PETALING JAYA: Swift Haulage Bhd
, which last week reported first-quarter results for the period ended March 31, 2026 that were broadly in line with expectations, anticipates a stronger performance in the second half of the year, supported by an improving operating landscape and firmer warehouse occupancy.
Following a management briefing, analysts remained cautious on the company’s outlook.
Kenanga Research maintained its “underperform” call with a target price (TP) of 32 sen, noting that Swift may lose its leading haulage market share, which has slipped to 7.4% from 7.9% in 2024.
It added that value‑added integrated services have not translated into better pre‑tax margins due to intense competition.
Pre‑tax margins currently stand at 5.4%, down from 7% two years ago, compared with an industry average of 4%.
Despite strong long‑term potential in warehousing driven by booming domestic eCommerce, Kenanga Research highlighted significant startup costs.
It estimated startup losses of under RM10mil for the company’s green logistics hub in Shah Alam, operated via 30%-owned associate Global Vision Logistics Sdn Bhd.
The hub recorded a 30% take‑up rate in April, which is expected to rise to 70% by the end of 2026, supported by Swift Haulage’s cold‑chain warehouse and tenants such as Watsons.
MBSB Research said management expects the operating environment to improve, with container haulage and land transport potentially undergoing another round of rate adjustments to reflect higher maintenance costs.
“The warehousing segment is expected to see improved utilisation in the second half of FY26 as new customers progressively replace earlier exits, while freight forwarding should continue to benefit from healthy project‑cargo activity,” the research house said.
MBSB Research maintained a “sell” call and trimmed its TP to 35 sen from 37 sen, lowering its price‑to‑earnings multiple to 10 times from 11 times.
It marginally raised FY26 to FY28 earnings forecasts by 2.5% to 2.9% to reflect higher warehouse utilisation, upcoming expansion, reduced depot capacity offset by better utilisation, and refinements to its estimates.
Further upside could come from potential transport‑rate revisions amid rising maintenance costs.
The research house added that project‑cargo flows are expected to remain strong this year, supported by Swift’s participation in major energy, infrastructure and renewable‑energy developments.
