{"id":325138,"date":"2023-09-28T00:02:55","date_gmt":"2023-09-27T16:02:55","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325138"},"modified":"2023-09-28T00:35:03","modified_gmt":"2023-09-27T16:35:03","slug":"stock-in-focus-international-container-terminal-services-inc-ict-28-sept-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-international-container-terminal-services-inc-ict-28-sept-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: International Container Terminal Services Inc. (ICT) – 28 Sept 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ICT<\/td><\/tr>
Company Name<\/strong><\/td>International Container Terminal Services Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Sept 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 290.05<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

While consumption in the PH may be heading towards more tepid territories, we note that ICT may benefit from global seasonality trends in Q3 which is typically the peak of the shipping season. Demand for containers is likely to improve sequentially as retailers stock up on inventory. Given this along with the continued solid performance of ICT\u2019s financials, we would therefore advise investors to accumulate.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

ICT’s revenues increased in the 1st half (1H) 2023 and 1nd quarter (2Q) 2023 by +11% year-on-year (y\/y) and +4.6% y\/y, respectively, due to higher income from port operations, interest income, and other income. Consolidated gross revenues are up by +10.9% in 2Q23 y\/y. <\/p>\n\n\n\n

Changes in revenues were driven by the consolidation of MNHPI, new business at IRB Logistica, tariff adjustments, and higher volumes and revenue from ancillary services and certain cargo terminals. The higher revenues are partly offset by a slowdown in trade activities at certain ports and the depreciation of PHP, AUD, and NGN.<\/p>\n\n\n\n

ICT has consistently been able to grow its business organically and, at the same time, expand its current operations by securing new concessions and improving existing terminal ports. Terminal ports located in emerging markets can also be a source of high growth in the future as those countries expand their output. <\/p>\n\n\n\n

The industry\u2019s high barriers to entry also means that the top companies in the industry will be in a stronger position to keep their competitive advantage against new competitors. ICT is in a position to play a key role in trade between countries. As global output increases and countries become even more connected in their trading activities, the potential of ICT to grow and continuously serve the market increases.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>