UOB Kay Hian Research Articles

Westports Holdings: Strong Import And Export To Offset Transshipment Market Share Loss

UOBKayHian
Publish date: Thu, 14 Sep 2017, 09:43 AM
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(WPRTS MK/HOLD/RM3.86/Target: RM3.80)

Westports’ regional market share in regional transshipment declined significantly in 2Q17, in tandem with the smaller average vessel size handled. This is an expected effect from the full volume realignments of the new shipping alliances, in favour of Singapore. We believe the volume risk has been priced in, while the high-yield gateway volumes may surprise consensus on the upside (driven by exports). However given longer-term uncertainties, we maintain HOLD and target price of RM3.80. Entry price: RM3.60.

Source: UOB Kay Hian Research - 14 Sept 2017

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