Market Event

International Container Terminal Services Inc. (ICTSI) is cautiously optimistic this year, with the commencement of global vaccination efforts seen to improve trade activities worldwide.

Opinion

ecall that its 2020 CAPEX was slashed by 41% to $160 Million as lockdowns impeded global trade activity. While management did not fully disclose CAPEX guidance, ICT has recently completed its berth expansion in MICT (+10% TEU capacity) and should indicate an optimistic outlook due to anticipated inoculation programs in the coming months.

Additionally, ICT has recently strengthened its balance sheet through cost savings which resulted in 9-Month 2020 EBITDA margins improving by 190 bps to 58.2%, as well as capital raising through the debt market. This could portend potential expansion programs post-vaccine. (Target Price: PHP 138.00)

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