KUALA LUMPUR: Tasco Holdings Bhd's prospect is expected to remain bright supported by contributions from new higher-margin warehouses, further tax credit savings, and additional pick-ups in trade activities within the intra-Asia region.
RHB Research said the Westport Logistics Centre (WPLC) Block B is now fully occupied by a manufacturing customer, with full contributions to kick in from the first quarter financial year 2025 (Q1FY25) onwards.
While the Shah Alam Logistics Centre (SALC) is now complete, the firm said the handover to retail-base customers will only be fully completed by Jun 2024 at the latest.
"We estimate these warehouses will generate additional annual revenues of RM 50-56 million and earnings of RM 10-16 million.
"Based on our latest ground checks, there is a change in SALC's tenant profile – where Warehouse B (150ks q ft) will now be taken by short- term customers until a potential automotive ada client moves in by Jan 2025," it said.
Meanwhile, RHB Research said for Tasco's freight forwarding (FF), the tender process is set to take place in the next few months (which should allow the group to secure more business volumes for both air freight forwarding (AFF) and ocean freight forwarding (OFF).
While the cold chain may remain challenging in the short term due to ongoing boycotts, the firm sees the minimum order quantity containing the downside risk.
"Looking ahead, Tasco is optimistic on each of its segment's prospects.
"We reiterate our conviction on Tasco, supported by its Q4 FY24's recovery signs. We maintain a buy with target price of RM1.15," it added.
