ALK SP / ALK.SI
Regional scale builds ahead of peak season
Logistics
Malaysia contributed its first full six-month revenue contribution following the August 2025 acquisition of MF Logistics’ freight-forwarding business, while Philippine revenue increased 41.4% YoY. Together, these operations accounted for 15.2% of Group revenue in 1H26, compared with 9.6% for FY25, supporting the Group’s strategy of building scale across ASEAN.
Freight-forwarding revenue increased 34.4% YoY to US$37.5mn, while other third-party logistics revenue more than doubled to US$2.6mn. The expansion reflects new business and demand for cross-border logistics management and value-added warehousing support. Maintaining service quality and procurement discipline will be important as the operating platform grows.
Following its 5 August 2026 Mainboard listing, All-Link continues to pursue a proposed 30% interest in All-Link Vietnam, expansion into Thailand and the establishment of an Indonesian subsidiary. The IPO provides resources to support these initiatives, although their timing remains subject to commercial and regulatory considerations.
We maintain our OUTPERFORM rating on All-Link Air & Sea Limited with an unchanged 12-month target price of S$0.82, based on our DCF valuation using a 15.0% WACC and 2.0% terminal growth rate. The growing regional contribution and expected stronger second-half activity support our investment case, while margin pressure, working-capital requirements and expansion execution risks keep our valuation assumptions unchanged.
Key downside risks include (i) customer and referral concentration, compounded by non-exclusive, volume-uncommitted contracts; (ii) trade-policy changes affecting shipment demand; (iii) margin pressure from competition, higher freight procurement costs and constrained third-party capacity; and (iv) execution risk on overseas expansion plans.
