PETALING JAYA: Tasco Bhd’s financial performance outlook for the financial years ending March 31,2022 (FY22) and 2023 looks promising with the recovery of the domestic and global economy.
The total logistics solutions provider had shown a healthy growth amid the current Covid-19 pandemic.
Its proposed acquisition of Hypercold Logistics Sdn Bhd is expected to further strengthen the group’s position as the leading cold chain services in Malaysia.
The proposed acquisition is expected to be completed by the second quarter of 2021.
Tasco reported a net profit of RM16.34mil for its fourth quarter of FY21, compared with a net loss of RM377,000 in the previous corresponding period, on the back of higher contribution from the company’s domestic and international business solutions segments.
For FY21, the group’s net profit rose to RM41.27mil from RM8.89mil in the previous corresponding period, while revenue improved to RM946.61mil from RM747.44mil a year earlier.
MIDF Research said it remains upbeat on the earnings outlook for Tasco.
The research house is maintaining its “buy” call on the stock with a target price of RM1.38.
“We believe the group will be able to maintain this stellar performance ahead. Moving forward, we expect Tasco will see improved earnings on the back of growing top line for international business solutions, brisk recovery on domestic business solution segment, and margin expansion via the investment tax allowance scheme, ” MIDF added.
On its proposed acquisition of Hypercold Logistics, the research house said it believes the acquisition would further cement Tasco as the leading cold chain services in Malaysia.
“Tasco’s cold supply chain logistics is currently the largest cold chain provider in Malaysia with close to 35% market share of the segment with key customers consisting of fast moving consumer goods retailers, food and beverage players and pharmaceutical groups.
“With the addition of Hypercold, Tasco capacity will increase to approximately 53,000 –56,000 pallet capacity, ” it noted.