Promising growth outlook for Tasco

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KUCHING: Tasco Bhd (Tasco) is actively being invited to participate in more regional logistics contracts, which should propel its earnings growth further to an estimated three-year compound annual growth rate (CAGR) of 17.4 per cent.

RHB Research Institute Sdn Bhd (RHB Research) noted that Tasco’s new Port of Tanjung Pelepas (PTP) two-storey warehouse measuring 210,000 square foot (sqf) commenced operations in late January 2015, and the research house understand that utilisation space is currently full.

“We gather that demand at PTP is overwhelming, putting pressure on Tasco to seek more warehouse space by leasing from third parties in the interim,” said RHB Research.

Tasco has a client base of 80 companies which use its warehouses throughout Malaysia.

Its managing director, Freddie Lim was recently quotedsayign that it is actively bidding for new jobs – receiving as many as 80 to 100 invitations for regional logistics contracts.

The recent appointment of Tasco’s chairman and founder, Lee Check Poh as Yusen Logistics’ (Yusen) regional executive officer for South Asia and Oceania effective April 1, 2015 should propel Tasco to grow its customer base further.

“We expect Tasco’s warehousing business to be the key topline driver, which should spur revenue contribution from its trucking division and contract logistics division.

“We expect these two divisions to grow by 12-20 per cent in FY16-17, but we conservatively only expect the airfreight and sea freight divisions to grow by two to three per cent over the next two years.”