THE transport and logistics sector has started 2026 on firmer footing than expected, with stronger earnings and improving volume prospects giving investors more reasons to remain optimistic.
Despite higher fuel costs and continued geopolitical uncertainty, several key players have managed to navigate the headwinds, with Westports Holdings (WPRTS) and FM Global Logistics outperforming expectations while TASCO delivered results broadly in line with forecasts.
WPRTS delivered a stronger-than-anticipated performance in 1H26, even as the Middle East conflict weighed on regional trade and cargo flows.
The impact of higher fuel expenses and weaker throughput was more than cushioned by better-than-expected tariff contributions, allowing the company to outperform expectations.
During the analyst briefing, management guided for a strong volume turnaround in July, with throughput growth of 7-8%.
Yard density remained healthy at 80% in July, with two new container yards expected to contribute an additional 500k TEUs capacity pa.
“We believe the fuel costs remain manageable despite surging 39% year-on-year (YoY) in the 1H26 as it remains below 23% of the total operating expenses,” said RHB.
RHB Economics remains constructive on Malaysia’s export growth, which forecasts 21.7% growth in 2026, underpinned by resilient manufactured exports, particularly E&E products, alongside continued strength in commodity-related exports, notably natural gas.
“As such, we expect freight forwarders to continue to deliver growth in volume, barring any potential constraint in vessel space shortages among global carriers amid the Middle East conflict,” said RHB.
RHB maintains their Overweight recommendation on the sector, in line with their BUY call on the sector heavyweight WPRTS which remains our sole sector Top Pick.
RHB remains constructive on the stock despite the recent share price rally, as they expect stronger throughput volume in 2H26.
The research house believes the higher fuel costs will continue to be manageable, which should ease by 10% in 4Q26 following the deployment of 60 electric trucks by 3Q26.
RHB also favors WPRTS for its defensive earnings profile while offering a consistent dividend payout. Its growth catalysts also remain intact, underpinned by the sequential tariff hike.—Sept 11, 2026
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