PETALING JAYA: Freight Management Holdings Bhd (FMH) is eyeing a bigger contribution from its overseas markets, especially in countries that have large populations, to boost its income moving forward.
“This way, if the world economy shows growth, it would be good for us. We have offices in (populous) countries that are key markets for us such as Indonesia, Vietnam, Thailand and the Philippines, ” says FMH’s group managing director Chew Chong Keat. (pic)
“Malaysia still forms a bulk of our business and we are still growing here. But we would like to be an international or regional player. We think this is our strength, ” he added.
A bigger population count would mean higher import and export trade activities within a particular country which would help the freight service provider in its business.
Hence, Chew told StarBiz that the group saw huge potential in key regional markets such as Vietnam, which has attracted a lot of foreign direct investments and Thailand, where the population is twice the size of that in Malaysia.
The company currently derives about 25% of its total revenue and profit from overseas operations, Chew said.
FMH recently announced its results for the third quarter of financial year ending June 30,2021 (FY21), which saw its net profit rising three-fold year-on-year to RM6.05mil and revenue growing to RM215.79mil from RM136.97mil in the corresponding quarter last year.
Chew said FY21 was anticipated to be a year of recovery for FMH, noting that it is well-positioned to benefit from the expected growth in global trade volume.
“In the last couple of years, we were impacted by some loss-making associate companies, but we have come out of this, as we have disposed of them. This has helped contribute to our robust performance for the nine months of FY21, ” Chew said.
“We are optimistic that our strong performance will continue in the fourth quarter of FY21 and beyond, ” he added.
In the first nine months of FY21, the company saw its net profit grow to RM18.45mil from RM10.93mil in the previous corresponding period, with earnings per share rising to 6.61 sen from 3.92 sen.
Chew said the company aims to continue growing at a sustainable rate and also notes that the growth it had achieved so far would put it on a higher base.
“We have not put specific growth targets but we would like to attain consistent growth over time.
“We are considered part of an essential business as the supply chain needs to continue functioning and we are not adversely affected by the ongoing Covid-19 pandemic, ” explained Chew.
FMH recently also signed a joint venture agreement with CN Investment Ltd to establish a joint-venture company, CN FM Logistics (Malaysia) Sdn Bhd.
Commenting on the partnership, Chew said FMH has been working with CN for a long time and the agreement marked a deeper collaboration between the two
“CN is a Hong Kong based company and they are our agent and vice versa. They would like to expand their operations in Malaysia and find that we would benefit with this partnership. Their main business is logistics for high-end fashion, ” he said.
“For us, FMH also does fashion logistics under our air freight segment.
“So this JV is a natural fit in a sense, since we already have the existing facilities. We look to grow this, both on logistics (distribution to the retailer) and e-commerce in the future, ” Chew added.