Maybank IB Sees Upside In Westports' 4Q Earnings On Strong Volumes, High Yard Utilisation

KUALA LUMPUR, Jan 16 (Bernama) -- Westports Holdings Bhd is expected to see upside in its fourth quarter of 2025 (4Q 2025) earnings, supported by stronger year-on-year (y-o-y) and quarter-on-quarter (q-o-q) volumes, as well as elevated yard utilisation, according to Maybank Investment Bank Bhd (Maybank IB). 

In a research note, the investment bank said yard density peaked to almost 100 per cent in December 2025 due to high vessel discharge volumes, despite storage fees rising up to three times since July 2025, while dwell time remained largely stable. 

"This combination could support higher q-o-q earnings, with 4Q results expected on Jan 30, 2026. 

"Westports’ nine month of 2025 (9M 2025) results accounted for 74 per cent of our forecasts. We maintain our forecasts and discounted cash flow based target price of RM6.73," it said, while recommending a "Buy" call on the company. 

Maybank IB said productivity is expected to recover in the coming weeks as management estimates that deferred or temporarily diverted volume during the congestion is at 50,000-100,000 twenty-foot equivalent units (TEUs), highlighting underlying demand exceeding handled throughput.

It said Westports indicated that strong 4Q 2025 container throughput was in line with robust intra-Asia container trade volumes and reached one of the highest monthly levels in 2025.

"The stronger-than-expected activity reflected resilient regional demand and ongoing supply-chain diversification. This, in our view, led to intensified yard operations and contributed to the congestion at Westports observed in late November 2025 and December 2025," he said. 

Looking ahead, Maybank IB expects activity to moderate ahead of Chinese New Year, providing a temporary breather for global supply chains. 

"This pause could allow ports and operators to reset before potential renewed pressures, driven by the United States restocking and the possible return of Red Sea transits. 

"While first quarter of 2026 (1Q 2026) volumes at Westports are likely to ease q-o-q, earnings should remain resilient, supported by the Phase 2 tariff hike (+10 per cent)," it said. 

However, several risk factors were identified, including abrupt changes to trading routes or a substantial slowdown in the global economy may lead to lower container throughput and hence earnings for Westports. 

Unexpected delay in tariff hikes or surge in operational costs could also dampen future earnings growth, Maybank IB said. 

-- BERNAMA