PETALING JAYA: Logistics player Tasco Bhd
’s results fell short of expectations in the third quarter of financial year 2026 (3Q26), weighed down by the freight forwarding and cold supply chain segments, says MBSB Research.
The underperformance of these two segments were likely due to lower shipment volumes.
Tasco, which is a subsidiary of Yusen Logistics Co Ltd, offers logistics solutions covering air, sea and land transportation.
“Tasco recorded a core net profit of RM11.1mil in 3Q26, bringing its core net profit for the first nine months of financial year 2026 to RM30.4mil.
“The performance missed expectations, representing just 66% of our projection and 69% of consensus full-year projection, mainly due to softer-than-expected contributions across all segments,” MBSB Research said in a note.
Total revenue declined by 7.1% year-on-year (y-o-y), mainly weighed down by the international business segment (down 16.4% y-o-y) due to underperformance in air and ocean freight forwarding.
On the domestic front, revenue edged up 0.9% y-o-y, though performance was constrained by a 13.7% y-o-y contraction in the cold supply chain segment following the exit of a major food and beverage (F&B) customer.
Against this backdrop of weaker revenue and softer margins, core net profit declined by 20% y-o-y.
Compared with 3Q26, revenue declined by 2.4%, with the international business segment again emerging as the main underperformer, particularly in ocean freight forwarding.
Domestic business revenue was largely flat, with only the contract logistics segment recording a slight decline. Notwithstanding the decline in revenue, core net profit increased by 19.7% quarter-on-quarter, driven by a lower effective tax rate.
“We await the upcoming results briefing for further colour on the performance.
“We are maintaining our target price at 65 sen for now,” stated MBSB Research, while adding that it has maintained its “buy” call for the Tasco stock.
Meanwhile, in a separate note, RHB Research said the 3Q26 results reflected a “decent quarter”.
“We deem the results in-line, as we expect a partial clawback of general headquarters expenses (about RM5mil per quarter) in 4Q26 – consistent with prior years. Note that we adjusted RM1.1mil foreign exchange impact for the core profit.”
On the upside, RHB Research pointed out that 2026 should be a favourable year for logistics players, backed by a container volume normalisation following improved clarity on reciprocal trade policies, alongside resilient electrical and electronics (E&E) exports.
Tasco’s 400,000 sq ft expansion at Shah Alam Logistics Centre and the 300,000 sq ft warehouse development at Northport remain on track for completion by mid-2026, slated for maiden contribution into the second half of financial year 2027. A new F&B client is expected to support the cold supply chain business while a regional semiconductor hub in Penang is expected to commence operations in July 2026, said RHB Research.
Commenting on the global freight market, RHB Research said it continues to see a widespread downward trend in global freight rates, which may continue to pressure forwarders’ profitability.
“Meanwhile, major shipping lines are gradually resuming transit to Suez Canal amid improved Red Sea stability, marking a step towards easing two years of global trade disruption caused by Houthi military attacks.
“While global freight rate weakness remains a near-term headwind, Tasco’s diversified service offerings, exposure to resilient E&E exports, warehouse expansion, and potential cost clawbacks in 4Q26 should provide downside support to the current below-mean valuation share price.”
Looking ahead, the research house foresees a stronger year ahead for Tasco, with the volume and margin normalisations in 2026.
RHB Research also has a “buy” rating for Tasco, with a target price of 70 sen.
