Chief executive officer Ruben Emir Gnanalingam said that he maintained a single-digit container volume growth forecast for the port opeator due to the challenging global economic outlook.

“It would be too hasty to predict based on one quarter as economic factors are still volatile,” he said. Westports’ net profit for the first quarter ended March 31 soared 42.3 per cent to 171.1 million ringgit (US$43.72 million) from a year ago, as ongoing expansion and modernisation of port operations in Klang boosted its cargo-handling capacity.

The sharp increase in profit was also contributed by a one-off gain from a disposal of investment securities, higher container tariff since November and cheaper fuel costs.

Revenue for the port operator jumped to 464.7 million ringgit for the quarter under review from 398.7 million ringgit in the previous corresponding quarter.

The group handled a total container volume of 9.1 million twenty-foot equivalent units (TEUs) during its financial year ended Dec 31, 2015. This represents an 8 per cent year-on-year growth. Its total utilisation rate last year was 83 per cent.

Maybank Investment Bank (IB) predicted that the volume growth momentum could slow in March as there were more “blank sailings” reported.

“We expect Westports’ throughput to slow ahead, considering China’s weakening import-export data and softer world trade growth,’ it said in a recent report.

With Westports shares trading at a 23.6 earnings multiple, Maybank IB said Westports’ valuation was higher than the global average of 20 times and slightly above its own historical mean of 22 times.

“We think this reflects its solid financials (high margins and return on equity) and strong operational performance,” Maybank IB said.

UOB KayHian, meanwhile, has assumed an ultra-conservative 1 per cent container growth comprising 3 per cent for transhipment and 7 per cent for gateway, but the research house container yield projections for this may be deemed too bullish at an implied 14 per cent growth.

“This is because we anticipate most of the 15 per cent tariff hike effect to be factored into 2016 earnings,” it said.

On the impact of the upcoming shipping alliance dubbed the Ocean Alliance with a combined volume of 15 million TEUs, Ruben said it was too early to gauge but that Westports would try its best to service them.

Thus, Westports has yet to factor in the expected growth volume that may trickle down to its shores from this new alliance.

“The ocean alliance, once approved, will start operating in the second quarter of next year. We believe the alliance will operate on a dual hub-strategy.

“We are focusing our efforts on making sure that we can service this alliance as best as we can. On how we could benefit from this new pact, it really depends on how the Ocean Alliance alligns its services,” said Ruben.

Westports is currently the regional hub for the Ocean Three Alliance, which comprises CMA CGM, China Shipping Container Lines and United Arab Shipping Co.

Cosco Container Lines and Orient Overseas Container Line currently use PSA Singapore while Evergreen uses the Port of Tanjung Pelepas.