MBSB Research said one of Tasco’s key strengths is its well-diversified customer base across various industries.
PETALING JAYA: MBSB Research says it continues to see an upside in Tasco Bhd
’s warehousing division, driven by recent customer wins and additional capacity that enhances cross-selling potential.
The research house said the integrated logistics company’s free-zone warehousing provides opportunities for the company in value-added services.
Tasco’s Westport Logistics Centre, situated on a 40-acre site within a free-zone area, comprises three warehouse blocks totalling about 680,000sq ft, equipped with 93 loading bays and mixed-temperature zones.
Its Shah Alam Logistics Centre (SALC), built on a 20-acre site with both general and bonded warehouses, was expanded in February 2024 with a four-storey, 600,000sq ft block called SALC ABCD.
“Tasco is adding about 700,000sq ft of new capacity, with the second phase of SALC (400,000 sq ft) targeted for completion by next June and a concurrent 300,000sq ft rebuilding at Northport slated to be completed around the same time.
“Although new warehousing supply has surged as property developers entered the space in recent years, demand remains firm and rents have been above RM2 per square foot in prime areas.
“Integrated logistics companies like Tasco retain an edge through cross-selling, bundling warehousing with air and ocean freight forwarding and trucking, which deepens stickiness with customer supply chains.
MBSB Research said one of Tasco’s key strengths is its well-diversified customer base across various industries.
“In terms of total revenue, technology (24%), fast-moving consumer goods and retail (21%), and food (12% supported by their cold-chain footprint) account for close to 60%. For the warehousing segment, management flagged healthcare, automotive after-sales parts, base commodities and dangerous goods as the key sectors it aims to scale going forward,” the research house added.
It reiterated its “buy” call on Tasco with an unchanged target price of 72 sen.
