KUALA LUMPUR (April 8): MIDF Research believes investors should take advantage of the recent price dip in Swift Haulage Bhd (KL:SWIFT), which is advancing on its sustainability ambitions, and start buying the stock.

The counter closed at a record low of 35 sen a share on April 7 — the lowest its share price has been since its 2021 listing, when it debuted at an IPO price of RM1.03.

The stock was up 2.86% earlier to trade at 36 sen a share, giving it a market capitalisation of RM315.8 million. Year-to-date the stock is down 20%.

The firm is optimistic about Swift Haulage after it enhanced its sustainable logistics ambitions by adding a five-tonne electric truck. It plans to add two more electric prime movers by the end of FY2025.

Swift Haulage has pledged to exclusively procure electric prime movers and trucks by 2030, to achieve a 5% reduction in Scope 1 emissions — primarily driven by diesel consumption across its fleet.

In a note on Tuesday, the research group upgraded its call on the stock to ‘buy’ while maintaining its target price of 40 sen, based on forecasted 11 times FY2025 earnings per share.

“The outlook is promising, with better battery life, longer warranties, and maturing infrastructure making EV (electric vehicle) adoption more viable,” said MIDF Research.

“With a clear roadmap and strong early results, the group is positioning itself at the forefront of sustainable logistics, ready to scale as the market matures,” it added in the note.

Swift Haulage took a major step towards sustainable logistics by introducing Malaysia’s first electric prime mover from Volvo in the fourth quarter of financial year 2023.

It now operates two electric prime movers with fast charging capabilities, taking just 45 minutes to fully charge using a 180kW charger.

Each truck has a driving range of up to 300km, making them perfect for urban and cross-border trips to Singapore. This is supported by two in-house charging stations and a partnership with Shell Recharge.

“We understand that more than half of its existing haulage customers can accommodate the current range limitations, while interest from new prospects continues to grow steadily,” said MIDF Research.

It noted that major clients like Unilever, Nestle, and IKEA responded positively to Swift Haulage's two-driver rotation system, which ensures full vehicle utilisation with 12-hour operations.

Each electric truck costs an estimate of RM1.3 million but yields higher rates and fuel savings of up to RM2,000 per month, according to the logistics provider.

Supported by green financing and government tax incentives, MIDF Research stated that Swift Haulage expects an estimated 12% return over the trucks’ battery lifespan.