What Investors Should Know About Westports Holdings Bhd’s Track Record In Growing Its Business

Westports Holdings Bhd (KLSE: WPRTS) is a port operator listed on the Malaysian stock exchange. The company handles shipping containers and bulk cargo flowing through its port in Klang. Westports also provides a range of services such as marine services, rental services and other ancillary services.

One of the things that I like to do when analysing a company is to study its track record. The past is no guarantee of the future. But historical information is the most reliable thing that we can use as our basis to forecast what lies ahead.

And that brings me to the main purpose of this article, which is to have a quick overview of Westports’ historical business growth. The table below is a snapshot of the company’s important financial metrics from FY2012 (financial year ended 31 December 2012) to FY2016:

Source: Westports 2016 Annual Report

Here are a few points worth noting:

1. First of all, revenue increased from RM1.49 billion to RM2.04 billion, up by 36.9% during the period. This translates to a CAGR (compound average growth rate) of 8.2%.

2. Secondly, profit attributable to owners has grown from RM359 million in 2012 to RM637 million in 2016, up by 77.4% during the period. This translates to a CAGR of 15.4% in the five years.

3. Thirdly, Westports’ dividend per share has risen over the years, going up by 56% during the period. This translates to a CAGR of 11.7% during the time frame.

In sum, I think Westports delivered a commendable track record in the past five years by growing its revenue, profitability and dividend per share.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.