MIDF Research said the company’s management had observed that the current sentiment on the freight market resembles the uncertainty of early 2020.
PETALING JAYA: Tasco Bhd
expects minimal direct impact from Malaysia’s shift to a stricter Investment, Trade and Industry Ministry or Miti-led process for issuing non-preferential certificates of origin (NPCO) for exports, according to MIDF Research.
“While the transition may cause delays for some exporters unfamiliar with the fully digital system, most shipments can still proceed as vessels typically take two to three weeks to reach the United States, allowing time for the certificate to be issued before import clearance,” it added.
Tasco is an integrated logistics provider offering air, sea, land and warehousing services as well as warehousing and distribution solutions.
On the domestic business front, the research house said although global solar panel maker JinkoSolar’s exit initially weighed on the contract logistics segment, more than half of the lost revenue has since been recovered through new customer wins.
The cold supply chain division is also seeing signs of recovery, with in-and-out volumes from customers gradually improving.
That said, it noted that store-level activity may remain below previous levels, as customers are believed to have closed a few outlets during the boycott as part of cost rationalisation measures.
On the trucking front, MIDF Research said the festive season demand was softer than in the past years, in line with trends observed across the logistics industry.
The brokerage said the company’s management had observed that the current sentiment on the freight market resembles the uncertainty of early 2020 with the risk of further disruption largely dependent on how the US tariffs situation develops.
“In the early fourth quarter of financial year 2025 (FY25), weak freight rates spurred interest in longer-term contracts of up to one year on Asia to Europe and US lanes, but Tasco was unable to secure commitments as carriers remained hesitant to allocate capacity.
“With rising tariff uncertainty, preferences have likely shifted to spot rates,” MIDF Research said.
In terms of earnings estimates, the brokerage has made slight downward revisions of minus 5% and minus 1% to its FY26 and FY27 forecasts, primarily to reflect softer market freight rates, reduced trucking activity and marginally lower goods movement in the cold supply chain division.
While maintaining a “buy” call on Tasco, MIDF Research said following the earnings downgrade, it has revised its target price to 68 sen from 72 sen per share.
