International multimodal freight service provider Freight Management Holdings Bhd (FMH) is targeting a double-digit growth in net profit for the financial year ending June 30, 2007. This is due to its new barge business and consistent contribution from its sea freight business.. The company had in February acquired a 51% stake in Singapore-based TCH Marine Pte Ltd, paving the way for it to enter the barge and tugboat business. TCH is a provider of barge and tugboats, servicing the freighting of bulk raw materials between southern Thailand, Peninsular Malaysia and Singapore. “We are targeting a 8%-10% contribution from TCH to our pre-tax profit for the financial year ending June 30, 2007,” said Freight Management managing director Chew Chong Keat at the launch of TCH’s newest barge in Batam yesterday. Chew said Freight Management was expecting TCH’s earnings contribution to its consolidated group performance to be more significant beyond its current financial year.
With the addition of the newly launched 240-foot barge, which cost some S$1.2mil, TCH now has five barges. “Our focus for now is yield management. We will try and ensure that every barge which leaves for its destination will have a full or almost full load,” Chew said. “TCH offers exciting prospects for the group. There is vast potential for us to cross-sell its services to our wide customer base. “Further, as all our barges are capable of being converted to carry containers, we aim to expand our reach to develop a container feeder service between southern Thailand, Penang and Port Klang,” he added. For the financial year ended June 30, Freight Management achieved a consolidated group revenue and pre-tax profit of RM160.8mil and RM11.1mil respectively, an increase of 13.8% and 25.4% from the previous year, on a proforma basis.