MBSB Investment Bank Bhd said Swift Haulage’s operating environment is showing signs of improvement but maintained a SELL call with a revised target price of RM0.35, down from RM0.37, as analyst pointed to limited valuation upside despite firmer utilisation trends and gradual recovery in logistics activity.
The research house noted that container haulage volumes declined 5.9% year on year in 1QFY26 due to stricter overweight enforcement, although average revenue per job rose 11.1% supported by earlier rate adjustments.
Container throughput at key ports also eased 1% to 1.69 million TEUs, partly reflecting fewer working days during the quarter, while a potential resumption of a major solar glass customer in July could support volumes in 2H26.
MBSB Research said freight forwarding remained resilient, with project cargo activity lifting revenue per job by 9.5% year on year despite a slight decline in volumes. It added that land transport trips fell 7.4% due to seasonal factors, while further pricing adjustments across transport services may be introduced to offset higher maintenance costs.
In warehousing, utilisation trends are expected to improve in 2H26 as new customers replace exited contracts. Johor occupancy could rise to around 90% with a new customer onboarding in June, while Penang utilisation is also expected to reach 90% following recent take up.
However, the segment was affected by customer exits and the cessation of auto logistics operations which reduced capacity and rental income.
The group is also expanding capacity with new and repurposed facilities including a 172,000 square foot warehouse expected to reach 80% utilisation by end June and a 100,000 square foot facility in Gebeng due in 3QFY26.
Meanwhile, the Shah Alam International Logistics Hub currently has about 30% occupancy with a 70% target by year end.
MBSB raised FY26 to FY28 earnings forecasts slightly by up to 2.9% on better utilisation and expansion plans but said risks remain from weak volumes and margin pressures, supporting its cautious SELL stance.
As of 11.11 am, the stock price slips 3.26% to RM0.445.
