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BUSINESS • 12/03/2025 01:04 PM

Kenanga IB: Trade Shifts, AI To Drive Logistics Sector In 2025

KUALA LUMPUR, March 12 (Bernama) -- Kenanga Investment Bank Bhd (Kenanga IB) expects the domestic logistics sector to sustain steady growth in 2025, driven by the expanding e-commerce industry, the global technology upcycle fuelled by artificial intelligence (AI) demand, and a resilient United States (US) economy.

In a note today, the investment bank said the sector is also set to benefit from potential trade diversion amid US-China tensions and a short-term surge in container volumes at domestic ports due to frontloading ahead of a possible US tariff hike on Chinese goods this year.  

Kenanga IB maintained a neutral outlook on the seaport and logistics sector and did not designate a top pick, following the recently concluded fourth-quarter calendar year 2024 earnings season, which saw mixed performances across industry players.  

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It said Westports Holdings Bhd (market perform; target price: RM4.40) exceeded expectations, while Bintulu Port Holdings Bhd (market perform; target price: RM6.20) met forecasts.

However, it noted that Swift Haulage Bhd (market perform; target price: RM0.41) and Pos Malaysia Bhd (underperform; target price: RM0.15) fell short of expectations.  

Kenanga IB also flagged stricter carbon emission regulations as a potential challenge to global trade, citing measures from the United Nations’ International Maritime Organisation and the European Union (EU).  

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"While the exact implications remain uncertain, container volumes to the EU will inevitably be affected, particularly shipments from China, a major exporter of iron, steel and aluminium to the bloc," it added.  

-- BERNAMA

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