AmInvest Research cuts Westports net profit forecasts, retains ‘hold’
AmInvestment Research said Westport’s(pic) earnings downgrade stemmed largely from housekeeping and the forecast reduction in its FY2019 container throughput growth rate assumption to 3% per annum from 5% previously.
KUALA LUMPUR: AmInvestment Bank Research has cut Westports Holdings Bhd 
net profit forecasts by 8% and 5% for financial year 2018 and 2019 respectively and reduced its fair value by 2% to RM3.74 from RM3.82, but maintained its “hold” call.
It said the new fair value was based on 21 times revised fully diluted FY2019F earnings per share at about 10% discount to Westports’ average historical forward price-to-earnings (P/E) of 23 times.
“This is to reflect the subdued outlook for the port sector over the short-to-medium term on slowing global economy and potential headwinds from the US-China trade tension,” said the research unit.
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