RHB Research noted Tasco’s first-half financial year 2026 core earnings were below expectations.
PETALING JAYA: Tasco Bhd
’s first-half financial results reflect the challenges in the transport and logistics sector amid muted trade volumes and lingering geopolitical headwinds that cloud near-term earnings visibility.
RHB Research noted Tasco’s first-half financial year 2026 (1H26) core earnings were below expectations due to a higher-than-expected effective tax rate (ETR) despite eligibility for the Integrated Logistics Services incentive and weaker performances across its supply chain solutions (SCS), cold supply chain (CSC) and trucking (TD) divisions.
“The 1H26 core earnings of RM19.1mil (22.6% lower year-on-year (y-o-y) represent only 36% to 41% of our and consensus’ full-year estimates, reflecting shortfalls in both tax and segmental margins.
“The ETR rose to 20.6% from 16.5% in 1H25, while contributions from both international business solutions (IBS) and domestic business solutions (DBS) underperformed,” the research house stated in a report on the logistics firm.
Tasco’s IBS segment’s revenue fell 16% y-o-y in 1H26 on weaker air freight forwarding (AFF) amid lower shipment volumes from key customers in the fast-moving consumer goods, aerospace and electrical and electronics sectors.
Its pre-tax profit, however, rose 37% y-o-y on stronger performances in AFF (plus 18% y-o-y) due to a recovery in air freight rates since June, along with a stronger performance from the SCS division (plus 99% y-o-y).
“The latter’s earnings remain below expectations, achieving only 29% of our full-year forecast,” RHB Research highlighted.
Tasco’s DBS segment reported 1H26 topline and pre-tax profit of RM253.6mil (minus 17% y-o-y) and RM16.7mil (minus 32% y-o-y), respectively.
RHB Research maintained its “buy” call on Tasco but with a lower target price of 75 sen a share (86 sen earlier).
