PETALING JAYA: Logistics solutions specialist Tasco Bhd
’s outlook remains positive following the company’s second-quarter ended Sept 30, 2026 (2Q27) financial results, announced on Nov 5, which largely met expectations.
Analysts were largely positive on the stock, but MBSB Research cautioned that while freight forwarding activities remained robust during the quarter under review, supported by higher shipment volumes, the warehousing business showed notable weakness, slipping into a loss.
It said this could potentially be attributable to ramp-up costs associated with the additional 700,000 sq ft of warehouse space that came online in August.
“We await further clarity from the upcoming results briefing, but leave our earnings estimates unchanged for now,” it said.
The brokerage maintained a “buy” call on the stock with an unchanged target price (TP) of 49 sen, based on 12 times price-to-earnings, as it deemed the valuation attractive.
At the current share price of 36 sen, the stock offers a 37% potential price gain and also a 4.3% dividend yield.
It noted that the warehousing business swung into the red on weakness in contract logistics, which recorded a loss before tax of RM200,000 in 2Q27 compared to a RM2.9mil profit before tax in 1Q27, dragged by lower-margin warehousing projects and higher operating costs.
This more than offset improvements in the customs clearance and haulage businesses. Overall, total revenue grew 10.1% quarter-on-quarter (q-o-q), while core profit after tax and minority interests rose 32.5% q-o-q.
On a q-o-q basis, both international business and domestic business divisions’ revenue grew 8.6% and 11.7%, respectively, with the supply chain solutions of the international business division the sole underperforming segment, contracting 10.4% q-o-q. Ocean freight forwarding maintained its strong momentum, with revenue rising 29.3% q-o-q on the back of higher shipment volumes.
RHB Research also maintained a “buy” call on Tasco with a TP of 62 sen, implying an upside of 73% from the current 36 sen,. The brokerage expects a stronger second half of financial year ending March 31, 2027 (FY27).
It said the new warehouses at Shah Alam Logistics Centre and Northport, with a combined capacity of 700,000 sq ft, were completed in June and commenced operations in August, following the closure of 370,000 sq ft of existing warehouse space.
“Overall, this is expected to generate monthly savings of RM200,000 to RM300,000.
“Meanwhile, we continue to expect for a sub-20% effective tax rate for FY27, with the bulk of the tax rebate expected in 4Q27,” RHB Research said, adding that its earnings forecasts have been left unchanged.
