Journey to Wealth
Tasco Bhd - Below Forecasts
Tasco's FY12 earnings of RM28.9m were softer than expected, accounting for only 81.4% of our projections. We believe the lacklustre performance was mainly due to the sluggish global economy, which affected export volume. FY13 would still be a challenging year for Tasco due to the weak global macroconomic outlook as well as the domestic political uncertainty. We are lowering Tasco's FY13f earnings to derive a new RM2.10 FV based on 7x FY13 PER. Downgrade to NEUTRAL.
Below expectations. Tasco's FY12 earnings of RM29.0m were below our and street estimates. The FY12 revenue of RM442.4m represented a 5.7% drop from FY11. Its international Business Solutions (IBS) unit posted a 14%, or RM26.8m, drop in revenue while its Domestic Business Solutions (DBS) unit managed to maintain revenue at the FY11 level of RM276m. Other key highlights are:
Below expectations. Tasco's FY12 earnings of RM29.0m were below our and street estimates. The FY12 revenue of RM442.4m represented a 5.7% drop from FY11. Its international Business Solutions (IBS) unit posted a 14%, or RM26.8m, drop in revenue while its Domestic Business Solutions (DBS) unit managed to maintain revenue at the FY11 level of RM276m. Other key highlights are:
- On a YTD basis, revenue from Contract Logistics, its largest revenue contributor,contracted by 5.1% y-o-y due to a weaker performance in its customs clearance and warehouse business segment.
- Its International Air Freight division recorded a 18.3% y-o-y decline in revenuedue to lower export shipments by major customers in the manufacturing sector amidst a gloomy global economic outlook.
- Nevertheless, the group's International Sea Freight and Domestic Truckingdivisions still managed to achieve 7.8% y-o-y and 15.7% y-o-y growth respectively, which somewhat mitigated the impact from the decline in the Contract Logistics and International Air Freight divisions.
Downgrade to NEUTRAL, with RM2.10 FV. The challenging environment facing Tasco prompts us to trim our FY13F earnings estimate by 17% to arrive at a lower FV of RM2.10, based on a 7x FY13 PER. As our FV provides a less than 10% potential upside, we are downgrading Tasco to NEUTRAL.
Source: OSK
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
MQ Trading Signals
Time
Signal
Duration
Type
2024-11-22 14:30:00
EMA 5
30 Mins
SELL
2024-11-22 14:30:00
ADX
30 Mins
SELL
2024-11-22 14:30:00
OBV
30 Mins
SELL
2024-11-22 14:30:00
EMA 5
10 Mins
SELL
2024-11-22 14:30:00
ADX
10 Mins
SELL
Apps
Top Articles
1
Axcapital's investment blog
KAB - Executing its way to a record quarter. Could more Petronas contracts be coming?
2
Koon Yew Yin's Blog
3
BFM Podcast
4
BFM Podcast
5
7
BFM Podcast
8
BFM Podcast
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
