PETALING JAYA: Tasco Bhd’s international business solutions (IBS) segment is likely to navigate a more challenging operating landscape amid ongoing geopolitical tensions in the Middle East, which have introduced intermittent volatility through higher fuel costs, trade rerouting and congestion at key shipping chokepoints, leading to firmer pricing in certain lanes.
Berjaya Research Sdn Bhd, in a report, said although demand remains measured as customers adopt a cautious approach to shipment planning, the group’s disciplined cost management and the strategic forward pricing framework introduced by its parent company should help mitigate margin compression and support earnings resilience during periods of rate volatility.
Tasco’s IBS segment focuses on air and ocean freight forwarding, handling international shipments and buyer consolidation.
Berjaya Research noted that within the domestic business solutions (DBS) segment, the group remains focused on its mid-to long-term growth strategy, supported by ongoing capacity expansion and rising warehouse utilisation.
The firm noted that Tasco’s 400,000 sq ft extension at the Shah Alam Logistics Centre and the redevelopment of the Northport, Port Klang facility into a 300,000 sq ft modern warehouse remains on track for completion by mid-2026, with committed take-up providing better earnings visibility.
Further, continued enhancements to logistics capabilities are also expected to improve operational efficiency and maximise the benefits of the integrated logistic services tax allowance incentive scheme ahead of its expiry in mid-2026, Berjaya Research said.
On earnings, Berjaya Research said Tasco’s profit after tax and minority Interest (Patami) rebounded 43% year-on-year (YoY) to RM37.5 million in FY26, despite a 10% YoY decline in revenue to RM910.5 million due to softer contributions across both the IBS (-12.6% YoY) and DBS (-8.0% YoY) segments.
Nevertheless, Patami improved on the back of stronger cost discipline, enhanced operational efficiency and better operating leverage.
Berjaya Research said Tasco’s FY26 results came in broadly in line with expectations, with revenue and Patami making up 98.2% and 96.4% of our full year forecasts respectively.
Tasco’s revenue increased modestly by 3.5% to RM230.3 million in Q4 FY26, from RM222.6 million in the previous corresponding quarter, supported by stronger performance across most divisions within both the IBS (+1.8%) and DBS (+4.6%) segments, partially offset by declines in ocean freight forwarding (-17.7%) and the cold supply chain (-6.2%) divisions.
Meanwhile, profitability improved significantly with profit before tax more-than-doubling and Patami recovering to RM9 million from a loss of RM2.4 million in Q4 FY25, driven mainly by a turnaround in the contract logistics division after it was affected by a one-off RM8.4 million warehouse write-off last year, coupled with ongoing operational improvements and cost efficiencies.
Quarter-on-quarter (QoQ), revenue edged higher by 1.9% as the DBS segment improved 3.5%, while the IBS segment was largely stable.
However, Patami contracted 15.5%, weighed down by higher finance costs and effective tax rate.
Tasco declared a final dividend of 1.75 sen per share for FY26, higher than the 1.25 sen declared in FY25.
“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,“ Berjaya Research noted.
