KUALA LUMPUR: RHB Research has maintained its Buy call on Tasco with a fair value of RM2.30.
“We are positive that Tasco is able to meet our CY13 full-year earnings forecast and we also believe that the macroeconomic outlook may turn brighter in 2014.
“Hence, we are keeping our earnings forecasts unchanged at this juncture and maintain our Buy call on Tasco, with its RM2.30 fair value – pegged to eight times CY14F price per earning, which is its historical P/E – retained,” it said.
It added Tasco reported a healthy set of results in 3QCY13 after struggling for two consecutive quarters.
“Revenue grew 13.2% on-quarter to RM118.1mil from RM104.3mil, while net profit improved 20.8% on-quarter to RM6.9mil from RM5.7mil,” it said.
It added Tasco’s business divisions generally reported improvements in revenue and earnings, particularly its contract logistics division, which reported revenue and pre-tax profit growth of 30% and 68% on-quarter respectively.
“This was attributed to an increase in the customs clearance, haulage and warehouse business. However, this was offset by its trucking division, which recorded a revenue drop of RM0.9mil on-quarter and pre-tax loss of RM0.7mil on higher fuel costs and minimum wage,” it said.