{"id":329014,"date":"2024-08-18T23:28:34","date_gmt":"2024-08-18T15:28:34","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329014"},"modified":"2024-08-18T23:28:35","modified_gmt":"2024-08-18T15:28:35","slug":"stock-in-focus-international-container-terminal-services-inc-ict-19-aug-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-international-container-terminal-services-inc-ict-19-aug-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: International Container Terminal Services Inc. (ICT) – 19 Aug 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>19 Aug 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 440.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We boosted our target price (TP) for International Container Terminal Services,
Inc. (ICT) by 4.8% to Php440.00 as we raised our 2024\/2025 core net income expectations. The company is currently the top index gainer, up by 49.5% year-
to-date (YTD) as it continues to reach new record highs, benefiting from its diverse portfolio. Despite this run-up, ICT remains attractive as our new TP still offers a decent upside of 19%. We expect sustained margins and volume growth across ICT\u2019s ports as costs and expenses were slower than expected. Furthermore, we expect further growth in core earnings because of the expected tariff adjustments and its on-going expansion plans.<\/p>\n\n\n\n

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

Earnings recap<\/h3>\n\n\n\n

ICT logged a 1st half (1H) 2024 core net income of US$401.7 million, 24% higher year-on-year (y\/y). Revenues from port operations reached US$1.32bn, 13% higher y\/y from the tariff adjustments, volume growth, and higher ancillary services. Cash operating expenses grew 7% to US$349.4 million due to volume-related increases and salary-rate adjustments. Consolidated EBITDA climbed 19% to US$865.00mn, while EBITDA margin expanded by 2ppts to 65%.<\/p>\n\n\n\n

Volumes brewing up<\/h3>\n\n\n\n

We saw volumes trend higher on a quarterly basis by 4.3% to 3.2mn TEUs on improved trading activities from its ports. EMEA and Asia region ports posted growths of 10% and 6% respectively on the back of the expansion of VICT (Australia) and better performance by ports in Iraq and the Philippine. On the other hand, the Americas segment slid by 3% as Ecuador and Honduras experienced weakness.<\/p>\n\n\n\n

Nonetheless, we expect revenues to be bolstered as Manzanillo will expand to 1.7mn TEUs by year-end and to 2.0mn TEUs in 2025. We expect ICT to sustain its volume growth through 2H24 as business confidence improves and as interest rate cuts are likely to start.<\/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>