Malaysia Results Review
Transport | Logistics
TASCO (TASCO MK): Better IBS Dragged By Weaker DBS; Keep Buy
30 July 2025
Price (Market Cap): MYR0.49 (USD91.6m)
ESG score: 3.1 (out of 4)
Avg Daily Turnover (MYR/USD): 0.03m/0.01m
Lee Meng Horng
+603 2302 8115
lee.meng.horng@rhbgroup.com
Share Performance (%)
| Period | YTD | 1m | 3m | 6m | 12m |
|---|---|---|---|---|---|
| Absolute | (35.3) | (2.0) | (3.0) | (31.2) | (44.9) |
| Relative | (28.1) | (1.7) | (3.5) | (29.3) | (38.7) |
| 52-wk Price low/high (MYR) | 0.47 – 0.90 | ||||
Key Highlights
- Keep BUY and MYR0.86 TP, 77% upside with c.5% FY26F (Mar) yield. 1QFY26 (Mar) core profit missed on a weaker domestic business solutions (DBS)segment due to slower volume and higher costs. We stay optimistic for stronger quarters ahead on improved contributions from the new warehouse and substantial tax savings recognition once investments under the integrated logistics services (ILS) tax incentive are approved. The Shah Alam Logistics Centre or SALC expansion and 300,000 sq ft warehouse rebuild at Northport are progressing on schedule for completion by mid-CY26.
- Results review. Revenue reached MYR222.6m (flat QoQ, -10.9% YoY), with pre-tax profit at MYR11.8m (+188.6% QoQ, +37.6% YoY) and core earnings at MYR10.2m (+72.6% QoQ, -8.2% YoY) – falling short of our and Street forecasts at 16-19.3% of full-year estimates. The shortfall stemmed from weaker-than-expected volume in the DBS segment, which consists of the contract logistics (CL), cold chain or CSC, and trucking or TD segments. This was partially cushioned by a better international business solutions (IBS) business. Note: Core net profit was adjusted to account for a gain on PPE disposal and an unrealised FX loss.
- IBS. 1QFY26 revenue of MYR99.9m rose 7.9% QoQ (-0.8% YoY), driven by the stronger ocean freight forwarding (OFF) business – supported by automotive, aluminium, and aerospace customers. The supply chain solutions (SCS) division also contributed to a stronger IBS, as it posted a 36.9% YoY rise (+12.6% QoQ) on increased shipment bookings from healthcare and fast-moving consumer goods or FMCG customers. Nonetheless, this is partially offset by a softer air freight forwarding or AFF wing on reduced shipment volumes from key customers. In tandem with a stronger QoQ revenue, IBS’ PBT beat our forecasts at 30.8% of full-year estimates.
- DBS. 1QFY26 revenue and PBT stood at MYR122.6m (-5.6% QoQ, -17.8% YoY) and MYR6.8m (+264% QoQ, -41% YoY). PBT marked a QoQ spike on an exceptional write-off expense during the preceding quarter. Overall, the DBS segment remained weak, as its PBT fell short of our forecasts at 13.9% of full-year estimates. The softer CL was primarily attributed to the production suspension of a major solar panel customer. The PBT declines in warehouse and in-plant businesses were mainly attributable to a business loss from a solar panel customer that ceased operations and higher operations costs due to the statutory increase in the minimum wage.
- We make no changes to our forecasts for now, pending the upcoming analysts briefing. At this juncture, we remain upbeat for the upcoming quarters of FY26, driven by volume recovery, stronger contributions from new warehouses, and higher tax savings. Our TP stays at MYR0.86 for now, inclusive of an unchanged 2% ESG premium given the 3.1 score. The current valuation is attractive for a leading ILS player that is set to stage an earnings rebound while the share price remains a laggard YTD. Key risks include loss of key customers and a decline in operating margins.
Forecasts and Valuation
| FYE Mar | Mar-23 | Mar-24 | Mar-25 | Mar-26F | Mar-27F |
|---|---|---|---|---|---|
| Total turnover (MYRm) | 1,607 | 1,073 | 1,012 | 1,126 | 1,243 |
| Recurring net profit (MYRm) | 91 | 63 | 40 | 63 | 71 |
| Recurring net profit growth (%) | 17.4 | (30.4) | (36.9) | 57.5 | 13.2 |
| Recurring P/E (x) | 4.27 | 6.14 | 9.73 | 6.18 | 5.45 |
| P/B (x) | 0.7 | 0.6 | 0.6 | 0.6 | 0.5 |
| P/CF (x) | 2.84 | 3.54 | 2.02 | 12.61 | 4.18 |
| Dividend Yield (%) | 7.2 | 4.8 | 2.6 | 4.9 | 4.9 |
| EV/EBITDA (x) | 2.70 | 5.09 | 5.83 | 4.49 | 4.29 |
| Net debt to equity (%) | 6.2 | 31.9 | 22.5 | 29.8 | 28.6 |
Emissions And ESG
Trend analysis
Emissions remained largely unchanged.
| Emissions (tCO2e) | Mar-22 | Mar-23 | Mar-24 | Mar-25 |
|---|---|---|---|---|
| Scope 1 | 2,334 | 2,127 | na | na |
| Scope 2 | 27,129 | 26,998 | na | na |
| Scope 3 | na | na | na | na |
| Total emissions | 29,464 | 29,125 | na | na |
Latest ESG-Related Developments
TASCO started reporting greenhouse gas (GHG) emissions in 2020 to ensure greater disclosure and accountability of the company’s carbon footprint.
TASCO has been included as a constituent of the FTSE4Good Index, reflecting its satisfactory ESG practices and initiatives. The group has also launched more than 10 initiatives to lower the impact of its GHG emissions.
ESG Unbundled
Overall ESG Score: 3.1 (out of 4)
Last Updated: 30 July 2025
E Score: 3.0 (GOOD)
The group has identified and begun carrying out various eco-friendly initiatives centred on environmental protection and stewardship.
S Score: 3.0 (GOOD)
Comprehensive measures have been taken to ensure the safety and livelihood of its employees, as well as corporate social responsibility contributions.
G Score: 3.3 (EXCELLENT)
Clear transparency practices and objective targets have been put in place to ensure stakeholder engagement and management efficiency.
ESG Rating History
Financial Exhibits
Key drivers
- Structural growth in demand for 3PL services;
- Rising cross-border trade activities;
- Market consolidation opportunities.
Key risks
- Loss of key customers;
- Decline in operating margins.
Company Profile
TASCO is a total logistics solutions provider with services that include contract logistics, air freight forwarding, trucking, ocean freight forwarding, and cold supply chain logistics.
Financial summary (MYR)
| Mar-23 | Mar-24 | Mar-25 | Mar-26F | Mar-27F | |
|---|---|---|---|---|---|
| Recurring EPS | 0.11 | 0.08 | 0.05 | 0.08 | 0.09 |
| DPS | 0.04 | 0.02 | 0.01 | 0.02 | 0.02 |
| BVPS | 0.74 | 0.79 | 0.80 | 0.85 | 0.92 |
Valuation metrics
| Mar-23 | Mar-24 | Mar-25 | Mar-26F | Mar-27F | |
|---|---|---|---|---|---|
| Recurring P/E (x) | 4.27 | 6.14 | 9.73 | 6.18 | 5.45 |
| P/B (x) | 0.7 | 0.6 | 0.6 | 0.6 | 0.5 |
| FCF Yield (%) | 10.4 | (25.3) | 26.0 | (17.8) | (1.8) |
| Dividend Yield (%) | 7.2 | 4.8 | 2.6 | 4.9 | 4.9 |
| EV/EBITDA (x) | 2.70 | 5.09 | 5.83 | 4.49 | 4.29 |
| EV/EBIT (x) | 3.67 | 8.29 | 11.34 | 6.73 | 6.44 |
Income statement (MYRm)
| Mar-23 | Mar-24 | Mar-25 | Mar-26F | Mar-27F | |
|---|---|---|---|---|---|
| Total turnover | 1,607 | 1,073 | 1,012 | 1,126 | 1,243 |
| Gross profit | 200 | 154 | 146 | 191 | 211 |
| EBITDA | 177 | 130 | 102 | 149 | 158 |
| Depreciation and amortisation | (47) | (50) | (50) | (49) | (53) |
| Operating profit | 130 | 80 | 53 | 99 | 105 |
| Net interest | (13) | (14) | (16) | (22) | (19) |
| Pre-tax profit | 118 | 66 | 37 | 77 | 87 |
| Taxation | (28) | (9) | (13) | (10) | (12) |
| Reported net profit | 88 | 54 | 21 | 63 | 71 |
| Recurring net profit | 91 | 63 | 40 | 63 | 71 |
Cash flow (MYRm)
| Mar-23 | Mar-24 | Mar-25 | Mar-26F | Mar-27F | |
|---|---|---|---|---|---|
| Cash flow from operations | 136 | 110 | 192 | 31 | 93 |
| Capex | (96) | (208) | (91) | (100) | (100) |
| Cash flow from investing activities | (92) | (202) | (85) | (100) | (100) |
| Dividends paid | (13) | (30) | (20) | (19) | (19) |
| Cash flow from financing activities | (2) | 47 | (130) | (16) | (13) |
| Cash at beginning of period | 87 | 241 | 167 | 160 | 97 |
| Net change in cash | 43 | (45) | (23) | (85) | (20) |
| Ending balance cash | 131 | 197 | 144 | 74 | 77 |
Balance sheet (MYRm)
| Mar-23 | Mar-24 | Mar-25 | Mar-26F | Mar-27F | |
|---|---|---|---|---|---|
| Total cash and equivalents | 241 | 167 | 160 | 97 | 96 |
| Tangible fixed assets | 586 | 758 | 761 | 811 | 859 |
| Total investments | 20 | 20 | 21 | 21 | 21 |
| Total assets | 1,535 | 1,673 | 1,898 | 1,654 | 1,765 |
| Short-term debt | 89 | 131 | 94 | 94 | 94 |
| Total long-term debt | 193 | 259 | 225 | 228 | 234 |
| Total liabilities | 871 | 974 | 1,190 | 899 | 953 |
| Total equity | 664 | 699 | 708 | 756 | 812 |
| Total liabilities & equity | 1,535 | 1,673 | 1,898 | 1,654 | 1,765 |
Detailed Earnings Analysis
Figure 1: 1QFY26 earnings snapshot
| FYE Mar (MYRm) | 1QFY25 | 4QFY25 | 1QFY26 | QoQ (%) | YoY (%) | Comments |
|---|---|---|---|---|---|---|
| Revenue | 249.9 | 222.6 | 222.6 | 0.0 | (10.9) | Lower YoY due to lower contributions from both international and domestic business solutions. |
| EBITDA | 28.2 | 30.1 | 29.1 | (3.2) | 3.0 | |
| EBITDA margin (%) | 11.3 | 13.5 | 13.1 | |||
| Depreciation | (11.3) | (13.6) | (12.5) | (7.7) | (10.8) | |
| EBIT | 16.9 | 16.5 | 16.6 | 0.6 | (2.1) | |
| EBIT margin (%) | 6.8 | 7.4 | 7.4 | |||
| Interest expense | (4.1) | (3.7) | (4.0) | 6.9 | (3.3) | |
| Associates | (0.1) | 0.5 | 0.3 | (41.6) | (419.0) | |
| EI | (4.1) | (9.1) | (1.0) | nm | nm | |
| Pre-tax profit | 8.6 | 4.1 | 11.8 | 188.6 | 37.6 | Stronger IBS contribution from AFF, OFF, and SCS. |
| Pre-tax margin (%) | 3.4 | 1.8 | 5.3 | |||
| Tax | (0.8) | (6.5) | (2.1) | (68.3) | 152.7 | |
| Effective tax rate (%) | 9.5 | 159.1 | 17.5 | |||
| Minority interest | (0.8) | (0.8) | (0.6) | (26.1) | (26.8) | |
| PATAMI | 7.0 | (3.2) | 9.2 | (388.2) | 31.3 | QoQ turnaround, as there was an exceptional write-off expense during the preceding quarter. Within expectations. |
| Core PATAMI | 11.1 | 5.9 | 10.2 | 72.6 | (8.2) | |
| Core net margin (%) | 4.5 | 2.7 | 4.6 |
Figure 2: Segmental breakdown
| FYE Mar (MYRm) | 1QFY25 | 4QFY25 | 1QFY26 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
| Revenue | |||||
| Air freight | 63.7 | 47.8 | 48.8 | 2.1 | (23.5) |
| Ocean freight | 27.1 | 32.8 | 37.5 | 14.5 | 38.5 |
| Supply chain solutions | 10.0 | 12.1 | 13.6 | 12.6 | 36.9 |
| Contract logistics | 87.0 | 67.7 | 69.6 | 2.8 | (20.0) |
| Cold chain | 41.1 | 33.5 | 32.2 | (3.9) | (21.7) |
| Trucking | 21.1 | 28.8 | 20.7 | (28.1) | (1.8) |
| Total | 249.9 | 222.6 | 222.4 | (0.1) | (11.0) |
| PBT | |||||
| Air freight | 1.6 | 2.3 | 3.5 | 53.6 | 124.4 |
| Ocean freight | 0.7 | 0.408 | 2.2 | 431.6 | 231.7 |
| Supply chain solutions | 0.6 | 2.1 | 2.1 | (2.1) | 243.9 |
| Contract logistics | 6.1 | (3.5) | 4.6 | (233.1) | (25.2) |
| Cold chain | 3.5 | 3.2 | 2.2 | (30.1) | (36.4) |
| Trucking | 1.9 | 2.1 | (0.0) | (100.3) | (100.3) |
| Others | (5.8) | (2.6) | 0.2 | (106.0) | (102.7) |
| Total | 8.6 | 4.1 | 14.8 | 260.0 | 71.7 |
Recommendation History
| Date | Recommendation | Target Price | Price |
|---|---|---|---|
| 2025-05-02 | Buy | 0.86 | 0.54 |
| 2025-02-21 | Buy | 1.00 | 0.69 |
| 2024-10-30 | Buy | 1.12 | 0.72 |
| 2024-08-05 | Buy | 1.15 | 0.81 |
| 2024-07-31 | Buy | 1.15 | 0.87 |
| 2024-05-02 | Buy | 1.15 | 0.83 |
| 2024-02-05 | Buy | 1.19 | 0.81 |
| 2024-01-30 | Buy | 1.35 | 0.83 |
| 2023-11-22 | Buy | 1.35 | 0.81 |
| 2023-11-20 | Buy | 1.33 | 0.80 |
| 2023-10-02 | Buy | 1.45 | 0.79 |
| 2023-07-28 | Buy | 1.70 | 0.82 |
| 2023-07-13 | Buy | 1.70 | 0.84 |
| 2023-04-28 | Buy | 1.83 | 0.90 |
| 2023-02-08 | Buy | 1.86 | 1.00 |
Disclaimers
RHB Guide to Investment Ratings
Buy: Share price may exceed 10% over the next 12 months
Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain
Neutral: Share price may fall within the range of +/- 10% over the next 12 months
Take Profit: Target price has been attained. Look to accumulate at lower levels
Sell: Share price may fall by more than 10% over the next 12 months
Not Rated: Stock is not within regular research coverage
Investment Research Disclaimers
RHB has issued this report for information purposes only. This report is intended for circulation amongst RHB and its affiliates’ clients generally or such persons as may be deemed eligible by RHB to receive this report and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. This report is not intended, and should not under any circumstances be construed as, an offer or a solicitation of an offer to buy or sell the securities referred to herein or any related financial instruments.
All the information contained herein is based upon publicly available information and has been obtained from sources that RHB believes to be reliable and correct at the time of issue of this report. However, such sources have not been independently verified by RHB and/or its affiliates and this report does not purport to contain all information that a prospective investor may require. The opinions expressed herein are RHB’s present opinions only and are subject to change without prior notice. RHB is not under any obligation to update or keep current the information and opinions expressed herein or to provide the recipient with access to any additional information. Consequently, RHB does not guarantee, represent or warrant, expressly or impliedly, as to the adequacy, accuracy, reliability, fairness or completeness of the information and opinion contained in this report. Neither RHB (including its officers, directors, associates, connected parties, and/or employees) nor does any of its agents accept any liability for any direct, indirect or consequential losses, loss of profits and/or damages that may arise from the use or reliance of this research report and/or further communications given in relation to this report. Any such responsibility or liability is hereby expressly disclaimed.