KUALA LUMPUR, Jan 21 (Bernama) -- Maybank Investment Bank Bhd (Maybank IB) forecast a 41 per cent gateway container mix for Westports Holdings Bhd in financial year 2025 (FY2025), compared to 45 per cent recorded in the third quarter last year, with a tariff hike anticipated in FY2027.
In a note today, the investment bank remains positive on Westports, supported by sustained intra-Asia trade demand and rising foreign direct investments and domestic direct investment in Malaysia, which drive gateway container volume growth.
“The upside potential also includes a stronger-than-expected gateway-to-transshipment volume mix and an earlier tariff revision,” it said.
Therefore, Maybank IB maintain ‘buy’ call on Westports, with a discounted cash flow-target price of RM5.38 per share.
Meanwhile, the bank also noted that the Drewry World Container Index has reversed its uptrend, contracting by three per cent week-over-week
This is following the resolution of the International Longshoremen Association (ILA)-United States (US) Maritime Alliance labour dispute and the Gaza ceasefire, which could signal the reopening of the Suez route, a major contributing factor to rising container shipping rates over the past year.
“Additionally, tapering frontloading demand ahead of US President Donald Trump’s tariff threats (started since November 2024) and pre-Chinese New Year rush contributed to the softening,” it added.
-- BERNAMA
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