KUALA LUMPUR: The damage inflicted by Covid-19 to the local transportation and logistics sector is no mere dent but destruction of varying degrees to different segments, AmBank Research said.
AmResearch expects container throughput to contract by 15 per cent at Westports and 10 per cent at ports of MMC Corp Bhd this year.
it also projects passenger volume for AirAsia Group Bud to shrink by 35 per cent, before rebounding 25 per cent next year from a low base.
This is assuming that by then the pandemic will have been significantly contained or vaccines will have been made available.
"We are expecting Pos Malaysia's mail volume to drop by 35 per cent in financial year 2020 (versus a contraction in the teens in FY19 based on our estimates)," AmResearch said today.
The firm's top pick within the sector is MMC Corp.
"While we are mindful of the soft patch ahead amidst a major slump in the world economy as well as world trade in the aftermath of the Covid-19 pandemic, we believe the recent selldown on MMC Corp has been overdone," it said.