Westports Holdings Berhad (5246:KL) remains neutral on its near to medium-term prospect with an unchanged throughout growth assumption of 5%
Kenanga research has maintained its market perform rating on Westports Holdings Bhd with an unchanged target price of RM3.75.
Following a meeting with Westports’ management, the research house said its remains neutral on its near to medium-term prospect with an unchanged throughout growth assumption of 5%.
It noted a lack of near-term earnings catalysts but views Westports as a longer-term prospect.
According to Kenanga, Wesports is expanding its Westports 2, which is expected to be executed in three phases.
It said the land reclamation for Phase 1 will likely commence from FY20 onwards with capex of RM3bil to RM4bil based on preliminary estimations.
“We reiterate our view with Westports 2 expansion to be a longer-term prospect with full completion by 2040.
“As such, we rule out any earnings accretive development over the next two years,” it said.
Kenanga added that Wesports is constructing a new liquid bulk jetty on 33 acres of land, which is expected to have a capex of about RM70mil with construction to begin earliest in 2H19 and operations in FY21.
“Though the impact is expected to be insignificant, this will contribute to WRPTS’ conventional segment, which historically took up 7-8% of the group’s total revenue and rental revenue, which historically took up 2-3% of the group’s total revenue,” it said.
Following an exceptionally strong throughput growth of 12% year-on-year in 1Q19, Westports has maintained its container throughput guidance of 3-8% for FY19.
Management said growth levels are expected to taper from 2H19 onwards due to the higher base effect from 2H18 and minimal impact from the trade war as it is more likely to impact the Asia-America trade route.
“As such, we made no changes to our FY19-20E throughput growth assumptions of 5-5%,” said Kenanga.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 3.82.
The projected lower bound is: 3.47.
The projected closing price is: 3.65.
During the past 10 bars, there have been 4 white candles and 3 black candles for a net of 1 white candles. During the past 50 bars, there have been 25 white candles and 15 black candles for a net of 10 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 8.3333. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 11 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 40.39. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 139 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -154.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
WESTPORTS HLDNGS closed unchanged at 3.650. Volume was 130% above average (neutral) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume___
3.650 3.700 3.640 3.650 2,478,600
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3.76 3.75 3.70
Volatility: 21 30 34
Volume: 1,484,550 1,027,090 1,070,972
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
WESTPORTS HLDNGS is currently 1.4% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of WPHB.KL at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on WPHB.KL and have had this outlook for the last 1 periods.
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