KUALA LUMPUR: RHB Investment Bank Bhd (RHB Research) has revised lower Tasco Bhd’s target price on the back of weaker upcoming earnings.
The firm maintained its “Buy” call but trimmed the target price to 70 sen from 75 sen previously.
RHB Research also cut its earnings forecasts by 5.9 per cent, 7.7 per cent, and 6.6 per cent for financial year 2026 (FY26), FY27, and FY28, respectively, to factor in a normalised effective tax rate (ETR).
The company’s results for the second quarter ended Sept 30, 2025, also came in below expectations due to the higher-than-expected tax.
This was primarily because the tax rate for the cold chain segment in the quarter under review was understated and subsequently adjusted in the corresponding quarter in FY26.
“Going forward, management expects a normalised ETR of 20 per cent,” said the firm.
The firm added that Tasco continues to diversify its customer base with several new wins across segments.
In the cold supply chain business, it has secured a new client, while a regional semiconductor hub in Penang is expected to commence operations in July 2026.
The group also added a fashion retail customer for its logistics centre, which began operations in Oct 2025, alongside another newly secured client that started operations in late October.
“These additions are expected to underpin growth momentum in FY26 and beyond,” the firm added.
However, despite low volume from some of its customers due to a challenging operations backdrop, management indicated steady volume growth ahead.
“Valuation is attractive for its diversified earnings base, strong cash flow, and solid balance sheet,” the firm added.
© New Straits Times Press (M) Bhd
