KUALA LUMPUR: Westsport Holdings Bhd is expected to continue earnings expansion on the back of sustained volume growth and container tariff hike in the second half of financial year 2025 (2H25), said Hong Leong Investment Bank Bhd (HLIB).
Despite on-going uncertainties on global trade and economies, HLIB said Westports maintains its guidance of mid-single digit growth for container throughput in 2025, after achieving 3.1 per cent growth in 1H25.
The bank noted that Westport has not seen any meaningful change in on-going volume and future volume as major liners have not changed their port calling.
“The approved tariff hike effective July 15, 2025, Jan 1, 2026 and July 1, 2027, will improve the group’s cash flow and partly fund WP2 expansion plan.
“Furthermore, the approved five years dividend reinvestment plan (DRP) will be used to partly finance WP2 (Westports 2) as well.
“Management is committed to continue its 75 per cent dividend payout policy,” it said.
Meanwhile, HLIB said Westports reported another strong performance for the second quarter of financial year 2025 with net profit of RM232.2 million, lifting 1H25 to RM454.7 million.
This was within HLIB’s and the consensus full-year forecasts of 49.5 per cent and 48.4 per cent, respectively.
“The growth was mainly driven by higher container value-added services revenue and rental rate.
“At current juncture, management is retaining its guidance of mid-single digit growth for container throughput in 2025, post achieving 3.1 per cent in 1HFY25.
“Maintain Buy rating with an unchanged target price of RM6.08,” it added.
© New Straits Times Press (M) Bhd
