Westports throughput set to recover in second half
KUALA LUMPUR: Westports Holdings Bhd is expected to see container throughput recover in the second half of 2026 as shipping lines adjust routes and vessels return to service amid the Iran conflict, says Hong Leong Investment Bank Bhd (HLIB).
KUALA LUMPUR: According to Hong Leong Investment Bank Bhd (HLIB), container throughput at Westports Holdings Bhd is set to rebound in the second half of 2026. This recovery is attributed to shipping lines adjusting their routes and vessels returning to service following the Iran conflict. Despite a slight decrease in the first half of 2026, HLIB maintains Westports' full-year throughput growth target of low single digits.
The normalization of the Iran conflict has led to more vessels being released from the Persian Gulf and returning to service, contributing to the expected recovery in 2H26. Westports' outlook remains positive, with recovering throughput anticipated to offset the expected normalization of its value-added services (VAS) revenue, which accounted for 30.7% of container revenue in Q2 2026.
Improved yard occupancy of 70 to 80% helps Westports accommodate ad-hoc transhipment volumes, further supporting the outlook. Cost-related factors, such as stable diesel costs and manageable wage increases, are also favorable for the company. Westports' long-term expansion plans, including the CT10 to CT13 port expansion project, are proceeding as scheduled, with capital expenditures projected to rise in 2027 and 2028.
HLIB has set a Buy recommendation with a target price of RM7.15, noting potential earnings forecast upgrades based on the company's progress.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
