Kuala lumpur: Port operator Westports Holdings Bhd emerged as one of the top early gainers on Bursa Malaysia after reporting improved financial results for the first quarter ended March 31, 2026 (1Q 2026).

According to BERNAMA News Agency, Westports' net profit soared to RM326.50 million in 1Q 2026, compared to RM222.46 million in the same period the previous year, primarily due to reduced operational costs in the fourth quarter of 2025. The company's revenue for the quarter rose to RM896.28 million, up from RM621.29 million year-on-year, driven mainly by increased container revenue. Earnings per share also increased to 9.54 sen from 6.52 sen.

RHB Investment Bank Bhd noted that Westports' 1Q 2026 results and throughput volumes met expectations, despite the anticipated full impact of higher fuel costs, which is expected to be realized in subsequent quarters. The bank advised investors to accumulate shares on weakness, citing that risk factors have largely been priced in.

Westports is currently trading at 15.9 times price to earnings, with potential upside if the government implements fuel cost pass-through mechanisms, though the timeline for this remains uncertain. The investment bank has maintained its earnings forecast for the group, accounting for an average 30 percent increase in fuel costs due to the West Asia conflict.

RHB Investment Bank continues to uphold its throughput growth forecast of 4.5 percent, aligning with management's guidance of low single-digit growth. The earnings and target price for Westports remain unchanged, with a target price of RM6.55 per share.