PETALING JAYA: MBSB Research is keeping its earnings forecasts unchanged for Tasco Bhd
despite the firm posting a weaker-than-expected fourth quarter (4Q) that dragged full-year earnings slightly below estimates.
“Earnings forecasts are maintained for now, pending further guidance at the upcoming results briefing, though with a downside bias,” it said.
The research house has maintained its “buy” call and target price of 56 sen, based on 10 times financial year 2027 (FY27) forecast earnings per share, noting that the stock is trading at about one standard deviation below its five-year historical mean.
Moreover, the logistics group’s 4Q core profit after tax and minority interests (Patami) came in at RM8.8mil, bringing FY26 core Patami to RM39.2mil, which represented 92% of MBSB Research’s forecast and 94% of consensus expectations.
MBSB Research described the quarter as a disappointing one, mainly because of weaker contributions from ocean freight forwarding and contract logistics.
A key drag came from ocean freight forwarding, where revenue fell 17.7% year-on-year (y-o-y) to RM27mil in the quarter, slipping into a marginal pre-tax loss of RM14,000, likely due to lower shipment volumes.
For the full financial year, ocean freight forwarding profit before tax declined 14.2% to RM3.4mil.
Tasco’s cold supply chain segment remained under pressure, with quarterly revenue down 6.2% y-o-y to RM31.4mil, following the loss of a major food and beverage customer.
Management had earlier indicated its cold chain operations were being consolidated, with relocation targeted for completion by end-FY26, which may support recovery going forward.
Meanwhile, the company’s contract logistics revenue rose 10.2% y-o-y to RM74.7mil, while trucking revenue increased 15.9% quarter-on-quarter to RM29.9mil, helped by stronger activity after festive periods.
“Core Patami increased by 48.9% y-o-y, driven mainly by a lower effective rate due to investment tax allowance claims,” the research house said.
The air freight forwarding business also remained a steady earnings anchor, with revenue climbing 12.3% y-o-y to RM53.6mil and profit before tax rising 70.6% to RM3.9mil in the quarter.
For FY27, MBSB Research expects Tasco’s revenue to rebound to RM1.02bil, with core Patami projected at RM45mil.
