PETALING JAYA: Logistics firm Tasco Bhd
’s growth outlook is expected to improve as the company adds customers to its cold supply chain division, while earnings rise as margins continue to improve.
Analysts have maintained their “buy” calls on the stock after the company reported net profit for the second quarter ended Sept 30, 2026 (2Q26) that increased 18.2% to RM9.6mil from 2Q25, despite a 21.7% decline in revenue to RM231.6mil.
MBSB Research projects the company’s outlook to improve steadily and remains upbeat on its outlook for the second half of the financial year ending March 31, 2026.
While maintaining the “buy” call, the research house has revised the target price (TP) to 64 sen a share from 65 sen after adjusting earnings forecasts 2% lower for financial year 2026 (FY26) to FY28, after accounting for a higher tax rate.
It said stronger seasonal activity and new product launches by the company’s customers would support the latter half of FY26 and noted that its parent company, Yusen Logistics Co Ltd, would reimburse any shortfall if tender rates drop below cost for the air and ocean freight forwarding divisions accounting for 38% of total revenue.
RHB Research, which has also kept a “buy” call but revised its TP to 70 sen from 75 sen, expects earnings to normalise in the coming quarters.
“Its strategic shift away from low-margin businesses and the onboarding of new customers across key segments should support margin improvement.
“Despite low volume from some of its customers, due to a challenging operations backdrop, management indicated steady volume growth ahead.
“Valuation is attractive for its diversified earnings base, strong cash flow and solid balance sheet,” it said.
Furthermore, the research house said growth momentum for FY26 and beyond would be supported by several new customers, among them a food and beverage client in the cold supply chain division, a fashion retailer for the logistics centre and another client that commenced operations recently.
Additionally, it said a semiconductor client would commence operations in July 2026.
For its 2Q25, Tasco reported a net profit of RM9.6mil on revenue of RM231.58mil.
In a filing with Bursa Malaysia on its earnings, Tasco said it expects the operating environment to stay cautious.
“On the downside, risks include weaker-than-expected global domestic economy, further reductions in trade activity, higher operating costs driven by inflationary pressures, currency volatility or regulatory shifts, and disruptions in supply chains as escalating trade tensions continue.”
