Sep 11, 2014

Westports Holdings Invest Malaysia 2014 Key Points

Westports Holdings (WPRTS) stock code: 5246 Target Price: MYR2.85  [under review]
Representative: Ruben Emir Gnanalingam (Chief Executive Officer)
Container volume.
Total container handled grew a strong 12.9% YoY to 4.02m TEUs in 1H14, driven by all segments of trade, especially intra-Asia (+12.9% YoY; 49% of total). Throughput hit a new high of 718,000 TEUs in May 2014. Management expects the trend to persist for the remaining of the year, anticipating single-digit growth in container throughput for 2014.
  Capacity update. Container Terminal 7 should be fully operational by end-2014. In addition, four high specification ship-to-shore cranes have been delivered and started operations, with another three to be delivered this month. Westports’ expansion plan is on track, for 11m TEUs in terminal capacity by the end of this year versus 9.5m TEUs capacity presently.
  Business as usual. Business is as usual at Westports following the fall-out of
the proposed P3 Alliance which involved CMA, CGM, Maersk and MSC, in Jun 2014, after China’s Ministry of Commerce blocked the proposed alliance. The proposed P3 Alliance would have minimal impact on Westports’ throughput.
  Concession period extended. Port Klang Authority, in a 2nd Supplemental Privatisation Agreement, has recently extended Westport’ concession period by another 30 years from 1 Sep 2024 to 31 Aug 2054.