KUALA LUMPUR (Aug 24): Bintulu Port Holdings Bhd (KL:BIPORT) may see a stronger second half of 2026 as shippers reposition around the Middle East crisis, said an analyst.
China’s liquefied natural gas (LNG) demand will strengthen with trade diversion, boosting cargo throughput at Bintulu Port, according to Kenanga Investment Bank, the sole research house covering the company. China’s key LNG suppliers currently are Australia, Qatar, Russia, and Malaysia.
“The shortfall of LNG supply to China may be fulfilled by these key LNG suppliers” while demand from Japan and South Korea will be sustained, Kenanga said.
Shares of the usually little-traded Bintulu Port slipped 16 sen or 3% to close at RM5.34 on Monday. The company operates Bintulu Port, the largest container port in East Malaysia and the nation's sole LNG export gateway.
Bintulu Port transitioned from a federal port to a state port under the Sarawak government with the company continuing to run the port under interim and upcoming concession agreement.
Meanwhile, there has been a pick-up in inbound and outbound cargo volumes at Samalaju Industrial Port from its key customers Press Metal Aluminium Holdings Bhd (KL:PMETAL) and OM Holdings Ltd (KL:OMH), Kenanga noted.
“We believe its key customers have an edge over their peers in the international market as their products have low-carbon footprint given their hydro power input,” the research house said.
Further, Western countries are still imposing outstanding sanctions on Russian aluminium that makes up about 6% of world aluminium production, and are looking for alternative sources of aluminium supply, Kenanga said.
The house maintained its ‘outperform’ recommendation with a target price of RM7.00 on Bintulu Port.
On Friday, Bintulu Port announced that its net profit fell 15% to RM29.66 million in the second quarter from a year earlier, dragged by higher staff cost as well as expenses on maintenance and operational supplies.
Revenue, however, rose 11% year-on-year to RM215.56 million, driven by higher handling of LNG cargo and vessel calls. Bintulu Port also declared an interim dividend of three sen per share, payable Oct 8.