Bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.

Wednesday, February 27, 2013

~ tAscO Q4FY12 ~

TASCO .. the traditional strong 4th quarter for Tasco did not happen this time. 

  1. Q4 revenue had dropped around 8% and to make it even worst is the net profit had dropped 44% y-o-y due to higher general & administrative expanses and tax expense. This caused the profit margin reduced to 7.74% from 12.3%.
  2. For full financial year 2012, it records an EPS of 28.89 cents, dropped from 34.59 cents in previous year due to lower revenue and higher general expenses & tax expenses. 
  3. Higher tax expanses due to expiry of the tax incentive scheme enjoyed in previous years for one of its business segment which equivalent to additional around RM3.7M being paid as tax. 
  4. PE increases to 7 based on today price of RM2.02 due to lower EPS. It's should be considered valued for a market capital of RM200m. 
  5. ROE for FY12 is 11.3 , down from 14.3 last year. 
  6. Full year dividend is 5.34 cents(interim) and 6.67cents (final) compare with 12.9 cents last year. 
  7. Cash balance remained strong with around RM50m cash and FD in hands (RM0.5 cash per share) with borrowings of RM32m at which RM19m of it is long term bank loan. 
  8. Current ratio remained strong at 2.37.
  9. Retained profits are increasing as well as its NTA. There is mathematical chances to issue bonus share to increase share liquidity. 
In terms of segmental revenue and PBT, 
Tasco's business is still driven by it's contract logistics division, contributed around 81% of its overall net profit. This poorer quarter is actually caused by its lower revenue for its international business solutions and lower profit margin of its trucking division. In terms of profit margin, its international business solution segment is really bad, perhaps it's more prone to effect of raising oil price, poor imports exports trade,currency exchange, high operation costs and others. 

In the prospects column of the quarter report, it mentioned FY13 will be a challenging year  due to uncertain global economic which affected the manufacturing and international trade and eventually affected its logistic business. Else where, it also mentioned the group will continue to excel particularly in its contract logistics division, which is good as it provides the biggest contribution to its revenue and drives more strict cost control to pare down the operation costs. Furthermore, there is rumour Tasco will form a merger with other logistics parties to improve its competitive edge. 

I will sideline myself in invest in Tasco until a clearer picture is to be seen since I'm working in a manufacturing site which the business is not good currently. 

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