By Lourdes O. Pilar, Researcher
INVESTORS loaded up on International Container Terminal Services, Inc. (ICTSI) last week as it continues to expand its operations locally and abroad.
Data from the Philippine Stock Exchange (PSE) showed a total of 8.57 million shares worth P1.28 billion exchanged hands from June 7 to 11, making it the third most actively traded stock last week.
The share price of the Enrique K. Razon, Jr.-led port operator finished at P151.00 apiece on Friday, up by 2% from a week ago. The stock has increased by nearly a fifth since the start of the year.
Philippine National Bank Senior Equity Research Analyst Jonathan J. Latuja noted news on Brazilian subsidiary ICTSI Rio Brasil adding rail logistics to its operations helped the port operator became one of the most active stocks last week.
“We believe the new service to be introduced in the port subsidiary can further improve volumes and yield,” Mr. Latuja said.
The Brazilian unit’s newly formed company, IRB Logistica, will take over the operations of the terminal from Multitex Logistica starting July 1, ICTSI said last week.
It will offer cargo handling, transport, and storage services to the growth centers in Rio de Janeiro, Minas Gerais, and São Paulo.
“Despite the pandemic, the company continues to expand its operation as it bought additional stake in Africa under their subsidiary ICTSI Africa and bought 100% of Manila Harbour Center Port Services, Inc.,” Mercantile Securities Corp. Analyst Jeff Radley C. See said in a Viber message.
Earlier this month, ICTSI entered into a P2.45-billion share purchase agreement with its related party, Prime Strategic Holdings, Inc., to buy 100% of the shares of Manila Harbour Center Port Services, Inc. (MHCPSI).
MHCPSI is a 10-hectare international breakbulk and bulkport facility at the Port of Manila.
Transfer of the facilities to ICTSI will take place by mid-2021, once all conditions precedent and all required regulatory approvals have been secured.
The transaction is seen to generate synergies and value-accretive returns for ICTSI’s shareholders.
Meanwhile, ICTSI announced last May that its unit, ICTSI Africa B.V., had concluded the acquisition of an additional 10% stake in International Container Terminal Services, Inc.–DR Congo (IDRC).
This increased ICTSI Africa’s ownership of IDRC to 62% from 52%.
Mr. Latuja expects a 12% year-on-year growth in ICTSI’s revenue this year.
ICTSI’s gross revenues from port operations went up by 15.9% to $435.59 million in the first three months of the year.
Its attributable net income in the same period likewise jumped by 51.1% to $90.07 million from $59.60 million last year.
It handled 2.71 million twenty-foot equivalent units (TEUs) in the first quarter, 8% higher than the 2.51 million TEUs handled in the same period a year earlier.
For this week, Mr. Latuja expects near-term selling pressure to limit potential upside of the stock.
“ICTSI went beyond its all-time high at P148.90 last week,” Mr. See said.
“Resistance levels that stock might hit next will be P172.60, P185.00 and P202.70 but be cautious as the stock is trading at overbought levels,” he added.
He pegged the stock support levels at P145.00 to P147.00.
