SHAH ALAM (Nov 29): Freight Management Holdings Bhd, which posted a 5.8% year-on-year rise in net profit for the financial year ended June 30, 2017 (FY17), expects to perform better in FY18 on higher volume of freight handled.

Its managing director Chew Chong Keat said the multimodal freight and total logistics services provider is eyeing a 10% growth in net profit and volume in FY18, on the back of improving growth in global trade and increasing manufacturing activities in the country.

On the international front, it sees substantial growth from the Philippines, Indonesia and Vietnam markets.

"As global trade improves, it would be reflected in the demand from our customers who do the importing and exporting. So if their business improve, then there is a chance for us to also tap into the growth," he told reporters after the group's annual general meeting here today.

Freight Management's net profit rose to RM21.03 million in FY17 from RM19.87 million in FY16, while revenue increased 11.5% to RM461.3 million from RM413.77 million the previous year. It handled 113,200 TEUs (20-foot equivalent units) of containers in FY17.

Chew is confident there are still opportunities to grow within the freight segment because of the sheer volume of logistic needs that goes through Port Klang. Pointing to the group's volume of freight handled, Chew said more than 13 million TEUs pass through Port Klang per year.

"There is no such thing as saturation in the market where there are no more avenues to grow. There will always be customers who are looking for improvements in service. We just have to take advantage of our strength to gain market share," he said.

He noted that the sea freight segment will remain the core business of the group. "We have always been very strong in our sea freight segment, so it's only natural that we try to keep on building and growing this particular segment."

On the group's e-commerce segment under 65%-owned FM Hubwire Sdn Bhd, Chew said although there is opportunity to grow, but the loss-making segment remains a challenge as it is a relatively new space that the group is venturing in.

"We started this about a year already, but honestly the business has not really gained traction. We are exploring ways and means for us to boost this business. Although it may take a while, if we don't get involved now it will be too late for later. It is a challenge now, but we have the resources [to sustain it]," he said, hoping to see some traction gained next year and for the segment to become profitable by 2019.

At 2.26pm, Freight Management shares were traded down one sen or 0.83% at RM1.20, with 4,900 shares done, bringing a market capitalisation of RM223.38 million.