PETALING JAYA: Swift Haulage Bhd
recently added a five-tonne electric truck to its fleet and plans to add two more electric prime movers by the end of this year.
More than half of its existing haulage customers can accommodate the current range limitations of the electric trucks, while interest from new prospects continues to grow steadily, said MIDF Research.
Each electric prime mover costs about RM1.3mil, 2.6 times more than a diesel prime mover.
But the electric vehicles command 30% to 40% higher rates and deliver fuel savings of up to RM2,000 a month, supporting an estimated return of 12% over their eight-year battery lifespan.
Swift has pledged to exclusively procure electric prime movers and trucks by 2030, to achieve a 5% reduction in its own carbon emissions.
MIDF Research made no changes to its earnings estimates for the haulage company, but upgraded the stock to a “buy” from “neutral” on recent share price weakness.
The research house maintained its 40 sen target price for Swift, which is 11 times forecast earnings per share for this year. The shares closed at 35 sen in yesterday’s trading.
While pricing remains a hurdle for some customers, Swift continues to fine-tune its operations through strategic route planning.
MIDF Research said the outlook for the group’s venture into electric trucks is promising, with better battery life, longer warranties, and maturing infrastructure making adoption more viable.
With a clear roadmap and strong early results, the group is positioning itself at the forefront of sustainable logistics, ready to scale as the market matures.
Swift took a pioneering step toward sustainable logistics by introducing Malaysia’s first electric prime mover from Volvo in the fourth quarter of 2023.
Currently, it operates two electric prime movers, with fast-charging capabilities, allowing a full charge in 45 minutes using a 180kW charger.
Each truck delivers a driving range of up to 300km, making them ideal for urban and cross-border trips to Singapore, with the support of two in-house charging stations and a strategic partnership with Shell Recharge.
Its electric prime movers have been well received by major multinational names such as Unilever (M Holdings Sdn Bhd, IKEA Malaysia, Nestlé (M) Bhd and Volvo Malaysia, said MIDF Research.
Swift ensures 100% truck utilisation by deploying two-driver rotations per vehicle, operating on a 12-hour basis to minimise downtime. Maintenance requirements are minimal, with routine servicing scheduled every six months, whereas normal wear is expected for components like tires, the research house added.
The transition has been supported by green financing and the government’s green investment tax allowance, both of which have helped lower the barriers to adoption of electric trucks.
