Swift Haulage Berhad - Broadly in-line with expectation
Thu, 13-Nov-2025 08:17 am
by Steven Chong • Apex Research

Counter

SWIFT (5303)

Target Price (RM)

0.39

Recommendation

Hold

  • 3QFY25 CNP rose (+21.4% YoY, +11.0% QoQ) to RM6.9m, bringing 9MFY25 CNP to RM20.6m (-4.5% YoY), accounting for 68%/67% of our/consensus full-year forecast. We deem the result to be within expectations as we anticipate 4QFY25 earnings to strengthen on the back of higher demand from year-end restocking.

  • We anticipate 4QFY25 earnings to gain momentum as demand improves following clearer tariff guidance post-Trump visit and year-end inventory restocking.

  • Reiterate our HOLD recommendation on Swift Haulage with unchanged target price to RM0.39 by applying a PER of 8x to FY26F EPS.

 

Results meet expectations. 9MFY25 CNP stood at RM20.6m, accounting for 68%/67% of our and consensus full-year forecasts. We deem the result to be within expectations as we anticipate 4QFY25 earnings to strengthen on the back of higher demand from year-end restocking.

 

YoY. CNP jumped 21.4% YoY to RM6.9m, in tandem with the 9.8% YoY increase in revenue to RM201.0m. The robust earnings performance was mainly thanks to the container haulage (PBT: RM6.5m; +24.7%) and freight forwarding (PBT: RM9.6m; +33.8%) which helped cushion the weakness in the land transportation (PBT: RM0.4m; -76.9%) and warehousing (PBT: RM2.7m; -26.5%) segments. TEU volume declined (-10.5% YoY) following the enforcement of the overweight container ban, particularly on the “back-to-back” method where two 20-foot containers are loaded onto a 40-footer chassis, causing total cargo weight to exceed permissible limits. The decline was further exacerbated by a scheduled plant shutdown from a key glass manufacturing client. That said, container haulage revenue still improved as the Group implemented higher rates per trip to offset the operational changes and additional trips required to comply with the new weight restrictions.

 

QoQ. CNP rose 11.0% QoQ, while revenue grew 6.5% QoQ, mainly lifted by stronger contribution from the container haulage segment, which offset the softer performance in the land transportation division.

 

Outlook. Near-term outlook for Swift remained positive as clearer US tariff guidance and easing US–China tensions are expected to stabilise demand for its haulage services. Looking ahead, warehousing is set to be the Group’s key growth driver. The Shah Alam International Logistics Hub Phase 1 is on track for completion by end-FY25, with operations expected to start in early 2QFY26. Additionally, the Group plans to develop a new cold chain facility in Johor, offering c.10,000 pallets of storage capacity to cater for JSSEZ. This facility is scheduled to begin operations in 1QFY27, with an estimated capex of RM50m.

 

Earnings Revision. We make no change to our earnings estimate.

 

Valuation. We reiterate our HOLD recommendation on Swift Haulage with unchanged target price to RM0.39 by applying a PER of 8x to FY26F EPS.

 

Risk. Further margin erosion could result from fierce price competition and elevated cost pressures, alongside rising depreciation and finance costs tied to capacity expansion.

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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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