Detailed analysis

Luzon International Premier Airport Development Corp. (LIPAD), the consortium that bagged the 25-year concession to operate and maintain Clark International Airport, has moved the opening of the airport’s new passenger terminal to the 2nd Quarter of 2021 from its earlier announcement of a January 2021 schedule.

Domestic and international flights would start operations in the new terminal by 2Q 2021 and 3Q 2021, respectively. The new passenger terminal is a four-storey structure with 18 airport bridges and has a total floor area of 110,000 sqms. It has an annual capacity of 8mn passengers, or double the airport’s current capacity.

The LIPAD consortium is comprised of JG Summit Holdings, Inc. (JGS), Filinvest Development Corp. (FDC), Philippine Airport Ground Support Solutions, Inc., and Changi Airports Philippines Pte. Ltd.

Recommendation

We maintain our BUY recommendation on JGS with a Target Price of PHP 80.00 per share.

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