Swift Haulage 9M22 earnings came below Maybank IB's expectation

NST Thu, Nov 17, 2022 09:38am - 1 year View Original


KUALA LUMPUR: Swift Haulage Bhd's nine months 2022 (9M22) net profit of RM36.1 million came in below Maybank Investment Bank Bhd (Maybank IB) expectations at 65 per cent and 66 per cent of consensus financial year forecasts.

The bank-backed research house said the 9M22 net profit improvement (55 per cent) was in line with the higher revenue (11 per cent), mainly driven by the easing of Covid-19 restrictions and the recovery of business activities.

"We trim net profit by seven per cent each in the financial years 2022 (FY22) to FY24, as we reflect higher fixed costs in our projection," it said.

Swift Haulage expects volume to continue to be supported by stable demand from domestic shipping between East and West Malaysia.

The company also expects contributions from newly added warehouse capacity to gradually materialise, Maybank IB noted.

"This will focus on its strategy to expand its customer base domestically and regionally via opportunistic mergers and acquisitions amidst an increasingly challenging operating out.

"We tweaked our target price down slightly to 64 sen and maintain a 'Buy' call on Swift Haulage," it added. 

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