The world’s largest independent port operator jumped 3.3 percent to P507 per share, valuing the company at P1.02 trillion.
This put ICTSI atop the five most valuable blue chips, ahead of Sy family firms SM Investments Corp., BDO Unibank, and SM Prime Holdings, as well as Manuel V. Pangilinan-backed Manila Electric Co.
Defying trade headwinds
“We are very happy with how our expansions have been going and we will continue to work very hard to ensure we are extracting operating leverage from our terminals,” Christian R. Gonzalez, executive vice president and global corporate head of ICTSI, told InsiderPH in a text message on Wednesday.
“It was unexpected that in this era of erratic trade policy, we’ll see a port operator emerging as the most valuable listed company in the Philippines,” said Alfred Benjamin R. Garcia, research head at AP Securities Inc.
“ICT has been one of the most consistent in delivering growth to shareholders, even when cargo volume growth is flattish they delivered earnings growth through prudent fee increases and cost-cutting measures,” he added.
Post-EDSA revolution growth
Founded by Enrique Razon Sr., ICTSI has expanded into a global port operator with 32 terminals across 19 countries, not shying away from challenging conditions in emerging markets, including Iraq.
Much of this growth took shape after Razon Jr., then 27, joined ICTSI as director following the EDSA Revolution. He became chair in 1995 after his father’s passing.
Juan Paolo Colet, managing director at China Bank Capital, said ICTSI’s meteoric rise makes it the “bluest of blue chips.”
But it wasn’t an overnight success for the cargo ports giant, which listed on the PSE in 1992 at P6.70 per share.
Crisis-tested leadership
ICTSI weathered several crises, including the Asian financial crisis and the 2008 global financial crisis triggered by the U.S. subprime mortgage meltdown.
Colet said the valuation means investors “fully appreciate the resiliency and profitability of its global operations, the value of its diversified terminals portfolio, and its potential growth path amidst a major realignment in world trade.”
The company’s growth is backed by solid earnings with a record first-half net income of $483.84 million, driven by strong port activity and cost discipline.
“Even now, ICT is talking about expanding into more emerging markets despite expectations of a global trade slowdown,” Garcia said.
“So it’s no surprise that the market is rewarding ICT’s ability to pivot and take advantage of shifts in global trends,” he added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
