According to RHB Research, this was owing to the group's exposure to the electrical and electronics and other export-oriented industries, which were classified as essential ths time, as well as new business wins.
In the coming quarters, Tasco is expected to record tax savings from its Integrated Logistics Services scheme.
"Broadly speaking, a throughput recovery would follow suit, as more economic sectors re-open over the course of 2H21, while persisting tightness in air and ocean freight markets remain in favour of Tasco’s freight forwarding prospects, given its ease of access to in-demand cargo spaces to meet customers’ shipping needs," said RHB.
In 1QFY22, the group's earnings of RM15.8mil, which was 498% higher year-on-year, came within RHB's expectations at 27% of full-year estimates, and above consensus expectations at 30% of its full-year projection.
"The steady performance was supported by Tasco’s diverse clientele base, across various economic sectors, in addition to increased contribution from newly secured customers, which helped make up for the weakness in business activities affected by COVID-19 and/or rolling lockdown measures," said RHB.
The research house maintained its forecasts despite expectations of a stronger 2H as it remains conservative due to the fluid pandemic situation and timeline for the full economic reopening.
It kept "buy" and its target price of RM1.75 pegged to an unchanged 22x target price-earnings on 2022 earnings per share.
"At 13.5x forward P/E, the stock still trades at an undemanding multiple relative to its historical mean and regional 3PL peers’ c.24x," it said.