-food,
locators are BDO, Chinabank, Savemore, Ace Hardware, Watsons
(drugstore), SM Appliance, and Simply Shoes.
• Among the food brands are Jollibee, the biggest fast food chain;
Chowking, the biggest Chinese food chain; Mang Inasal, the
biggest barbecue chicken chain; along with Red Ribbon,
Greenwich pizza, and Highlands Coffee.
• With 100 malls, Injap doesn’t think he would have competitors.
He cites four factors—first mover advantage, familiarity of the
provincial landscape (the malls will be located in third-tier cities,
those with population of 100,000 or less and where the likes of
SM and Robinson’s don’t have the time and the scale to be
viable), the scarcity of prime city center sites (Injap says a big
mall like SM needs about six hectares), and less operational
baggage (DD is lean but mean).

6. • In less than two years since its initial public
offering, DoubleDragon has already secured
over two-thirds of the land bank it needs to
develop to meet its goal of having one million
square meters of leasable space by 2020.
• DoubleDragon said 70 percent of its intended
leasable portfolio will be coming from the
development of 100 CityMalls across the
provincial cities of the Philippines for which it
has already secured over 45 prime
commercial sites.

7. Why Double Dragon Became an Active
Stock
• CityMall - Kalibo
NOW OPEN!
• On Monday April 25,
2016, CityMall -
Kalibo opens its door
to the public.

8. • Another CityMall OPENS Today 3pm May 7
at Tiaong Quezon.
• (Open Daily 9am-9pm)
• Major Tenants are SM Savemore, Jollibee,
Mang Inasal, Chowking, Red Ribbon
Bakeshop, Highlands Coffee, Watsons
Pharmacy, SM Appliance, BDO Bank, Fun
Nation Amusement, Rodeo Drive Apparel,
Nail Cocktails, Cut Salon, Potato Corner, Mr
Donut, Zagu, Egg Station, Kettle Corn, M1
My Basics Department Store, Expressions
Bookstore, Ace Hardware, and SM Simply
Shoes.
- Watch Out for more CityMalls opening soon
near you!

9. DD: Compared in the same industry
Double Dragon’s market capitalization is Php143.8b, already
surpassing RLC’s (Robinsons Land) market cap of Php122.2b and
MEG’s (Megaworld) Php143.5b. Out of the 300+ companies listed
in the PSE, DD is already the 26th highest in terms of market
capitalization. Against other property stocks in the PSEi, table
below presents how the stock fares against its industry peers by end
2016:

10. DoubleDragon starts P10B preferred
shares offering
• PROPERTY developer DoubleDragon Properties Inc. rolled
out on Tuesday an offering of up to P10 billion preferred
shares convertible into common shares, setting the dividend
rate of 6.4778 percent per annum.
• The offering has been oversubscribed, with underwriters so
far receiving P26 billion worth of demand or five times the
base offering of P5 billion, DoubleDragon chief executive
officer Edgar Sia II said on Tuesday.
• Following the approval given by the Securities and
Exchange Commission on this offering, Sia said the offering
had started on Tuesday (March 29) and would run until
April 7.

11. DD: Stock Chart

12. DD: Stock Chart
Ooops!! Please take
note: DOWNTREND
SELL SIGNAL

13. Double Dragon Stock

14. Double Dragon Stock
Take Note: The P/E Ratio is
high, which means the stock is
overpriced.
Rule: High P/E ratio means the
stock is expensive. Benjamin
Graham said buy stocks with
less than 20 P/E ratio

15. DD: Stock ChartAlways observe that a stock moves to
its average. It goes up or goes down
BUT IT ALWAYS MOVES OR GOES BACK
TO AVERAGE. The average is a
FUNDAMENTAL EVIDENCE while stock
price movements are TECHNICAL
EVIDENCE.
THEREFORE TARGET PRICE FOR
DOUBLE DRAGON IS PHP. 35.00

16. DD: Stock Chart
SELL NOW

17. Other Corporate News
• TEL, GLO studying buyout of LIB minority
PLDT and Globe Telecom are looking into the
possibility of buying out the minority
shareholders of Liberty Telecoms Holdings,
Inc. after taking over SMC’s telecommunications
business. Liberty Telecoms has 1,293,656,429
shares outstanding. The company’s public free
float stands at 12.82%.
Decision: BUY SIGNAL

18. • MEG to generate P3b from Makati project
Megaworld Corp. expects to generate P3b worth
of sales from its latest residential condominium in
the Makati Central Business District. It will build
a 30-storey residential tower along L.P. Leviste
Street in Salcedo Village. At present, the project
called as The Ellis sells for P180,000 per sqm.
Target completion date of the residential tower is
slated for 2022.
Decision: BUY SIGNAL

19. THANKS!!!