In line with the recent report from the Malaysia External Trade Development Corporation (MATRADE), Malaysia's exports for September 2023 exhibited a month-on-month growth of approximately 8.20%, reaching RM124.47 billion. Imports also increased by around 2.10% to RM99.95 billion. Despite a year-on-year decline in trade figures for September, the trade surplus soared by approximately 42.70% to RM24.52 billion, marking the 41st consecutive month of surplus since May 2020. This data underscores a positive trajectory for Malaysia's logistics industry.

Just days ago, Malaysia's integrated logistics service provider, Swift Haulage Berhad (SWIFT, 5303), announced outstanding quarterly results, achieving record profits. Without further ado, let's delve into the details from SWIFT's latest quarterly report.

Revenue Comparison (YoY +5.51%, QoQ +1.78%)

For the quarter ending September 30, 2023 (Q3 FY2023), SWIFT reported a revenue of approximately RM168.04 million, showcasing a growth of around 5.51% compared to the same period last year (RM159.25 million). This growth is attributed to the expansion of the land transportation fleet and the completion of three new warehouses in the 2022 fiscal year.

Examining the quarterly report, Container Haulage and Land Transportation were the primary revenue contributors, accounting for approximately RM67.10 million and RM60.00 million, respectively, representing around 75.60% of the total revenue for the quarter. Furthermore, Warehousing & Container Depot and Freight Forwarding contributed approximately RM26.70 million and RM14.20 million, respectively.

Compared to the preceding quarter, the company's revenue increased by approximately RM2.94 million or 1.78%, driven by qoq growth in Container Haulage and Warehousing & Container Depot, contributing an additional RM2.10 million, and RM1.60 million, respectively.

Net Profit Comparison (YoY +142.23%, QoQ +192.07%)

With strong overall revenue, SWIFT achieved a net profit of approximately RM28.39 million for the quarter, marking an impressive growth of around 142.23% compared to the same period last year (RM11.72 million). This growth is also attributed to the company's acquisition of a 17.50% stake in Global Vision Logistics Sdn Bhd (GVL) at an advantageous price, contributing to increased Other Income.

Similarly, compared to the previous quarter, the company's net profit increased by approximately RM18.67 million or 192.07%.

Outlook

Despite a slight slowdown in trade activities compared to 2022, the management anticipates a growth in demand for warehousing services. Consequently, the company plans to expand warehouse capacity in the Northern and Central regions of Malaysia to meet future demand.

Furthermore, SWIFT plans to establish the largest logistics center in ASEAN in Shah Alam. To achieve this, the company has increased its stake in Global Vision Logistics Sdn Bhd (GVL) to 42.50%. It's worth noting that GVL owns approximately 71.00 acres of land in Shah Alam, and this land will be developed into an international logistics center.

Additionally, the company has invested in environmental projects, introducing green logistics services, including the installation of solar panels and LED lighting in specific warehouses. In the fourth quarter of 2023, SWIFT will also introduce electric trailers, appealing to European clients with a strong Environmental, Social, and Governance (ESG) consciousness.

So dear readers, what are your thoughts on SWIFT's future development?

———————————————————————————————————————————————————

Disclaimer: The above is purely for educational purposes and reflects personal opinions. It does not constitute any buying or selling recommendations.

If you are interested in opening a CGS-CIMB trading account, please sign up using the following link:

https://forms.gle/kZVCyDxUurxChMcg9

———————————————————————————————————————————————————————————