Westports Holdings Berhad: 2QFY25 Results Review – Transhipment Volumes Surged
Westports Holdings Berhad (5246 | WPRTS MK)
Main | Transportation & Logistics
Maintain NEUTRAL
Revised Target Price RM4.90 (from RM4.43)
RETURN STATISTICS
| Price @ 1st August 2025 (RM) | 5.59 |
| Expected share price return (%) | -12.3 |
| Expected dividend yield (%) | +3.8 |
| Expected total return (%) | -8.5 |
Price performance (%)
| Absolute | Relative | |
|---|---|---|
| 1 month | 3.3 | 4.1 |
| 3 months | 3.3 | 32.1 |
| 12 months | 24.3 | 31.9 |
SHARE PRICE CHART
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2QFY25 Results Review Transhipment Volumes Surged
Maintain NEUTRAL. Westports Holdings Berhad (Westports) delivered a steady set of 2QFY25 results, which came in within expectations. Management continues to guide for low to single-digit growth in FY25, supported by resilient transhipment volumes, though some moderation is expected in 2HFY25 as earlier front-loading and network realignments taper off. Gateway growth, however, may stay muted in the near term due to ongoing regulatory curbs on e-waste and metal scrap imports. Following our earnings upgrades, our DCF-derived valuation is now higher at RM4.90 (RM4.43) (WACC: 7%). The stock is trading near its 5-year historical mean of 18.1x.
Within expectations. Westports posted a 2QFY25 core PAT of RM232.2m, bringing 1HFY25 to RM454.6m – 48% of our/consensus full-year estimates. A first interim dividend of 9.93 sen was declared, maintaining a 75% payout.
Restow and repositioning lifted transhipment volumes. Container revenue grew +6.0%yoy, broadly tracking the growth in overall container volume (+5.5%yoy), with a slight boost from value-added services. Transhipment volume rose sharply (+9.8%yoy) on higher restow activity and empty repositioning to the Fast East, while gateway volume was flat (+0.8%yoy), reflecting normalisation after earlier FDI-driven growth and tighter metal import checks. Meanwhile, conventional revenue dipped (-2.7%yoy) despite a larger (-5.8%yoy) drop in volume, supported by a more favourable dry bulk mix. Core PAT (+14.0%yoy) grew slightly stronger on improved margins, driven by lower operating costs and a reduced tax rate under the ITA.
Similar sequential trends. Compared to 1QFY25, container revenue rose +3.7%qoq. Overall container volume rose +7.1%qoq (transhipment: +11.3%qoq, gateway: +1.7%qoq) underpinned by previously noted trends. The quarter’s VAS ratio inched up 23% (1QFY25: 22%), supported by income from metal storage and stronger reefer revenue. Conventional revenue declined -2.7%qoq, a softer drop compared to the -6.8%qoq fall in volume, aided by a stronger mix of higher-yielding cargo. Altogether, core PAT rose +4.3%qoq with stable margins.
Earnings estimates. While earnings were broadly in line, we take this opportunity to refine our forecasts – factoring in lower operational costs (mainly fuel), stronger VAS revenue, updated audited figures, and a lower effective tax rate of 21% (from 24%) from FY28F onwards to better capture potential tax incentives tied to the Westports 2 expansion. These updates raised our FY25F/FY26F/FY27F core PAT by +2%/+4%/+6% and lifted our DCF-derived target price to RM4.90 (from RM4.43).
INVESTMENT STATISTICS
| FYE Dec | 2025E | 2026F | 2027F |
|---|---|---|---|
| Revenue | 2,541.8 | 2,733.0 | 2,864.3 |
| Operating profit | 1,341.8 | 1,420.5 | 1,496.0 |
| PBT | 1,225.5 | 1,298.1 | 1,368.0 |
| Core PATAMI | 955.9 | 1,012.5 | 1,067.0 |
| Core EPS | 0.28 | 0.30 | 0.31 |
| DPS | 0.21 | 0.22 | 0.23 |
| Dividend yield | 3.8% | 4.0% | 4.2% |
KEY STATISTICS
| FBM KLCI | 1,533.35 |
| Issued shares (m) | 3410.00 |
| Estimated free float (%) | 25.60 |
| Market Capitalisation (RM’m) | 19,027.80 |
| 52-wk price range | RM4 – RM5.87 |
| 3-mth average daily volume (m) | 4.42 |
| 3-mth average daily value (RM’m) | 23.36 |
Top Shareholders (%)
| Pembinaan Redzai Sdn Bhd | 42.42 |
| South Port Investment Holdings | 23.55 |
| Employees Provident Fund | 7.26 |
Amalia Zarir
amalia.zarir@midf.com.my
03-2173 8357
WESTPORTS: 2QFY25 RESULTS SUMMARY
Income Statement
| FYE Dec (RM’m) | Quarterly | Change (%) | Cumulatively | Change (%) | ||||
|---|---|---|---|---|---|---|---|---|
| Income Statement | 2QFY25 | 1QFY25 | 2QFY24 | QoQ | YoY | 1HFY25 | 1HFY24 | YoY |
| Operational revenue | 607.3 | 591.8 | 553.0 | 2.6% | 9.8% | 1,199.1 | 1,096.1 | 9.4% |
| EBITDA | 251.7 | 246.1 | 207.2 | 2.3% | 21.5% | 497.9 | 412.1 | 20.8% |
| Depreciation & amortisation | -69.9 | -68.6 | -67.5 | -1.8% | -3.5% | -138.5 | -132.9 | -4.2% |
| EBIT | 321.6 | 314.8 | 274.7 | 2.2% | 17.1% | 636.4 | 545.0 | 16.8% |
| Net finance costs | -23.1 | -23.1 | -9.4 | 0.1% | -145.8% | -46.2 | -17.9 | -158.2% |
| Share of results of JV | 2.0 | 0.8 | 0.5 | 143.4% | 264.9% | 2.8 | 4.2 | -33.0% |
| PBT | 300.5 | 292.5 | 265.9 | 2.8% | 13.0% | 593.0 | 531.3 | 11.6% |
| Tax expense | -68.9 | -70.0 | -62.1 | 1.6% | -10.9% | -138.9 | -123.1 | -12.9% |
| PAT | 231.6 | 222.5 | 203.7 | 4.1% | 13.7% | 454.1 | 408.3 | 11.2% |
| Core PAT | 232.2 | 222.6 | 203.7 | 4.3% | 14.0% | 454.6 | 408.2 | 11.4% |
| Container revenue/TEU | RM177 | RM183 | RM177 | -3.2% | 0.5% | RM180 | RM176 | 2.1% |
| ppts | ppts | |||||||
| EBIT margin | 53.0% | 53.2% | 49.7% | -0.2 | 3.3 | 53.1% | 49.7% | 3.4 |
| PBT margin | 49.5% | 49.4% | 48.1% | 0.1 | 1.4 | 49.5% | 48.5% | 1.0 |
| Effective tax rate | -22.9% | -23.9% | -23.4% | 1.0 | 0.4 | -23.4% | -23.2% | -0.3 |
| Core PAT margin | 38.2% | 37.6% | 36.8% | 0.6 | 1.4 | 37.9% | 37.2% | 0.7 |
REVENUE AND COST BREAKDOWN
| Revenue (RM’m) | 2QFY25 | 1QFY25 | 2QFY24 | QoQ | YoY | 1HFY25 | 1HFY24 | YoY |
|---|---|---|---|---|---|---|---|---|
| Container | 511 | 493 | 482 | 3.7% | 6.0% | 1,003 | 952 | 5.4% |
| Conventional | 36 | 37 | 37 | -2.7% | -2.7% | 73 | 72 | 1.4% |
| Marine | 22 | 23 | 21 | -4.3% | 4.8% | 45 | 43 | 4.7% |
| Rental | 39 | 38 | 14 | 2.6% | 178.6% | 78 | 28 | 178.6% |
| Total | 607 | 592 | 553 | 2.5% | 9.8% | 1,199 | 1,094 | 9.6% |
| Cost (RM’m) | 2QFY25 | 1QFY25 | 2QFY24 | QoQ | YoY | 1HFY25 | 1HFY24 | YoY |
| Workforce | 78 | 78 | 72 | 0.0% | 8.3% | 156 | 145 | 7.6% |
| Depreciation | 48 | 47 | 51 | 2.1% | -5.9% | 95 | 102 | -6.9% |
| Fuel | 35 | 36 | 41 | -2.8% | -14.6% | 71 | 81 | -12.3% |
| M&R | 23 | 22 | 22 | 4.5% | 4.5% | 45 | 46 | -2.2% |
| Electricity | 14 | 13 | 15 | 7.7% | -6.7% | 27 | 29 | -6.9% |
| Others | 14 | 14 | 15 | 0.0% | -6.7% | 28 | 30 | -6.7% |
| Total | 212 | 211 | 216 | 0.5% | -1.9% | 423 | 433 | -2.3% |
THROUGHPUT VOLUME
| Container (m TEU) | 2QFY25 | 1QFY25 | 2QFY24 | QoQ | YoY | 1HFY25 | 1HFY24 | YoY |
|---|---|---|---|---|---|---|---|---|
| Transhipment | 1.68 | 1.51 | 1.53 | 11.3% | 9.8% | 3.19 | 3.01 | 6.0% |
| Gateway | 1.20 | 1.18 | 1.19 | 1.7% | 0.8% | 2.38 | 2.39 | -0.4% |
| Total | 2.88 | 2.69 | 2.73 | 7.1% | 5.5% | 5.57 | 5.40 | 3.1% |
| Intra-Asia | 1.73 | 1.69 | 1.77 | 2.4% | -2.3% | 3.42 | 3.59 | -4.7% |
| Asia-Europe | 0.50 | 0.41 | 0.38 | 22.0% | 31.6% | 0.90 | 0.72 | 25.0% |
| Asia-Australasia | 0.30 | 0.27 | 0.26 | 11.1% | 15.4% | 0.58 | 0.50 | 16.0% |
| Asia-America | 0.22 | 0.20 | 0.18 | 10.0% | 22.2% | 0.42 | 0.35 | 20.0% |
| Asia-Africa | 0.05 | 0.06 | 0.09 | -16.7% | -44.4% | 0.11 | 0.16 | -31.3% |
| Others | 0.08 | 0.06 | 0.05 | 33.3% | 60.0% | 0.14 | 0.08 | 75.0% |
| Conventional (m MT) | 2QFY25 | 1QFY25 | 2QFY24 | QoQ | YoY | 1HFY25 | 1HFY24 | YoY |
| 2.75 | 2.95 | 2.92 | -6.8% | -5.8% | 5.71 | 5.68 | 0.5% |
Source: Westports, MBSBR
FINANCIAL SUMMARY
Profit or Loss (RM’m)
| 2023A | 2024A | 2025E | 2026F | 2027F | |
|---|---|---|---|---|---|
| Revenue | 2,088.6 | 2,280.0 | 2,541.8 | 2,733.0 | 2,864.3 |
| Operating profit | 1,037.5 | 1,194.4 | 1,341.8 | 1,420.5 | 1,496.0 |
| PBT | 1,006.2 | 1,138.7 | 1,225.5 | 1,298.1 | 1,368.0 |
| Taxation | -226.8 | -240.7 | -269.6 | -285.6 | -301.0 |
| PAT | 779.4 | 898.0 | 955.9 | 1,012.5 | 1,067.0 |
| Core PAT | 777.6 | 892.4 | 955.9 | 1,012.5 | 1,067.0 |
| EPS (RM) | 0.23 | 0.26 | 0.28 | 0.30 | 0.31 |
| PER (x) | 24.5 | 21.4 | 19.9 | 18.8 | 17.9 |
| DPS (RM) | 0.17 | 0.20 | 0.21 | 0.22 | 0.23 |
| Dividend yield (%) | 3.0% | 3.5% | 3.8% | 4.0% | 4.2% |
Cash Flow (RM’m)
| 2023A | 2024A | 2025E | 2026F | 2027F | |
|---|---|---|---|---|---|
| PBT | 1,006.2 | 1,138.7 | 1,225.5 | 1,298.1 | 1,368.0 |
| D&A | 258.9 | 254.6 | 250.2 | 263.0 | 275.4 |
| Changes in WC | -89.9 | 46.5 | 46.2 | 44.0 | 25.2 |
| Operating cash flow | 994.6 | 1,291.4 | 1,252.3 | 1,319.5 | 1,367.6 |
| Capex | -226.8 | -609.7 | -600.0 | -600.0 | -550.0 |
| Investing cash flow | -213.2 | -583.5 | -600.0 | -600.0 | -550.0 |
| Debt raised/(repaid) | -125.0 | 230.0 | 275.0 | 275.0 | 275.0 |
| Dividends paid | -533.7 | -600.5 | -716.9 | -759.4 | -800.3 |
| Financing cash flow | -756.7 | -514.0 | -441.9 | -484.4 | -525.3 |
| Net cash flow | 24.6 | 193.9 | 210.4 | 235.1 | 292.3 |
| Beginning cash flow | 510.6 | 535.2 | 729.1 | 939.5 | 1,174.6 |
| Ending cash flow | 535.2 | 729.1 | 939.5 | 1,174.6 | 1,467.0 |
Balance Sheet (RM’m)
| 2023A | 2024A | 2025E | 2026F | 2027F | |
|---|---|---|---|---|---|
| PPE | 1,739.0 | 1,686.5 | 1,638.9 | 1,587.0 | 1,530.8 |
| Non-current assets | 4,454.9 | 6,674.0 | 7,023.8 | 7,754.8 | 7,635.4 |
| Receivables | 280.7 | 316.5 | 352.8 | 379.3 | 397.6 |
| Cash | 577.9 | 780.8 | 939.5 | 1,174.6 | 1,467.0 |
| Current assets | 884.3 | 1,104.0 | 1,292.3 | 1,554.0 | 1,864.5 |
| Long-term debt | 725.0 | 905.0 | 1,180.0 | 1,455.0 | 1,730.0 |
| Non-current liabilities | 1,203.0 | 3,197.7 | 3,531.6 | 4,248.3 | 4,160.7 |
| Short-term debt | 125.0 | 175.0 | 125.0 | 125.0 | 125.0 |
| Payables | 159.0 | 213.1 | 228.5 | 251.2 | 263.3 |
| Current liabilities | 616.1 | 762.7 | 728.0 | 750.7 | 762.8 |
| Share capital | 1,038.0 | 1,038.0 | 1,038.0 | 1,038.0 | 1,038.0 |
| Retained earnings | 2,482.1 | 2,779.6 | 3,018.6 | 3,271.7 | 3,538.5 |
| Equity | 3,520.1 | 3,817.6 | 4,056.6 | 4,309.7 | 4,576.5 |
Profitability Ratios & Volume Growth
| Profitability Ratios | 2023A | 2024A | 2025E | 2026F | 2027F |
|---|---|---|---|---|---|
| EBIT margin | 49.7% | 52.4% | 52.8% | 52.0% | 52.2% |
| PBT margin | 48.2% | 49.9% | 48.2% | 47.5% | 47.8% |
| PAT margin | 37.3% | 39.4% | 37.6% | 37.0% | 37.3% |
| Core PAT margin | 37.2% | 39.1% | 37.6% | 37.0% | 37.3% |
| ROA | 14.6% | 11.5% | 11.5% | 10.9% | 11.2% |
| ROE | 22.1% | 23.4% | 23.6% | 23.5% | 23.3% |
| Volume Growth | 2023A | 2024A | 2025E | 2026F | 2027F |
| Container | 8.3% | 0.9% | 3.1% | 2.0% | 2.0% |
| Conventional | -4.3% | 5.1% | 2.0% | 2.0% | 2.0% |
Source: Westports, MBSBR
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DISCLOSURES AND DISCLAIMER
This report has been prepared by MBSB Investment Bank Berhad (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) 197501002077 (24878-X).
It is for distribution only under such circumstances as may be permitted by applicable law. Readers should be fully aware that this report is for information purposes only. The opinions contained in this report are based on information obtained or derived from sources that we believe are reliable. MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) makes no representation or warranty, expressed or implied, as to the accuracy, completeness or reliability of the information contained therein and it should not be relied upon as such. This report is not, and should not be construed as, an offer to buy or sell any securities or other financial instruments. The analysis contained herein is based on numerous assumptions. Different assumptions could result in materially different results. All opinions and estimates are subject to change without notice. The research analysts will initiate, update and cease coverage solely at the discretion of MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD). The directors, employees and representatives of MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) may have an interest in any of the securities mentioned and may benefit from the information herein. Members of the MBSB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein This document may not be reproduced, distributed or published in any form or for any purpose.
MBSB INVESTMENT BANK (formerly known as MIDF INVESTMENT BANK): GUIDE TO RECOMMENDATIONS
STOCK RECOMMENDATIONS
- BUY
- Total return is expected to be >10% over the next 12 months.
- TRADING BUY
- The stock price is expected to rise by >10% within 3 months after a Trading Buy rating has been assigned due to positive news flow.
- NEUTRAL
- Total return is expected to be between -10% and +10% over the next 12 months.
- SELL
- Total return is expected to be <-10% over the next 12 months.
- TRADING SELL
- The stock price is expected to fall by >10% within 3 months after a Trading Sell rating has been assigned due to negative news flow.
SECTOR RECOMMENDATIONS
- POSITIVE
- The sector is expected to outperform the overall market over the next 12 months.
- NEUTRAL
- The sector is to perform in line with the overall market over the next 12 months.
- NEGATIVE
- The sector is expected to underperform the overall market over the next 12 months.
ESG RECOMMENDATIONS* – source Bursa Malaysia and FTSE Russell
- ☆☆☆☆
- Top 25% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆☆☆
- Top 26-50% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆☆
- Top 51%- 75% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆
- Bottom 25% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
* ESG Ratings of PLCs in FBM EMAS that have been assessed by FTSE Russell in accordance with FTSE Russell ESG Ratings Methodology
