Swift Haulage Berhad remains a NEUTRAL call with an unchanged target price of RM0.35, according to MBSB Research, which expects operating momentum to strengthen in the second half of FY26 on further transport rate adjustments, improving warehouse utilisation and sustained project cargo activity.
Container haulage volumes rose 2.3% year-on-year to 133,000 TEUs in 2QFY26 while yield increased 13.1% to RM579 per TEU. MBSB Research said management has implemented another 5% to 10% rate increase from July to offset higher operating costs. Despite lower monthly SKDS allocations, management expects the revised quotas to remain sufficient as Swift previously used less than 40% of its allocation.
Land transportation also remained supportive, with trips rising 15.5% year-on-year to 63,000 although average revenue per trip fell 14.5% to RM1,075. Further rate adjustments are expected, particularly in Thailand and Singapore where higher diesel costs are passed through to customers.
Meanwhile, warehouse utilisation is gradually recovering after customer exits and capacity changes. Utilisation at PKFZ is targeted to reach 80% to 90% by year-end from around 50% currently, while Swift’s portion of the Shah Alam International Logistics Hub is targeting at least 70%.
MBSB Research expects the seasonally stronger second half to benefit container haulage and freight forwarding, alongside additional warehousing capacity coming online. Earnings estimates were unchanged.
As of 4.10 pm, the stock price slipped 1.32% to RM0.375.
