Company Coverage
Westports Holdings (WPRTS MK): Adaptation Is Ports Industry’s Proven Business Model For Resilience
HOLD (Maintained)
Current price:
Target price:
Upside:
RM6.83
RM6.50
-4.8%
Analyst
Highlights
The ports industry has a proven business model: that resilience is about adaptation. The global listed ports outperformance against the market since 2025 reflects how the sector defied pandemic-related disruptions and geopolitical trade tensions. 2H26 will test the ports’ resiliency again, as global port congestion hit an all-time high as a series of seven typhoons caused repeated port shutdowns in China. Drewry pointed out a theme echoed in our earlier updates: that spare capacity matters to absorb backlog, especially for high-performance container ports.
Westports is adapting well in managing its yard density. Although we do not have fresh updates on the port’s volume, channel checks indicated that Port Klang’s yard density eased from the 90-95% peak in end-Jul 26 to 80% by mid-Aug 26, a remarkable feat considering the above developments and that WPRTS lack spare TEU capacity relative to peers. This hints to us that WPRTS’ new TGS was ready on time. Separately, the e-waste container removal will be accelerated, and the Westwell E-trucks were delivered on time. Retain HOLD and target price of RM6.50.
Analysis
Ports outperformance in 2025-1H26 explained. About 12 months ago, the prevailing expectation was a sharp board-based slowdown in 2H25 global container port volumes due to inventory corrections and fragile consumer demand, after 1H25’s front-loading ahead of higher US tariffs. Instead, geopolitical disruptions (tariffs included) and supply chain diversification reshaped global cargo flows that generated additional port activity. This can be seen as another post-pandemic effect alongside Russia’s invasion of Ukraine in 2022, the Red Sea crisis, and Middle East conflicts that redirected trade routes via the Cape of Good Hope, which all reinforced resiliency and efficiency of port network coverage against supply chain disruptions.
The ports industry’s proven business model: resilience is not about staying operational during a crisis; it is about adaptation. Global ports volumes closed at 994m TEU in 2025 (+6.5% yoy). Global terminal operators (GTO) outperformed the industry with an 8.9% yoy growth, increasing their global market share from 48.8% yoy to 49.9% in 2025. Hence, Drewry’s analysis (RHS table) shows that selected listed ports, including Westports Holdings (WPRTS) gained 27%/21% ytd/2025, outperforming S&P 500 (ytd: +12.7%) despite a recent 5% pullback wow (S&P 500: +0.5% wow).
Highlights
The ports industry has a proven business model: that resilience is about adaptation. The global listed ports outperformance against the market since 2025 reflects how the sector defied pandemic-related disruptions and geopolitical trade tensions. 2H26 will test the ports’ resiliency again, as global port congestion hit an all-time high as a series of seven typhoons caused repeated port shutdowns in China. Drewry pointed out a theme echoed in our earlier updates: that spare capacity matters to absorb backlog, especially for high-performance container ports.
Westports is adapting well in managing its yard density. Although we do not have fresh updates on the port’s volume, channel checks indicated that Port Klang’s yard density eased from the 90-95% peak in end-Jul 26 to 80% by mid-Aug 26, a remarkable feat considering the above developments and that WPRTS lack spare TEU capacity relative to peers. This hints to us that WPRTS’ new TGS was ready on time. Separately, the e-waste container removal will be accelerated, and the Westwell E-trucks were delivered on time. Retain HOLD and target price of RM6.50.
Analysis
Ports outperformance in 2025-1H26 explained. About 12 months ago, the prevailing expectation was a sharp board-based slowdown in 2H25 global container port volumes due to inventory corrections and fragile consumer demand, after 1H25’s front-loading ahead of higher US tariffs. Instead, geopolitical disruptions (tariffs included) and supply chain diversification reshaped global cargo flows that generated additional port activity. This can be seen as another post-pandemic effect alongside Russia’s invasion of Ukraine in 2022, the Red Sea crisis, and Middle East conflicts that redirected trade routes via the Cape of Good Hope, which all reinforced resiliency and efficiency of port network coverage against supply chain disruptions.
The ports industry’s proven business model: resilience is not about staying operational during a crisis; it is about adaptation. Global ports volumes closed at 994m TEU in 2025 (+6.5% yoy). Global terminal operators (GTO) outperformed the industry with an 8.9% yoy growth, increasing their global market share from 48.8% yoy to 49.9% in 2025. Hence, Drewry’s analysis (RHS table) shows that selected listed ports, including Westports Holdings (WPRTS) gained 27%/21% ytd/2025, outperforming S&P 500 (ytd: +12.7%) despite a recent 5% pullback wow (S&P 500: +0.5% wow).
HOLD (Maintained)
Current price:
Target price:
Upside:
RM6.83
RM6.50
-4.8%
Analyst
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