PETALING JAYA: Westports Holdings Bhd
is expected to maintain a steady growth momentum in 2026, supported by resilient transhipment activities, tariff adjustments and ongoing expansion works, say analysts.
This is despite persistent global trade uncertainties and regulatory headwinds.
The port operator’s earnings are expected to remain stable over the medium term, underpinned by structural growth drivers including the China+1 trade diversification and the forthcoming Westports 2 (WP2) project, according to the analysts.
TA Research noted that management has kept its throughput guidance unchanged at 0% to 5% growth for 2025 and 2026, emphasising that US consumption would matter most to the company as US tariffs are comparable for most of the Asean countries.
However, the research house cautioned that elevated tariffs on imports from India could be a concern for regional ports.
TA Research had maintained its dividend discount model valuation for Westports at RM5.57 per share but upgraded the stock to “hold” from “sell” previously, as value has emerged after an 8.4% correction since its last downgrade in July 2025.
Hong Leong Investment Bank (HLIB) Research highlighted that Westports achieved a 4.2% growth in container throughput during the first nine months of financial year 2025 (9M25), driven by a 7.8% increase in transhipment volume, while gateway volumes fell slightly by 0.3%.
“Average port utilisation rate remains high at 80% for 9M25,” it said, adding that management had not observed any significant changes in ongoing or future volumes as major liners have not changed their port calling.
HLIB Research expected earnings sustainability to be supported by tariff hikes and resilient volume movements, maintaining a “buy” call with a higher discounted cash flow-derived target price of RM6.55.
“The approval of the next tariff hike effective Jan 1, 2026, and July 1, 2027, will improve the group’s cash flow and partly fund the WP2 expansion plan,” it added.
MBSB Research described Westports’ latest quarterly results as “solid,” with performance in line with expectations.
Container throughput for 9M25 had reached 75% of its full-year forecast, while berth occupancy eased to 80% amid improved yard conditions.
“The terminal is now operating at full capacity following the completion of maintenance dredging,” MBSB Research said.
It maintained a target price of RM4.90, noting that the stock’s current valuation of 17.2 times 2026 earnings per share is broadly consistent with its five-year average.
Kenanga Research said the group’s prospects remained intact despite the reinstated US tariff on Malaysia.
“No changes in guidance under Trump’s 19% tariff on Malaysia as the tariff is at the same quantum as other South-East Asian countries,” it stated.
It noted benefits from the reshuffling of container boxes under the new Gemini Cooperation alliance, as well as increased storage income amid stricter government inspections on metal imports.
Kenanga Research maintained its “outperform” rating, citing resilient earnings underpinned by long-term contracts with key clients such as Ocean Alliance, and long-term growth prospects, driven by the WP2 expansion project.
CIMB Research projected a 3% container volume growth in 2025, supported by new Ocean Alliance services and shipping alliance realignments, while softer gateway volumes may persist due to “stricter government measures on unauthorised electronic waste imports”.
It maintained its “buy” call with an unchanged target price of RM6.20, adding that it remained constructive on Westports’ outlook, supported by the next phases of tariff adjustments (2026-2027), new Ocean Alliance services and structural growth opportunities from global trade diversion.
For the third quarter ended Sept 30, 2025, Westports reported a net profit of RM271.11mil, up from RM233.07mil a year earlier, as quarterly revenue rose to RM751.99mil from RM572.57mil.
For the nine months ended September 2025, net profit climbed to RM725.2mil from RM641.33mil, with revenue improving to RM2.06bil from RM1.67bil previously.
