KUALA LUMPUR (Oct 22): Westports Holdings Bhd (KL:WPRTS) climbed on Thursday towards its highest in more than a month as investors cheered a better-than-expected quarter at the port operator.
Analysts scrambled to raise their estimates as earnings for the first nine months accounted for more than 80% of the consensus’ full-year forecasts. A large majority also maintained their bullish outlook on Westports that has shook off the worst of the Iran war fallout.
“We expect earnings growth to remain supported by tariff hikes and resilient throughput volumes, despite ongoing concerns over the Middle East conflict,” Hong Leong Investment Bank said in a note.
Westports rose as much as 18 sen or nearly 3% to RM6.95, its highest since Sept 15. The stock was trading at RM6.90 at 11.45am as close to two million shares exchanged hands.
Nearly two-thirds of the 18 analysts tracked by Bloomberg have ‘buy’ calls on Westports while five recommend ‘hold’ and two are on ‘sell’ calls. The average target price is RM7.41.
Shares of Westports have gained 27% so far this year after rebounding from their lows at the height of the geopolitical conflict in the Middle East. Investors also appear to have shrugged off concerns over rising fuel prices as earnings surged with tariffs increase approved by the government.
Westports, which operates one of the busiest terminals within the Port Klang complex, uses diesel purchased in US dollars at market prices for its terminal trucks and container yard cranes.
“Looking ahead, we expect throughput volumes to strengthen” in the final quarter of 2026, the peak season for Westports, said RHB Research. A further 5% tariff hike in 2027 provides an additional earnings tailwind, the house flagged.
October to December is usually the peak for the global industry as retailers stock up heavily for Christmas and year-end sales, driving a massive surge in both transhipment and gateway container volumes.
On its part, Westports expects "overall container throughput to be at least the same as the previous year” though the company cautioned that fast-evolving conditions that could affect its prospects.