SCG JWD Logistics Public Company Limited (SJWD) has invested a total of more than 2,470 million baht to close two deals to expand the logistics business base. The Company has acquired 20.44 percent shares in Swift Haulage Berhad, a major integrated logistics service provider in Malaysia, to increase the potential in providing cargo transportation services in Malaysia and cross-border transportation while preparing to strengthen synergy to expand business. At the same time, SJWD has increased to 20.12 percent the shareholding in Asia Network International Public Company Limited (ANI), one of Asia’sTop-3 major general sales agents (GSA) for airlines, to expand the business portfolio, to increase cost management potential and to expand the scope of services to customers. The equity income from both companies for this year is expected to total 240 million baht.

Mr. Bunn Kasemsup, Co-Chief Executive Officer of SCGJWD Logistics Public Company Limited (SJWD), the largest integrated logistics and supply chain service provider in ASEAN, revealed that on February 5, 2024, the SJWD Board of Directors’ meeting has approved the investment in two projects, which is an important step in the investment in the logistics business in Malaysia and in expanding the business base in air freight services. The aim is to increase the potential of logistics and integrated supply chain services in the region to be even stronger while also collaborating with partners to leverage expertise to expand the business.

The investments in these two projects include: (1) the acquisition of 20.44 percent shares in Swift Haulage Berhad (SWIFT), a major integrated logistics service provider listed on Bursa Malaysia, the Malaysian stock exchange. SWIFT has been in the logistics business for more than 10 years, specializing in land transport such as the transport of containers, domestic transport, cross-border transport, and the transport of chemicals and hazardous goods, etc. Also, the company runs the warehousing business and has just expanded its warehouse facilities, at the same time acting as a freight forwarder. The company’s 2022 revenue was approximately 4,825 million baht with a net profit of 369 million baht. And (2) The boost in shareholding from 8 percent to approximately 20.12 percent in Asia Network International Public Company Limited (ANI), which is an Asia’s Top-3 general sales agent (GSA) for more than 20 airlines, with network covering eight countries including Thailand, Singapore, Malaysia, Vietnam, etc. In 2022, ANI realized revenue from services totaling 6,029 million baht and a net profit of 1,093 million baht. ANI became a listed company on the Stock Exchange of Thailand in December last year.

The Company’s total investment budget for both projects is approximately 2,470 million baht, with around 850 million baht invested in SWIFT and approximately 1,620 million baht in ANI. The funds are derived from the cash flow from business operations, loans and bond offerings. The Company expects to begin recognizing equity income from both companies in the first quarter of 2024 onwards, to the tune of approximately 240 million baht for this year.

Mr. Charvanin Bunditkitsada, Co-Chief Executive Officer of SJWD, said that the acquisition of shares in SWIFT is in line with the Company’s strategy that aims to expand the logistics and supply chain business base to cover more of the ASEAN region through business integration and collaboration and to expand the service network in Malaysia as well as in Singapore, enabling SJWD’s network to now cover all ASEAN countries along with southern China. This new collaboration will serve to boost revenue from the expansion of cross-border transport service for goods such as consumer products, frozen food, rubber, etc. The Company is also looking to support SWIFT in the provision of warehousing and logistics services in Thailand, as well as to exchange knowledge and expand business cooperation in the form of strategic partnership to jointly expand businesses in Malaysia where growth potential is recognizable. These areas include cold storage warehousing, hazardous goods warehousing, vehicle storage and management services, etc. It is expected that the overall logistics business in Malaysia will grow an average of approximately 8 percent per year.

As for the increase in investment in ANI, this will help the Company to quickly expand business portfolio in the provision of air freight services in the move towards becoming an integrated international freight forwarder covering land, sea and air. Also significant will be the ability to increase the potential of cost management while providing integrated international shipping services. The Company will have the opportunity to increase revenue from the expansion of such services to the Company’s customers, especially to those in Malaysia, Cambodia, Vietnam and China. Moreover, the Company will be able to offer various logistics and supply chain services for ANI’s customers to be in line with ANI’s core business as general sales agents for various airlines with the average annual growth trend of 10 percent from 2022 to 2027 (research data by Frost & Sullivan). Currently, many airlines are starting to outsource more of these services, and this development will have a positive impact on ANI’s business and the decision for the Company to increase the investment proportion.

“The Company is continuously moving forward with the business expansion plan following the merger. This is in order to increase our potential as ASEAN’s largest integrated logistics and supply service provider through the expansion of service network to further increase service coverage to become even more comprehensive. The target is to increase the Company’s market capitalization to 100 billion baht in 2027 and to boost the net profit margin to 15 percent,” Mr. Charvanin concluded.