KUALA LUMPUR – RHB Investment Bank Bhd (RHB) has raised Tasco Bhd’s forecast earnings for financial years 2022-2024 by 8.2-6.5% following its better-than-expected earnings for the first half of financial year 2022 (1HFY22).
It noted that the logistics solutions provider’s 1HFY22 core profit of RM31.5 million came in above the research firm’s and consensus expectations, following a stronger-than-expected performance from the company’s international freight forwarding segment.
RHB highlighted that the container shortages and cargo congestion drove up Tasco’s throughput volume and freight rates, which had more than offset the higher-than-expected effective tax rate.
We expect Tasco to continue its growth momentum, supported by a stronger throughput as the economy gradually reopens as well as contribution from new projects.
“The stock is trading at an undemanding below-peer valuation, thus presenting a good entry point into a renowned third party logistics player with a strong international presence and multiple growth avenues,” it said in a note.
It also noted that Tasco’s second quarter FY22 earnings had surpassed expectations on its record-high revenue.
As such, RHB has maintained its ‘buy’ recommendation on Tasco with a higher target price (TP) of RM1.94 per share against RM1.79 per share placed previously.
Similarly, MIDF Amanah Investment Bank Bhd has also kept its ’buy’ recommendation on the stock, with a revised TP of RM1.65 per share from RM1.47 per share previously. – Bernama, October 28, 2021
