PETALING JAYA: Swift Haulage Bhd
’s fourth quarter (4Q25) could see better results as higher volumes and seasonally stronger demand support margin recovery.
Swift typically records a stronger 4Q25 on seasonal factors, said Maybank Investment Bank Research (Maybank IB)Research).
For next year, Swift expects an improved outlook on normalising trade sentiment and new income from the Shah Alam International Logistics Hub project, slated to commence operations in 1Q26.
For the first nine months of this year Swift’s core net profit declined 12% year-on-year to RM18mil despite an 8% rise in revenue to RM578.9mil.
Net profit was dragged down by weaker earnings before interest and tax margins and a higher effective tax rate.
Maybank IB added that Swift also plans to expand its warehouse capacity, with about RM50mil capital expenditure earmarked for Tebrau, Johor, next year to capture demand from the Johor-Singapore Special Economic Zone (JS-SEZ).
It also plans another Penang facility in the medium term, likely to commence construction by the end of next year.
The research house maintains its earnings forecasts and target price of 41 sen a share for Swift based on seven times this year’s enterprise value to earnings before interest tax depreciation and amortisation. It also retained its “hold” call on the stock.
The research house said key risks to its call include margin volatility, elevated overheads, and competitive pricing.
Meanwhile, after an earnings revision, MBSB Research reduced its target price on Swift to 35 sen from 42 sen a share based on 11 times next year’s earnings per share. It retained a “neutral” call on the stock.
MBSB Research said Swift reported disappointing earnings in 3Q25, and its outlook remains mixed.
Kenanga Research upgraded the stock to “market perform” from “underperform”.
It raised its target price by 9.4% to 35 sen a share from 32 sen a share as it rolled over its valuation year to 2026 on an unchanged 10 times price-earnings multiple.
The recent hike in container haulage rates by 12% to 13% should be able to provide ample cushioning to the expected reduction in container haulage volumes with the enforcement of the gross vehicle weight limit regulation that started in July, research house said.
Kenanga Research said it likes Swift as it has maintained its leading position in the Malaysian haulage market with 7.4% share despite intensifying competition.
The research house said Swift’s value-adding integrated offerings offer above average pre-tax profit margins, currently at 5.4% versus the industry average of 4%, and for the tremendous growth potential of its warehousing business, riding booming domestic eCommerce growth despite significant start-up costs.
The research house said the stock had fallen 19% from its recent high in August, and it believes the negatives, primarily related to the enforcement of the gross vehicle weight limit regulation, have been largely priced in.
