SEAPORT & LOGISTICS
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Research by Kenanga
Neutral

“Shipping Diversion Weighs”

We maintain NEUTRAL rating on the sector. The shipping diversion from the Red Sea continues to weigh down on global trade, especially in the Asia-Europe sector. The World Trade Organisation (WTO) in Apr 2024, cut its projection for global merchandise trade volume growth in CY24 to 2.6% (from 3.3%), also quoting lower water levels in Panama Canal due to an extreme drought that is disrupting the movement of shipping liners. We also acknowledge that global trade will have to navigate stricter regulations on carbon emissions. However, we continue to see a bright spot in the domestic logistics sector, which is a beneficiary of the booming e-commerce. We downgrade WPRTS to UP from MP with an unchanged TP of RM3.80 after the recent run-up in its share price. We do not have any top pick for the sector.

Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz 
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SEAPORT & LOGISTICS
 $KLSE-WPRTS 
Research by Kenanga
Neutral

“Shipping Diversion Weighs”

We maintain NEUTRAL rating on the sector. The shipping diversion from the Red Sea continues to weigh down on global trade, especially in the Asia-Europe sector. The World Trade Organisation (WTO) in Apr 2024, cut its projection for global merchandise trade volume growth in CY24 to 2.6% (from 3.3%), also quoting lower water levels in Panama Canal due to an extreme drought that is disrupting the movement of shipping liners. We also acknowledge that global trade will have to navigate stricter regulations on carbon emissions. However, we continue to see a bright spot in the domestic logistics sector, which is a beneficiary of the booming e-commerce. We downgrade WPRTS to UP from MP with an unchanged TP of RM3.80 after the recent run-up in its share price. We do not have any top pick for the sector.

Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz 
wanmustaqim@kenanga.com.my

$WPRTS / 5246 (WESTPORTS HOLDINGS BERHAD)