KUALA LUMPUR, Aug 4 — CIMB Securities Sdn Bhd has upgraded Westports Holdings Bhd to ‘Buy’ from ‘Hold’, driven by higher container revenue following Port Klang’s new tariff implementation and higher transhipment volumes on the back of new services.
The port operator also upgraded its 2025 container throughput growth guidance forecast to a mid-single-digit range from flat previously, CIMB Securities said in a research note today.
“We upgrade the stock with a higher RM6.20 target price (TP) from RM5.10 in anticipation of a potential valuation re-rating on the back of renewed investor interest in the Malaysian ports sector, underpinned by easing geopolitical risks, port tariff catalysts, and improved operating leverage,” it said.
The government approved a staggered 30 per cent rise in Port Klang tariffs effective July 15, 2025, to be phased in through January 2027.
To recap, the port terminal handling charges for a TEU container will rise by 15 per cent to RM345 from RM300, effective as of the said date, the research note said.
This will be followed by a further 10 per cent increase to RM375 effective January 1, 2026, and a final 5.0 per cent hike to RM390 effective January 1, 2027.
“Apart from tariff revision, the completion of its maintenance dredging that started in the first quarter of 2025 (1Q 2025) would restore wharf capacity from August onwards.
CIMB Securities maintained its container throughout growth forecast of 2.5 per cent, supported by new services from shipping alliances and volume normalisation base after ZIM Integrated Shipping’s 2024 exit.
“These factors should drive a recovery in transhipment volumes,” it added.
Meanwhile, Kenanga Investment Bank Bhd maintained an ‘Outperform’ call on the port operator after Westports’ 1H FY2025 results met expectations,
Its 1HFY25 core net profit grew 11 per cent year-on-year, driven by higher value-added services, restow services for the new Gemini Cooperation and higher throughput contribution from Ocean Alliance.
“Westports also expects 3Q FY2025 results to overtake 2Q FY2025 performance as the ceiling price for revised port charges has taken place on July 15, 2025, with its storage yards reaching almost max capacity,” it said.
Kenanga maintained TP at RM6.00 per share.
At 10.38am, the counter gained two sen to RM5.61 with a total of 507,300 shares traded.
