PETALING JAYA: Logistics solutions provider Tasco Bhd
’s warehousing business and seasonal factors together with elevated freight forwarding rates are expected to be supportive of the company’s financial performance in the second half of the financial year ending March 31, 2025 (2H25).
RHB Research, which has maintained a “buy” call with a new target price of RM1.12 per share on the stock (from RM1.15), expects 2H25 to make up the bulk of full-year earnings due to seasonal factors, elevated freight forwarding rates and the new warehouses despite the second quarter ended Sept 30, 2024 of the financial year 2025 or FY25 (2Q25) falling short on weaker-than-expected freight forwarding contributions.
“Both air freight and ocean freight forwarding segments will continue to post stronger earnings year-on-year in the coming quarters in the midst of favourable freight market on top of the upcoming peak season. Additionally, we anticipate higher contributions from the new warehouses after the delay in cargo movements, as well as contributions from a new major automotive player,” it said.
However, the research house cut the FY25 earnings by 12% mainly due to downward revision of its margin assumptions for the forwarding segment.
“Nonetheless, we anticipate a stronger 2H25, fuelled by a favourable freight market, volume recovery and contributions from new warehouses. Its valuation remains attractive for a leading integrated logistics player with diverse segments and growth potential,” it said.
MIDF Research has also maintained a “buy” call on the stock with a target price of RM1.20. “We are maintaining our earnings estimates for now, awaiting further guidance from the results briefing,” it said.
It noted that the 2Q25 results showed revenue increased 8.1% from 2Q24, mainly driven by a boost in air and ocean freight shipments, which counterbalanced the weakness in the contract logistics division while the cold-supply chain division also experienced weaker revenue due to the ongoing Israel boycott.
MIDF Research remained optimistic on the company’s warehousing business due to continuing strong demand while the increase in capacity provides cross-selling opportunities for transportation services.
Tasco recently announced it would be expanding its four-storey Shah Alam Logistics Centre.
