The research outfit has placed a ‘buy’ call on the counter with a target price of RM3.68.
PETALING JAYA: Westports Holdings Bhd’s drop in share price has presented an opportunity for a potential upside of over 10%, said Maybank Investment Bank .
“Its mid- to long-term prospects remain supported by rising foreign direct investments in Malaysia and continued intra-Asia trade growth potential,” said Maybank IB.Year-to-date, the counter has dropped 43 sen from RM3.73 to RM3.30 as of noon break today.Westports’s container throughput increased by 8% year-on-year for the second quarter of this year , rising slightly from a 7% y-o-y growth in Q1 2023.
However, it noted that Q3 2023 profits could be weighed down by increased operating costs relating to labour and fuel expenses. In Q1 2023, labour, fuel and electricity costs accounted for 34%, 18% and 7% of Westports’s operating expenses respectively.