{"id":329419,"date":"2024-09-12T00:11:38","date_gmt":"2024-09-11T16:11:38","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329419"},"modified":"2024-09-12T00:11:40","modified_gmt":"2024-09-11T16:11:40","slug":"stock-in-focus-international-container-terminal-services-inc-ict-12-sept-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-international-container-terminal-services-inc-ict-12-sept-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: International Container Terminal Services Inc. (ICT) – 12 Sept 2024 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>12 Sept 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/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 are revising our price target to P440\/share, driven by the stable outlook for trading activities in the Asia region, which is expected to support continued growth for ICTSI. The firm\u2019s strong port operations and expanding global footprint contribute to a positive long-term growth trajectory, justifying this upward adjustment in our target price. However, we are giving a HOLD recommendation despite the revised target price, as the potential upside from the current last traded price of P398.60 per share is relatively modest at +10%.<\/p>\n\n\n\n

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

The Razon-led port operator posted a +32.3% year-on-year (y\/y) growth to $210.6 million in the 2nd quarter (2Q) 2024 net income driven by increased container volumes at its terminals and a rise in ancillary services.<\/p>\n\n\n\n

In 2Q 2024, ICTSI’s consolidated revenues rose +15% y\/y to $684 million. Port operations in Asia contributed $278 million to total revenues, while the US and EMEA (Europe, Middle East, and Africa) regions contributed $277 million and $129 million, respectively. Container volumes for the second quarter were reported at 1.78mn TEUs in Asia, 829,918 TEUs in the US, and 607,489 TEUs in EMEA.<\/p>\n\n\n\n

For the first half of the year, ICTSI\u2019s attributable net income climbed +34% y\/y to $421 million. This figure includes the deconsolidation of PT PBM Olah Jasa Andal (OJA) in Indonesia amounting $20mn during the first quarter, as well as the income from the settlement of legal claims at ICTSI Oregon. Excluding these one-off items, first-half attributable net income would have reached $402mn.<\/p>\n\n\n\n

With ICT’s preliminary results aligning within our expectations, we will
maintain our estimate of $653 million for ICTSI’s attributable net income for the
full year 2024. This estimate reflects a projected year-on-year growth of 28%.<\/p>\n\n\n\n

So far, ICTSI appears to be on a roll, handling 6.31 million TEUs in the first half. The growth was driven by new services and improved trade at select terminals, despite some challenges from weaker performance at Contecon Guayaquil S.A. (CGSA) in Ecuador, the end of the PICT concession in Pakistan, and the OJA deconsolidation.<\/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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