Tasco Bhd reported a 1QFY26 core net profit (CNP) of RM9.2 million, down 13.3% year-on-year but up 76.4% quarter-on-quarter. The result accounted for only 16% of the full-year forecast, coming in slightly below expectations due to a weaker-than-expected recovery in the Domestic Business Segment (DBS), particularly in the Trucking and Cold Supply Chain divisions. While revenue fell 10.9% YoY, International Business Solutions (IBS) performed relatively well, with margin expansion and stabilized freight rates driving a 175.1% YoY surge in adjusted profit before tax.
Quarterly improvements were supported by improved IBS margins, while the DBS segment remained sluggish. Operating costs were higher due to the recent minimum wage hike, compounding the impact of weaker domestic demand.
Tasco 1QFY26 Results
Given the slower client acquisition in DBS, the FY26 full-year CNP forecast was cut by 17% to RM47.6 million. FY27 forecasts remain intact at RM64 million. Despite the earnings downgrade, Tasco maintains a HOLD rating with an unchanged target price of RM0.51, as its valuation was revised upward to 8.5x PER (-0.5SD of 3-year mean), reflecting anticipated margin stability.
Ongoing geopolitical risks and inflationary pressures remain downside risks, especially for international logistics operations. Overall, Tasco’s outlook remains cautious with margin resilience being a key support.
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