KUALA LUMPUR: Swift Haulage Bhd’s earnings could benefit from a potential turnaround in Global Vision Logistics (GVL) and cross-selling synergies as utilisation improves, said Maybank Investment Bank Bhd (Maybank IB).
However, the firm said margin volatility, elevated overhead costs and intensifying price competition could limit the logistics group’s earnings upside.
“Swift remains cautiously optimistic, underpinned by warehouse expansions and the ramp-up of GVL and its new cold chain logistics joint venture (JV),” it said in a note.
It said GVL and the new cold chain logistics JV had also commenced operations, resulting in higher initial operating costs and wider associate losses as the businesses work towards increasing utilisation.
“We expect these to improve as revenue contribution builds, with potential cross-selling synergies supporting demand across other segments,” it added.
Maybank IB said Swift Haulage’s core net profit rose 28 per cent year-on-year to RM23.1 million for the nine months ended September 2026 (9M26), despite revenue remaining largely flat at RM580.4 million.
The results were broadly in line with its expectations but exceeded consensus estimates, accounting for 67 per cent and 73 per cent of their respective full-year forecasts.
The firm said container haulage and freight forwarding were the key drivers of earnings growth during the period.
Container haulage earnings before interest and tax (Ebit) surged 52 per cent year-on-year to RM24.4 million, supported by stronger revenue and potentially firmer rates.
Freight forwarding EBIT increased 20 per cent to RM36.3 million, driven by stronger demand for project cargo.
“The fourth quarter is typically seasonally stronger, supported by year-end shopping activity.
“We maintain our earnings forecasts and 35 sen target price, based on an unchanged 7.0 times financial year 2026 enterprise value-to-earnings before interest, taxes, depreciation and amortisation,” it said.
Maybank IB upgraded Swift Haulage to “Hold” from “Sell” as it awaits earnings growth from the group’s expansion initiatives amid persistent cost and margin pressures.