$TASCO / 5140 (TASCO BERHAD)
The positive outlook for TASCO in 1QFY25 and beyond is driven by several key factors:

Improving Freight Forwarding Segment:

The freight forwarding business, which includes air freight forwarding (AFF) and ocean freight forwarding (OFF), has shown signs of improvement. Although the AFF segment had a weaker 1QFY25 due to the need to honor existing contract prices despite rising market costs, the outlook is set to improve. This improvement is expected as higher tender prices, which will be implemented from July onwards, should lead to better margins.

Volume Recovery:

TASCO is expected to see a recovery in volume across its logistics services. This recovery is likely driven by the anticipated growth in demand as market conditions stabilize and improve, benefiting both the freight forwarding and contract logistics segments.

Contributions from New Warehouses:

The company has recently added two new warehouses (SALC and WPLC) with a total space of 850,000 sqft. These warehouses are expected to contribute fully to TASCO's earnings moving forward, providing a significant boost to the company’s revenue and profitability.

ILS Tax Incentive:

TASCO benefits from integrated logistics services (ILS) incentives, which include available tax credits. The company has over MYR32 million in unclaimed tax credits, which will continue to provide tax benefits and enhance profitability in the coming quarters.