Westports Posts Stronger 9M Earnings on Transhipment Growth

KUALA LUMPUR, Oct 22 — Westports Holdings Bhd delivered stronger-than-expected financial results for the first nine months of FY2026, supported by robust regional transhipment demand, improved operational efficiency and lower operating costs.

The port operator reported core net profit of RM346.1 million for the third quarter ended Sept 30, 2026, bringing cumulative nine-month core net profit to RM1.03 billion. The figure accounted for 80% of analysts’ full-year forecast and 82% of consensus expectations, slightly exceeding market estimates.

Container revenue rose 21.7% year-on-year, driven by tariff adjustments, higher container throughput and a 31% increase in value-added services (VAS) income. Total container volume grew 5.9%, supported by a 12.3% increase in transhipment traffic, including empty container redeployment activities.

Westports

Gateway container volumes, however, declined 2.4% amid softer import demand.

Operationally, Westports continued to benefit from uncongested yard conditions, with vessel waiting times remaining below one day, significantly shorter than waiting periods reported at some regional ports. Management expects the fourth quarter to record the highest throughput level for FY2026.

On a quarter-on-quarter basis, container revenue declined 2.5% despite higher throughput, mainly due to lower VAS income. Core profit slipped marginally by 2% as profit margins remained stable.

Following the earnings beat, analysts raised FY2026-FY2028 earnings forecasts by about 3%, citing lower depreciation and electricity expenses. Electricity costs fell nearly 29% during the nine-month period, aided by favourable tariff classifications, green energy incentives and increased solar power generation.

Despite a higher target price of RM6.74, analysts maintained a “Neutral” recommendation on the stock

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