Tanco Holdings Berhad

Tanco-WC Is Trading at a Discount – What It Means for YOU

Tanco Holdings Berhad has been delivering stellar share price performance, especially with its share price climbing steadily and now approaching the RM2.00 mark. But while the mother share is gaining traction, its warrant, TANCO-WC (stock code: 2429WC) has become a hot topic for a different reason: it's currently trading at a discount, something that doesn’t happen often in the warrant market.

Technical price chart of Tanco Holdings Berhad

To break it down simply, a warrant is like a ticket that lets you buy the company’s actual share (the “mother share”) at a fixed price, known as the strike price, before a specific expiry date. In the case of TANCO-WC, the strike price is RM0.31, and the warrant expires on 25 August 2025. That means you can buy one Tanco share for RM0.31, as long as you hold one unit of the warrant and convert it before that expiry date.

Here’s where things get interesting: the warrant is currently trading around RM1.62 to RM1.63, and the actual Tanco share is worth RM2.03. If you were to buy one unit of the warrant at RM1.62 and then pay RM0.31 to convert it into a mother share, your total cost is only RM1.93, cheaper than buying the mother share directly at RM2.03.

That’s a RM0.10 difference, or roughly a 5% gain if you were to sell the share immediately. In simple terms, it’s like buying something at a discounted rate and instantly being able to sell it for more.

This situation where the total cost through the warrant is lower than the actual share price, is what’s known as a discount in the market. Usually, warrants trade at a slight premium because of their time value and potential upside. But when a warrant trades at a discount, it opens up an opportunity for investors to make a profit if they act smartly and quickly.

Investors can benefit in a couple of ways. One option is to buy the warrant, convert it into a mother share at RM0.31, and sell that share at the market price. The other is to trade the warrant itself, its price is likely to rise as Tanco’s share price climbs, so there could be capital gains just by holding and selling the warrant without converting it. Because the warrant is cheaper than the mother share, it also allows more flexibility for investors with limited capital, giving them exposure to price movements at a lower entry cost.

With Tanco showing strong momentum above RM2.00, the warrant’s discounted pricing may not last long. For those familiar with how warrants work, this might just be one of those windows of opportunity worth considering.

$TANCO / 2429 (TANCO HOLDINGS BERHAD)

Our verdict on why Tanco Holdings is worth RM15 billion in valuation

Tanco Holdings Berhad (short of “Tanco”), listed on Bursa Malaysia with a market cap of MYR 3.26 billion as of October 2024, is expected to reach a MYR 15 billion (USD 3.17 billion, 4.73 MYR/USD) valuation ahead. This projection centers on its smart AI container port in Port Dickson, Negeri Sembilan, complemented by its property and pharmaceutical segments.

Tanco’s 79%-owned subsidiary, Midports Holdings Sdn. Bhd., is developing a smart AI container port along the Straits of Malacca. Key details:

• Location and Capacity: Situated on a 480-acre seafront site with 21-meter deep-water access, 1.8 km offshore. Initial capacity projected at 1 million TEUs annually, scalable to 7 million TEUs by 2035.
• Cost: Estimated at MYR 2 billion (USD 423 million), per 2024 media reports (e.g., The Malay Mail).
• Approvals: Ministry of Transport approval, Malaysia Marine Department clearance JV with MBINS Ventures Sdn. Bhd. formed October 2024.
• Technology: AI-driven automation for container handling, logistics, and maintenance, targeting a 40% EBITDA margin.

Revenue and Valuation:

• At USD 150/TEU, 1 million TEUs yield MYR 709.5 million (USD 150 million) in annual revenue initially, with EBITDA of MYR 284 million (USD 60 million) at 40%.
• At 7 million TEUs, revenue reaches MYR 4.97 billion (USD 1.05 billion), with EBITDA of MYR 1.99 billion (USD 420 million).
• Applying a 7.5x industry average EBITDA multiple, the port’s valuation hits MYR 14.93 billion (USD 3.16 billion) soon.
• Land value at book value, without any revaluation (480 acres at MYR 200,000/acre) adds MYR 96 million (USD 20 million), totalling MYR 15 billion.

Key Assumptions

The projection assumes port completion by 2027, scaling to 7 million TEUs upon commencement, with a base TEU fees stable at USD 150 and a 40% margin from AI efficiencies. It also assumes no major delays or cost overruns beyond MYR 2 billion and sufficient regional trade growth to support capacity targets.

Conclusion

Tanco’s MYR 15 billion valuation depends on the port’s operational success, delivering MYR 14.93 billion, with property and pharmaceuticals covering the balance. The 7.5x multiple aligns with industry norms (global port operators: 8–12x), adjusted for execution risk. The Midports listing will clarify financials; until then, MYR 15 billion by 2035 is a data-driven target, assuming Tanco leverages its assets and market position effectively.

In other words, Tanco is trading at steep discount as compared to industry peers.

Disclaimer: This article provides a speculative valuation of Tanco Holdings Berhad based on publicly available data, industry benchmarks, and reasonable assumptions as of March 23, 2025. Projections, including the MYR 15 billion valuation, are subject to risks such as construction delays, cost overruns, market competition, and regulatory changes. Financial estimates are not endorsed by Tanco or its subsidiaries, and actual outcomes may differ materially. Readers should conduct independent research and consult financial advisors before making investment decisions.

$TANCO / 2429 (TANCO HOLDINGS BERHAD)

Actionable Trading Insights – Tanco Holdings Berhad (2429)​​

Tanco Holdings Berhad (2429) had delivered a staggering 232.2% YTD return to investors, a significant outperformance as compared to the benchmark FBMKLCI. Tanco Holdings had successfully breached our key resistance levels of RM1.80 and RM1.95 respectively, and is now trending to the critical resistance level of RM2.00. We still see strong buying interest over the company, and we revised our latest target price to RM2.20 based on Fibonacci levels.

Remained “BUY” rating for Tanco Holdings.

$TANCO / 2429 (TANCO HOLDINGS BERHAD)

KUALA LUMPUR: Tanco Holdings Bhd’s unit Tanco Land Sdn Bhd  and Menteri Besar Negri Sembilan Incorporated (MBINS) have agreed to set up a joint venture company to develop a 574.73 hectare land area in Port Dickson into an industrial park to be known as the “Port Dickson Free Zone”.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Tanco Holdings Bhd, via subsidiary Midports Holdings Sdn Bhd, will develop Malaysia’s first smart artificial intelligence (AI) container port project.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Tanco Holdings Bhd's shares drew attention on Bursa Malaysia during the early session today, following the group's approval to develop and construct the smart artificial intelligence (AI) container port in Port Dickson, Negeri Sembilan.

Why did Tanco Holdings Berhad keep going up?

Tanco Holdings Berhad’s share price recently hit a high of RM1.370, and a big reason for this strong performance is the progress on their Smart Container Port project at Port Dickson. On 27 September 2024, Tanco’s subsidiary, Midports Holdings Sdn Bhd (MHSB), received the green light from Malaysia Marine Department (MMD) to move forward with the port development. This came after the department approved MHSB’s Marine Risk Assessment (MRA) Study, which is a key requirement for the project.

While MHSB still needs to follow certain rules and safety measures before operations can begin—including submitting their Standard Operating Procedures (SOPs) and Emergency Action Plans (EAPs) to the department—the project is now officially moving ahead. This approval is likely the main driver behind Tanco’s recent share price surge, as it signals solid progress on a major initiative that investors have been watching closely.

Can Tanco Holdings hit RM2.00 by the end of this year? How about the warrants with negative premium now?

$TANCO / 2429 (TANCO HOLDINGS BERHAD)

Malaysia’s Ports Breaking New Benchmarks Amidst Surging Demand

Malaysia's port industry is witnessing an unprecedented surge in demand, marked by record-breaking performances at Northport (M) Bhd and the Port of Tanjung Pelepas (PTP). These ports have set new standards in container and conventional cargo handling, reflecting the growing significance of Malaysia as a key player in global maritime trade.

Northport recently achieved its highest-ever monthly container throughput in July 2024, handling 354,548 TEUs, a remarkable feat that surpassed its previous record set in May 2024.

Similarly, its conventional cargo segment recorded an all-time high, handling 1.14 million FWTs, demonstrating the port’s resilience and adaptability in navigating global trade challenges. Contributing factors include an increase in ad-hoc vessel calls and the introduction of new shipping services, which have collectively boosted Northport’s performance.

PTP has also been making headlines, handling an unprecedented 1,115,181 TEUs in July 2024, marking its third consecutive month of managing over one million TEUs.

This achievement underscores PTP's status as a leading maritime and transshipment hub, effectively managing substantial cargo volumes without experiencing congestion, a challenge that has plagued many other ports globally. PTP’s commitment to upgrading port assets and infrastructure has positioned it as a crucial link in global supply chains.

Tanco Holdings Berhad: The New Contender in Malaysia’s Port Industry

Amidst this thriving port landscape, Tanco Holdings Berhad is poised to emerge as a significant new contender with its proposed smart AI container port. The "Port of Tanco" represents a strategic and innovative entry into the highly competitive port industry.

This ambitious project will be supported by a vast 480-acre land bank owned by Tanco, eliminating the need for additional land acquisition costs—a crucial advantage in today’s competitive market. The port’s location is nothing short of strategic, situated midway along the Straits of Malacca, one of the busiest and most critical maritime routes in the world. This prime location positions the port not just as another terminal but as a vital node in global maritime trade, particularly benefiting from the heavy traffic along the Straits.

The Port of Tanco boasts a natural deep-water access with a depth of over 21 metres, capable of accommodating the largest container ships globally. This feature sets it apart from many existing ports and underscores its potential to handle high volumes of container traffic efficiently. The port’s proximity to the shoreline—just 1.8 km away—further enhances its logistical efficiency.

As Malaysia’s port industry continues to grow, driven by increasing global demand and strategic investments, Tanco Holdings Berhad’s Port of Tanco is set to play a pivotal role in shaping the future of the country’s maritime infrastructure. With its strategic location, advanced technology, and substantial landbank, the Port of Tanco is not just a new entry but a game-changer in the Malaysian port industry.

$TANCO / 2429 (TANCO HOLDINGS BERHAD)

Massive Trade Opportunity for this Company’s Warrant

Source: TradingView

To those who are unfamiliar with Tanco Holdings, the multi-billion company is a well-known property developer with strong backing in raw materials, which are held by the major shareholders of the company.

But that is not all. Tanco, had in March announced the potential “infrastructure listing” of their 79%-owned subsidiary, Midports Holdings on a 480-acre land bank owned by Tanco Holdings. This listing is expected by many to be over RM2.0 billion.

Riding on the news, Tanco share price had risen significantly on a Year-to-Date basis. However, the warrant for Tanco, TANCO-WC still represents close to 10% in discount as the time of writing!

This would mean that – if you buy TANCO-WC today at 63.0 sen, and add on conversion value of 31.0 sen, the total cost of owning a Tanco common share is at 94.0 sen.

Meanwhile, Tanco is trading at over RM1 consistently, presenting an arbitrage opportunity for keen investors! This is exactly what we call risk-free trade.

If you are fresh to the market, this is a massive trading opportunity waiting to be utilised. Don’t miss this chance for the trade!

$TANCO / 2429 (TANCO HOLDINGS BERHAD)

Additional Listing Announcement /Subdivision of Shares

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - DATO' SRI ANDREW TAN JUN SUAN

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - DATO' SRI ANDREW TAN JUN SUAN

Additional Listing Announcement /Subdivision of Shares

Additional Listing Announcement /Subdivision of Shares

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSTANCO HOLDINGS BERHAD ("TANCO" OR THE "COMPANY")

DEED OF SETTLEMENT BETWEEN PALM SPRINGS DEVELOPMENT SDN BHD AND 5T3M EDUPARK SDN BHD ("DEED OF SETTLEMENT")

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - DATO' SRI ANDREW TAN JUN SUAN

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - DATO' SRI ANDREW TAN JUN SUAN

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - DATO' SRI ANDREW TAN JUN SUAN

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - DATO' SRI ANDREW TAN JUN SUAN

Additional Listing Announcement /Subdivision of Shares

$TANCO / 2429 (TANCO HOLDINGS BERHAD)

KUALA LUMPUR: Tanco Holdings Bhd's 79%-owned subsidiary Midports Holdings Sdn Bhd has inked a memorandum of understanding (MoU) with CCCC Dredging Co Ltd (CDC) for the development of Malaysia’s First Smart AI Container Port in Port Dickson, Negeri Sembilan.

KUALA LUMPUR: Tanco Holdings Bhd's 79%-owned subsidiary Midports Holdings Sdn Bhd has inked a memorandum of understanding (MoU) with CCCC Dredging Co Ltd (CDC) for the development of Malaysia’s First Smart AI Container Port in Port Dickson, Negeri Sembilan.

MEMORANDUM OF UNDERSTANDINGTANCO HOLDINGS BERHAD ("TANCO" OR THE "COMPANY")

MEMORANDUM OF UNDERSTANDING BETWEEN MIDPORTS HOLDINGS SDN. BHD. AND CCCC DREDGING GROUP CO., LTD. ("MOU")

Additional Listing Announcement /Subdivision of Shares

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

Additional Listing Announcement /Subdivision of Shares