Two record years for Tasco, driven by new business wins
KUCHING: Total logistics service provicer Tasco Bhd (Tasco) recorded yet another set of recordhigh numbers in its fourth quarter of financial year 2022 (4QFY22) on stronger performances from its international business (IBS).
This led researchers at RHB Investment Bank Bhd (RHB Research) to remain optimistic on its growth prospects, driven by positive throughput in the face of a broader economic reopening and contributions from new business wins.
Looking at specifics, Tasco booked a 4QFY22 core profit of RM25 million. In deriving its full
year core profit, RHB Research stripped out the RM15.9 million write-off related to the 3QFY22 demolition of its warehouse.
“FY22 core profit of RM77.4 milliuon exceeded expectations, at 108 and 121 per cent of our and Street’s full-year estimates – thanks to the strong IBS, which led to FY22core profit increasing by 87.4 per cent year on year (yo-y),” RHB Research said in its notes.
“We see growth from all of Tasco’s segments. FY22 profit before tax for air and ocean freight forwarding shot up 110.7 and 381.3 per cent y-o-y amid the pick-up in business activities following the broader economic reopening.
“This was coupled with supply chain bottlenecks that saw clients resorting to air modes, as well as elevated freight rates.”
RHB Research saw that Tasco’s domestic business also grew 25.7 per cent y-o-y to close the year with a record – thanks to increased business volumes from both existing and newly secured customers.
To note, the integrated logistics services or ILS tax incentive scheme took effect at the start of this quarter, resulting in tax savings and a lower effective tax rate for the year.
“As the broader economic reopening continues to materialise amidst a favourable GDP outlook, we continue to anticipate positive throughput volume growth for Tasco – complemented by its diverse clientele base,” the research firm said.
“The persistent supply chain disruption points to an extended tightness in air and ocean freight as well as elevated freight rates, which are positives for Tasco’s international business segment. This has been made more attractive by NYK Group’s expansive global logistics network.
“Tasco will continue to benefit from the organic growth coming from its existing customers, with an additional boost from new business wins within the retail trading segment.
“Elsewhere, we look forward to the construction of a 650,000 sq ft warehouse under Phase 1 of the Shah Alam Logistics Centre expansion, which should allow the logistics provider to capture warehouse shortage opportunities.”