KUALA LUMPUR (July 9): Higher tariffs likely boosted earnings of Westports Holdings Bhd (KL:WPRTS) and more than offset higher fuel costs in the second quarter, said RHB Research.

Earnings for the second quarter will likely come in at RM280 million to RM320 million for a year-on-year growth of up to 40%, according to the research house’s earnings preview. That puts Westports on track to make net profit of RM1.3 billion for the full year, the house noted.

“This earnings trajectory is underpinned by higher container charges and a positive container growth,” RHB Research said in a note, keeping its ‘buy’ call on the stock.

Westports is expected to announce its quarterly results on July 24.

Shares of Westports have gained about 8% so far this year and the stock rebounded from the war-driven selldown. The company has shrugged off the Middle East crisis with earnings surging 47% year-on-year in the first three months of 2026 supported by stronger container revenue.

Westports, which operates one of the busiest terminals within the Port Klang complex, maintained its forecast of low single-digit container throughput growth for the year. However, it has cautioned that it may revise guidance if conditions worsen or volumes soften.

Malaysia’s sustained export growth should translate into stronger container throughput volume for Westports, the research house said.

While the US-Iran ceasefire has ended, RHB Research said its earnings forecasts have already factored in a 30% increase in fuel costs. Further, fuel consumption is expected to ease by about 10% in the final quarter of 2026 with deployment of 60 electric trucks, the house noted.

RHB Research raised its target price for Westports to RM7.49, which values the company at 19 times the projected 2027 earnings. The stock is currently trading at around 15 times its five-year average forward earnings. Westports was up 0.5% or three sen to RM6.08 at the time of writing on Thursday.