Highlights

• 9M26 core profit beat expectations. Unlike 1H26 where container yields drove the results outperformance, the conventional business outperformed container revenues on both yield and volume growth that had become material despite its small contribution to group earnings.
   
• Other 3Q26 takeaways. The company recorded the real normalisation of VAS income, and full delivery of E-trucks, though we assume the deployment will be gradual hence unlikely to result in immediate fuel savings. WPRTS’s timely rollout of the additional TGS helped cope with unexpected yard congestion.
   
• Volume growth should remain resilient, even if interest rates start to pivot upward due to inflation. Retain HOLD. Target price adjusted to RM7.00.
   

Analysis

• 9M26 profit exceeded expectations, accounting for 79%/78% of our/consensus forecasts respectively. While exceptional VAS was the primary driver for the 1H26 results outperformance, 3Q26’s positive deviation is due to a stronger conventional business, whose contribution had always been small relative to container (historically, conventional revenue mix ranged between 5-8%). However, 9M26 revenue growth of 40% outperformed container’s 28%, as it benefitted from the tariff hike and also saw a strong 11% volume growth in contrast to a flattish gateway container growth. Westports’ (WPRTS) conventional business may have become a better reflection of Malaysia’s domestic economic resilience, vs gateway (where imports’ contraction outweighed export growth).
   
• 3Q26 VAS mix fell qoq from 31% to 27%, alongside a lower gateway mix which trended closer to 40%; this is likely the first qoq contraction (of 15%) since 2025 and the tariff hike. Container yields ex-VAS expanded by 3% qoq and 19% yoy, consistent with the two phases of tariff hikes since Jul 25.