KUALA LUMPUR (April 1): Malacca Securities has assigned a fair value of RM1.45 per share to Main Market-bound MTT Shipping and Logistics Bhd, implying an upside of 40.8% from its initial public offering (IPO) price of RM1.03, citing the group’s unrivalled market position in Malaysian cabotage volumes and growth prospects.
Malaysia’s largest logistics listing in over a decade is set for April 21, with an enlarged market capitalisation of RM2.58 billion.
MTT Shipping commands a 46% market share of cabotage volumes from Peninsular Malaysia to East Malaysia and Brunei, according to an independent market research report. This leadership is anchored by a comprehensive service network covering 34 ports.
Malacca Securities projects a three-year earnings compound annual growth rate (CAGR) of 10.5%, with core profit after tax and minority interest (Patmi) expected to reach RM297.9 million to RM337.5 million over the next three years. Growth is expected to be driven by higher freight rates, rising transport volumes, additional vessel capacity, and diversification into the chemical tanker segment.
The group is expanding its logistics and shipping operations by developing integrated freight facilities (IFFs) in Kota Kinabalu, Kuching, and Bintulu with warehousing, cold storage, and depot services. Kota Kinabalu IFF will start in the second quarter of 2026 and the others by 2028, strengthening MTT Shipping’s role as an integrated logistics provider.
It is also entering the chemical shipping market with two new 12,500DWT dual-fuel methanol tankers for hazardous liquid cargo. These will support regional energy projects like Bintulu’s methanol plant and are expected to be delivered in the second half of 2026.
About 95.7% of the RM652 million MTT Shipping is raising will be channelled towards the acquisition of at least 12 newbuild container vessels, in line with the group’s strategy to expand capacity and strengthen its network coverage. The remaining funds will be utilised for listing-related expenses.
Still, the research house flagged key risks, including events such as port congestion and operational disruptions due to the Middle East conflict, capital-intensive maintenance and repair of vessels, foreign currency valuation and impact of economic conditions on trade volumes.
The operator of the largest fleet of Malaysian-flagged containerships with a total nominal capacity of 29,149 twenty-foot equivalent units was founded in 2010. The company provides a one-stop logistics solution through its three core segments, which are container liner shipping, vessel chartering and container depot operation.
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