{"id":327954,"date":"2024-05-17T11:23:34","date_gmt":"2024-05-17T03:23:34","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327954"},"modified":"2024-05-17T11:23:36","modified_gmt":"2024-05-17T03:23:36","slug":"stock-in-focus-international-container-terminal-services-inc-ict-17-may-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-international-container-terminal-services-inc-ict-17-may-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: International Container Terminal Services Inc. (ICT) – 17 May 2024 by RCBC Securities"},"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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 May 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 420.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

We raised our target price (TP) for International Container Terminal Services, Inc. (ICTSI) by 23% from Php341.00 to Php420.00 as we boosted our gross revenue and EBITDA forecasts. Our revised Target Price offers a share price upside of 16.3% and a 2024 dividend yield of 3.0%, hence we retain our BUY rating. We believe that the higher tariff adjustments and continued expansion of ICTSI\u2019s ports will bode well for ICTSI\u2019s growth.<\/p>\n\n\n\n

<\/div>\n\n\n\n

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

Earnings recap<\/p>\n\n\n\n

ICTSI\u2019s 1Q 2024 core net income climbed 24% year-on-year (y\/y) to US$191.0 million, in-line with estimates. Revenues from port operations rose 11% to US$637.7 million on higher tariffs, changes in container mix, and ancillary services. This was despite the flat volume growth it recorded at 3.09 million TEUs as improvement in trade activities was cushioned by the discontinued operations of PICT in Pakistan and PT MTS in Indonesia.<\/p>\n\n\n\n

Excluding this volume would have grown by 5% y\/y. Cash operating expenses gained by 6% to US$172.5 million from salary adjustments, repairs and maintenance of port equipment. Consolidated EBITDA jumped 17% to US$413.8mn, with EBITDA margin expanding by 3ppts y\/y to 65%.<\/p>\n\n\n\n

New record highs<\/h3>\n\n\n\n

ICTSI continued its hot streak on a quarterly basis, reaching new record highs for its EBITDA, EBITDA margin, and net income. Management even expects US$190mn-200mn net income per quarter from their recent performances, highlighting their resilience from the geographical diversification of its ports.<\/p>\n\n\n\n

Expanding fleet in PH<\/h3>\n\n\n\n

The company disclosed yesterday that it will build a new terminal in Bauan, Batangas, Philippines, which will be the second-largest container facility after MICT. The terminal is expected to deliver over 2.0mn TEUs at an estimated total investment of US$800.0mn. It will be done in two phases with the first expected to start construction by 1Q 2025 and finish by end-2027, while the 2nd phase will be done as required by demand.<\/p>\n\n\n\n

<\/div>\n\n\n\n

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