KUALA LUMPUR (April 29): Affin Hwang Capital Research has upgraded Westports Holdings Bhd to “Buy” at RM3.79 with a higher target price (TP) of RM4.20 (from RM4.10) and said Westports reported a solid set of results -1Q19 core net profit grew by 13% year-on-year (y-o-y) to RM140 million on the back of a higher container volume (+12% y-o-y), driven by a 7% increase in gateway and 15% increase in transhipment throughput.

In a note today, the research house said despite the strong 1Q19 volume growth, management is maintaining the 2019 container volume growth forecast of 3-8%.

It said that overall, the results were in line with consensus and house forecasts.

“We have tweaked our earnings forecasts to account for the MFRS16 adjustment, rolled forward our valuation horizon and raised our DCF-derived price target to RM4.20 (from RM4.10).

“Our revised TP and dividend forecasts offer a total return of 15%, thus we upgrade to Buy (from Hold).

“Key re-rating catalysts are sustained throughput growth and obtaining government approval for the Westport 2 expansion,” it said.