MBSB Research said storage revenue has stayed resilient, although trucking activity could remain constrained by slower inventory turnover.
PETALING JAYA: Higher activity tied to year-end holidays and new product launches are likely to give Tasco Bhd
a boost but only in the second half of this year.
MBSB Research said lower year-on-year rates coupled with softer shipment values have ultimately brought down the group’s freight forwarding performance and caused tender outcomes to be scarce.
In a report, the research house noted that Tasco’s management had implemented the strategic forward pricing scheme which is meant to support participation in the tender process by reimbursing any shortfall should tender rates fall below costs, with terms reviewed quarterly.
“This provides a degree of downside risk mitigation, given that 80% of the forwarding business is conducted on a tender basis, with the balance exposed to spot rates,” MBSB Research said.
On Tasco’s cold supply chain segment, the research house is expecting softness in the near-term particularly since the exit of a food and beverage player as its customer.
“The loss was driven by the customer’s brand consolidation, which led to expanded storage requirements beyond Tasco’s available capacity,” it said.
However, Tasco has been pursuing smaller contracts to make up for the losses, gradually stabilising this segment.
Another negative factor for the group is the lower footfall in its quick service restaurant from boycott-related pressures.
“Storage revenue has stayed resilient, although trucking activity could remain constrained by slower inventory turnover,” the research house said.
There are still some bright spots for Tasco, including its warehousing segment that could possibly see an uplift in its utilisation rates, as the group reckons existing capacity should be fully taken up by the end of the third quarter of 2026.
The segment is also the largest earnings contributor to the group.
“Earnings contributions could become more visible from the fourth quarter of the financial year ending March 2026 (4Q26) onwards. Beyond the financial year 2026 (FY26), growth in this segment is likely to be supported by the completion of its 700,000 sq ft of new warehouse capacity in June, with utilisation underpinned by early customer interest and anchor takeup,” said the research house.
