Sino Logistics Corporation Public Company Limited

Sino Logistics Corporation Public Company Limited (SINO) expects its operating results in the third quarter of 2026 to grow significantly compared to the second quarter of 2026 and the first half of the year, benefiting from continuously rising freight rates due to conflicts in the Middle East and water level issues in the Panama Canal. This has driven the Asia-US West Coast freight rate index to surge from 1,316 points in January to over 4,000 points currently. In the second quarter of 2026, the company's sea freight volume reached 15,034 TEUs, growing 17% from the previous quarter and hitting a record high in nine quarters. This year, the company targets total shipments of 54,000 containers, with 27,000 already achieved in the first half, and expects to exceed the target by year-end. The third quarter is the peak season for shipments to the US, its main market, with Sea Freight business accounting for 87% of revenue, driving total revenue in 2026 to reach 3.5 billion baht, after achieving 1.405 billion baht in the first half. Meanwhile, the company is accelerating the expansion of its Air Freight and Logistics Support businesses, aiming to increase their combined revenue share to 15% by 2027 from 12% at the end of the second quarter of 2026. It also plans to add 10 more tractors, bringing the total to 30, to support growth, particularly from major electronics clients related to AI, which have begun using its services significantly.

Sino Logistics Corporation Public Company Limited (SINO) is confident that its performance in the second half of 2026 will show outstanding growth, especially in the third quarter of 2026, benefiting from the export season as the United States and Europe accelerate orders, driving full-year revenue to meet the target of 3.5 billion baht with a shipping volume of 53,000 containers. The company also outlines a long-term plan to restructure its revenue mix, increasing the weight of Air Freight and Logistics Support businesses, highlighting High Margin, and bolstering with WLT in the United States. Mr. Nanmanas Wittayaskphan, Chief Executive Officer of SINO, revealed that the trend for the second half of the year is expected to be better than the first half, although the fourth quarter of 2026 may slow down slightly in December due to the holiday season. However, the third quarter of 2026 will be the most outstanding period of the year, driven by seasonal factors as importers in the US and Europe accelerate orders, coupled with geopolitical conflicts in several regions keeping freight rates at high levels. The company is confident that revenue will reach 3.5 billion baht as targeted. The company has seen positive signs since May 2026 as exporters rush to ship goods amid trade policy uncertainties, with transport demand surging to the point where space on vessels is becoming limited. However, with the company's strength of having direct contracts with major shipping lines, it can manage space and costs to cover the remainder of the year, confident of achieving the full-year shipping volume target of 53,000 containers. The company plans to drive growth through the Air Freight business, positioning A.S. Logistics Company Limited (ASL) as the core for business expansion, while expanding the customer base and routes in Europe and Australia. For the Logistics Support business, the company will increase warehouse space utilization to full potential, currently having 9 warehouses in the Laem Chabang area, Chonburi Province, with a total area of over 43,000 square meters, and is studying the expansion of warehouses in Bangkok and Samut Prakan. Additionally, there is a plan to invest in 10 more tractors, bringing the total to 30, to enhance service capabilities. For the next phase of business direction, the company plans to adjust its revenue structure for sustainability by reducing reliance on Sea Freight from the current 93% to 80%, shifting weight to businesses with high gross profit margins (High Margin), aiming to increase the combined revenue share from Air Freight and Logistics Support to 15% by the end of 2027, up from approximately 12% at the end of the second quarter of 2026. Meanwhile, Sea Freight remains the company's core business, with SINO maintaining strength on the Thailand-US route while expanding Non-USA routes, especially Asia and Europe, which have good growth potential. The share of cargo on Non-USA routes increased to 47% at the end of the second quarter of 2026, up from 36% at the end of 2025, exceeding the original target of 45% by the end of 2026, reflecting progress in the route diversification strategy, while the US market remains the main market and key strength of the company. Furthermore, the company has strengthened the sales team of WLT Logistics Inc. dba World Link Transport Group (World Link) in the United States to expand the customer base and increase cross-selling opportunities between the Thai and US networks, with expectations that World Link will reach breakeven by September this year, which will be a key mechanism to bring more profits back to the parent company. "The company aims to become an Integrated Logistics Provider by linking Sea Freight, Air Freight, Road Freight, Warehouse, and logistics support services together, while creating synergy among businesses in the group and international networks to enhance competitiveness and expand the customer base in the long term," Mr. Nanmanas said.

SINO expects a clear improvement in operating results for the third quarter of 2026 compared to the second quarter of 2026, when revenue was around 804 million baht, driven by significantly expanding sea transport demand and sharply higher freight rates, as well as the deferral of revenue recognition for some sea transport contracts from the second quarter of 2026 to the third quarter of 2026. The company maintains its 2026 revenue target at 3.5 billion baht, up from approximately 2.843 billion baht last year, after first-half revenue reached about 1.404 billion baht and the freight transport environment is improving for the remainder of the year. In addition, subsidiary SNC has acquired an 80 percent stake in WLT Logistics Inc. in the United States, with orders already coming in and profits expected from September 2026 onwards, which will help reduce expenses from using other agents and support the overall transport business ecosystem.

SINO is upgrading its business from an international freight forwarding provider to a full-service logistics operator under the Seamless Logistics concept, aiming to create new revenue streams and enhance profitability. This strategy will increase the value of services per customer, expanding from revenue solely from international shipping to related services across the entire logistics chain, including sea freight, air freight, domestic transportation, warehousing, and other services. This offers the potential for higher profit margins and reduces earnings volatility tied solely to freight rate cycles. The company has continuously invested in business expansion through acquisitions, purchasing Worldlink Transport Group in the United States to strengthen domestic transportation capabilities, and acquiring AS Logistics to expand air freight services. It has also expanded its warehouse network to nine facilities, while adding trucking and tractor services to connect all offerings. Chief Executive Officer Nanthaman Wittayasakphan disclosed that this transition comes amid uncertainty over US trade policy and conflict in the Middle East, which have driven up freight rates. The company estimates that freight rates in the third quarter of 2026 will remain elevated or may rise further with the export season, and expects them to stay high at least until October to November 2026. Meanwhile, Asian markets, particularly India and Pakistan, still have high growth potential and are boosting demand for integrated logistics services.