First Pacific Company Limited

First Pacific reported 2025 turnover of a little over $10 billion, up 2% year over year. Recurring profit rose 10% to $740 million from about $673 million in 2024, and net profit increased 10% to $661 million, both record highs. The final distribution was HKD 0.14 per share, bringing the full-year distribution to HKD 0.27 per share, also a record. Head office dividend income was about HKD $311 million, interest cost was around 4.6% for the year, and interest coverage improved to 4.5x from 4.0x. For debt, management said there are no borrowings due until September 2027, when the only bond of $350 million matures, and a $200 million facility due in 2026 was refinanced to 2031. Forwardly, management said 2026 looks likely to be better than 2025 at Indofood, Maynilad’s tariff adjustment is expected to be 4%, and PLP’s new gas plant project is targeted to start operations in 2029.

Executive Director Chris Young described 2025 as a good year and a continuation of the group’s seven-year trend of growth. He said the businesses are relatively defensive because they are consumer-facing, but acknowledged that the short- to medium-term outlook is uncertain. On Indofood, he said dividend discussions are usually constructive and will reflect last year’s 1% recurring profit growth and the current outlook, which is reasonable but still affected by Middle East uncertainty.

Joseph Ng focused on dividend policy, funding, and debt management. He said the HKD 0.27 full-year distribution represented about 6% growth versus last year’s regular payout of HKD 0.255, and about 10% growth if the special distribution tied to the Maynilad IPO is included; he linked that to recurring profit growth from $673 million to $740 million. He also said the company is returning more than 70% of free cash to shareholders after head office expenses and interest, while retaining some cash for reinvestment into PLP’s gas plant. On capital structure, he noted the January 2026 bank loan was refinanced before year-end, the next major maturity is the $350 million bond due in September 2027, and management is leaning toward a bond refinancing if market conditions are acceptable; he also said the head office debt mix is around 50% fixed rate and management is comfortable with that level.

Analysts focused on dividend growth, Indofood’s payout ratio, Middle East risks, PLP’s power-price exposure, Maynilad’s tariff outlook, and refinancing plans. Management said the regular dividend increase was not as muted as it first looked because the interim dividend plus final dividend produced 6% growth, and adding the special Maynilad-related distribution brought total growth to about 10%. On Indofood, management said dividend decisions will depend on last year’s low profit growth and the current outlook, which remains reasonably constructive but not free of uncertainty. On PLP, management said near-term gas supply is adequate but disruption could matter if the Middle East situation persists; they also said the project’s heavy CapEx is still ahead, with notice to proceed expected this year and operations targeted for 2029.