PETALING JAYA: Westports Holdings Bhd
is expected to deliver flattish to slightly higher core net profit year-on-year (y-o-y) for the fourth quarter of last year (4Q25), driven by higher port tariffs.
CIMB Research said it remains positive about the group’s outlook, supported by upcoming tariff revisions (2026 to 2027), new Ocean Alliance services, and structural tailwinds from global trade diversion.
“We forecast 4.5% y-o-y container volume growth this year, underpinned by normalisation in trade activity following the implementation of reciprocal tariffs and resilient intra-Asia trade flows, which accounted for 66% of total twenty-foot equivalent units (TEUs) in 2024,” the research house said in a report recently.
CIMB Research said Westports achieved record container throughput of 11.3 million TEUs and conventional throughput of 12.8 million tonnes last year, based on the company’s disclosure, which translates to 2.9% y-o-y and 5% y-o-y growth, respectively.
“The container volume outcome was in line with Westports’ low single-digit growth guidance and our 3% forecast for last year. Meanwhile, conventional throughput exceeded our estimate by 0.2 million tonnes, or 1.6%,” the research house said.
Nonetheless, CIMB Research said Westports’ container and conventional performance is likely to be mixed. The research house estimates the group’s container throughput could decline marginally by 0.3% quarter-on-quarter (q-o-q) and 0.7% y-o-y to 2.86 million TEUs in 4Q25.
“In contrast, conventional throughput rose by a robust 13.2% y-o-y and 3.2% q-o-q to 3.59 million tonnes. We attribute the stronger y-o-y growth in the conventional segment partly to higher roll-on/roll-off (RoRo) vehicle shipments, particularly for electric vehicles (EVs), as local distributors likely stocked up on inventory ahead of the expiry of the tax exemption for completely built-up EVs on Dec 31,” the research house said.
CIMB Research maintained a “buy” call on Westports with a target price of RM6.20. It made no changes to its forecasts.
The research house said key re-rating catalysts for the port operator include better-than-expected earnings from port tariff hikes, recovery in transshipment cargo volumes and sustainable gateway volume growth.
Meanwhile, downside risks include rising geopolitical tensions, a slowdown in intra-Asia trade volumes and higher-than-expected inflationary cost pressures.
