KUALA LUMPUR: Shares in Westports Holdings Bhd
rose in early trade after its nine-month earnings came in ahead of analysts' expectations.
The port operator gained 16 sen, or 2.36%, to RM6.93, with 577,600 shares traded as at 9.57am.
For the third quarter ended Sept 30, 2026 (3Q26), Westports' net profit jumped 26.4% to RM342.56mil from RM271.11mil a year earlier, while revenue surged 42.1% to RM1.07bil.
For the nine-month period, net profit rose 42% to RM1.03bil, while revenue increased 37.2% to RM2.83bil.
MBSB Research said Westports' nine-month earnings came in slightly above expectations, supported by lower operating costs, while revenue remained in line with forecasts.
The research house said core net profit of RM1.03bil accounted for 80% of its full-year forecast and 82% of consensus estimates.
Container throughput rose 5.9% year-on-year in the third quarter, driven by a 12.3% increase in transhipment volumes, while gateway volumes declined 2.4% amid softer imports.
MBSB Research said management maintained its low single-digit container volume growth guidance, with the fourth quarter expected to record the highest throughput for the year.
It added that uncongested yard operations and vessel waiting times of less than a day positioned Westports to accommodate additional vessel calls.
“We raise our FY26-FY28 earnings forecasts by 2.8% to 3%, factoring in lower operating costs (primarily depreciation and electricity expenses),” MBSB said.
The research house also raised its target price to RM6.74 from RM6.57 but maintained its neutral call, noting that the stock was trading near its five-year historical average valuation.
Meanwhile, HLIB Research maintained its buy call on Westports, raising its target price to RM7.55 from RM7.15 following an upward revision to its earnings forecasts.
The research house said Westports' nine-month core net profit of RM1.04bil, up 43.9% year-on-year, came in slightly above expectations, driven by higher container tariffs, resilient throughput volumes and stronger value-added services income.
It said earnings growth was largely supported by cumulative tariff increases of 25%, comprising a 15% hike in July 2025 and a further 10% in January 2026.
Despite the ongoing Middle East conflict, Westports maintained its low single-digit container throughput growth guidance for 2026, with volumes rising 1.3% in the first nine months.
HLIB Research expects earnings to remain supported by resilient container volumes and a further 5% tariff increase scheduled for January 2027.
On expansion, it said construction of container terminals CT10 to CT13 under the Westports 2 project was 71% completed as at end-September 2026, with CT10 expected to begin operations in the third quarter of 2028.
The research house raised its FY26 and FY27 earnings forecasts by 3.4% and 1.3%, respectively, while maintaining its FY28 projection.
