PETALING JAYA: Westports Holdings Bhd
’s core net profit is forecast to shrink in its financial year 2025 (FY25) as the tariff war initiated by the United States may cause a decline in the port operator’s container volume.
A further hit could come from the potential delay in the terminal handling charge hike for six months in view of macroeconomic uncertainties.
CGS International (CGSI) Research has cut its FY25 core net profit forecast for the company by 9.3% to RM811mil, following the expectation of a 1.4% year-on-year (y-o-y) contraction in container volume.
In FY24, the core net profit was recorded at RM898mil.
So far, the contraction in container volume is only expected for a year, although in 2026, the volume may only increase modestly by 3.4% y-o-y.
CGSI Research warned that if the US tariffs would result in a global recession, Westports’ intra-Asia and Europe container volumes could be affected.
It noted that the United States could reduce its tariffs on China from 145% to around 50% to 60%, as reported by the Wall Street Journal. As for South-East Asian countries, they have a better chance of succeeding in lowering the US tariffs more significantly.
Ultimately, the US may source more imports from South-East Asian factories in the short, medium and long term.
“Also, if the US tariff gap between China and South-East Asia remains wide, we expect that, in two to three years, more factories could be relocated from China to South-East Asia and this may help to boost Westports’ container volumes handled in the medium to long term.
“We think that Westports’ container volumes could be very healthy from 2027 onwards,” said the research house.
