Swift Haulage Berhad
(5303 | SWIFT MK) Main | Transportation & Logistics
Briefing Note: Outlook Still Mixed
RETURN STATISTICS
| Price @ 15th August 2025 (RM) | 0.44 |
| Expected share price return (%) | -4.5 |
| Expected dividend yield (%) | +2.8 |
| Expected total return (%) | -1.7 |
SHARE PRICE CHART
| Price performance (%) | Absolute | Relative |
|---|---|---|
| 1 month | 8.7 | 5.9 |
| 3 months | 8.7 | 11.9 |
| 12 months | -13.9 | -12.0 |
Maintain NEUTRAL. Swift Haulage Berhad’s (Swift) outlook appears mixed following the results briefing. 2HFY25 is expected to be seasonally stronger, with container haulage margins improving, although volumes may soften. Warehousing margins may face pressure from an unfavourable mix, but revenue will be supported from added capacity and high utilisation, while freight forwarding is expected to stay robust. Post-revision, our target price was marginally reduced to RM0.42 (from RM0.43) based on FY26F EPS, pegged to 11x PER (-0.5SD to the sector’s 5-year historical mean).
Container haulage margins set to improve. The segment saw weaker volumes (-3.7%yoy), primarily due to intermittent unplanned shutdowns by a major petrochemical client on the East Coast. Haulage rates remained stable and were increased by +5.0% to +8.0% from Jul-25 for selected routes in anticipation of capacity shortages from stricter checks on overloaded trucks, though volumes are expected to be softer as a result. The delayed pass-through of minimum wage costs from Jul-25 is expected to support further margin improvement for the segment.
Freight forwarding demand holds firm. The segment recorded a significant increase in job volume (+27.3%yoy), supported equally by organic growth and the acquisition of a 60% stake in Aman Logistics in Aug-24, with yields improving on a higher share of project cargoes. Demand for this segment is expected to remain strong in 2HFY25.
Lower warehousing margins on higher handling. The warehousing segment saw available capacity rise (+387,000 sq ft in total for FY24), with utilisation levels above 90% across most sites. However, EBIT margin declined -2.0 ppts compared to 2QFY24, attributed to a higher mix of customers requiring handling activities, which yield lower margins than pure storage, despite stronger revenue.
Associate GVL offers upside potential. Looking ahead to FY26, Phase 1 of its 30%-owned associate, Global Vision Logistics Sdn Bhd (GVL), covering 2.8m sq ft, is slated to begin operations in 1QFY26. Swift will manage 500,000 sq ft (100,000 sq ft cold chain, remainder ambient). The Group is actively marketing the facility, and take-up is not expected to be an issue given its prime location. Further upside could come from cross selling its transportation services.
Earnings estimates. Incorporating softer container volumes, higher haulage rates, modestly increased operating costs, and stronger freight forwarding activity, we revised down our FY25E-FY27F earnings forecasts by -2%.
INVESTMENT STATISTICS
| FYE Dec | 2025E | 2026F | 2027F |
|---|---|---|---|
| Revenue | 749.6 | 779.3 | 803.4 |
| Operating profit | 78.0 | 81.1 | 83.6 |
| PBT | 40.7 | 43.8 | 46.3 |
| Core PATAMI | 30.9 | 33.3 | 35.2 |
| Core EPS (sen) | 3.5 | 3.8 | 4.0 |
| DPS (sen) | 1.2 | 1.3 | 1.4 |
| Dividend yield | 2.8% | 3.0% | 3.1% |
KEY STATISTICS
| FBM KLCI | 1,576.34 |
| Issued shares (m) | 893.33 |
| Estimated free float (%) | 37.57 |
| Market Capitalisation (RM’m) | 378.26 |
| 52-wk price range | RM0.34 – RM0.50 |
| 3-mth average daily volume (m) | 0.31 |
| 3-mth average daily value (RM’m) | 0.12 |
| Top Shareholders (%) | |
| Persada Bina Sdn Bhd | 24.30 |
| JWD Asia Holding Pte Ltd | 20.70 |
| Loo Hooi Keat | 5.26 |
Analyst
Amalia Zarir
amalia.zarir@midf.com.my
03-2173 8357
OPERATIONAL STATISTICS
| Segment | Quarterly | Change | Cumulatively | ||||||
|---|---|---|---|---|---|---|---|---|---|
| 2QFY25 | 1QFY25 | 2QFY24 | QoQ | YoY | 1HFY25 | 1HFY24 | YoY | ||
| Container haulage | |||||||||
| Volume (TEU) | 129,987 | 135,003 | 134,942 | -3.7% | -3.7% | 264,990 | 274,022 | -3.3% | |
| Avg. revenue/TEU | RM512 | RM512 | RM502 | 0.0% | 2.0% | RM512 | RM501 | 2.2% | |
| Land transportation | |||||||||
| Number of trips | 54,763 | 70,098 | 58,854 | -21.9% | -7.0% | 124,861 | 119,773 | 4.2% | |
| Avg. revenue/trip | RM1,258 | RM908 | RM1,065 | 38.5% | 18.1% | RM1,083 | RM1,083 | 0.0% | |
| Freight forwarding | |||||||||
| Number of jobs | 29,340 | 28,025 | 23,041 | 4.7% | 27.3% | 57,365 | 48,331 | 18.7% | |
| Avg. revenue/job | RM755 | RM771 | RM635 | -2.1% | 18.9% | RM763 | RM620 | 23.1% | |
| Warehousing | |||||||||
| Capacity (sq ft) | 1,667,859 | 1,678,462 | 1,388,788 | -0.6% | 20.1% | 1,667,859 | 1,388,788 | 20.1% | |
| Utilisation rate | 91% | 91% | 80% | 0.0 ppts | 11.0 ppts | 91% | 78% | 13.0 ppts | |
| Container depot | |||||||||
| Capacity (TEU) | 31,500 | 31,500 | 28,500 | 0.0% | 10.5% | 31,500 | 31,500 | 0.0% | |
| Utilisation rate | 76% | 72% | 79% | 4.0 ppts | -3.0 ppts | 74% | 79% | -5.0 ppts | |
RECAP OF THE SEGMENTAL REVENUE BREAKDOWN
| Quarterly | Change | Cumulatively | ||||||
|---|---|---|---|---|---|---|---|---|
| 2QFY25 | 1QFY25 | 2QFY24 | QoQ | YoY | 1HFY25 | 1HFY24 | YoY | |
| Revenue | ||||||||
| Container haulage | 66.5 | 69.1 | 67.6 | -3.8% | -1.6% | 135.6 | 137.2 | -1.2% |
| Land transportation | 71.6 | 63.6 | 62.6 | 12.5% | 14.4% | 135.3 | 129.7 | 4.3% |
| Warehousing & depot | 31.8 | 31.3 | 28.0 | 1.7% | 13.7% | 63.1 | 55.2 | 14.3% |
| Freight forwarding | 22.1 | 21.6 | 14.7 | 2.5% | 50.9% | 43.7 | 30.0 | 45.9% |
| EBIT | ||||||||
| Container haulage | 4.5 | 4.8 | 5.5 | -6.0% | -17.4% | 9.3 | 12.0 | -21.9% |
| Land transportation | 2.3 | 3.7 | 3.1 | -36.8% | -24.6% | 6.1 | 9.0 | -32.8% |
| Warehousing & depot | 5.2 | 5.3 | 5.2 | -1.9% | 1.1% | 10.6 | 10.2 | 3.9% |
| Freight forwarding | 10.1 | 9.8 | 6.1 | 2.3% | 65.6% | 19.9 | 12.5 | 59.2% |
| EBIT Margin | ||||||||
| Container haulage | 6.8% | 7.0% | 8.1% | -0.2 | -1.3 | 6.9% | 8.7% | -1.8 ppts |
| Land transportation | 3.3% | 5.8% | 5.0% | -2.6 | -1.7 | 4.5% | 7.0% | -2.5 ppts |
| Warehousing & depot | 16.4% | 17.0% | 18.5% | -0.6 | -2.0 | 16.7% | 18.4% | -1.7 ppts |
| Freight forwarding | 45.5% | 45.6% | 41.5% | -0.1 | 4.0 | 45.5% | 41.7% | 3.8 ppts |
Source: Swift Haulage, MBSBR
FINANCIAL SUMMARY
| Profit or Loss (RM’m) | 2023A | 2024A | 2025E | 2026F | 2027F |
|---|---|---|---|---|---|
| Revenue | 671.5 | 720.5 | 749.6 | 779.3 | 803.4 |
| Operating profit | 100.0 | 88.2 | 78.0 | 81.1 | 83.6 |
| PBT | 65.9 | 51.6 | 40.7 | 43.8 | 46.3 |
| Taxation | -2.8 | -9.3 | -9.8 | -10.5 | -11.1 |
| PATAMI | 61.7 | 40.3 | 30.9 | 33.3 | 35.2 |
| Core PATAMI | 33.3 | 26.6 | 30.9 | 33.3 | 35.2 |
| Core EPS (sen) | 3.8 | 3.0 | 3.5 | 3.8 | 4.0 |
| PER | 11.6x | 14.5x | 12.5x | 11.6x | 11.0x |
| DPS (sen) | 1.6 | 1.6 | 1.2 | 1.3 | 1.4 |
| Dividend yield | 3.6% | 3.6% | 2.8% | 3.0% | 3.1% |
| Cash Flow (RM’m) | 2023A | 2024A | 2025E | 2026F | 2027F |
|---|---|---|---|---|---|
| PBT | 65.9 | 51.6 | 40.7 | 43.8 | 46.3 |
| D&A | 69.4 | 71.3 | 73.1 | 73.0 | 72.9 |
| Changes in WC | 5.7 | -27.5 | 0.1 | 6.7 | 5.4 |
| Operating cash flow | 130.7 | 111.1 | 104.2 | 113.0 | 113.5 |
| Capital expenditure | -88.0 | -169.3 | -70.0 | -70.0 | -70.0 |
| Investing cash flow | -57.9 | -168.2 | -70.0 | -70.0 | -70.0 |
| Debt raised/(repaid) | 94.0 | 15.6 | 0.0 | 0.0 | 0.0 |
| Dividends paid | -15.9 | -14.1 | -10.8 | -11.6 | -12.3 |
| Financing cash flow | 13.5 | -47.8 | -10.8 | -11.6 | -12.3 |
| Net cash flow | 86.4 | -104.9 | 23.3 | 31.3 | 31.2 |
| Beginning cash flow | 34.6 | 149.3 | 44.0 | 67.4 | 98.7 |
| Balance Sheet (RM’m) | 2023A | 2024A | 2025E | 2026F | 2027F |
|---|---|---|---|---|---|
| PPE | 658.5 | 752.1 | 757.7 | 762.9 | 767.8 |
| ROU assets | 356.0 | 336.3 | 327.6 | 319.4 | 311.6 |
| Non-current assets | 1,312.7 | 1,386.4 | 1,386.5 | 1,370.1 | 1,356.4 |
| Trade debtors | 220.1 | 260.0 | 270.6 | 281.3 | 290.0 |
| Cash | 159.2 | 47.5 | 67.4 | 98.7 | 129.9 |
| Current assets | 407.7 | 328.7 | 351.2 | 393.3 | 433.1 |
| Long-term debt | 503.8 | 563.2 | 563.2 | 563.2 | 563.2 |
| Non-current liabilities | 594.4 | 653.1 | 653.1 | 653.1 | 653.1 |
| Short-term debt | 263.0 | 213.1 | 213.1 | 213.1 | 213.1 |
| Trade creditors | 138.5 | 99.7 | 102.2 | 106.3 | 109.6 |
| Current liabilities | 419.5 | 327.0 | 329.5 | 333.5 | 336.8 |
| Share capital | 384.9 | 386.6 | 386.6 | 386.6 | 386.6 |
| Retained earnings | 322.0 | 345.8 | 365.9 | 387.5 | 410.4 |
| Equity | 706.5 | 735.0 | 755.1 | 776.8 | 799.6 |
| Profitability Ratios | 2023A | 2024A | 2025E | 2026F | 2027F |
|---|---|---|---|---|---|
| EBIT margin | 14.9% | 12.2% | 10.4% | 10.4% | 10.4% |
| PBT margin | 9.8% | 7.2% | 5.4% | 5.6% | 5.8% |
| PATAMI margin | 9.2% | 5.6% | 4.1% | 4.3% | 4.4% |
| Core PATAMI margin | 5.0% | 3.7% | 4.1% | 4.3% | 4.4% |
| ROA | 1.9% | 1.6% | 1.8% | 1.9% | 2.0% |
| ROE | 4.7% | 3.6% | 4.1% | 4.3% | 4.4% |
| Growth | 2023A | 2024A | 2025E | 2026F | 2027F |
|---|---|---|---|---|---|
| Revenue growth | 4.3% | 7.3% | 4.0% | 4.0% | 3.1% |
| PBT growth | 5.8% | -21.7% | -21.1% | 7.6% | 5.7% |
| PATAMI growth | 27.3% | -34.8% | -23.2% | 7.6% | 5.7% |
| Core PATAMI growth | -32.1% | -20.1% | 16.3% | 7.6% | 5.7% |
| Key Metrics | 2023A | 2024A | 2025E | 2026F | 2027F |
|---|---|---|---|---|---|
| Containers (TEUs) | 588.7k | 554.7k | 526.9k | 542.7k | 559.0k |
| Transportation trips | 216.7k | 243.9k | 253.7k | 263.8k | 274.4k |
| Freight forwarding jobs | 87.4k | 100.8k | 105.8k | 109.0k | 112.2k |
| Warehousing (sq ft) | 1.31m | 1.54m | 1.86m | 1.86m | 1.86m |
Source: Swift Haulage, MBSBR
MBSB RESEARCH (formerly known as MIDF RESEARCH) is part of MBSB Investment Bank Berhad (formerly known as MIDF Amanah Investment Bank Berhad) 197501002077 (24878-X).
(Bank Pelaburan) (A Participating Organisation of Bursa Malaysia Securities Berhad)
DISCLOSURES AND DISCLAIMER
This report has been prepared by MBSB Investment Bank Berhad (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) 197501002077 (24878-X).
It is for distribution only under such circumstances as may be permitted by applicable law. Readers should be fully aware that this report is for information purposes only. The opinions contained in this report are based on information obtained or derived from sources that we believe are reliable. MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) makes no representation or warranty, expressed or implied, as to the accuracy, completeness or reliability of the information contained therein and it should not be relied upon as such. This report is not, and should not be construed as, an offer to buy or sell any securities or other financial instruments. The analysis contained herein is based on numerous assumptions. Different assumptions could result in materially different results. All opinions and estimates are subject to change without notice. The research analysts will initiate, update and cease coverage solely at the discretion of MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD). The directors, employees and representatives of MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) may have an interest in any of the securities mentioned and may benefit from the information herein. Members of the MBSB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein This document may not be reproduced, distributed or published in any form or for any purpose.
MBSB INVESTMENT BANK (formerly known as MIDF INVESTMENT BANK): GUIDE TO RECOMMENDATIONS
STOCK RECOMMENDATIONS
- BUY
- Total return is expected to be >10% over the next 12 months.
- TRADING BUY
- The stock price is expected to rise by >10% within 3 months after a Trading Buy rating has been assigned due to positive news flow.
- NEUTRAL
- Total return is expected to be between -10% and +10% over the next 12 months.
- SELL
- Total return is expected to be < -10% over the next 12 months.
- TRADING SELL
- The stock price is expected to fall by >10% within 3 months after a Trading Sell rating has been assigned due to negative news flow.
SECTOR RECOMMENDATIONS
- POSITIVE
- The sector is expected to outperform the overall market over the next 12 months.
- NEUTRAL
- The sector is to perform in line with the overall market over the next 12 months.
- NEGATIVE
- The sector is expected to underperform the overall market over the next 12 months.
ESG RECOMMENDATIONS* – source Bursa Malaysia and FTSE Russell
- ☆☆☆☆
- Top 25% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆☆☆
- Top 26-50% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆☆
- Top 51%- 75% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆
- Bottom 25% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
* ESG Ratings of PLCs in FBM EMAS that have been assessed by FTSE Russell in accordance with FTSE Russell ESG Ratings Methodology
