KUALA LUMPUR: Tri-Mode System (M) Bhd, enroute to be listed on the ACE Market on May 11, has set optimistic revenue expectation this year thanks to robust Malaysia’s export market.
The company registered 19.74 per cent in revenue growth to RM85.5 million in its financial year ended December 2017 from RM71.4 million in the preceding year.
Group managing director Datuk Hew Han Seng said government-driven initiatives towards trade, continued development in the manufacturing sector as well as the country's strong economic growth will provide growth opportunities for the industry and the company.
Tri-Mode is principally engaged in the provision of sea and air freight services, container haulage services, warehousing services and marine insurance services primarily at the major transportation gateways.
"It is good that Malaysia is an export-oriented country. Statistics also show that the trade is expected to stay robust. We believe it is a good timing to list on the Ace Market this year to maintain our growth pace,” he said at the launch of the company’s prospectus here today.
“We also believe we are on the right track and moving in the right direction to achieve our internal target of revenue growth, which we hope should be better than last year,” he added.
Should it maintain its revenue growth pace this year, the company will breach its RM100 million revenue mark for the first time.
As the company looks to further ride on the positive export growth outlook, Hew aims to raise RM26.6 million from the listing to fund its four-pronged growth strategies.
Hew said as part of its plan to gain higher market share in the logistics industry, 58.8 per cent of the listing proceeds will be earmarked for the construction of a headquarter and distribution hub as well as purchase of prime movers and trailers.
The remaining 41.2 per cent of the proceeds will be allocated for working capital, repayment of bank borrowings and listing expenses.
Hew said it also plans to venture into e-commerce logistics market in the country with the expected launch of its e-commerce platform in the third quarter of this year.
This will be a new revenue driver starting this year.
He added that the company aims to put more focus on air freight business which currently contributes less than 10 per cent to its revenue but offers higher profit margin.