PETALING JAYA: Westports Holdings Bhd
’s container throughput is expected to return to growth in the financial year 2026 (FY26), with global shipping lines realigning routes and vessels returning to service despite the ongoing Iran conflict.
Hong Leong Investment Bank (HLIB) Research said management guided for operating costs to remain stable versus the second quarter of 2026.
This is supported by Westports’ two-year green electricity tariff subscription, which hedges against fluctuations in automatic fuel adjustment (AFA) charges and Malaysian Sustainable Energy Development Authority’s Renewable Energy Fund contributions.
“Diesel costs are also expected to remain stable despite a recent rebound in Mean of Platts Singapore prices post moderation in July.
“Meanwhile, the first batch of electric trucks have arrived for initial testing, ahead of full trials following the planned rollout of battery-swapping stations in 2027.
“The June 2027 minimum wage hike to RM2,000 is expected to be manageable at about 5% of total staff costs (in line with annual rise in staff costs), as the current minimum salary of its staff is already at RM1,900,” the research house said in a report recently.
HLIB Research said despite a 1% year-on-year decline in container throughput in the first half of 2026, Westports maintained its FY26 guidance for low-single-digit growth, primarily driven by transhipments.
