PETALING JAYA: Berjaya Research Sdn Bhd remains positive on Tasco Bhd’s long-term prospects, underpinned by the group’s diversified business model, higher-margin contributions from new warehouse facilities and the utilisation of integrated logistics solutions tax incentives.
The research firm said this is despite Tasco’s operating environment to stay cautious amid uneven global trade conditions and lingering geopolitical tensions.
Berjaya Research said Tasco’s international business solutions (IBS) segment’s conditions are expected to remain challenging amid subdued global freight rates, as continued vessel supply expansion and increased competition cap rate upside.
“While this may constrain near-term revenue growth, the group’s focus on driving shipment volumes, together with disciplined cost management, should help support segment profitability.
“More importantly, the strategic forward pricing framework introduced by its parent company provides additional earnings protection by subsidising any shortfall between tender rates and actual freight costs, allowing the group to remain competitive in tenders while mitigating downside risks during periods of rate volatility,“ Berjaya Research analyst Chloe Mak said in a report.
Meanwhile, Tasco’s domestic business solutions (DBS) segment is expected to see a gradual improvement, supported by rising contributions from the warehousing business as utilisation at the newly built Shah Alam Logistics Centre (SALC) and Westport Logistics Centre continues to ramp up.
The group’s capacity expansion plans remain on track, including the 400,000 sq ft extension at SALC and the redevelopment of the Northport, Port Klang facility into a 300,000 sq ft modern warehouse, both targeted for completion by mid-2026, with approximately 50% of the new space already secured.
Berjaya Research also noted that Tasco’s cold supply chain division was impacted by the loss of a major food and beverage customer due to unmet temperature-control requirements for additional product lines, though the management is actively bidding for new contracts to replace the lost volume.
Separately, haulage operations under the contract logistics division are expected to improve following new customer wins from the glove manufacturing sector, the firm said.
To note, Tasco’s IBS solutions handle air freight forwarding, ocean freight forwarding, and supply chains. The group’s DBS segment handles contract logistics, cold supply chain and trucking.
According to a Bursa Malaysia filing, Tasco’s revenue for the third quarter ended Dec 31, 2025 (FY26) decreased 7.15% to RM226.05 million from RM243.45 million in the same quarter last year, primarily due to a 16.4% contraction in the IBS segment as lower global freight rates and increased capacity in the market weighed on both the air and ocean freight forwarding divisions.
Berjaya Research said this was partly mitigated by a stronger performance from the supply chain solutions division, driven by the origin management and trading business.
Net profit decreased 29% to RM10.11 million from RM14.24 million recorded in Q3 FY25.
For the nine-month period (9M) of FY26, Tasco’s revenue decrease 13.79% to RM680.2 million from RM789.07 million posted in 9M of FY25.
Net profit for the period was marginally down by 1.57% to RM28.92 million from RM29.38 million posted in the 9M of FY25.
Berjaya Research noted that Tasco delivered resilient earnings in 9M FY26 despite softer revenue contribution from the IBS segment amid a downtrend in global freight rates, supported by effective cost management that lifted profitability.
“We maintain our Buy recommendation on Tasco with an unchanged target price of RM0.62, based on an unchanged target price-to-earnings ratio of 10.0x pegged to our FY27 earnings per share.
“We continue to favour Tasco for its diversified clientele base, healthy balance sheet with a net cash position, and expansion into business segments like cold supply chain and supply chain solutions.
“Key downside risks include weaker-than-expected business volumes, volatile freight rates, and escalating geopolitical tensions,“ the research firm noted.
