RHB Research expects Westports throughput growth to remain balanced across both the gateway and transhipment segments in 2026.
PETALING JAYA: Westports Holdings Bhd
’s prospects for 2026 remain anchored by growth in throughput in both its transhipment and gateway container volumes.
TA Research stated assuming a 5% growth in 2026, the total estimated throughput of 11.9 million 20-foot equivalent units (TEUs) for financial year 2026 (FY26) are still within the port operator’s handling capacity of 12 to 12.5 million TEUs, and before container terminal 10’s (CT10) completion and utilisation in FY28.
It, however, warned US tariffs remain a key factor and the meeting between US President Donald Trump and China’s leader Xi Jinping in April could determine how global trade fares in 2026.
The research house has, nevertheless, raised its FY26 to FY27 earnings projections for Westports by 6.3% to 10.2% to account for higher revenue from marine service and the rental segment, as well as lower fuel and electricity costs.
Westports posted a record FY25 performance, with core net profit rising 12.7% year-on-year (y-o-y) to RM1bil on total revenue of RM3.1bil.
Revenue contribution was higher across all its segments (container, conventional, rental and marine services) in FY25.
CIMB Securities noted Westports’ container revenue increased by 9% y-o-y to RM2.1bil, mainly driven by the first phase of the tariff adjustment effective July 15, 2025.
Average revenue per TEU improved 5.5% y-o-y to RM187.3 while total container throughput rose 3.1% y-o-y to 11.3 million TEUs, underpinned by a strong recovery in transhipment volumes (7.2% y-o-y rise) in FY25.
Gateway volumes declined 1.9% y-o-y to 4.8 million TEUs partly on stricter enforcement on unauthorised e-waste imports.
CIMB Securities forecast Westports revenue to grow by 13% in FY26 and core net profit growth by 16% as container volume grows by 4.5% y-o-y, driven by a normalisation in gateway cargo and resilient transhipment growth supported by new Ocean Alliance services and ongoing trade diversion trends.
“Westports is expanding container yard capacity by adding 5% additional ground slots, targeted for completion by the third quarter of 2026 (3Q26). We believe this will help ease yard congestion during peak periods and support the company’s single-digit volume growth target for FY26,” it noted in its latest report on the port operator.
RHB Research also expects Westports throughput growth to remain balanced across both the gateway and transhipment segments in 2026.
It also does not foresee a significant recovery in Suez Canal transits during the first half of the year (1H26), although a shift – if any – may occur in 2H26.
“That said, we see no immediate headwinds for cargo volumes this year. Consequently, we maintain our throughput growth forecast of 4.5%,” it noted.
The research house has maintained its “buy” call on Westports with a discounted cash flow based target price (TP) of RM6.89 a share, a valuation based on a price-earnings multiple of 18 times its FY27.
CIMB Securities raised its FY26 to FY27 earnings per share forecasts for the port operator by 3.6% to 8.8% to reflect an improving volume mix from gateway cargo recovery and better cost discipline.
It also maintained its “buy” call on the stock with a higher TP of RM6.70 a share. It added Westports offered decent FY26 to FY27 dividend yields of 4.2% to 4.3%.
TA Research raised Westports’ valuation to RM7.40 a share (from RM5.57 per share) and upgraded it to a “buy” (from “hold”) on expectations that the global trade will stop deteriorating after the Xi-Trump meeting on April 26.
