Tasco sees 16% rise in net profit on expansion plan

  • Business
  • Saturday, 08 Dec 2007

KUALA LUMPUR: Trans-Asia Shipping Corp Bhd (Tasco) expects 16% rise in net profit for its financial year ending Dec 31, 2008 (FY08). 

This is following the expansion of its facilities in a new logistics centre and the acquisition of a warehouse.  

Managing director Lee Check Poh said the company would build a logistics complex in Bangi and acquire a warehouse in Port Klang as part of its expansion plan. 

“The logistics complex would cost RM10mil and the warehouse about RM8.5mil,” he said at the launch of the company's prospectus yesterday. 

Trans-Asia chairman Tan Sri Asmat Kamaludin (left) and AMMB Holdings Bhd deputy chairman Datuk Azlan Hashim at the prospectus launch

He said the acquisition of the warehouse, expected to complete by March, would reduce the group’s rental expenditure by RM2mil per year. 

Tasco, scheduled to list on Bursa Malaysia main board on Dec 28, expects its expansion plan to reduce storage constraints and lower operation costs. 

This is in line with its strategy to strengthen its market position in Bangi and Port Klang. 

Tasco will make an offer for sale of 25.2 million shares at RM1.10 each.  

Of these, five million will be offered to the public, 5.2 million to eligible directors, employees and business associates and subsidiaries, and another 15 million by way of private placement. 

The flotation is expected to raise RM27.72mil, of which RM18.5mil will be used to expand its facilities, RM1mil to upgrade computer systems, RM5.82mil for working capital and RM2.4mil for listing expenses. 

Tasco expects an increase of 3% in net profit to RM12.78mil for FY07 following higher demand for its air cargo services. 

Tasco registered a net profit of RM12.41mil on revenue of RM354.86mil for FY06. 

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