2025 Container Growth Forecast At 2.5 Pct, 'Hold' Rating On Westports - CIMB Securities

KUALA LUMPUR, May 13 (Bernama) -- CIMB Securities Sdn Bhd has maintained a 2025 growth forecast of 2.5 per cent for container throughput, underpinned by new services from shipping alliances, and potential front-loading activities during the 90-day tariff pause.

In a research note today, the firm said Westports Holdings Bhd has revised its 2025 forecast container throughput volume guidance to flat year-on-year (matching 2024 levels), down from its earlier low single-digit growth estimate of under five per cent.

“This reflects rising global trade protectionism and the risk of a broader economic slowdown. However, the group remains optimistic that intra-Asia trade growth and regional realignment could partly cushion the impact,” it said in a note.

CIMB Securities said Westports’ Asia-Europe trade volume rose 21 per cent y-o-y in the first quarter ended March 31, 2025 (1Q FY2025) following additional new services from Ocean Alliance.

Asia-America trade volume also grew 16 per cent y-o-y in 1Q 2025 partially due to front-loading activities and underlying demand growth.

Meanwhile, its intra-Asia trade volume declined seven per cent y-o-y due to rising competition following shipping alliance realignments.

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The firm also maintained its earnings forecast and “Hold” rating on the stock. Target price unchanged at RM4.50.

“However, potential re-rating catalysts for the stock include upcoming government-approved port tariff hikes, a recovery in transshipment cargo volumes, and sustainable gateway volume growth,” it added.

Potential de-rating catalysts for the stock include a delay in the new port tariff revision by the government, escalation of geopolitical risks in North Asia and the Middle East, which will affect trade routes, and higher fuel costs.

-- BERNAMA