KUALA LUMPUR: Swift Haulage Bhd's earnings could benefit from a potential turnaround in Global Vision Logistics (GVL) and cross-selling synergies as utilisation improves, said Maybank Investment Bank Bhd (Maybank IB).
However, the firm said margin volatility, elevated overhead costs and intensifying price competition could limit the logistics group's earnings upside.
"Swift remains cautiously optimistic, underpinned by warehouse expansions and the ramp-up of GVL and its new cold chain logistics joint venture (JV)," it said in a note.
It said GVL and the new cold chain logistics JV had also commenced operations, resulting in higher initial operating costs and wider associate losses as the businesses work towards increasing utilisation.
