PETALING JAYA: Logistics firm Tasco Bhd
has encountered a speed bump in its first quarter of its financial year ending March 31, 2027 (1Q27) as weak sea freight and storage demand dragged profits below market expectations, despite a boost from its air cargo division.
RHB Research said Tasco’s 1Q27 results came in below theirs and consensus estimates due to weaker-than-expected ocean freight forwarding (OFF), contract logistics (CL), and cold supply chain (CSC), while partially offset by stronger-than-expected air freight forwarding (AFF).
But looking ahead, it expects a stronger performance in the second half of FY27 (2H27) driven by the commencement of two new warehouses by mid-2026.
The stock is trading at an undemanding about six times price-to-earnings ratio (PE).
“In 1Q27 core earnings slipped about 29% year-on-year (y-o-y) and about 23% quarter-on-quarter (q-o-q) at RM7.2mil, representing about 15% to 16% of our and consensus estimates.
“The negative deviation was mainly driven by a weaker-than-expected OFF, CL, and CSC,” the research house said.
RHB Research noted that Tasco’s top-line sales grew to RM245.2mil, beating both the previous quarter’s and last year’s performance.
“Its 1Q27 revenue rose to RM245.2mil (6.5% q-o-q, 10.2% y-o-y), mainly driven by stronger AFF volume. However, core profit after tax and minority interests declined 29% y-o-y due to weaker-than-expected OFF, CL, and CSC.
“The weaker-than-expected OFF was mainly attributable to elevated global ocean freight rates amid the Middle East conflict, prompting customers to shift towards AFF, which in turn supported stronger-than-expected AFF performance,” it explained.
Meanwhile, the softer CL was primarily due to lower project shipments in the customs clearance business, in tandem with weaker OFF volume.
The brokerage said this was partially offset by improved warehouse contribution, supported by higher storage utilisation and new warehousing contracts secured from retail customers.
“The weaker CSC was mainly a result of customer attrition.”
RHB Research’s outlook stated that the 400,000 sq ft expansion at the Shah Alam Logistics Centre and the 300,000 sq ft warehouse development at Northport were completed in mid-2026 and slated for maiden contribution in 2H27.
“Meanwhile, a regional semiconductor hub in Penang is expected to commence operations in July 2026,” it said.
RHB Research maintained its earnings forecasts for now, pending the upcoming analyst briefing.
“Our new trading price of RM0.66 is derived after rolling forward the valuation base year to calendar year 2027, based on an unchanged 12 times PE, and inclusive of a 2% environmental, social, and governance premium.”
