KLN's Network Strength Intact Despite Margin Pressure; Shares Remain Undervalued

KLN Logistics Group's international freight forwarding segment accounted for 60% of consolidated segment profit in 2025 and will remain a key driver of earnings. Demand for international cargo capacity has increased, as shipping vessels took longer routes to avoid Houthi attacks in the Red Sea. Nonetheless, we expect that rising international trade restrictions imposed by the US government will dampen trade in the long run, and the gradual easing of capacity constraints due to eventual normalization of shipping in the Red Sea could reduce freight rates.