KUALA LUMPUR: CIMB Securities Sdn Bhd has maintained its “overweight” call on the transport sector, with Westports Holdings Bhd remaining its top pick.
The brokerage expects the port operator’s container volume to grow 4.5 per cent year-on-year in 2026.
“Westports’ container throughput is expected to improve in the second half of 2026 (2H26), supported by resilient Asian export volumes.
“Growth would be driven by the normalisation of gateway cargo following the resolution of e-waste-related disruptions, as well as resilient transshipment activities underpinned by new Ocean Alliance services and ongoing trade diversion trends,” said CIMB Securities in a note today.
It noted that the global container shipping outlook has also turned more positive, with Maersk raising its 2026 global container market volume growth forecast to four per cent at end-June 2026 from a previous estimate of two to four per cent, driven by sustained demand, particularly in Asia.
Similarly, Drewry has revised its 2026 global container throughput growth forecast to three per cent from 1.8 per cent earlier this year, partly due to a tighter supply-demand balance.
The investment bank also said that the severe yard congestion experienced in late 2025 and early 2026 has been fully resolved through tighter operational controls, including shorter free storage periods, higher overstaying charges, selective cargo acceptance and additional yard capacity that came onstream in the third quarter of 2026.
“As a result, yard utilisation has normalised to around 75 per cent, providing sufficient operational headroom. We believe these structural improvements significantly reduce the risk of congestion recurring in the near term,” it said.
CIMB Securities added that Westports has indicated shipping line customers remain optimistic about shipping demand heading into the third quarter of 2026.
However, it said that the port operator remains cautiously optimistic on its near-term outlook amid elevated fuel costs and occasional operational disruptions.
Westports expects fuel expenses to account for 22 to 24 per cent of total operating costs in the financial year ending Dec 31, 2026 (FY2026), compared with 17 per cent in FY2025, following the recent spike in fuel prices due to the US-Iran conflict.
“To mitigate the impact, Westports is accelerating cost optimisation initiatives, including investments in solar energy and the gradual electrification of its fleet.
“Despite these challenges, we believe the second round of port tariff revisions, which took effect in January 2026, will partially cushion the impact in 2H26,” it said.
CIMB Securities maintained its “buy” call on Westports with a target price of RM6.70, based on its 10-year mean valuation.
At lunch break, Westports shares fell three sen to RM6.14, with 650,200 shares traded.
— BERNAMA
