The logistics group is slated to launch its brand new and one of the tallest warehouses in the country next month.
PETALING JAYA: Tasco Bhd
, which reported its weakest annual net profit in three years for the financial year ended March 31, 2024 (FY24), will see contributions from its new higher-margin warehouses kicking in FY25.
The logistics group is slated to launch its brand new and one of the tallest warehouses in the country next month.
Analysts said the new warehouses will yield better margins than the current rented warehouse and would offer a lower effective tax rate via the investment tax allowance.
They also expect pick-ups in trade activities, especially within the intra-Asia region and this will bode well for the group.
Tasco’s net profit in the fourth quarter of this year declined 18.1% year-on-year to RM17.89mil, bringing the full year figure to RM61.7mil.
In a post-results review, Apex Securities Research said the performance was dragged down by lower freight forwarding income due to the normalisation of international freight rates.
“Looking ahead, we expect better performance in anticipation of recovery in external trade and contribution from new warehouse capacity,” said the research firm. Apex Research kept its “buy” recommendation and target price of RM1.12 based on a price-earnings multiple of 11 times to FY25 earnings per share of 10.2 sen.
Apex Research anticipates a mild recovery for the group’s international business solutions segment, supported by improved external trade performance.
Growth in the domestic business solutions segment is expected to be driven by demand for warehouse and cold supply chain services, as well as the addition of new warehouse capacity with the full contribution expected by June 2024.
Additionally, government’s tax allowances are expected to support the bottom line, it added.
