Latest news with #WestportsHoldingsBhd
New Straits Times
10 hours ago
- Business
- New Straits Times
Bursa Malaysia dips midday amid profit-taking, US-Iran tensions
KUALA LUMPUR: Bursa Malaysia was almost flat at midday, with buying support in selected heavyweights offset by profit-taking in consumer products and services counters. At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 0.58 per cent or 8.77 points lower at 1,503.18, compared with Wednesday's close of 1,511.95. The benchmark index opened 0.99 of a point higher at 1,512.94 and traded between 1,501.68 and 1,512.94 throughout the morning session. The broader market was negative, with 608 losers outpacing 219 gainers, while 392 counters were unchanged. A total of 1,193 counters were untraded and 13 suspended. Turnover stood at 1.8 billion shares valued at RM765 million. Maybank Investment Bank Bhd said the FBM KLCI continued to contract today as US President Donald Trump kept the world guessing about potential US military action against Iran. "Broad market sentiment remains weak, although the transportation and logistics sector index emerged as a bright spot. "Westports Holdings Bhd attempted to trade in positive territory for a fourth consecutive day following tariff hike news from earlier this week," the firm said. Maybank IB added that local energy stocks pulled back as Brent crude oil futures hovered around the US$76.4 level. Given the current trading environment, it said investors should monitor downside risks and set strict take-profit and stop-loss levels.
New Straits Times
3 days ago
- Business
- New Straits Times
Westports shares jump 10pct to record high, trading volume nears two-year peak
KUALA LUMPUR: Shares of Westports Holdings Bhd surged to a record high following the government's approval of a phased port tariff hike, which analysts say could boost the company's earnings over the next three years. The stock settled 7.7 per cent or 36 sen higher at RM5.03, with more than 13.65 million shares traded, a level not seen since Sept 18, 2023. Earlier, the counter opened flat at RM4.67 before rallying nearly 10 per cent to an intraday peak of RM5.12. Westports has now risen 12 per cent year-to-date from RM4.57 at the start of January. The rally came after the government approved a staggered 30 per cent increase in tariffs at Port Klang, Westports' home base, to be rolled out over the next 18 months. Under the new schedule, handling charges for a 20-foot equivalent unit container will rise 15 per cent to RM345 from RM300 effective June 15. This will be followed by a 10 per cent jump to RM375 on Jan 1, 2026, and another five per cent hike to RM390 on Jan 1, 2027. RHB Investment Bank said in a research note the revised tariffs could be a game-changer for Westports' bottom line. However, it cautioned that regional shipping activity may still face headwinds from ongoing geopolitical tensions, particularly the Israel-Iran conflict, which continues to weigh on global trade flows.
New Straits Times
3 days ago
- Business
- New Straits Times
Westports shares jump 9pct to record high, trading volume hits two-month peak
KUALA LUMPUR: Shares of Westports Holdings Bhd surged to a record high following the government's approval of a phased port tariff hike, which analysts say could boost the company's earnings over the next three years. The stock climbed 8.57 per cent or 40 sen to RM5.07 as of 3.20pm, with more than eight million shares traded, its busiest day since April 16. The counter opened flat at RM4.67 before rallying nearly nine per cent to an intraday peak of RM5.09. Westports has now risen 9.4 per cent year-to-date from RM4.57 at the start of January. The rally came after the government approved a staggered 30 per cent increase in tariffs at Port Klang, Westports' home base, to be rolled out over the next 18 months. Under the new schedule, handling charges for a 20-foot equivalent unit container will rise 15 per cent to RM345 from RM300 effective June 15. This will be followed by a 10 per cent jump to RM375 on Jan 1, 2026, and another five per cent hike to RM390 on Jan 1, 2027. RHB Investment Bank said in a research note the revised tariffs could be a game-changer for Westports' bottom line. However, it cautioned that regional shipping activity may still face headwinds from ongoing geopolitical tensions, particularly the Israel-Iran conflict, which continues to weigh on global trade flows.
New Straits Times
3 days ago
- Business
- New Straits Times
Geopolitical risks, US tariffs cloud outlook for transport sector
KUALA LUMPUR: Geopolitical tensions from the Israel-Iran conflict and looming reciprocal tariffs from the United States are expected to weigh on the transportation sector, adding further uncertainty to global trade flows. RHB Research said the escalation in the Israel-Iran conflict has heightened risks to global seaborne trade, particularly near key trade chokepoints such as the Suez Canal and the Strait of Hormuz. It noted that traffic through the Suez Canal had already declined as shippers rerouted vessels around the Cape of Good Hope to avoid attacks by Houthi rebels, even before the conflict intensified. "While the Strait of Hormuz remains open, we do not rule out the possibility of this passage being blocked if the war escalates further," the firm said in a note. On sector performance, the firm said first-quarter 2025 results were generally in line, with Westports Holdings Bhd delivering results that accounted for 23 per cent and 24 per cent of its and the consensus' full-year forecasts, respectively. However, logistics players underperformed. FM Global Logistics Holdings Bhd's third-quarter financial year 2025 earnings came in below expectations due to higher-than-expected operating costs, although its gross profit was in line with estimates. With the exception of Westports, RHB Research said it is maintaining earnings forecasts for now, citing the fluidity of current developments. "Our 'Neutral' sector weighting mainly reflects our 'Neutral' call on the sector heavyweight, Westports. "Despite the upward earnings revision due to tariff hikes, this port counter is fairly valued, it is trading at its historical mean, with limited upside potential," it said. Within logistics, RHB Research remains positive on Tasco Bhd, citing its diversified client base and business segments, which help sustain earnings. The firm also noted that tax incentives for integrated logistics services offer a cushion against prevailing sector challenges.
The Star
09-05-2025
- Business
- The Star
Westports says long-term growth intact, posts higher 1Q net profit of RM222.46mil
Westports executive chairman Datuk Ruben Gnanalingam. KUALA LUMPUR: Commenting on the impact of the tariffs situation, Westports Holdings Bhd executive chairman Datuk Ruben Emir Gnanalingam said the interim uncertainties and adjustment may put a pause on containerised trade growth. However, a "new equilibrium, Asia's economic dynamism and Malaysia's commitment towards multilateral trade will reestablish a new baseline for sustained future long-term growth", he said in comments accompanying the port operator's latest earnings announcement. In light of this, Ruben affirmed the expansion efforts of the container terminal at Westports 2 will continue towards completion by 2028. "We anticipate higher demand for terminal handling facilities by the time we commission CT10 into service," he added. In the first quarter ended March 31, 2025 (1QFY25), Westports registered a net profit of RM222.46mil, up from RM204.51mil in the year-ago quarter, translating to an earnings per share of 6.52 sen against six sen previously. The port company achieved a quarterly revenue of RM621.3mil with a container volume of 2.69 million TEUs - underpinned by intra-Asia regional trade, which accounted for 63% of the volume. This compares with revenue of RM543.15mil achieved a year ago in 1QFY24. According to Westport's report, the conventional segment handled and facilitated a throughput of 2.95 million tonnes of bulk cargo, with a notable increase in liquid bulk activities such as palm oil-related products, liquefied petroleum gas and bunker. The company, which maintains round-the-clock operations with a total staff strength of 5,600, saw operational workforce cost rise 7%. Meanwhile, the fuel cost of the company's unsubsidised diesel had the biggest percentage decline as it benefited from lower international oil prices. Westports also noted it had increased payments to the port authority under the extended supplemental privatisation agreement, which commenced on Sept 1, 2024. "The cash flows statement reflected higher service concession-related obligations such as amortisation, finance costs and lease being paid for port infrastructure and facilities," it said.
