• On 8 June, a fire broke out involving 14 containers of various industrial goods at West Port, Pulau Indah in Klang.

• The fire affected 40-foot containers holding unbleached kraft paper, washing machines, polyvinyl chloride polymers, sawn pine wood, scaffolding and shuttering equipment. Westports used cranes to relocate the burning containers and the fire was contained at 2:39 PM. There were no injuries reported.

• The fire incident is considered minimal compared to a previous fire incident in 2022 that burnt 22 containers and damaged 38 boxes. Hence, we expect no major impact from the incident.

• Westports has a proper mitigation plan and insurance coverage in place to manage fire risks at the port.

• Moving forward, we believe that Westports would be able to sustain its container gateway volume due to resilient intra-Asian trade and a competitive port tariff compared to regional peers.

• We maintain BUY on Westports with an unchanged fair value (FV) of RM4.52/share, pegged to FY24F PE of 18x, at parity to its 5-year average of 18x. The stock offers a compelling dividend yield of 5%.

Source: AmInvest Research - 10 Jun 2024