KUALA LUMPUR (April 20): Tasco Bhd rose as much as 32 sen or 8.25 % to RM4.20 after Insider Asia said it remained sanguine on the logistic solution provider’s outlook and good track record.
Tasco (fundamental: 1.8; valuation: 1.4)’s share price had climbed slowly from a low of RM3.90 to RM4.20 at 10.51am, with a 141,700 units changed hand.
The stock had been recommended by Insider Asia in December and saw its share gained 45.8% at last Friday’s close of RM3.88.
Insider Asia said that the company was focusing on growing its business segment going forward.
It intends to expand warehousing capacity, currently at around 2.2million square feet including the new warehouse in Tanjung Pelepas, targeting multi-national corporations (MNCs) and local companies using Malaysia as the regional hub. Additionally, the company is also exploring merge and acquisition options in the last-mile delivery segment to complement existing operations, Insider Asia said.
“It has a pretty good track record. Net margin have remained fairly stable, between 5.5-7.5% over the past five year with return of equity (ROE) ranging between 11% and 15%. Gearing is negligible at less than 1%,” It said.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)