4PH improves Megawide outlook

First Metro Securities Brokerage Corp. has reinstated its coverage on Megawide Construction Corp. in its Aug. 31, 2026 company update, setting a target price of P7.50. Analysts Mark Angeles and Kyle Garcia project a higher valuation for Megawide due to stronger earnings visibility from its involvement in the government's expanded 4PH Program.

The brokerage firm's analysis highlights that Megawide has shifted focus from balance sheet repair to a 4PH-led transformation narrative. The firm believes 4PH provides a sizeable, policy-backed, and higher-visibility earnings platform, with early projects expected to generate over P28.3 billion in incremental revenue. The 4PH Program, spearheaded by the Department of Human Settlements and Urban Development, aims to address the country's housing backlog of around six million homes.

Government-backed and affordable, 4PH units are priced at P950,000 for horizontal house-and-lot projects and up to P1.8 million for vertical condominium developments. Socialized housing loans from the Pag-IBIG Fund come with a subsidized three percent annual interest rate for the first five years, with a zero-equity requirement to support first-time homeowners.

House Bill 3392, if passed, could provide 4PH projects with tax exemptions and reduced fees. Megawide's track record in large-scale infrastructure delivery, including delivering 10,000 public school classrooms and developing significant airports, supports its ability to execute at scale and aligns with the 4PH program's requirements for scale, repeatability, cost discipline, and speed.

The Pag-IBIG partnership further strengthens Megawide's position as a private-sector partner for the 4PH initiative.