Tasco sticking with its forecast for net profit

  • Business
  • Saturday, 29 Dec 2007

KUALA LUMPUR: Logistics solutions provider Trans-Asia Shipping Corp Bhd (Tasco) does not see any need to revise its net profit forecast for the financial year ending Dec 31 (FY07) and FY08 although crude oil is nearing US$100 a barrel and the global economy is slowing down. 

Earlier this year, the company had forecast net profit of RM12.8mil and RM14.8mil for FY07 and FY08 respectively. 

Tasco offers international total logistics solutions. 

Tokyo-based NYK Group, an investor in Tasco since the late 80s and one of the largest logistics and shipping companies in the world, has a 27.8% stake in the company. 

Tasco chairman Tan Sri Asmat Kamaluddin said the economies of China and India were still growing and would still need the services of logistics solutions providers. 

“We're confident that movement of goods from China and India will still provide a lot of opportunities,” he told reporters after Tasco's listing on Bursa Malaysia main board yesterday. 

Minoru Sato, executive vice-president of NYK Logistics & Megacarrier, a unit of NYK Group, said that shipping from Asia to Europe would grow 15% next year while the growth of the Asia-US sector would be between 5% and 7% higher than this year. 

“For this year, the Asia-Europe sector grew 20% while the Asia-US sector grew 7%,” Sato said, adding that the latter sector would be affected by the slowdown in the US economy. 

Tasco and NYK, which have 28 and 379 logistics hubs respectively, leverage on each other's network in the provision of services. 

“We believe that post-listing the company would be able to service more multinational clients, especially with the completion of a comprehensive logistics centre in Bangi and the acquisition of another from NYK in Port Klang,” said Tasco managing director Lee Check Poh. 

Tasco shares opened at RM1.30 for a 20 sen premium over its initial offering price of RM1.10. It closed at RM1.26 for a gain of 16 sen, or 12.69%, after touching an intra-day high of RM1.40. The volume for the day was 19.82 million shares. 

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