Quick take: Westports rises 3.2% on in-line earnings

KUALA LUMPUR: Shares in Westports Holdings Bhd climbed in early trade Monday after it reported earnings that were in line with analysts’ expectations.

The port operator rose 3.2%, or 13 sen to RM4.19. Year-to-date, the counter has fallen 0.96%.

Westports’ net profit surged by almost a third to RM178mil from RM134mil a year ago. Revenue climbed to RM505mil from RM431mil previously.

Westports has declared an interim dividend of 8.5 sen a share.

For the half-year ended June 30, the group’s net profit rose 34.53% to RM386.29mil from RM287.15mil previously. Revenue surged 11.95% to RM1.01bil against RM905.07mil.

Kenanga Research said Westports’ 1HFY21 core net profit (CNP) of RM366.3mil (+28% YoY) came in within the house/consensus expectation at 53%/51% of full-year estimate, respectively.

It added that the first interim dividend per share of 8.5 sen was declared for 1HFY21, as expected.

“Delay in shipping line arrival time schedule coupled with pandemic-induced supply chain disruption could potentially limit total container volume this year, in addition to congestion at the ports yard.

“Nevertheless, transshipment and gateway volume are still sustainable, in tandem with gradual economies’ re-opening. Maintain ‘market perform’ with a target price of RM4.20. The saving grace is a 3.7% dividend yield,” Kenanga said.

AmInvestment Bank Research has maintained its “buy”, forecasts and fair value (FV) of RM5.07 based on 23x FY22F EPS.

“Westports’ 1HFY21 core net profit of RM365.4mil (excluding one-off items, particularly, a lumpy insurance recovery) came in within expectations at 50% and 51% of our full-year forecast and full-year consensus estimates respectively,” it said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Westports , transshipment


Next In Business News

Tanco bags RM172.66mil land reclamation job in Melaka
Sapura Energy CFO Reza leaves, Chew to take over�
Southern Steel registers RM47.9mil net profit in FY21
BDB-MBI Kedah JV to develop Langkawi Premium Outlets
Astro posts lower Q2 net profit due to elevated content cost�
Southern Acids Q1 net profit climbs on higher commodity prices�
Bursa Malaysia ends higher after volatile trading
Public Bank clinches record Best Bank in Malaysia award for 15 years
Universal Music Group shares surge on stock market debut
Evergrande woes hit Japan's toilet, air-conditioner and paint manufacturers

Stories You'll Enjoy