2025-06-14-花旗集团-西港控股（WPHB）_西港控股（WPHB.KL）_巴生港对中转货物的总关税上调30_获批_股票可能产生积极反应_10页_236kb

Westports Holdings Tariff Hike Analysis

Approval and Timeline:

• Ministry of Transport approved tariff hikes at Port Klang, effective June 13, 2025.
• Gateway container tariff increases from RM300/TEU to RM345/TEU (15%) from July 15, 2025, RM375/TEU (10%) from Jan 26, 2026, and RM390/TEU (5%) from Jan 27, 2026.

Citi's Recommendation: Buy with target price of RM5.09, expecting positive stock reaction to approvals. Expected share price return of 13.2% over the period.

Expected Financial Impact:

• Changing tariff assumption could increase core earnings by 14% in 2025E, 23% in 2026E, and 26% in 2027E, excluding other factors.

Valuation:

• Target price based on 18x 2026E PER, accounting for the company's volatility; DCF model unsuitable due to earnings fluctuations.

Key Risks:

• Weaker global container demand.
• Consumption shift from goods to services.
• Container alliances moving hubs to competing ports (e.g., Singapore).
• Near-term development of Caray Island port.
• Equity dilution from Westports II pre-funding.