PETALING JAYA: Bintulu Port Holdings Bhd
(BIPort) is expected to register a stronger performance in the second half of 2026 (2H26) supported by the normalisation of global trade along new shipping routes as operators reposition around the ongoing Middle East crisis.
BIPort posted a decent 1H26 financial performance, with revenue growing 9% year-on-year (y-o-y) to RM434mil, supported by Bintulu Port (+11%) and Samalaju Industrial Port (+3%).
Core net profit declined slightly by 2% y-o-y to RM60.2mil due to a lower-margin cargo mix skewed towards Bintulu Port, a higher effective tax rate of 32.5%, and an 18% increase in staff costs due to a salary hike recognised since 4Q25.
“Its liquefied natural gas (LNG) cargo volume rose 21% as Malaysia LNG Sdn Bhd complex activities fully recovered after major maintenance shutdown in 1H25.
On the other hand, its non-LNG segment (comprising dry bulk, break bulk, liquid bulk and containerised cargoes) rose 11%.
This was on more gateway cargoes from heavy industries in Samalaju Industrial Park (ie, the import of alumina, coal and coke, the export of aluminium, manganese and quartz) amid the stabilising of ocean freight rates as global trade normalised on new trade routes as shippers reposition around the Middle East crisis,” Kenanga Research, which has sole coverage on BIPort, stated in its latest report on the port operator.
The research house has a positive view on its prospects. It noted LNG cargo throughput at Bintulu Port is projected to remain stable, driven by sustained demand from Japan, South Korea and China.
Operations at the Samalaju Industrial Port will also benefit from higher throughput driven by its major clients like Press Metal Aluminium Holdings Bhd and OM Holdings Ltd.
Kenanga Research views BIPort’s long-term growth prospects favourably with the outbound LNG cargoes providing the group with a defensive, steady income stream while growth is supported by the expanding heavy industries in the Samalaju Industrial Park.
On the regulatory front, Bintulu Port ownership has transitioned from the Federal government to Sarawak state control.
Kenanga Research added the port has secured a heads of agreement with the state government to establish an interim operating framework, while paving the way for a finalised new concession soon and a potential 30% cumulative port tariff hike starting in 2027.
With a favourable outlook and solid fundamentals, the research house maintained its “outperform” call on BIPort with a target price of RM7 a share.
